Why Suzlon's Share Price Has Been Sliding—and What Could Turn It Around

By finchetak.com – Date: August 18, 2025

Slide into the Red

Suzlon Energy has seen a notable pullback over the past few months. While the company once surged nearly 1,300% in three years, from a low of ₹6 to a high of ₹86, it has entered a phase of consolidation. The stock is down around 27% over the past year, with recent declines ranging between 4% to 11% within just four trading sessions .

This correction follows an impressive run, but also reflects growing investor fatigue and profit-booking after such stellar gains .

Key Reasons Behind the Fall

1. Disappointing Q1 Financials (FY26)

Suzlon reported a consolidated net profit of ₹324 crore, a 7% year-on-year rise—but still falling short of analyst estimates. A non-cash deferred tax charge of ₹134 crore weighed on earnings, even though deliveries and order book growth were strong .

2. Leadership Change Adds Uncertainty

The impending resignation of Group CFO Himanshu Mody, set for August 31, rattled investor confidence, even as management targets for FY26 execution remain intact .

3. Technical Weakness Signals Bearish Sentiment

The stock has slipped below all key moving averages (5-day to 200-day), and technical indicators like RSI and MACD reflect negative momentum and weak investor sentiment .

4. Market-Wide Pressures

Broader market dips, such as declines in the Sensex, have exacerbated Suzlon’s slide—reflecting macroeconomic headwinds rather than company-specific failures .

Signs of Strength Beneath the Surface

Robust Order Book & Record Deliveries

Despite Q1’s earnings miss, Suzlon delivered a record 444 MW and added 1 GW to its order book, now totaling approximately 5.7 GW. The company maintains its guidance of 60% growth in deliveries, revenue, and EBITDA for FY26 .

Bullish Analyst Sentiment

Several brokerages remain optimistic:

Motilal Oswal maintains a ‘Buy’ rating with a target of ₹80, citing strong execution and earnings momentum .

UBS and JM Financial have reiterated their positive outlook—JM Financial highlighting commercial and industrial demand in wind power as a growth driver .

Axis Securities expects the stock to reach ₹72 in 3–6 months, pointing to strong revenue visibility .

Long-Term Growth Potential

Suzlon remains well-positioned to benefit from India’s growing renewable energy demand, particularly wind. Government policies favor domestic OEMs with increasing local sourcing requirements—where Suzlon, holding ~40% market share, stands to gain .

Recent Rebound Signs

After the sharp correction, the stock has rebounded ~19% in the last three months on the back of improved results and strong order inflows, though it still faces short-term consolidation .

Outlook: Can Suzlon Get Back on Track?

Short-Term (Next 1–3 Months) Long-Term (FY26 and Beyond)

Expect continued volatility around Q1 backlog, tax charge, and leadership changes. Support near ₹60–₹57 levels. Technical rebound might follow once markets absorb earnings news. Strong fundamentals with healthy order books, governmental tailwinds, and execution momentum could propel the stock toward ₹72–₹80. Successful execution remains key.

Near-term pain likely, yet trading opportunities exist for strategic buyers at dips. If government policies stay supportive and global renewables demand remains strong, the 52-week high (~₹86) may come back into focus.

Conclusion

Suzlon’s recent downfall stems largely from a disappointing Q1 profit impacted by a deferred tax charge, a key CFO’s exit, and broad market softness. Even as investor confidence has cooled, the company’s operational execution remains strong, underpinned by robust deliveries, a healthy order book, and favorable macroeconomic tailwinds.

A technical correction was perhaps inevitable after a euphoric rally—but the next phase may reward patience. If Suzlon continues its execution momentum and market sentiment improves, analysts’ price targets of ₹72–₹80 could well materialize in the coming months.