← Throughline · holding view Deep analysis ↗ Q4 FY26
SUZLON Suzlon Energy Limited · Other Q4 FY26 · concall
Pattern: order inflow trajectory ntpc

Refused to commit on monthly disclosure solar bess.

1 deflection · 2 weak · 6 clean — pushback across 3 of 9 Q&A turns

Focused evidence 3 of 9

Mohit Kumar · ICICI Securitiesweak

Q4 order inflow tad muted vs strong year — FY27 outlook + NTPC PSU pipeline + DSM tightening risk?

Ajay Kapur: Mohit, as you've seen, we are more or less closing at the same order book as we started the year. Our opening book was 5, and we are closing at 5.9. I think that is not a concern. J.P. Chalasani: As we're moving now from equipment SAA to most of the EPC contracts, EPC contracts take a little longer time to close in terms of contracting. Right now, we are in advanced stage, and I think you will significantly start hearing from June itself this quarter, the EPC orders getting closed. On NTPC: till now experimented with having separate contracts for redevelopment in BOP and then 3 WTG is turbine supplies. They are now moving towards a turnkey EPC contracts. They already come up with some 215-megawatt contract in AP. We also understand they are going to come up with another 540 megawatts in AP plus another 2,000 megawatts in AP. On DSM: the CERC has come now for wind changing it from plus minus 15 to plus minus 10. We developed a strong scheduling and forecasting model, which we're testing till now at plus minus 15%. We are now quickly moved into making it plus minus 10% and moving ahead.

Sumit Kishore · Axis Capitalweak

Operating cash flow INR12bn vs EBITDA INR30bn — working capital, receivables, doubtful debtors?

Rahul Jain: Working capital is predominantly a receivables buildup as primarily due to the PSU contracts. However, this was anticipated and factored into the tender pricing as well. The silver lining really is that most of this is serviced through non-fund based limits and in a secular growth scenario, working capital days could improve substantially going forward as well. So delta around that is INR400 crores plus. Ajay Kapur: Next year market can be anywhere between 8 to 9 gigawatt. Suzlon has also mentioned that a very high amount of turbines erected, not commissioned so that should help us. At any given point of time, we are sitting on about 25 gigawatt of assets across the nation of which 8 to 10 are very much better baked. But I think beyond that at this moment, I would not like to venture into giving absolute numbers other than saying that the trend is already very positive and strong. On order book quality: as of now, there is nothing of that sort. I'm really excited, 9 gigawatt of orders, I think it's one of its kind.

Satpal Singh Khanuja · Ishaan Venturesdeflection

Installation momentum normalization timeline + monthly installation disclosure + solar/BESS acquisition + 2,500 MW FY27 delivery guidance?

Ajay Kapur: Last year same quarter we did 573 versus that, this quarter was 830, which was 45% improvement. We did 95 and this year, same quarter we did 332, that is 250% improvement. On top of it, there are 350 megawatt, I mentioned, is already ready just to plug in for want of the customers readiness. On monthly installation numbers: I hear you, but some things you can do it, some things you don't want to do it. Rahul: I think there is some merit in it, but we will have to evaluate the positions internally. On solar/BESS: As of now, answer to your second question is no, there's nothing round on the corner. We are getting into FDRE. As we get into it, start signing contracts with our customers, we'll start announcing these. But what strategy, asset-light versus investing, that's something we'll talk to you in time to come. On FY27 delivery guidance: We cannot give you that number, as I mentioned. J.P. Chalasani: I would only say please look at the past trend, 700 to 1,550. 1,550 to 2,456. So therefore, I just want you to consider the trend, and we expect the positive trend to continue.

▸ Other Q&A (6)
Nikhil · Kizuna Wealth

Execution progress this quarter + FY27/FY28 guidance + rationale for European venture?

On execution: there are almost 975 megawatts of turbines erected and not yet commissioned. Of those, almost 350 are just ready for commissioning. They are just waiting for the last mile because this is on the customer scope. On demand outlook: in FY '23, the industry did 2.3 gigawatt of installations, which went up to 3.3 in FY '24 further went up to 4.1 in '25. And as I mentioned, 6 gigawatts in FY '26 is the record year. Our numbers would be more or less plus/minus you can give some leeway, 8 gigawatt in '27 and maybe 10 gigawatt in '28. I also mentioned that FY '30 or '31, we should be looking at around 15 gigawatts. On Europe: I was there along with my colleagues in the Madrid Wind Europe conference, where we had opportunity to launch our new Blue Sky product range. We met lots of developers, IPPs and utilities. Most of them are very excited to work with us, surprisingly on our 2-megawatt and 3-megawatt series and also the newer ones. We feel in the next couple of years, this will become one of the big revenue driver and a bottom line driver.

