Even as foreign institutional investors (FIIs) continue to pull billions out of Indian equities amid global volatility and geopolitical tensions, select pockets of the market are still attracting steady inflows. One such stock is
Suzlon Energy, where foreign investors have increased their holdings for the third consecutive quarter.
The country’s largest renewable energy solutions provider has seen sustained FII interest even as broader market sentiment remains cautious. Suzlon shares currently trade about 15% below their 52-week high of Rs 68 but have still gained more than 11% in 2026, a year marked by tariff-related uncertainty and heightened geopolitical tensions stemming from the Middle East conflict.
Behind the stock’s resilience lies a bigger transformation story. Suzlon is attempting to transform from a wind-focused company into a full-stack renewable energy solutions provider. Combined with favourable industry tailwinds and a strengthening business model, the transition is increasingly drawing the attention of brokerages and investors alike.
Will Suzlon deliver for its 56 lakh shareholders?
Domestic brokerage firm Motilal Oswal has described Suzlon Energy as “the most investable renewable energy player.” At its recent investor meet, the company unveiled an ambitious FY31 roadmap aimed at transforming itself from a wind-centric business into a broader renewable energy platform. Suzlon is targeting revenue growth of more than 25% CAGR through FY31 while further strengthening its leadership position in the domestic wind energy market.As part of this strategy, the company plans to increase its share of India’s wind market to more than 40% from around 33% currently.
Motilal Oswal has a Buy rating on the stock with a target price of Rs 65, implying an upside of 18% from current levels. The brokerage said management addressed several medium- to long-term concerns by outlining a clear roadmap for growth and diversification beyond its core wind business. According to the brokerage, Suzlon’s planned expansion into adjacent renewable energy segments could improve earnings resilience over time.
JM Financial also sees the next phase of growth being driven by what it calls “Suzlon 2.0”, a shift that marks the company’s evolution from a wind turbine supplier to an integrated renewable energy developer.
JM Financial noted that Suzlon’s target of expanding its AMS portfolio to 70 GW from the current 18 GW could create what it describes as the highest-quality earnings stream within the business.
Suzlon 2.0 strategy focused on RE solutions
Under its Suzlon 2.0 roadmap, the company aims to evolve beyond a pure-play wind OEM by offering end-to-end renewable energy solutions. Key strategic pillars include becoming a one-stop provider for customers’ renewable energy requirements through integrated Wind + Solar + BESS solutions, acting as a lifetime service partner across the renewable energy asset lifecycle, and delivering globally competitive products by combining world-class technology, localised engineering capabilities and India’s cost-efficient manufacturing base.
High localization a strategic advantage
The Indian wind industry currently operates with approximately 60% localization levels, whereas the company has achieved 80-85% localization across its value chain. This strengthens supply-chain resilience, reduces dependence on imports and positions the company favourably amid an increasingly volatile global trade and geopolitical environment.
Expanding product portfolio
The company has recently launched its 5MW turbine platform, Blue Sky, designed for international low-wind-speed sites, with the first installation completed in May’26. The company is also developing the S163 (6MW) turbine targeted at mid-to-high wind-speed locations, with the first turbine installation expected in 1HFY27.
DevCo model to reduce project gestation
Wind projects in India typically face delays of 6-12 months because of land acquisition, right-of-way (RoW), grid connectivity and regulatory approvals. Overall project gestation periods generally range between two and three years.
Suzlon’s DevCo model seeks to reduce project timelines to 15-18 months by securing more than 50% of the required land and obtaining early grid connectivity approvals before execution begins. Management expects DevCo to contribute over 60% of revenue by FY31, say experts.
“Suzlon has spent three years strengthening its balance sheet and ‘Suzlon 2.0’ recasts the company from a wind equipment-EPC-O&M provider into a wind-first, full-stack RE solutions house, offering site development, equipment, turnkey projects and asset management across wind, solar and storage,” ICICI Securities said in a note last week.
The strategic shift is coherent with the demand preference shift towards firm and dispatchable RE. Suzlon, through its end-to-end solutions, plans to turn execution bottlenecks (such as land, RoW, and grid connectivity) into its moat to achieve a unique positioning. The framework is sound and a 5.5GW order book (OB) lends near-term comfort while the company builds a base for the next leg of growth,” the brokerage said.
Export opportunity
Global wind installed capacity stood at approximately 1,299 GW at the end of 2025, with around 165 GW added during the year and nearly 2,000 GW estimated by 2030.
Suzlon’s Blue Sky platform has been launched with country- and grid-specific certifications. The company already has more than 6 GW of existing installations and is targeting entry into select export markets with 3 GW of order intake.
Management highlighted approximately 74 GW of export opportunity across addressable markets over the next five years, along with around 18 GW of additional repowering opportunity.
Contrarian view
Last week, Nuvama Institutional Equities downgraded Suzlon Energy to Hold with a target price of Rs 55. Analysts expect annual domestic wind capacity additions to stabilise at 8-10 GW over the next two to three years as competition from solar and battery energy storage projects intensifies.
Assuming Suzlon maintains a market share of 30-35%, the brokerage estimates annual execution could plateau at around 3-3.5 GW during FY27-28.
Sebi order a key overhang?
While Suzlon’s long-term growth narrative continues to gather momentum, the recent regulatory concern remain an overhang.
Capital markets regulator Sebi has imposed penalties totalling nearly Rs 29 crore on Suzlon Energy and several former executives. Sebi concluded that the company misrepresented its financial position through transactions involving subsidiaries, inflated profits and inadequate disclosures.
With foreign investors steadily increasing their holdings and brokerages backing its renewable energy ambitions, Suzlon’s next phase of growth will ultimately hinge on execution, diversification and its ability to deliver on the promises of the 2.0 growth map.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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