Share Price of Suzlon Energy Boosted by 91% Surge in Profits and Robust Business Expansion in Q3

Market Performance

Shares of Suzlon Energy surged 5% in early trade on January 29, hitting their upper circuit limit after the company reported a strong performance in its Q3 FY25 results. Suzlon Energy Shares were up by 5% at 9:15 AM, trading at ₹52.77 on BSE. The company's robust earnings growth drove the positive market sentiment, reflecting its strong operational efficiency and business expansion.

Q3 Earnings: Strong Revenue and Profit Growth

In Q3 FY25, Suzlon Energy's consolidated net profit was ₹387 crore, a massive 91% increase from the ₹203 crore net profit recorded in the same quarter of the previous financial year.

Revenue from operations also saw significant growth, reaching ₹ 2,969 crore in Q3 FY25. This marks a 91% year-on-year (YoY) increase from Rs 1,553 crore in Q3 FY24. The remarkable growth in revenue and profit indicates the company's improving financial health and ability.

Robust Business Expansion and Order Book

Suzlon Energy achieved record quarterly deliveries of 447 MW during the quarter. This was mainly driven by the company's increased production capacity, which has ramped up to 4.5 GW. The wind turbine generator segment showed substantial improvement.

Additionally, the company secured a robust order inflow of approximately 800 GW, leading to an all-time high order book of 5.5 GW. This robust pipeline provides revenue visibility for the upcoming quarters, though it is subject to change as deals may still be cancelled, impacting long-term growth prospects.

Operational Challenges and Future Plans

Despite the strong performance, Suzlon Energy faced challenges in overall installations, with 241 MW installed in the first nine months of FY25, compared to 618 MW in the same period of FY24.However, the company is prioritizing the expansion of its execution capabilities to accommodate new orders and enhance installation efficiency.

Suzlon Energy has announced plans to invest ₹ 350-400 crore in capital expenditures to support future growth and establish new blade manufacturing lines in Madhya Pradesh and Rajasthan.

Summary

Suzlon Energy reported a remarkable 91% surge in net profit and revenue, driving a 5% increase in its share price. Strong order book, record deliveries, and capacity expansion plans underscore its long-term growth potential in the renewable energy sector. Despite operational challenges, strategic investments and execution improvements position the company for sustained growth.