Green Energy Stock: Suzlon Energy Limited, a key player in the renewable energy space and a pioneer in wind turbine manufacturing, is making waves in the market after announcing a stellar 91% year-on-year (YoY) growth in its net profit for Q3 FY25. This remarkable performance, coupled with a significant increase in revenue, underscores the company’s strong growth trajectory as it capitalizes on the global shift toward clean and sustainable energy.
Stock Price Movement: Green Energy Stock
Suzlon Energy’s stock saw a sharp movement during Tuesday’s trading session, reaching an intraday high of ₹51.55, a 2.71% jump from the previous close of ₹50.19. The stock opened at ₹50.51 and closed marginally higher at ₹50.25, with a low of ₹47.76 during the day.
Currently, the company’s market capitalization stands at ₹68,094 crore, reflecting its growing prominence in the renewable energy industry. The stock remains on investors’ radar as market participants eagerly await further updates and developments that could push the company’s valuation even higher.
Q3 FY25 Financial Highlights
Suzlon Energy’s December quarter results showcased a solid performance:
- Revenue Surge: Consolidated revenue from operations increased by a staggering 91.18% YoY, reaching ₹2,968.81 crore, compared to ₹1,552.91 crore in Q3 FY24. Sequentially, revenue grew by 41.85% from Q2 FY25’s ₹2,092.99 crore.
- Net Profit Growth: The company reported a 90.98% YoY jump in net profit, reaching ₹387.76 crore, compared to ₹203.04 crore in the same quarter last year. Quarter-on-quarter (QoQ), net profit increased by an impressive 93.30% from ₹200.60 crore in Q2 FY25.
- EPS Increase: Basic earnings per share (EPS) rose by 86.67%, standing at ₹0.28 compared to ₹0.15 in Q3 FY24.
Revenue Breakdown
Suzlon Energy’s revenue streams highlight its diversified operations:
- Wind Turbine Generators (WTGs): Contributed 74.26% of revenue (₹2,335.65 crore).
- Foundry and Forging: Accounted for 4.77% (₹146.22 crore).
- Operation & Maintenance Services: Added 18.95% (₹580.48 crore).
- Other Income: Contributed a marginal 0.30% (₹0.80 crore).
Order Book Growth
One of the company’s major highlights is its rapidly growing order book, which has more than doubled over the past year. As of January 2025, Suzlon Energy’s order book stands at 5,521 MW, reflecting a remarkable 241% increase from the 2,290 MW reported in December 2023.
A significant development is the company securing a 486 MW order from Torrent Power, further strengthening its position in the wind energy sector.
Portfolio and Client Base
Project Mix and Regional Focus
Suzlon’s WTG portfolio is dominated by its S144 model, which holds a 92% share, while the S120 model accounts for the remaining 8%. The company maintains a well-diversified project mix, with 58% of projects in retail, and 21% each in PSU and state auctions.
Geographically, Gujarat leads the company’s project distribution with 31%, followed by Karnataka at 26%, showcasing Suzlon’s stronghold in India’s key renewable energy hubs.
Global Clientele
Suzlon Energy has built an impressive client base that includes top-tier organizations such as BlackRock, Adani Renewables, TATA, EDF Renewables, and ReNew Power. Public sector giants like NTPC and ONGC also feature among Suzlon’s clientele, highlighting the company’s strong presence in both private and government sectors.
Financial Ratios at a Glance
- Market Cap: ₹68,094 crore
- Current Price: ₹50.3
- P/E Ratio: 58.2 (higher than the industry average of 48.9, reflecting investor optimism).
- Book Value: ₹3.32
- ROE: 28.8%
- ROCE: 24.9%
- Debt: ₹277 crore
- Dividend Yield: 0.00%
Why Suzlon Energy is a Stock to Watch
Suzlon Energy’s performance is a testament to its strong fundamentals and strategic focus on renewable energy solutions. Its continued investment in innovation, such as the S144 wind turbine model, has bolstered its position as a market leader in India.
Moreover, the company’s robust financials, increasing profitability, and a rapidly expanding order book signal sustained growth potential. The rise in renewable energy adoption globally places Suzlon at the forefront of this transformation.
Challenges to Watch
While Suzlon’s financial performance is impressive, investors should monitor its high stock P/E ratio, which suggests a premium valuation. Additionally, the company’s ability to maintain profit margins amid potential fluctuations in raw material costs will be a key factor going forward.
Final Thoughts
Suzlon Energy Limited’s strong Q3 FY25 performance, marked by a 91% YoY profit surge and expanding order book, reinforces its position as a leading player in the renewable energy sector. For investors seeking exposure to the green energy revolution, Suzlon presents an enticing opportunity backed by solid fundamentals and a promising growth outlook.
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Disclaimer: This article is for informational purposes only and does not constitute financial advice. Please consult with a financial advisor before making investment decisions.
By Narayan Ventures – Your go-to source for stock market updates and analysis.