Suzlon Energy: Q4 FY25 Earnings Call – Key Highlights

**Operational & Strategic Updates**
-Domestic RLMM Update:
New guidelines boost domestic manufacturing; mandate to establish R&D centers in India.

_Order Book Status:

Total order book: 5.5 GW, diversified across customer segments.

3 MW platform order book crosses 5 GW – 100% Made in India, Made for India.

New blade manufacturing units set up in Madhya Pradesh and Rajasthan.

-Execution Record:

Delivered 1,550 MW in FY25 – 2x YoY.

Q4 alone: 573 MW delivered – also 2x YoY.

-India Wind Sector Update:

4.2 GW installations in FY25, lagging expectations due to infra & land issues.

Suzlon’s <30% EPC exposure (with clients like NTPC) enables faster execution with pre-secured land.

-WTG Business (Wind Turbine Generators):

Revenue ↑ 101% YoY

EBITDA ↑ 392% YoY

Contribution margin: 23% (↑ 300 bps from previous guidance of 20%)

-Deferred Tax Asset (DTA):

Recognized ₹630–638 crore in Q4 on ₹25,000 crore assessed losses.

No cash impact; P&L charge to begin in Q1 FY26; most DTA expected to be utilized in FY26.

*Financial Performance (FY25 Highlights)
All-time high: Revenue, EBITDA, and PAT since FY27.

EBITDA margin: To remain at ~17% in FY26.

Contribution margins:

WTG segment: ~23%

OMS (Operations & Maintenance Services): ~68% (69% in Q4); EBITDA margin ~40%.

** Outlook & Guidance – FY26
-Execution Visibility:

Supported by strong order book and enhanced management capacity.

Targets 60% YoY growth in key performance indicators.

-Order Inflows:

Positive pipeline with tenders from NTPC and BPCL.

Confident of strong order flow over the next 18–24 months.

-Capacity:

OEM capacity: 20 GW, gearbox: 29 GW, blade: 28 GW (incl. 11 GW third-party).

Management believes existing capacity sufficient; no expansion needed due to fluctuating demand.

-Capex:

FY25: ₹350 crore

FY26 onwards: Annual capex of ₹400–₹450 crore, focused on sustenance, IT & R&D.

**Technology & Product Development

-Ongoing R&D:

Suzlon continues to "create products and create the market.

Installed 16 wind masts across India to analyze wind data for next-gen turbine design.

-Repowering Opportunity:

Potential from blade/nacelle replacement (quicker) and complete turbine uprooting (longer cycle, more complex).

=SE Forge (Forging Business):

Momentum picked up in Q3/Q4.

Supports 3 MW platform and larger diameters, with potential in non-wind sectors.

**Market & Policy Commentary
-Export Strategy:

Export expansion possible post domestic demand fulfillment – no concrete plans yet.

-Hybrid Tariffs:

Solar + Wind: ₹3.4–₹3.5/unit

Pure Wind: ₹3.6–₹3.7/unit

Solar + BSES: One bid seen at ₹8/unit (solar pre-connected) – not indicative of broader market trend.

-RLMM Compliance:

Not impacted by revised RLMM or import substitution – no backward integration planned.

-Demand Mix:

C&I segment continues to grow in absolute terms, but PSU share rising faster, altering mix.

-BSES Concern:

No specific risk from BSES – what matters is demand-matching. Solar + wind/battery combinations will evolve based on customer requirements.