First Read: Suzlon Energy "Q4FY26 - Operational performance remains stable"

研报英文原文证据摘录

First Read: Suzlon Energy "Q4FY26 - Operational performance remains stable"

did 03/28E 2.79 2.57 -8 2.28

not give explicit FY27 guidance on WTG deliveries/margins, growth is expected to follow

the industry trend with margins largely stable at current levels. c) Order inflows in Q4 Amit Mahawar

Analystappear muted, largely due to the transition towards EPC contracts (28% share in current

amit.mahawar@ubs.com

order book), which typically take longer to finalize; management expects order

+91-22-6155 6030

momentum to pick up from June onwards. d) Suzlon has ~2.1GW of development rights

in Andhra Pradesh which is extended by two years; of this, 775MW is PPA-linked and Akshay Gattani

Analystexpected to be executed under the FDRE model with full-stack delivery for onward sale

akshay-kumar.gattani@ubs.com

to customers, while the remaining ~1.3GW remains untied and forms part of the EPC +91-22-6155 6044

pipeline, with conversions likely to start from June. e) Working capital is pressured by

delayed payments led by PSU contracts and is likely to improve going ahead. Harshita Surana

Associate Analyst

harshita.surana@ubs.com

Valuation: Operational momentum sustains, retain BUY +91-22-6155 6066

Suzlon remains well placed to benefit from industry tailwinds, supported by steady

execution; however, execution discipline amid industry-wide RoW/evacuation

constraints and cash conversion remains a key monitorable. We lower our target

multiple to 28x (vs. 33x earlier, in-line with renewable peers), and trim FY27/28e

earnings by 11%/8% factoring in slightly lower realizations, rationalized O&M margins,

and higher finance costs and depreciation. This along with a roll-forward to FY28E,

yields a revised PT of Rs72 (vs. Rs78 earlier); maintain BUY.