Suzlon Energy Q1FY27- Margins under pressure; underlying momentum remains healthy

研报英文原文证据摘录

Suzlon Energy Q1FY27- Margins under pressure; underlying momentum remains healthy

eries expected to commence this year and

international market ramp-up anticipated over the next 18-24 months. b) Management Amit Mahawar

Analystexpects FY27 EBITDA margins to remain around FY26 levels, though strategic

amit.mahawar@ubs.com

investments could have a 100-200 bps impact, with margins expected to improve in H2

+91-22-6155 6030

as operating leverage strengthens. c) DevCo EPC orders carry similar commercial terms

and advance payment structures as regular EPC contracts, while benefiting from pre- Akshay Gattani

Analystsecured land and grid connectivity, enabling faster execution and potentially better

akshay-kumar.gattani@ubs.com

margins. d) Management sees repowering as a significant growth opportunity (~25 GW +91-22-6155 6044

potential in India) and expects to secure its first domestic repowering order by FY27-end,

with additional opportunities in markets such as Australia and Europe. Harshita Surana

Associate Analyst

harshita.surana@ubs.com

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

While Q1 was impacted by logistical disruptions and strategic investments, Suzlon’s EPC

foray could lead to some near term nervousness. However, the broader growth outlook

remains healthy. We continue to view execution, order book momentum, and cash flow

conversion as key monitorables. We trim FY27/28/29e earnings by 9%/8/8% on lower

WTG margin assumptions. This yields a revised PT of Rs66 (vs. Rs72 earlier); maintain

BUY.

Highlights (Rsm) 03/23 03/24 03/25 03/26E 03/27E 03/28E 03/29E 03/30E

Revenues 59,705 65,291 108,897 167,318 211,227 285,243 335,915 395,555

EBIT (UBS) 5,722 8,393 15,980 27,039 31,704 44,494 53,097 61,861