Suzlon shares jump 5% on strong order win and improved outlook

Suzlon Energy's shares rallied by 5% on Thursday, hitting the upper circuit at Rs 56.78 on the BSE.

This surge marks a positive reversal for the wind energy company after a 5-day losing streak, fueled by renewed investor optimism over Suzlon's strengthening position in the renewable energy market.

The rally in Suzlon's stock was primarily driven by the company's recent announcement of securing a major 1,166 MW wind energy order from NTPC Green Energy. The sizable contract has significantly bolstered Suzlon’s order book, which now stands at a record 5.1 GW. Market analysts see this as a key factor in improving Suzlon’s revenue visibility and stability, enhancing its growth prospects in the long run.

The company had faced a sharp 9 per cent drop in share value just a day earlier, triggered by market volatility, rising input costs, and competitive pressures in the wind turbine manufacturing sector. Additionally, the resignation of Ishwar Chand Mangal, CEO of new business at Suzlon, effective November 8, added to investor concerns. Mangal, who had been with the company for nearly 28 years, chose to step down to explore new opportunities, leading to some uncertainty in the market.

Despite the brief downturn, Suzlon's robust financial performance for the second quarter of FY25 helped restore investor confidence. The company reported a remarkable 96 per cent increase in net profit, reaching Rs 200 crore compared to Rs 102 crore in the same period last year.

Revenue from operations also jumped by 48 per cent, totalling Rs 2,093 crore for Q2 FY25. This growth was attributed to consistent improvements in EBITDA, which rose to Rs 294 crore during the quarter.

With a solid order pipeline and increasing demand for wind energy projects, Suzlon appears well-positioned for sustained growth. The latest contract win and strong quarterly results highlight the company’s resilience and its potential to capitalize on the growing shift towards renewable energy in India. Investors remain optimistic about Suzlon's long-term prospects, driven by its focus on expanding its footprint in the wind energy sector.