Suzlon Energy Ltd received target price cuts from at least six brokerages, even as at least five retained their 'Buy' ratings on the stock. Axis Capital, however, downgraded the stock to 'Add' from 'Buy' after the renewable energy solutions provider reported Q2 earnings that trailed analyst estimates, while sales topped expectations.

The revised targets are in the Rs 41-58 range, implying potential upside of up to 58 per cent for Suzlon.

Despite the execution gathering pace, profits are not fully reflecting it, said ICICI Securities. The brokerage sees a good chunk of this as a timing lag, partly due to commodity and forex inflation, and the cost of setting up Suzlon 2.0. The management has guided for a 15–16 per cent FY27 margin, with H2 operating leverage seen aiding margins.

"We trim our target to Rs 55 (Rs 65 earlier) and maintain Buy on favourable valuation," ICICI Securities said.

UBS has the highest target among the brokerages so far, at Rs 58, down from Rs 66 earlier. It is followed by Investec, which cut its target to Rs 56 from Rs 67, and ICICI Securities and Ambit Capital, which have targets of Rs 55 each. ICICI Securities had a target of Rs 65, while Ambit Capital had set its target at Rs 59 earlier.

Axis Capital cut its target for Suzlon to Rs 42 from Rs 63, while Nuvama Institutional Equities lowered its target to Rs 41 from Rs 51. Even the lowest target implies potential upside of 11.44 per cent for the stock.

JM Financial said margins and growth prospects for Suzlon come under pressure FY28 onwards due to limited India market and increasing competition, not to mention growing pains of a single-product company.

"All in all, we are downgrading Suzlon to ADD (from BUY) with a revised target of Rs 40 (earlier Rs 46) based on 12 times September 2028E Ebitda (implied 20 times September 2028 EPS)," JM said.

Suzlon Energy delivered strong execution, with volumes at 710MW against an estimate of 690MW. However, its Ebitda margin of 14.8 per cent disappointed, resulting in a 10 per cent miss on Ebitda and adjusted profit after tax.

"Margin weakness reflects forex/commodity headwinds (50 bps) and Suzlon 2.0 costs (100 bps), with normalised margin at 16.5-17 per cent. Despite high growth in sales, cash conversion stayed weak, with receivables/inventory up Rs 540 crore/Rs 950 crore, driving negative operating cash flow (OCF) of Rs 180 crore," Nuvama said, calling it a key concern.

Ambit Capital said deliveries caught up in Q2, while volume growth remained intact.

Suzlon Energy reported a 69.19 per cent year-on-year (YoY) decline in consolidated net profit at Rs 394.15 crore for the September quarter, compared with Rs 1,279.44 crore in the corresponding quarter last year.

Revenue from operations grew 25.96 per cent YoY to Rs 4,869.05 crore in Q2 FY27, compared with Rs 3,865.54 crore in Q2 FY26.

Nuvama said Suzlon is a key beneficiary of the rising share of FDRE/RTC/hybrid tenders and PSU-led projects, backed by strong captive exposure, which accounts for 78 per cent of its order book.

However, it expects the wind industry to plateau at 8-10GW over the next two-three years.

"While Suzlon's FY31 targets are encouraging, growth is likely to be back-ended and dependent on the success of DevCo, where it is a late entrant. We are cutting FY27/28E EPS (9 per cent/7 per cent) and introducing FY29E. Retain 'HOLD' with a target of Rs 41 (from Rs 51), based on 20x FY29E (WTG + F&F EPS) plus DCF of O&M (from 30x on FY28E EPS)," it said.