Suzlon Energy FY26 Results (NSE: SUZLON)
Signal: Growth reaccelerated
The read
FY26 marks a decisive scale-up: revenue crossed ₹16,600 Cr (+53.7%), operating profit grew faster than revenue, and all three segments contributed higher profits. Gross margin improved ~150bps on favourable raw material costs, and operating leverage from fixed costs added ~90bps to EBITDA margin (net of higher finance costs). The balance sheet turned net cash (standalone) and net cash at consolidated level, despite aggressive working capital investment. Exceptional gains of ₹70 Cr in Q4 (customer settlement) were minor; core operations drove PAT growth. Key concern: receivable days rose from 130 to 137 days — working capital intensity remains high.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹16,679.11 Cr | 53.70% | 29.30% |
| EBIT | ₹2,351.72 Cr | 62.57% | |
| Net profit | ₹3,163.39 Cr | 52.70% | |
| EPS | ₹2.31 | 51.97% | |
| EBIT margin | 14.10% |
P&L walk
FY26 revenue surged 53.7% YoY to ₹16,679 Cr driven by 65.5% growth in WTG segment revenue (₹14,040 Cr); O&M revenue grew 11.8% to ₹2,484 Cr. Gross margin improved ~150bps to ~35.2% as raw material cost % of revenue fell from 66.3% to 64.8% (input-cost tailwind). Employee cost % dropped 60bps to 6.6% — operating leverage from fixed/semi-fixed cost base. EBITDA margin expanded 20bps to 14.1% (FY25: 13.9%) — growth gap: EBITDA grew 62.6% vs revenue 53.7% (+8.9pp gap). Finance cost jumped 81.4% to ₹462 Cr (reflecting higher borrowings for working capital), but was more than offset by operating profit growth. PAT grew 52.7% to ₹3,163 Cr; EPS ₹2.31 (+51.9%) aligned. Exceptional gains of ₹70 Cr in Q4 improved full-year PAT; excluding these, operational PAT still robust.
Segments
WTG segment is the growth engine: revenue +65.5% to ₹14,040 Cr (84% of total) and segment result +128.5% to ₹1,854 Cr; O&M service grew 11.8% revenue but segment result only +1.8% to ₹759 Cr (likely due to higher warranty costs); Foundry & Forging revenue +21.9% to ₹596 Cr, segment result +149.5% to ₹86 Cr — operational turnaround from low base.
Key positives
- Revenue growth accelerating: 53.7% YoY, 3-year CAGR 45.24%.
- All three segments delivered higher profits; WTG segment result nearly doubled (+128.5%).
- Balance sheet net cash (standalone) & near net cash (consolidated); net debt/equity ~0.01x.
Key concerns
- Finance cost jumped 81.4% to ₹462 Cr — working capital borrowing to fund revenue growth.
- Trade receivable days increased from 130 to 137 days — collection cycle lengthening.
- Q4 standalone PAT inflated by ₹1,178 Cr exceptional gains (intra-group eliminations at consolidated level distort standalone view).
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