Suzlon Energy ends lower after Q4 profit slips 6% despite 45% revenue growth

Suzlon Energy shares ended lower on Monday even after the company posted a sharp rise in revenue and EBITDA for the March quarter, with the market appearing to focus on weaker profit growth and margin compression. The stock closed at ₹53.50, down 0.25 or 0.47%, on May 25, after the company reported its Q4 FY26 numbers.

On a consolidated basis, Suzlon reported revenue from operations of ₹5,468.06 crore in Q4 FY26, up 44.93% from ₹3,773.54 crore a year earlier. EBITDA rose 38.97% to ₹963.98 crore from ₹693.46 crore, while net profit after tax fell 5.64% to ₹1,114.35 crore from ₹1,180.98 crore. EBITDA margin came in at 17.63%, compared with 18.39% in the year-ago quarter.

The company said its consolidated profit before tax stood at ₹833.24 crore in the March quarter, up from ₹551.24 crore a year earlier. It also reported a ₹70 crore exceptional gain on settlement of a contractual matter.

Margin and profit pressure

The quarter showed that Suzlon’s operating growth did not fully translate into bottom-line growth. The quarter showed that Suzlon’s operating growth did not fully flow through to the bottom line. While revenue and EBITDA expanded sharply, net profit still declined year on year despite a ₹70 crore exceptional gain, reflecting the impact of tax and other below-PBT items.

Deferred tax expense was ₹284.32 crore in Q4 FY26, compared with ₹600.75 crore in the year-ago quarter, while current tax expense was ₹3.21 crore.

Segment performance

Wind turbine generator remained the main driver, with segment revenue of ₹4,741.71 crore and segment result of ₹594.46 crore. Operation and maintenance services contributed ₹695.17 crore in segment revenue and ₹255.03 crore in segment result, showing that the services business continues to provide a steady earnings base. Foundry and forging added ₹167.78 crore in revenue and ₹20.76 crore in segment result.

The consolidated year-end balance sheet showed cash and cash equivalents of ₹630.97 crore and bank balances other than cash of ₹614.73 crore. Consolidated borrowings were limited at ₹161.06 crore current and ₹102.95 crore non-current. Trade receivables, however, remained elevated at ₹6,269.22 crore.

Balance sheet and cash flow

Suzlon’s consolidated total assets stood at ₹18,868.86 crore as of March 31, 2026, against total liabilities of ₹9,405.34 crore. Total equity was ₹9,463.52 crore.

For the full year, consolidated profit before tax was ₹2,421.72 crore and net profit after tax was ₹3,163.39 crore. Revenue from operations for FY26 was ₹16,679.11 crore and EBITDA was ₹2,351.72 crore.

The market reaction suggests investors were not rewarded by the 39% EBITDA rise alone. The combination of lower PAT, softer margin, and a heavy receivables position likely kept enthusiasm in check even after a strong top line.

Suzlon Energy shares have fallen about 14% over the past year, underperforming the Nifty Midcap 50, which has gained more than 11% in the same period.