Suzlon falls 10% to 52-week low on margin guidance cut

Limited (SUZLON) fell as much as 10% to a 52-week low of ₹33.23 on October 30, after its Q2 FY27 results showed a 69% year-on-year drop in consolidated net profit to ₹394 crore. Management also cut its FY27 EBITDA margin guidance to 15–16% from 17%. The results came out on October 29, when the stock had closed 1.37% lower at ₹36.79. Revenue grew 26% to about ₹4,875 crore, but EBITDA was flat at ₹719 crore. That pushed the EBITDA margin down to 14.7% from 18.6% a year ago. Profit also missed the ₹460 crore analyst estimate. Execution was strong, with record Q2 deliveries of 710 MW, and the order book stands at over 6 GW. The 69% fall looks worse than it is. Last year’s Q2 profit of ₹1,279 crore included a one-time tax write-back of ₹718 crore. Excluding that, the underlying fall is closer to 30%. Deliveries and revenue are also growing strongly, so demand for wind turbines is not the problem. The market is reacting to margins and cash flow. Revenue grew 26%, but none of it reached operating profit, as commodity and currency volatility pushed costs up. Cutting full-year margin guidance this early signals the pressure may last. UBS also noted that operating cash flow turned negative at ₹200 crore in the first half. The stock was already down about 36% this year before today’s fall. Investors should watch whether margins recover towards the revised 15–16% guidance, operating cash flow in H2, conversion of the 6 GW order book, and commodity prices. The key question is whether Suzlon can turn record deliveries into profit and cash, not just revenue. Disclosure: I do not hold any position in Suzlon Energy Limited. This post is for informational purposes only and is not investment advice.