Suzlon Energy Ltd Q1 FY27 Earnings Analysis

- Industry wind installations expected to grow from 6 GW in FY '26 to 8 GW in FY '27 and 10 GW in FY '28, targeting 15 GW by FY '30/'31. - Suzlon's deliveries grew 58% to 2,456 MW in FY '26; good execution momentum expected to continue with increasing installations. - Revenue growth robust: FY '26 consolidated revenue at INR16,679 crores, up 54% Y-o-Y, with WTG segment revenues up 65% to INR14,040 crores. - EBITDA increased 63% to INR3,022 crores with margin expansion to 18.1%. - Order book remains strong (~6 GW) with positive outlook on converting development pipelines (~22-23 GW identified, 8 GW in active development). - Expansion driven by EPC contracts, with expected acceleration starting Q2 FY '27. - Growth expected from domestic demand, exports (notably Europe), and new product launches (Blue Sky platform). - Capex run rate expected around INR600 crores ±50 crores over the next 3-4 years to support growth.

- Suzlon achieved 63% growth in EBITDA and 67% growth in profit before tax in FY '26, demonstrating strong operating leverage. - WTG segment revenue grew 65% with a contribution margin of 24.5%, reflecting improving profitability. - EBITDA margin expanded by 100 basis points to 18.1% in FY '26 and is expected to improve further with positive operating leverage. - The company foresees continued strong revenue growth driven by expanding capacity and improved execution momentum. - Suzlon projects the wind industry market to grow from 6 GW in FY '26 to around 8 GW in FY '27, 10 GW in FY '28, and approximately 15 GW by FY '30/'31, providing a strong demand backdrop. - The order book and development pipeline are robust (~25 GW identified assets, with 8-10 GW at advanced stages), supporting sustained future earnings growth. - Pending installations and commissions (971 MW erected, 332 MW commissioned Q4 FY '26) indicate rising near-term revenues and profits. - Deferred tax asset recognition (~INR 742 Cr in FY '26) supports improved net profits. - Overall, positive trends in earnings, operating margins, and EPS are expected over the next 3-4 years.

- Suzlon expects a capex run rate of around INR600 crores +/- 50 crores annually going forward to expand capacity and meet demand. (Page 16) - Capital deployed for the Development Company (DevCo) model is currently around INR300-350 crores, with a threshold of INR300 crores kept as cash. This could increase as the model evolves and with connectivity-related investments. (Page 16) - Suzlon is actively working on developing Renewable Energy (RE) parks with connectivity that is transferable, in collaboration with the Government of India, which may require additional capital. (Page 16) - No immediate acquisitions are in the pipeline for solar and Battery Energy Storage Systems (BESS), but these are part of Suzlon's future agenda and they are considering asset-light versus investing strategies. (Page 14) - They have plans to enter the European market, which is considered a future revenue and bottom-line growth driver, but detailed strategy will be shared later. (Page 7)

- No explicit mention of new fundraising through debt or equity in the transcript. - J.P. Chalasani and Rahul Jain discussed capital deployed for the DevCo model, currently around INR 300-350 crores. - There is a plan to potentially increase non-fund-based facilities if they enter connectivity or as model develops. - Rahul Jain mentioned working capital needs may increase as they scale activities but did not specify new fundraising. - Overall, no direct indication of fresh debt or equity raising; focus is on managing working capital and existing cash reserves. - Future capital deployment will depend on project developments and evolving business needs.

- Suzlon's order backlog stands at approximately 5,892 megawatts, with no significant non-moving or slow-moving orders currently. - The company began the year with an order book of around 5 gigawatts and is closing at 5.9 gigawatts, showing steady order inflow. - A substantial portion of the order book is moving from equipment supply agreements (SAAs) towards more comprehensive EPC contracts, which take longer to close but indicate stronger future execution. - Suzlon has identified a development pipeline of about 22 to 23 gigawatts of sites, with 8 gigawatts actively under development and some projects transitioning into EPC contracts. - The company is actively converting land agreements into EPC contracts, expected to add further to the active development pipeline. - Approximately 25 gigawatts of assets are currently engaged across India, 8-10 gigawatts of which are "better baked," signaling a robust pipeline supporting growth.