Suzlon's Profitability Pressured Despite Strong YoY Revenue Growth
Suzlon Energy's Q1 FY27 revenue grew 22.3% year-on-year, but profit fell 5.9% as net profit margin contracted sharply.
Suzlon Energy reported a mixed Q1 FY27, with revenue rising over 22% from last year. However, profit declined and net profit margins fell significantly, indicating pressure on profitability.
Suzlon Energy reported a quarter of contrasting fortunes. While the renewable energy leader posted a solid year-on-year increase in revenue, its profitability came under significant pressure, with profit declining both sequentially and compared to the same period last year.
The company's revenue for Q1 FY27 stood at ₹3,829 crore, a healthy 22.3% increase from ₹3,132 crore in Q1 FY26. However, profit after tax (PAT) for the quarter was ₹305 crore, down 5.9% from ₹324 crore a year ago. This divergence led to a sharp contraction in the net profit margin, which fell to 8.0% from 10.4% a year earlier—a drop of 240 basis points.
The sequential performance was even more pronounced. Compared to the strong ₹5,493 crore revenue and ₹1,114 crore profit in Q4 FY26, the latest quarter saw a 30.3% drop in revenue and a steep 72.6% plunge in profit.
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin (%)
| Metric | CurrentQ1 FY27 | PreviousQ4 FY26 | Same quarter LYQ1 FY26 |
|---|---|---|---|
| Revenue (₹ Cr) | 3,829.09YoY +22% | 5,493.25 | 3,131.72 |
| Profit (₹ Cr) | 305.22YoY -5.9% | 1,114.35 | 324.32 |
| Net Profit Margin (%) | 8.0YoY -23% | 20.3 | 10.4 |
Key Points
- The trailing twelve-month (TTM) net profit margin remains a robust 18.0%, well above the latest quarter's figure.
- The company maintains a strong balance sheet with a very low debt-to-equity ratio of 0.05 and a high return on equity (ROE) of 41.97%.
- Despite a challenging year for the stock price, which is down 26.4% over the past 12 months, Suzlon trades at a P/E of 37.3, a discount to its industry average of 46.5.
Overall, the quarter highlights a volatile earnings pattern for Suzlon, with the latest results showing top-line resilience but a significant squeeze on the bottom line. The company's ability to stabilize its profit margins in the coming quarters will be crucial for translating revenue growth into consistent earnings.
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· SUZLON
(BSE)
ISIN: INE040H01021
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