Suzlon Q2: Consol. PAT ₹394 Cr, revenue +26% YoY; margin slips to 14.8% vs 17-18% goal

Suzlon's consolidated Q2 FY27 (quarter ended September 30, 2026) revenue came in at ₹4,869.05 Cr, up 25.96% YoY and 27.33% QoQ, comfortably above the ₹3,600–3,750 Cr range in our pre-result preview. Consolidated PAT of ₹394.15 Cr (EPS ₹0.29) also topped the preview's ₹350–380 Cr PAT band, but the headline YoY comparison is misleading: the year-ago quarter's reported PAT of ₹1,279.44 Cr was inflated by a one-off ₹718.18 Cr deferred tax credit (corroborated by press coverage of that print), so raw YoY PAT of -69.2% overstates the decline. Stripping that one-off, PAT fell roughly 29.8% YoY to a normalized ~₹561 Cr base — a cleaner read is pre-tax profit, which fell 7.9% YoY to ₹518.21 Cr even as revenue grew 26%, confirming genuine margin pressure rather than a tax-base artifact. Sequentially PBT rose 33.1% QoQ and PAT rose 29.1% QoQ (₹305.22 Cr → ₹394.15 Cr). The margin story is the quarter's real signal: operating margin (OPM) came in at 14.76%, down from 18.62% a year ago and 15.55% last quarter — short of the 17–18% FY27 EBITDA margin guidance management gave on the Q1 concall, where it cited 'operating leverage recovery in H2' as the path back. Half-year OPM stands at 15.28%, still below the guided band, so this quarter counts as a miss on guidance, with the recovery management flagged now resting entirely on H2. Net margin recovered modestly QoQ (7.90% → 8.03%) but remains far below the year-ago quarter's tax-inflated 32.83%. Consumption of raw materials/components rose to ₹3,304.59 Cr from ₹2,428.27 Cr a year ago (+36%) on revenue that grew only 26% — the direct driver of the OPM compression. By segment, Renewable Energy Solutions (the core wind-turbine business) generated ₹4,211.56 Cr revenue and ₹370.54 Cr segment profit; RE Asset Management Services (O&M) contributed ₹639.63 Cr revenue and ₹220.39 Cr profit; Foundry & Forging added ₹167.15 Cr revenue and ₹15.20 Cr profit. This comes against order momentum flagged pre-result — a 6.2 GW order book and wins including a 200 MW order from Ayana (September 8) and the Torrent tie-up expanding to 1.3 GW (August 25) — though the filing itself does not disclose MW delivered this quarter (Street estimates ahead of the print pegged deliveries at ~660 MW versus 506 MW in Q1 FY27). The same board meeting also approved two small, non-operational acquisitions — 100% of Suzlon Foundation (CSR arm, ₹10 lakh consideration) and ~99% of OE Business Park Pvt Ltd (the SPV holding the company's Pune HQ, ~₹1 Cr) — neither has any P&L impact this quarter. Separately, the company disclosed a ₹15.95 Cr SEBI penalty (relating to FY14–FY18 related-party disclosures) under appeal with a stay in place; management states no impact on these results. No standalone management press release was available in the source documents to cross-check framing against the print. Going into Q3 FY27, the key checkpoint is whether margins actually recover toward the 17–18% guided range as management's cited H2 operating-leverage recovery and volume ramp materialize — this quarter's 14.76% print does not yet show that inflection. Standalone results track the same direction (PAT ₹369.89 Cr, -71.25% YoY raw, revenue ₹4,210.29 Cr +21.1% YoY), with one basis difference worth flagging: standalone carried a ₹41.85 Cr exceptional loss in the year-ago quarter that was eliminated at the consolidated level, so the two bases aren't perfectly comparable on that one line.