Abhishek Nigam · Motilal Oswal

FDRE conversion trend + Indian rupee depreciation — need for price hikes to maintain FY26 margins?

J.P. Chalasani: While FDRE will continue to be there, I mentioned FDRE with respect to the AP PPA what we signed for 775 megawatt way back. In last financial year, APRC has approved one of the FDRE bids of 400 megawatts with 2 hours peak, 90%, 90% 2 hours morning, 2 hours evening plus 60% CUF. We are also seeing uptick in pure Wind bids coming in, both at center as well as state level. Rahul Jain: Some of our contracts have a pass-through with respect to the foreign currency impact that comes through. We've been able to mitigate that impact to a very large extent. For the future, obviously, when we think about newer contracts, it will get priced in based on the newer, let's say, exchange rates that are prevailing. WTG margins, I don't think materially can go down. Ajay Kapur: We are constantly also working on our R&D and cost optimization, supply diversification and also make in India. Every year, we have a target of constantly cutting on cost because that's the only way you can remain resilient and our resident supply chain has helped us over the last 3 years to keep cutting costs.

Prakhar Porwal · AMBIT

INR70cr exceptional item bucket + AP DevCo scope (entire FDRE vs wind-only) + steel/commodity margin levers?

Rahul Jain: It is not in the OMS business, it is largely SE Forge. Actually, it is fully SE Forge, it was an old arbitration matter that got settled in our Favor. J.P. Chalasani: Out of the 775 megawatts, they are willing to get PPA. Balance is we are not responsible for taking the power offtake — they will get converted into then our normal way of EPC contracts. The 775-megawatt FDRE once the PPA gets finalized, there are a couple of clients who are willing to take over that as a PPA. We have intention to supply the entire FDRE rather than just the wind portion of it. Balance we're already converting into EPC contracts. We would see this from June onwards next 6 months, the entire 1,325 megawatts getting converted into firm EPC contracts. Rahul Jain: Steel is largely a pass-through other than maybe some PSU contracts. So I'm not really very worried about steel. We should have a fair capability of maintaining margins where we were exiting. Ajay Kapur: As we sell more of our turbines, we are able to renegotiate better rates on our diversified supply chain. 9 gigawatt of S144 order book as it gets into COD gives our procurement and manufacturing teams to renegotiate with the suppliers on the back end.

Shweta Jain · Anand Rathi

22-23 GW co-development pipeline progress — where are projects, has pipeline moved?

J.P. Chalasani: We've talked about 22 to 23 gigawatts of identified sites and about 8 gigawatts development that work is progressing. Some of them are now getting converted into contracts. Some places, the land acquisition is under progress. Some places, we signed the land agreements, but we are also now converting them into EPC contracts. This is what clearly is going to be our engine for growth in the coming years. We don't announce the land contracts. We will only announce when we do the EPC contracts. The one which we announced with ArcelorMittal was coming out of the development pipeline only. You will also see some contracts getting announced from June onwards. Ajay Kapur: Probably slightly higher. J.P. Chalasani: It will never remain that way. Some sites get signed, some sites get added. It is a dynamic situation. So it will never remain static.

Mahesh Patil · ICICI Securities

Q4 PAT DTA adjustment magnitude + does EPC contract scope include transmission?

Rahul Jain: The number on the reported PAT that I have for the quarter is about INR281 crores. That's the number to be adjusted. J.P. Chalasani: EPC contracts normally we do the land supply, erection and the BOP. And in some cases, we also do the pooling substations. In very extremely rare cases, but very, very rare, we take up the transmission and from there to this thing, but that's extremely rare. So most of the contracts will have between the plant boundary and some will have plus the pooling substation.

Nikhil Abhyankar · UTI Mutual Funds

Capex run rate next 3-4 yrs + DevCo capital deployed + remaining unrecognized deferred tax assets?

