Suzlon Energy Shares Continue Bullish Run, Gain 8% Over Three Sessions
Suzlon Energy shares maintained their upward trajectory for the third consecutive session on Wednesday, February 4, climbing an additional 2% to reach a three-week peak of ₹50. This surge is primarily attributed to optimistic market expectations surrounding the company's upcoming third-quarter results, scheduled for release later this week.
Market Performance Amid Broader Indices Rangebound
The renewable energy stock's gains were particularly notable as the broader Indian stock market exhibited a rangebound movement. This followed a significant rally on Tuesday, which was fueled by optimism regarding a potential US-India trade deal. Despite the overall market consolidation, Suzlon Energy managed to secure positive momentum, highlighting investor confidence in its near-term prospects.
Cumulative Gains and February Performance
The three-day bullish streak has resulted in a cumulative increase of 8% in Suzlon Energy's share price. Furthermore, this rally has contributed to a 3.2% rise in the stock's value for the month of February so far. The company is set to announce its December-quarter and nine-month results for the period ending December 31, 2025, on Thursday, February 5. Market participants are expected to closely monitor key metrics such as order inflows, installations, and delivery schedules.
Analyst Insights and Technical Outlook
Darshan Rathod, Chief Operating Officer at Multyfi, commented on the stock's performance, stating, "Suzlon Energy is entering this results season on a relatively strong footing. The stock's technical structure remains constructive, with prices holding above key long-term averages despite recent consolidation. This suggests the broader uptrend is still intact."
He further emphasized that the power and renewable energy sector continues to demonstrate robust performance, supported by several factors:
- Strong policy focus from the government
- Increasing capacity additions across the industry
- Improving visibility in order pipelines
Fundamental Improvements and Future Focus
On the fundamental front, Suzlon has exhibited steady progress in recent quarters, with enhancements in revenues, margins, and balance-sheet strength. Rathod added, "The market will now focus on execution consistency, order inflows, and cash-flow stability. If the company sustains its current operating performance, it should reinforce confidence that the turnaround is durable, keeping the medium-term outlook positive."
Management Confidence and Strategic Initiatives
During a manufacturing day event in December, the company's management reiterated confidence in a robust order book and a healthy outlook for order inflows. They highlighted that equipment is yet to be awarded for approximately 18 GW of under-development capacity. Additionally, Suzlon outlined several strategic initiatives:
- Readiness to explore export markets
- A capital expenditure plan of ₹5–5.5 billion per annum over the next three years
- Addition of three new blade manufacturing plants
Recent Volatility and Brokerage Perspectives
Despite the recent gains, Suzlon Energy shares have faced pressure over the past three months, ending with a cumulative decline of 20%. This downturn was influenced by short-term challenges, including rising competition within the sector. The stock concluded CY25 with a drop of 15.35%, marking its first annual decline in five years.
However, domestic brokerage firm Motilal Oswal has maintained a 'Buy' rating on Suzlon Energy, with a target price of ₹74 per share. The brokerage noted that with a current order book of 6.5 GW, the company has full coverage of its estimated wind turbine generator deliveries for the second half of FY26 and FY27, at 1.5 GW and 3.4 GW, respectively. It also has 38% visibility for its estimated 4 GW deliveries in FY28.
Motilal Oswal also highlighted Suzlon's strategy to increase its Engineering, Procurement, and Construction share to 50% of the order book, viewing this as a significant competitive advantage.
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