Suzlon Energy, India's premier renewable energy solutions provider, has announced a spectacular turnaround with its second-quarter results for fiscal year 2026. The company reported a phenomenal 539% year-on-year (YoY) surge in consolidated net profit, driven by record-high turbine deliveries, strong revenue growth, and a significant one-off tax gain. The results signal a dramatic operational and financial revival for the wind energy giant.
For the quarter ending 30 September 2025, Suzlon's net profit soared to Rs. 1,279 crore, its highest quarterly profit in 30 years, compared to Rs. 200 crore in the same period last year. The company's revenue from operations also jumped by an impressive 85% YoY to Rs. 3,866 crore. The blockbuster earnings report was met with strong investor enthusiasm, sending the company's shares up to a new 52-week high.
Table of Contents
- Deconstructing the 539% Profit Surge: Operations vs Tax Gain
- What's Powering Suzlon's Growth? A Segment-wise Look
- The Investor's Bottom Line: A Turnaround Story Taking Flight
- Frequently Asked Questions (FAQs)
While the headline profit number is staggering, investors must understand its components. The net profit figure was significantly boosted by the recognition of an incremental deferred tax asset (DTA) of Rs. 717 crore.
Even after adjusting for this one-time tax gain, the company's operational performance was exceptionally strong. Profit Before Tax (PBT) stood at Rs. 562 crore, a robust 179% increase from the Rs. 202 crore reported in Q2 FY25, showcasing the powerful turnaround in the core business.
Key Financial Highlights for Q2 FY26
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The company’s EBITDA margin expanded significantly to 18.6%, reflecting strong operating leverage and improved project profitability.
Want to analyse how Suzlon’s sharp earnings recovery and order book expansion have influenced market sentiment? Review the Suzlon share price for key valuation indicators and price trends.
Suzlon's revenue is primarily generated from its Wind Turbine Generator (WTG) sales and its Operation and Maintenance Services (OMS).
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Wind Turbine Generator (WTG) Segment: This is the main growth engine. Revenue from this segment more than doubled, driven by record-breaking deliveries. Suzlon delivered 565 MW of WTGs in Q2 FY26, a 121% YoY increase and its highest-ever second-quarter delivery volume in India.
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Operation and Maintenance Services (OMS): This segment provides a stable, recurring revenue stream and posted steady growth.
The key drivers behind this powerful turnaround include:
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Record Order Book: The most significant indicator of future growth is the company's massive order book, which now stands at a record 6.2 GW. The company added over 2 GW in new orders in the first half of FY26 alone, providing unparalleled revenue visibility.
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Strong Execution: The record-high quarterly deliveries demonstrate that Suzlon has ramped up its manufacturing and project execution capabilities to meet surging demand.
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Healthy Balance Sheet: The company has transformed its financial health. As of 30 September 2025, Suzlon maintained a net cash position of Rs. 1,480 crore, a stark contrast to its debt-laden past.
Want to trace how Suzlon’s turnaround began earlier this fiscal year? Read the detailed performance review in the Suzlon Q1 FY26 Results to understand its record-breaking deliveries and margin expansion.
The Positives
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Dominant Market Position: Suzlon has reaffirmed its position as India's largest domestic wind manufacturing company, making it a key beneficiary of the government's push for renewable energy.
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Exceptional Order Visibility: The 6.2 GW order book provides a clear and predictable path to revenue growth for the next several quarters.
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Financial Deleveraging: A strong, net-cash balance sheet removes a major historical risk and provides the financial muscle to fund future growth.
Areas to Monitor
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Valuation: After a phenomenal run-up in its stock price, some analysts, while positive, have noted that the high valuation may already be pricing in future growth.
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Margin Sustainability: While Q2 margins were strong, the company will need to continue managing costs effectively to sustain this level of profitability, especially as the OMS segment's margins declined.
In conclusion, Suzlon's Q2 results mark a pivotal moment in its turnaround journey. While the headline profit was inflated by a one-off tax gain, the underlying operational performance is undeniably robust.
There’s a helpful YouTube video by CA Rachana Ranade where she discusses Suzlon Energy’s recent correction and how Budget 2025 could impact future valuations — a must-watch for investors.
1. What was Suzlon Energy's net profit in Q2 FY26?
Suzlon reported a consolidated net profit of Rs. 1,279 crore, a 539% increase year-on-year. This figure includes a one-time deferred tax asset recognition of Rs. 717 crore.
2. Why did Suzlon's profit grow so dramatically?
The profit surge was due to a combination of strong operational performance (85% revenue growth and 145% EBITDA growth) and a significant one-time, non-cash deferred tax gain.
3. What is the size of Suzlon's order book?
As of 30 September 2025, Suzlon has a record-high order book of 6.2 GW, which provides strong revenue visibility for the future.
4. Is Suzlon Energy debt-free?
The company has significantly improved its balance sheet and reported a net cash position of Rs. 1,480 crore as of the end of Q2 FY26.
5. What is the investment outlook for Suzlon Energy?
The outlook is strong, driven by a massive order book, improved execution, and a healthy balance sheet. While the valuation is a point to consider after the recent stock rally, the company has transitioned from a high-risk turnaround play to a more stable growth story in the renewable energy sector.