Suzlon Q1: revenue +23% YoY but PAT dips to ₹305 Cr on margin squeeze, misses Street

Suzlon opened FY27 with strong volume-led topline growth but a year-on-year profit decline. Consolidated revenue was ₹3,819 Cr (+22.5% YoY) on highest-ever Q1 deliveries of 506 MW (+14% YoY), broadly in line with Street's ₹3,740–3,890 Cr range. But EBITDA was flat YoY at ₹595 Cr (vs ₹599 Cr) and PAT slipped 5.9% to ₹305 Cr — both below consensus, which had modelled ~₹700 Cr EBITDA and ~₹390–490 Cr PAT. PBT fell 15% YoY to ₹389 Cr. The steep sequential drop (revenue −30%, PAT −73% QoQ) is largely seasonal: Q4 is Suzlon's strongest quarter and last quarter's ₹1,114 Cr PAT was flattered by a ₹284 Cr deferred-tax credit and a ₹70 Cr exceptional gain, so the YoY read is the cleaner one.

The gap between topline growth and falling profit is a margin story. EBITDA margin compressed ~360bps YoY to 15.6% (from 19.2%) and net margin fell to 8.0% from 10.4%. CFO Rahul Jain attributed the softness to temporary logistics disruptions from the geopolitical situation, certain strategic investments, and a change of scope and segment mix. The mix is the biggest swing — EPC's share of the order book rose to 32% (from 22% in Q1 FY26), and EPC carries structurally lower margins (WTG contribution margin 23.4%). Below EBITDA, higher depreciation (₹106 Cr vs ₹70 Cr) and net finance cost (₹100 Cr vs ₹70 Cr) squeezed PBT further, and a non-cash deferred-tax (DTA) charge of ₹83.7 Cr took PAT down. There were no exceptional items this quarter.

The stock went into the print at ₹51.16, down 10.6% over the past month of trading.

Against management's prior-call guidance (strong FY27/28 growth, 8–10 GW industry installations, healthy order book, EPC shift), the growth engine is on track: the order book rose to ~6.1 GW (from 5.9 GW at Mar'26, ~6,135 MW including Waaree's 201.6 MW post-June), 84% from PSU/C&I, with ~1 GW of new orders YTD FY27 including Tata Power (400 MW EPC), Sunsure (105 MW) and Waaree. But the 'stable-to-improving WTG margins' part of that guidance did not materialise this quarter. The balance sheet stayed net cash at ₹2,322 Cr, and the board also approved a wholly-owned Singapore subsidiary to expand international wind/OMS. Standalone told the same directional story — PAT ₹306 Cr, down ~12% YoY. The rest of FY27 hinges on whether the volume ramp (1,257 MW erected but pending commissioning) and a normalising mix can pull margins back up.