Strong volumes masked by margin squeeze; recovery hinges on H2 execution

Delivered ₹3,829 Cr (22.3% YoY); 506 MW delivery recorded

Delivered ₹305.2 Cr but down 5.9% YoY; margin 7.9% vs prior expectations of stable/improving

EBITDA margin 15.6% (₹595/₹3,829), below guided 17% floor; one-time costs of ₹40-50 Cr blamed

Specific figure provided in transcript; seasonality claim (H1 35-40%, H2 60-65%) supports recovery narrative

EPC share expanded 22% → 32%, lower-margin business; net ASP gains offset by gross margin dilution

Specific claim made; aligns with shift to land-backed development model; still early validation needed

Strategic shift to EPC driving higher ASP (₹5.6 → ₹6.3 Cr/MW) and DevCo model revenue (60% of new orders); margin structure changing faster than prior guidance assumed.

Prior call assumed Suzlon 2.0 ramp without quantified drag. Q1 revealed ₹40-50 Cr in new plants, tech investment, exports, reducing EBITDA by 1-2 percentage points.

Middle East tensions deferred 10-20% of deliveries (50-100 MW). Prior guidance assumed smooth execution; geopolitical risk now visible.

Reaffirming historical 17-18% range but Q1 achieved 15.6%; call blamed one-time costs and claimed H2 operating leverage recovery; credibility hinges on execution.

600+ MW DevCo orders in 4 months confirms market appetite for land-backed model; de-risks pure supply-based business.

Gap continues; seasonality H1 35-40% vs H2 60-65% applies. 1,257 MW erected machines ready; erection completion will improve COD going forward.

International 18-24 months to seed, domestic S175 first order in place for year-end/next-year deliveries. Capex payback 12-18 months as volumes ramp; not long investments.

Pricing accounts for payable days, well-covered. Mix evolving; PSUs have larger targets, C&I are repeat customers. Sharp focus on receivables management.

EBITDA flattish (₹599 Cr Q1 FY26 vs ₹595 Cr Q1 FY27) due to (a) Suzlon 2.0 investments upfront, (b) supply chain drag + operating leverage, (c) AMS segment mix shift (higher margin) vs RE Solutions.

Suzlon fully compliant, well-positioned vs import-dependent competitors. Second part—can connect separately.

One-time costs baked into Q1. Year-long investments in exports, DevCo, others. EBITDA margin 17-18% ± 1-2% should hold; H2 operating leverage will improve.

Similar terms to past contracts, but land & connectivity ready for faster implementation. All advances similar nature as past; value accretive.

Current sales from advanced DevCo sites already invested in land; advances unlock soon as site progress. Year 3-5 orders in pipeline, slightly different strategy, not yet announced but team working on them.

New plants, technology for new prototypes (domestic & international), marketing in international markets. All inevitable for growth strategy.

25 GW repowering potential in India. Working on S88-120 platform. Pilots and confirmed orders expected before end of year. Minister's wind fleet report identifying sites.

₹40-50 Cr across subheads. Year-long journey, not just Q1, as we ramp volumes should not have such major impact full year.

Operating 17-18% margin, can give/take 0.5%. Strong Q1 delivery (506 MW), highest ever June series, 23% revenue, 12% RR, 130% COD growth. 1,250 MW erected waiting commissioning—value accretive going forward.

Impacted by geopolitical issues (Gulf crisis, customer hit). Trying to increase export share. Distinct 3 segments (foundry, forging, bearing); more customer pipeline. Coming quarters will show strategy panning out.

No cap. Can't place a cap; that's the rule.

Won't give a number, but if capacity shifts to 5-MW, much higher. Order book mostly S144 3-series; transition takes time.

EPC share went from 22% to 32%—substantial shift. Material consumed naturally higher with EPC business.

EPC share up 22-32%; scope increased. This is judgmental, ASPs fairly good shape. As project business higher, will see ASP in that range.

Actually 43% this quarter, elevated. Should be higher 30s, 38-39%. Timing issue sometimes.

Revenue up 23%, working capital utilization flat-to-higher drives interest up. But overall rates commanded from market have come down—positive change. Tax charges are deferred tax asset rundown, mostly non-cash.

Overall cash utilization position. DevCo ₹200-300 Cr ongoing; higher rates lower than year-start. Overall working capital led to higher interest; rates improving.

Capex ₹700 Cr ± ₹100 Cr (unchanged). For 5-MW series, need blade factories including AI-enabled ones. Investing into future rather than just current 4.5 GW.

AMS (high margin) vs RE Solutions (supply) mix has impacted. Some one-time costs as well. Largely mix impact, correct.

₹250 Cr is very old number. Even in Suzlon 2.0 strategy, discussed as ₹500 Cr cap. If change, will communicate. That's the guardrail.

No negative impact from EPC. Working various tracks to improve cycle; significant reduction in numbers per investor presentation.

Discussion phase with various partners; few encouraging rounds. Should close partnerships and arrangements in next couple of months. Target 3.1 GW by FY31; hybrid controllers in pilot orders.

Not competing on price, competing on value/energy/delivery. Will price at par with local players. Some customers already have Suzlon fleet managed by ops team.

Wind traction good. Pricing more or less same. Volume game; as ramp up volumes, unit cost comes down. INR depreciation offset by cost optimization.

FY31 is 5 years out. 10 GW includes wind + solar + BESS (75-25 split = 7.5 GW wind). Migrate to 5-MW series in same plants; existing 4.5 GW capacity shifts to higher output. Enough transition time.

H1/H2 seasonality: 35-40% vs 60-65%. That trend continues; cannot assume all in Q2.

Not EPC vs non-EPC; look at RE Solutions vs RE AMS. AMS higher margin (service nature). As WTG volumes ramp, mix changes, slightly lower margin overall.

Quantified long-term target but dependent on DevCo scaling, S175/S163 ramp, repowering execution. No explicit FY27 revenue number given; relying on 25% CAGR claim over 5 years.

Reaffirmed despite Q1 miss; blamed ₹40-50 Cr one-time Suzlon 2.0 capex and supply chain drag. Operating leverage recovery in H2 expected but not quantified; credibility hinges on execution.

Reiterated prior guidance. Separate from DevCo investment (₹500 Cr cap, currently ₹200-300 Cr). All capex aimed at future product ramp and export footprint.

10-20% of Q1 deliveries (50-100 MW) deferred due to fuel availability and crane/transport vehicle shortages. Could recur if tensions escalate.

Q1 EBITDA margin 15.6% vs guided 17-18% floor. PAT down 5.9% YoY despite revenue +22% growth. Signals structural headwinds (EPC mix, capex drag) not just temporary.

EPC share jumped 22% → 32% in one quarter, driving ASP up (₹5.6 → ₹6.3 Cr/MW) but compressing gross margin. If trend continues, gross margin erosion could offset ASP gains.

S175 5-MW domestic only at pilot order stage (first delivery year-end/FY28). S163 international 18-24 mo seeding; export markets unproven. Repowering 25 GW opportunity promised but no confirmed orders yet.

DevCo investment ₹200-300 Cr of ₹500 Cr plan; requires upfront land buying, connectivity setup, customer advances. If land prices rise or customer advances delay, cash burn increases and IRR pressure.

Utility-scale wind orders fallen ~50 GW vs 2 years back. Analyst questioned WTG pricing sustainability; management deflected, claiming 'wind has traction' and 'volume game.' If pricing softens for pure WTG (ex-EPC), realization decline risk.

BESS partnerships only in 'discussion phase'; no partners named or terms disclosed. FY31 target (5 years out) requires rapid scaled-up ramp if partnerships close soon.