Suzlon Q1: consolidated PAT slips 6% YoY to ₹305 Cr as margins compress, revenue up 22%

Suzlon opened FY27 with a two-speed print: consolidated revenue from operations rose ~22% YoY to ₹3,819 Cr on highest-ever Q1 deliveries of 506 MW (+14% YoY), but profitability went backwards. Net profit fell ~6% YoY to ₹305 Cr (from ₹324 Cr) and PBT dropped 15% YoY to ₹389 Cr, because EBITDA was flat at ₹595 Cr (vs ₹599 Cr a year ago) while depreciation (₹106 Cr vs ₹70 Cr) and net finance cost (₹100 Cr vs ₹70 Cr) climbed. The result: EBITDA margin compressed ~360 bps to 15.6% (from 19.2%) and PAT margin narrowed to 8.0% from ~10.3%. There were no exceptional items this quarter, so the reported decline is the underlying decline — no one-off flatters or drags it. The margin squeeze sits at the operating/contribution line, not below it. Contribution margin fell to 32.1% from 35.1% as EPC scope in the order book rose to 32% (from 22% in Q1 FY26); EPC work carries lower margins than equipment supply. CFO Rahul Jain attributed the flat EBITDA to "temporary logistic disruptions arising from the geopolitical situation, certain strategic investments, and change of scope and segment mix" — an honest framing that the numbers support (WTG contribution margin was 23.4% for the quarter). Against management's own May-2026 guidance of "stable to improving WTG margins" alongside strong FY27 growth, the growth half was delivered but the margin half slipped this quarter. Versus the Street, revenue landed broadly in line — brokerage estimates clustered ₹3,740–3,890 Cr (Zee Business ₹3,890 Cr, Systematix ₹3,740 Cr, Anand Rathi ₹3,555 Cr) — but the bottom line missed clearly: Anand Rathi looked for PAT of ~₹492 Cr (+7% YoY) and the Street broadly expected 20%+ profit growth, against the actual ₹305 Cr decline. The QoQ optics are worse (PAT −73% vs Q4's ₹1,114 Cr) but misleading: Q4 FY26 was flattered by a large deferred-tax credit and year-end seasonality, so YoY is the fair read. The order and balance-sheet backdrop remains the bull case. Cumulative order book stands at ~6.1 GW (6,135 MW including the post-June 201.6 MW Waaree win), with ~1 GW of new orders YTD FY27 including a 400 MW EPC order from Tata Power Renewables; 84% of the book is PSU/C&I. Net cash was ₹2,322 Cr. Alongside the results the board approved a wholly-owned Singapore subsidiary to expand international wind and OMS business. The setup into H2: a healthy book and record deliveries provide volume visibility, but investors will watch whether the rising EPC mix keeps margins near 15–16% or whether management's "stable-to-improving" margin guidance materialises.