Suzlon margin guidance for fiscal 2027 has been cut to 15% from 17%, as an unfavorable project mix, rising commodity costs and foreign-exchange volatility pressure the wind turbine maker’s profitability.
Why Suzlon margin guidance was lowered
The company’s earnings before interest, tax, depreciation and amortization (EBITDA) margin was 15.1% in the first half of FY27. Suzlon estimates that non-recurring operating expenses reduced margins by about one percentage point, while currency and commodity pressures had an estimated 0.5 percentage point effect.
Management expects margins to improve as those expenses taper off and deliveries increase after the monsoon season. The company expects the expense impact to ease in the third and fourth quarters.
September-quarter profit and orders
Suzlon’s second-quarter results showed consolidated net profit of ₹394 crore, up 1.3% from a comparable ₹389 crore a year earlier. The earlier quarter’s reported profit of ₹1,279 crore included an ₹891 crore deferred tax benefit.
The company reported an order book of more than 6 GW and deliveries of 710 MW in the September quarter. It is counting on a pickup in second-half deliveries to improve operating leverage and is preparing to enter overseas markets with next-generation turbines.
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