Suzlon Energy hits 5% upper circuit on Morgan Stanley upgrade and strong Q2 earnings

Suzlon Energy's shares surged 5 per cent to hit the upper circuit at Rs 62.37 in Tuesday’s session following an upgrade from Morgan Stanley. The global brokerage revised the stock rating to 'Overweight' from 'Equal-weight,' citing a buying opportunity after the recent correction. The target price was adjusted to Rs 71, down from Rs 78 earlier.  

Morgan Stanley highlighted Suzlon's robust business moat and its position as a key player in India's energy transition. The company’s strong order backlog of 5.1 GW, valued at Rs 20,000 crore, is expected to be executed over the next two years. The brokerage projects Suzlon’s market share in the wind energy segment to rise to 35-40 per cent by FY27, supported by a significant pipeline of 32 GW of wind energy orders estimated between FY25 and FY30.  

The positive sentiment was further fueled by Suzlon’s stellar Q2 FY25 results. The company reported a consolidated net profit of Rs 201 crore, marking a sharp 96 per cent increase from Rs 102 crore in Q2 FY24. Revenue from operations also rose 48 per cent YoY to Rs 2,093 crore, while EBITDA grew 31 per cent to Rs 294 crore. However, the EBITDA margin dipped to 14.1 per cent from 15.9 per cent a year ago.  

Year-to-date, Suzlon’s stock has rallied 62 per cent and has delivered multibagger returns of 670 per cent over the last two years. The company’s market capitalization now stands at Rs 85,111 crore.  

Analysts attribute Suzlon’s strong performance to its selective order strategy and reduced competitive intensity in the wind energy sector. With India’s accelerating energy transition, the company remains well-positioned for growth.  

At 10:23 AM, Suzlon's shares were trading 4.9 per cent higher at Rs 62.30 on the BSE. The recent developments signal sustained investor confidence in the stock's long-term potential.