Suzlon delivered more wind turbines than ever before, yet its stock...
Motilal Oswal Financial Services Ltd@MotilalOswalLtd
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Nov 11, 2026
~2 min read
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Suzlon delivered more wind turbines than ever before, yet its stock fell over 8%.
Revenue grew 26%, but profit margins shrank sharply.
And Suzlon isn't alone. Inox Wind has faced similar pressure.
So why aren't record deliveries translating into higher profits? 👇
Revenue grew 26%, but profit margins shrank sharply.
And Suzlon isn't alone. Inox Wind has faced similar pressure.
So why aren't record deliveries translating into higher profits? 👇
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Let's look at Suzlon's Q2 FY27 numbers.
Revenue: Rs.4,869 crore, up 26%.
Wind turbine deliveries: Record 710 MW.
EBITDA: Rs.720 crore, almost unchanged.
Its EBITDA margin fell from 18.6% to 14.8%.
More business, but less operating profit per rupee earned.
Revenue: Rs.4,869 crore, up 26%.
Wind turbine deliveries: Record 710 MW.
EBITDA: Rs.720 crore, almost unchanged.
Its EBITDA margin fell from 18.6% to 14.8%.
More business, but less operating profit per rupee earned.
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Inox Wind tells a similar story.
In Q1 FY27, its EBITDA margin declined from 22.2% to 18.7%.
Net profit fell 34%, despite broadly stable revenue.
And this raises an important question: Is India's wind industry growing at the cost of profitability?
In Q1 FY27, its EBITDA margin declined from 22.2% to 18.7%.
Net profit fell 34%, despite broadly stable revenue.
And this raises an important question: Is India's wind industry growing at the cost of profitability?
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One reason is the type of orders companies execute.
Supplying turbines is different from building an entire wind project.
Turnkey projects include construction, installation and infrastructure work.
They can generate more revenue per MW but often come with thinner margins and higher execution risks.
Supplying turbines is different from building an entire wind project.
Turnkey projects include construction, installation and infrastructure work.
They can generate more revenue per MW but often come with thinner margins and higher execution risks.
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There's another number investors often miss.
Suzlon delivered 710 MW in Q2, but commissioned only 454 MW.
That's a gap of 256 MW.
A turbine delivered isn't necessarily generating electricity yet.
Delays in commissioning can also delay payments and tie up working capital.
Suzlon delivered 710 MW in Q2, but commissioned only 454 MW.
That's a gap of 256 MW.
A turbine delivered isn't necessarily generating electricity yet.
Delays in commissioning can also delay payments and tie up working capital.
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And that's why cash flow matters.
Despite strong deliveries, Suzlon reportedly recorded negative operating cash flow of around Rs.200 crore in H1 FY27.
Why?
Because inventory, receivables and project execution can absorb cash even when reported revenue is growing.
Despite strong deliveries, Suzlon reportedly recorded negative operating cash flow of around Rs.200 crore in H1 FY27.
Why?
Because inventory, receivables and project execution can absorb cash even when reported revenue is growing.
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Now consider the order book.
Suzlon has around 6 GW of orders, providing substantial revenue visibility.
But a large order book doesn't automatically mean large profits.
If contracts were signed before steel, copper or imported components became costlier, margins can suffer.
The price of an order matters as much as its size.
Suzlon has around 6 GW of orders, providing substantial revenue visibility.
But a large order book doesn't automatically mean large profits.
If contracts were signed before steel, copper or imported components became costlier, margins can suffer.
The price of an order matters as much as its size.
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But there's one part of the business that works differently.
Operations and maintenance, or O&M.
Once turbines are installed, companies earn recurring revenue from servicing them.
Suzlon's asset-management EBITDA margin reached 43.3% in Q1.
This recurring business can help cushion weaker equipment margins.
Operations and maintenance, or O&M.
Once turbines are installed, companies earn recurring revenue from servicing them.
Suzlon's asset-management EBITDA margin reached 43.3% in Q1.
This recurring business can help cushion weaker equipment margins.
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Interestingly, the global picture isn't uniformly weak.
European turbine manufacturers like Nordex and Vestas have reported improving profitability.
That suggests the challenge isn't simply weak wind-energy demand.
Pricing, project mix, input costs and execution efficiency are making the difference.
European turbine manufacturers like Nordex and Vestas have reported improving profitability.
That suggests the challenge isn't simply weak wind-energy demand.
Pricing, project mix, input costs and execution efficiency are making the difference.
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Bottom line: India's wind-energy opportunity remains substantial, but record megawatts alone don't guarantee record profits.
Investors should watch four things: margins, operating cash flow, order-book pricing and recurring service revenue.
Because the real winner won't necessarily be the company installing the most turbines.
Investors should watch four things: margins, operating cash flow, order-book pricing and recurring service revenue.
Because the real winner won't necessarily be the company installing the most turbines.