Ajay Kapur: As we expand our capacity to participate in the demand, we would have a run rate of about INR600-odd plus minus 50 going forward. J.P. Chalasani: We said -- we talked about earlier about INR300 crores of the cash we keep it for this and then as we move ahead, depending upon how the model develops and in case we also want to get into connectivity, then we will be needing some non-fund-based facility. Rahul Jain: As of now, the number is in the range of about 300, 350. But yes, what you are saying is absolutely right, J.P.C. So as we go on, we will see some more working capital needs on that side. J.P. Chalasani: There are RE parks coming up — some states are coming up with RE parks. And we are also working with the Government of India for a possibility of changing GNA regulations so that we can develop RE parks with connectivity, which is transferable. Rahul Jain: For the next two years, only the deferred tax charge will come into the profit and loss account, which is also a noncash charge. Rough estimates on this are in the range of about INR3,000 crores to INR3,500 crores in terms of unrecognized deferred tax assets.

▸ Prepared remarks (5 blocks)
We welcome you to Q4FY '26 Investors Call. I also welcome Ajay Kapur, who has now taken over the baton and he will take you through the most of the things, along with Rahul Jain, who we met last time. At the beginning of the financial year, we said that in FY '26, we will have a 60% of growth. That was the commitment what we made, and we are glad to say that we achieved that. Our overall EBITDA went up by 63%. Profit before tax consolidated went up by 67%. And our WTG revenue went up by 65%. In the Q2, when we were discussing the results, some of you had a concern that EBITDA has fallen for our OMS business. And we clearly said it's a one-off. And by end of the year, we will recoup it.
And accordingly, at the end of the year, we achieved the EBITDA of <strong>40.5%</strong>. We also promised that our EPC order share in our order book, EPC share will keep increasing to 50% by FY '28. And we started moving in the direction. In Q2, we were at around 20%. Now we reached 28% and we expect it to continue to grow in FY '27 and ultimately reach 50% in FY '28. We also said that a SE Forge is now on the momentum. And we're glad to say that its revenue went up by 22% and EBITDA went up by 60%.
we signed a project implementation agreement with the government of AP in 2015 under which we commissioned some projects in FY '16 and FY '17. In April, they've extended the PIA by another 2 years. Under this PIA, we have developmental rights for 2.1 gigawatts, 2,100 megawatt, out of which 775-megawatt is the PPA, which was signed earlier. Beyond this 775, we have 1,325 megawatt, which will completely get monetized from June onwards in the next 6 months.
I'm Ajay Kapur, and I have joined Suzlon Energy Limited as Group Chief Executive Officer. I bring over 3 decades of leadership experience across infrastructure, power, construction and heavy industries and most recently served as Managing Director of Ambuja Cements. For FY '26, has been a defining year for the wind sector with installations crossing 6 gigawatt, its highest since 2017, surpassing the previous peak and clearly underscoring the strong demand revival. This momentum sets the stage for a multiyear growth cycle with installations expected to cross 10 gigawatt in the near term and reaching 15 gigawatts in the next 5 years. With 56 gigawatt already installed and a strong pipeline of STU and PSU bids as well as C&I demand, India is set to achieve the near-term target of 100 gigawatts by 2030. In FY '26, Suzlon transitioned into a scaled, profitable and financially strong market leader in wind sector. Suzlon delivered a record 830 megawatts in Q4 and 2,456 megawatts in FY '26, which are our ever-highest deliveries in India. Revenues also reached a record INR<strong>16,679 crore</strong>s reflecting a strong 54% Y-o-Y growth. Order book of 5.9 gigawatt consists of 66% of C&I and PSU segment, which is fast growing.
The focus now is on expanding our EPC offering, which has grown from 20% to 28% in H2, which enhances our competitive edge and further help to accelerate order book growth. Our S144 order intake has reached close to 9 gigawatts, a strong endorsement of its advanced technology and customer trust. The Blue Sky platform launched in Spain marks our reentry into European and other export markets with S175 and S163 turbines. Suzlon commissioned 744 megawatts in FY '26 And another 971 megawatt is erected, taking the number to 1,715 megawatt shows the trajectory of commissioning growth for the future. We have achieved ramped up commissioning momentum with 332 megawatts in quarter 4. Our OMS business remained strong with 15.7 plus gigawatts under management in India and machine availability consistently above 95%. Forging & Foundry continues to scale strongly. The revenue at INR597 crores, up 22% Y-o-Y and EBITDA at INR119 crores, up 61% Y-o-Y, which continued momentum driven by domestic demand and export growth.
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