The rally came amid a strong broader market sentiment, with benchmark indices Nifty and Sensex gaining more than 1% each. Trading activity was also robust, as 8.02 crore shares of Suzlon Energy were exchanged, generating a turnover of nearly Rs 450 crore.
The rise in Suzlon Energy shares also coincides with soaring temperatures, which have raised expectations of stronger electricity demand during the summer season. JM Financial has described Suzlon as an “unintended beneficiary” of the ongoing Iran-U.S. conflict.
Expectations for the March quarter remain robust. JM Financial estimates revenue could jump 51% year-on-year to Rs 5,708 crore. EBITDA is projected to rise 54% to Rs 1,068 crore, while net profit is likely to grow 53% to Rs 888.8 crore.
The domestic brokerage has retained its ‘Buy’ rating on the stock with a target price of Rs 64. This implies an upside potential of over 19% from the previous closing price of Rs 53.89. Notably, Suzlon offers the highest upside among power stocks under JM Financial’s coverage.
Brokerages continue to remain positive on the company’s long-term outlook. Systematix points to Suzlon’s leadership in India’s wind energy space, with around a 35% share in installations and a strong order book of 6.5 GW, offering clear growth visibility. Its integrated business model spanning manufacturing, EPC, and operations and maintenance is expected to support recurring revenues and margin expansion.
The company’s improving balance sheet is another key positive. After years of high leverage, Suzlon has strengthened its financial position through deleveraging and tighter working capital management. This has enhanced its ability to bid for larger renewable energy projects.Even as foreign institutional investors (FII) pulled out billions from Indian equities amid global volatility and geopolitical tensions in the March quarter, they have increased their stake in Suzlon Energy shares for the third straight quarter.
Shareholding data for the March quarter shows FII ownership in Suzlon Energy shares inching up to 23.9% from 23.7% in the December quarter of FY26. Their holding stood at 22.7% in the September quarter and 23% in the June quarter. Retail participation has also strengthened, with holdings rising to 26.67% from 26.20%.
At about 11 am on Monday, Suzlon Energy shares were trading at Rs 55.95, higher by 3.82% from current market levels.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)