Shares of Suzlon Energy, a perennial favorite among India's retail investors, are facing significant headwinds in 2025, breaking a multi-year winning streak. The stock is on course to record its first annual decline since 2019, reflecting a broader shift in market sentiment away from mid- and small-cap stocks and specific challenges facing the wind energy giant.
A Tumultuous Year for Suzlon's Share Price
The year began poorly for Suzlon investors, with the stock plunging 15% in January followed by another 13% drop in February. A brief recovery over the next three months offered some respite, but the rebound was short-lived. The stock closed lower in five of the subsequent six months, leading to substantial wealth erosion for its shareholders.
This downward pressure has resulted in a 29% fall from its May 2025 highs and a 17% decline for the year-to-date in 2025. This performance places Suzlon firmly among the year's top laggards and sets it up for its first yearly loss since 2019, when it contracted by a staggering 66%.
Underlying Concerns and Management's Counterpoints
Several factors have contributed to the stock's weakness. Analysts point to a slowdown in installations, which have recently lagged behind deliveries, and tepid new order inflows for FY26 so far. These issues have overshadowed the company's otherwise strong execution track record.
During a manufacturing day event on December 4, the company's management sought to address these concerns. They projected that the slowdown in central renewable energy tenders would have a limited near-term impact on order flow. The management highlighted that approximately 15 GW of wind orders are still in the bidding or awarding pipeline.
Leadership remains confident in the sector's long-term growth, asserting that India can achieve 10 GW of annual wind installations by FY28, up from the current run rate of 6.5–7 GW in FY26. They also identified growing electricity demand from AI/data centers and rising commercial & industrial (C&I) load as potential catalysts that could accelerate progress toward India's 100 GW wind target by 2030.
Analysts Maintain Bullish Stance Despite Near-Term Weakness
Interestingly, the stock's short-term underperformance has not shaken the confidence of several leading brokerages. They maintain buy ratings, citing Suzlon's strategic positioning in India's accelerating wind energy cycle, expanding capacity, and strong execution.
Anand Rathi has taken the most optimistic view, valuing Suzlon at ₹82 per share, which implies a potential upside of 55% from current levels around ₹52. ICICI Securities has reaffirmed its Buy rating with a target of ₹76, praising the company's strong H1FY26 execution and constructive management commentary. Similarly, Motilal Oswal Financial Services reiterated its Buy call with a ₹74 target, emphasizing the management's growing confidence in exports as a new growth driver.
Long-Term Performance and Shareholding Pattern
Despite the painful 2025, Suzlon's long-term performance remains impressive. The stock still delivers 381% returns over the last three years and a monumental 1,025% gain over the past five years. Between April 2023 and September 2024, the stock enjoyed a one-way rally, skyrocketing 912% and reaching ₹86—its highest level since 2010.
The company continues to be dominated by retail investors. As of the end of the September quarter, retail shareholders held a 55.4% stake. Foreign institutional investors (FIIs) and promoters held 22.7% and 11.7%, respectively, while domestic institutional investors (DIIs) owned a 10.1% stake in Suzlon Energy.
