Suzlon Energy
NSE: SUZLON · BSE 532667 · 23 Jul 2026 · Sabarinadh Palutla
BBB
Quality Operations / Flattered Optics
Gatekeeper driver: Earnings quality + ownership structure
Summary
The turnaround in the operating business is real; the reported earnings flatter it. FY26 PAT of ₹3,163cr exceeds PBT of ₹2,422cr on a ₹742cr deferred-tax credit — and FY25 was boosted the same way. Normalised for that, KIRA puts PAT nearer ₹1,817cr ^ and the true multiple around 39x ^ against a screened 22.6x. Deliveries, order book and the balance sheet have genuinely transformed. Cash conversion and receivables have not kept pace.
Component scores
All component scores and the composite are KIRA analysis ^.
| Component | Weight | Score ^ |
|---|---|---|
| Fundamentals | 25% | 70 |
| Business Quality | 20% | 68 |
| Management | 20% | 60 |
| Institutional (FII/DII) | 10% | 58 |
| Financial Strength | 10% | 72 |
| Valuation | 5% | 42 |
| Technicals | 5% | 45 |
| Risk | 5% | 45 |
| Composite KIRA Score ^ | 100% | 62.7 |
Strengths
- Revenue up 53.7% to ₹16,679cr with 18% operating margin
- Record 2,456MW of deliveries
- Net cash ₹2,384cr; borrowings ₹556cr against ₹17,811cr in FY15
- CRISIL upgrade run from BBB- to A+/Stable
Weaknesses
- FY26 PAT ₹3,163cr exceeds PBT ₹2,422cr on a ₹742cr deferred-tax credit
- Weak cash conversion — CFO ₹1,202cr is 38% of PAT ^
- Debtor days stretched 102 → 130 → 137
- R&D down from 3.05% to 1.27% of sales
- Promoter holding only 11.73%
- India wind market share slipped from 30% to 28%
Risks
- Reported earnings quality depends on deferred-tax credits that will not repeat indefinitely
- Low promoter holding offers limited alignment and little defence against a control event
- Policy and tariff dependence across the Indian wind sector
- Execution risk on a large order book with stretched receivables
- EMA-200 remains unverified — the technicals component is provisional ?
Provenance. Unmarked figures are sourced from filings, results, rating actions or screeners. ^ denotes KIRA analysis. ? denotes an unverified inference. Grade bands are provisional.
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