Suzlon Energy Q1 FY27 Results (NSE: SUZLON)
Signal: Margin pressure
The read
Q1FY27 marked a deceleration in margin momentum after several quarters of expansion — EBITDA margin at 15.6% vs 19.2% a year ago, with management citing temporary logistics disruption (geopolitical), strategic investments, and segment/scope mix. The underlying execution remains strong (record Q1 deliveries 506 MW, +14% YoY; commissioning 2.3x YoY; order book at ~6.1 GW), so the margin dip appears transient. PAT declined 6% YoY — first YoY PAT decline in 6 quarters — but was supported by no exceptional items in the base quarter vs ₹70 Cr gain in Q4 FY26.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹3,819.36 Cr | 22.5% | -30.1% |
| EBIT | ₹628.69 Cr | -13.5% | |
| Net profit | ₹305.22 Cr | -5.9% | |
| EPS | ₹0.22 | -8.3% | |
| EBIT margin | 15.6% |
P&L walk
Revenue grew 23% YoY on healthy execution (506 MW deliveries, +14% YoY), but EBITDA margin contracted 360bps to 15.6% due to temporary logistics disruption from geopolitical situation, strategic investments, change of scope and segment mix — RM cost % improved 200bps YoY but was offset by lower gross margin per MW and higher other expenses.
Segments
Renewable Energy Solutions segment revenue ₹3,174 Cr (83% of total) grew 27% YoY but segment result margin compressed to 8.3% from 13.6% YoY — indicative of mix shift toward larger EPC projects; RE Asset Management Services revenue grew 8% YoY with healthy 33.6% margin, a stable high-margin annuity stream.
Key positives
- Record Q1 deliveries of 506 MW, +14% YoY, with commissioning at 269 MW (2.3x YoY) — execution momentum strong.
- Revenue ₹3,819 Cr (+23% YoY) — 9th consecutive quarter of double-digit revenue growth.
- Order book at ~6.1 GW with 84% from PSU and C&I sectors; new order additions of ~1 GW in Q1, including two DevCo-led EPC orders from Tata Power (400 MW) and Waaree (201.6 MW).
- EPC share of orders increased from 22% to 32% YoY — strategic pivot to higher-value DevCo model gaining traction.
- S175 5 MW platform successfully launched with first order from Sunsure Energy; blade manufacturing capacity doubled at Jaisalmer to 1,260 MW.
Key concerns
- EBITDA margin compressed 360bps YoY to 15.6% — management attributes to temporary logistics disruption (geopolitical), strategic investments, and segment/scope mix — but marks first margin decline after 3 quarters of expansion.
- PAT declined 5.9% YoY to ₹305 Cr — first YoY PAT decline in 6 quarters — due to margin compression and higher depreciation (+50% YoY) and finance cost (+30% YoY).
- EPS declined 8.3% YoY, slightly worse than PAT decline due to ESOP dilution.
- SEBI imposed a ₹15.95 Cr penalty (disputed) — legal appeal filed; not material but adds overhang.
Research and educational content only. Not investment advice.