Suzlon Energy Q2 FY27 profit drops 69% to ₹394 crore on high base effect
Synopsis
Suzlon Energy's 69% profit drop looks alarming at first glance — but strip out the ₹891 crore deferred tax windfall that inflated Q2 FY26, and the story changes. Revenue is up 26%, the order book is above 6 GW, and EPC share is climbing fast. The real question is whether Suzlon can hold margins as it scales.
Key Takeaways
Suzlon Energy reported a 69 per cent YoY fall in Q2 FY27 net profit to ₹394 crore , down from ₹1,279 crore in Q2 FY26.
The decline was largely base-effect driven — Q2 FY26 included a one-time ₹891 crore deferred tax asset creation.
Revenue from operations rose 26 per cent to ₹4,875 crore ; EBITDA was nearly flat at ₹719 crore .
EBITDA margin contracted to 14.7 per cent from 18.6 per cent a year earlier.
Order book stood above 6 GW ; EPC share rose to 38 per cent , targeting 50 per cent by FY28.
Net worth crossed ₹10,000 crore ; 723 MW commissioned in H1 FY27.
Suzlon Energy on Thursday, 29 October 2026 reported a 69 per cent year-on-year decline in consolidated net profit to ₹394 crore for the second quarter of FY27 (July–September), down sharply from ₹1,279 crore in Q2 FY26. The steep fall, however, was largely attributed to a one-time deferred tax asset of ₹891 crore booked in the year-ago quarter — meaning the underlying performance was considerably stronger than the headline figure suggests.
Revenue and Operating Performance
Revenue from operations climbed 26 per cent to ₹4,875 crore from ₹3,871 crore a year earlier, driven by higher project execution and commissioning activity. Earnings before interest, taxes, depreciation and amortisation (EBITDA) came in at ₹719 crore, nearly flat against ₹721 crore in the corresponding quarter. The EBITDA margin, however, contracted to 14.7 per cent from 18.6 per cent, reflecting commodity price pressures and currency volatility that weighed on profitability even as volumes expanded.
Order Book and Execution Momentum
Suzlon's order book remained above 6 GW, with the company recording over 1.5 GW of fresh order intake during the first half of FY27, supported by broad-based demand across customer segments. Engineering, procurement and construction (EPC) projects now account for 38 per cent of the order book, up from 22 per cent in Q1 FY26, as the company works toward a target of raising EPC's share to 50 per cent by FY28. Public sector undertakings and commercial and industrial customers together contributed 78 per cent of the total order book.
Commissioning and Key Project Deliveries
The wind energy major commissioned 723 MW during H1 FY27, reflecting what the company described as strong execution momentum. Deliveries during the period included projects for Juniper Green Energy, Aditya Birla Renewables Limited, Zelestra, and Brookfield Yanara. Suzlon's net worth also crossed the ₹10,000 crore milestone during the quarter, a marker the company highlighted as a sign of balance-sheet strengthening.
Management Commentary
Rahul Jain, Chief Financial Officer of Suzlon Group, said the company 'delivered 26 per cent year-on-year revenue growth despite commodity price and currency volatility, supported by disciplined execution and operating leverage.' Jain added that Suzlon 'continues to strengthen its manufacturing and execution capabilities while maintaining focus on margins, cash flows and capital allocation.' Crucially, he noted that the Q2 FY26 base had included a ₹891 crore deferred tax asset creation, and that excluding this one-time item, the company's underlying profitability reflected a stronger year-on-year improvement.
What to Watch
With the EPC mix rising and a 6-GW-plus order book in hand, Suzlon's near-term trajectory hinges on how efficiently it can convert backlog into commissioned capacity while defending margins against input cost volatility. The FY28 EPC target of 50 per cent will be a key metric investors track in the quarters ahead.
Point of View
But it is almost entirely a base-effect story — Suzlon's Q2 FY26 was flattered by a ₹891 crore non-cash tax entry that won't repeat. The operational picture is more nuanced: revenue is growing briskly at 26 per cent, but the EBITDA margin compression from 18.6 to 14.7 per cent deserves scrutiny, particularly as EPC projects — which typically carry thinner margins than pure supply — take a bigger share of the book. The push to 50 per cent EPC by FY28 could keep margin pressure alive even as topline scales. Investors should focus less on the year-on-year profit figure and more on whether execution velocity can absorb cost headwinds without further margin erosion.
NationPress
29 Oct 2026
Frequently Asked Questions
Why did Suzlon Energy's Q2 FY27 profit fall so sharply?
Suzlon Energy's net profit fell 69 per cent to ₹394 crore in Q2 FY27 primarily because the year-ago quarter (Q2 FY26) included a one-time deferred tax asset creation of ₹891 crore that significantly inflated the base. Excluding that one-time item, the company's underlying profitability showed a stronger year-on-year improvement, according to CFO Rahul Jain.
How did Suzlon Energy's revenue perform in Q2 FY27?
Revenue from operations grew 26 per cent year-on-year to ₹4,875 crore in Q2 FY27, up from ₹3,871 crore in Q2 FY26. The growth was driven by higher project execution and commissioning activities across customer segments.
What is the size of Suzlon Energy's current order book?
Suzlon Energy's order book remained above 6 GW as of Q2 FY27, with over 1.5 GW of fresh order intake recorded during the first half of FY27. Public sector undertakings and commercial and industrial customers account for 78 per cent of the total order book.
What is Suzlon's EPC strategy and why does it matter?
Suzlon is actively raising the share of engineering, procurement and construction (EPC) projects in its order book, which stood at 38 per cent in Q2 FY27, up from 22 per cent in Q1 FY26. The company targets 50 per cent EPC contribution by FY28, a shift that aligns revenue recognition more closely with project completion but may also pressure margins.
How much capacity did Suzlon commission in the first half of FY27?
Suzlon commissioned 723 MW during H1 FY27, with deliveries including projects for Juniper Green Energy, Aditya Birla Renewables Limited, Zelestra, and Brookfield Yanara. The company also crossed the ₹10,000 crore net worth milestone during this period.
