SUZLON

volatile amidst CFO resignation despite healthy financials

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dropped by nearly 5% following the unexpected departure of its Chief Financial Officer (CFO), Himanshu Mody, despite the company's solid Q1 performance. The company’s financial results were in line with its guidance of 60% growth for FY26. Financial Performance: Wind turbine generator (WTG) deliveries increased by 62% year-on-year (y-o-y) to 444 MW. EBITDA grew by 64% to ₹603 crore. Profit before tax surged by 52% to ₹459 crore, though a deferred tax charge made net profit growth appear modest. The company's net debt has been eliminated, shifting to a net cash position of ₹1,620 crore, a transformation that occurred during Mody's tenure. Growth and Market Position: Suzlon’s order inflow showed a sequential revival, rising 38% to 780 MW in Q1 FY26. The company recently secured a significant 381 MW order from Zelestra, further bolstering its order book. With an annual capacity of 4.5 GW, Suzlon is India's leading listed WTG firm. Market Concerns and CEO Clarifications: The sudden CFO exit unnerved investors, but with a strong balance sheet, the CEO's role is now seen as more critical for strategic growth. CEO J.P. Chalasani addressed concerns about the threat of battery-stored solar power, clarifying that it cannot entirely replace wind power without straining the grid. He argued that a "solar plus battery" setup would likely be more expensive than wind power due to the additional cost of battery storage. A new mandate from the Ministry of New and Renewable Energy requiring 75% domestic sourcing of WTG components is expected to boost order inflows for Suzlon and other domestic players. Valuation: Despite the positive outlook, Suzlon trades at a valuation premium over its competitor, Inox Wind, with a price-to-earnings multiple of 25x versus 16x, suggesting that investors have already priced in the company's bright prospects