Suzlon Energy reported a record-breaking Q3 FY26, delivering 617 MW, the highest quarterly delivery since inception. Management strongly reiterated the 60% YoY growth guidance for FY26 across key KPIs, maintaining confidence despite execution challenges. The order book remains robust at 6.4 GW, supported by a 1.9x book-to-bill ratio, with a strong focus shifting toward expanding EPC share through the new DevCo vertical.
Q3 FY26 Performance Highlights
Suzlon Energy Limited announced its Q3 FY26 results, highlighted by record operational performance. The company delivered a record 617 MW in the quarter, marking the highest quarterly delivery in India since the company’s inception. This strong execution momentum powered significant financial uptrends.
Key financial results for Q3 FY26 include:
- Revenue: INR 4,228 crores.
- EBITDA: Reached INR 739 crores, showing a robust 48% YoY growth.
- Profit After Tax (PAT): Stood at INR 445 crores.
Over the first nine months of FY26, deliveries grew 66% to 1,625 MW, surpassing the full FY25 level. Consolidated EBITDA increased to INR 2,058 crores, reflecting a 77% YoY growth, alongside strong PBT and PAT improvements. The consolidated balance sheet showed exceptional strength, with a net worth of INR 8,332 crores and a net cash position of INR 1,556 crores.
Order Book and Market Outlook
The company reaffirmed its market leadership with the highest-ever order book of 6.4 GW, fueled by over 3 GW of new order wins this financial year, leading to a 1.9x book-to-bill ratio. The S144 turbine platform order book alone exceeded 5.4 GW, validating its technology.
Management noted that the focus is shifting towards expanding the EPC offering, which grew from 20% to 27% in Q3, enhancing competitiveness. Furthermore, the company is actively exploring export opportunities, especially in Europe, following leadership strengthening and ongoing trade deal finalization.
Addressing Operational Challenges
Management addressed concerns regarding execution speed, noting that while 617 MW was the highest delivery, it lagged behind internal expectations due to persistent offtake challenges across the sector. This issue stems from projects requiring land acquisition, Right-of-Way (ROW) clearance, and grid connectivity, often leading to delays in project readiness for turbine dispatch. The company highlighted that 253 MW of turbines were pre-commissioned but awaiting grid connection during the quarter.
To counter these site readiness hurdles, Suzlon is consciously moving toward its development route. The newly established DevCo vertical is intended to secure land and necessary approvals for sites 3, 4, and 5 years out, ensuring faster execution when projects enter the execution phase, thereby reducing customer IDC and improving working capital flow.
Guidance Reiteration and Future Strategy
CEO Mr. J.P. Chalasani expressed high confidence in achieving the annual targets. He stated clearly that the 60% guidance remains fully online, emphasizing that order intake is not the issue; execution improvement is key. The company expects significant jumps in execution volume, particularly in Q4.
Regarding the new 5 MW turbine platform, management confirmed it is entering the proto stage. They noted that the immediate focus remains on scaling the high-demand 3.15 MW and the newly introduced 3.3 MW turbines, as land acquisition complexities favor smaller footprints currently.
Deferred Tax Assets (DTA) Discussion
CFO Mr. Rahul Jain clarified the treatment of accumulated losses and DTA. While the effective tax rate will trend toward 25% as losses are utilized, the company currently has over INR 1,100 crores in recognized DTA assets sitting in the bank, with cumulative carry-forward losses still exceeding INR 8,000 crores. Management reassured investors that while DTA impacts net profit presentation, the underlying cash position remains robust and manageable.
Technology and O&M Update
In response to questions about AI adoption, management indicated that the entire Operations Management Services (OMS) system is being digitized. AI will drive predictive and preventive maintenance, aiming to improve machine availability from the current 96.1% toward 98%, thereby reducing operational costs and boosting already healthy margins.
Source: BSE
