Suzlon's revenue rises, but faster costs cut operating margin to 15.55%
Year-on-year profit fell 5.89% as expenses, interest and depreciation outpaced revenue growth; the tax rate softened the decline.
Filed 28 Jul 2026, 13:48 IST · Suzlon Energy Ltd (SUZLON)
Key takeaways
- Revenue grew 22.27% year on year, but expenses rose 27.69%, narrowing operating margin by 3.58 percentage points.
- Net profit fell 5.89% year on year as interest increased 29.64% and depreciation rose 50.33%, despite a 7.75-percentage-point lower tax rate.
- Operating margin at 15.55% remained 1.05 percentage points above the 14.5% median for 22 Industrials peers.
Price around the results
Revenue growth did not convert into operating profit
Suzlon's consolidated revenue rose 22.27% year on year, but operating profit declined 0.64%. The margin was still 1.05 percentage points above the 14.5% median reported by 22 Industrials peers.
Higher financing and depreciation costs weighed on profit
Interest expense increased 29.64% year on year, while depreciation rose 50.33%, pushing profit before tax down 15.19%. The 21.63% tax rate was 7.75 percentage points lower than a year earlier, limiting the net profit decline to 5.89%. Other income contributed 8.59% of profit before tax, so it was a secondary rather than the main earnings driver.
Sequential momentum weakened after the March quarter
Revenue fell 30.29% sequentially, while expenses declined 28.60%, meaning costs contracted more slowly than revenue and operating margin narrowed by 2.00 percentage points. Profit before tax fell 53.26% as the tax rate moved from -33.74% in Q4FY26 to 21.63% in the current quarter. Operating margin has moved down from 19.13% in Q1FY26 to 15.55%, despite a modest increase to 17.55% in Q4FY26.
No market reaction yet; past responses have been mixed
The results were filed during market hours, and a post-results stock reaction is not yet available. Across the last eight result announcements, the stock rose four times and fell four times, with a median absolute move of 4.36%. The recent sequence ranged from a 4.36% fall to a 9.26% rise, indicating no consistent directional pattern.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹3,829 cr | ₹5,493 cr | -30.29% | +22.27% |
| Other income | ₹33 cr | ₹97 cr | -65.67% | -0.09% |
| Expenses | ₹3,234 cr | ₹4,529 cr | -28.60% | +27.69% |
| Operating profit | ₹595 cr | ₹964 cr | -38.25% | -0.64% |
| Operating margin (%) | 15.55% | 17.55% | — | — |
| Interest | ₹134 cr | ₹135 cr | -1.14% | +29.64% |
| Depreciation | ₹106 cr | ₹93 cr | +13.56% | +50.33% |
| Profit before tax | ₹389 cr | ₹833 cr | -53.26% | -15.19% |
| Tax | ₹84 cr | ₹-281 cr | — | -37.55% |
| Net profit | ₹305 cr | ₹1,114 cr | -72.61% | -5.89% |
| EPS (₹) | ₹0.22 | ₹0.81 | -72.84% | -8.33% |
Operating margin of 15.55% compares with a Industrials sector median of 14.50% across 22 peers that have reported Q1FY27.
What to watch
- Whether operating margin recovers from 15.55% after the 2.00-percentage-point sequential decline.
- Whether expense growth slows from 27.69% year on year relative to revenue growth of 22.27%.
- Whether interest and depreciation growth moderate from 29.64% and 50.33%, respectively.