Suzlon's revenue surged, but faster costs trimmed operating margin
A smaller tax credit pulled net profit below last year's level despite higher pre-tax profit, while operating margin recovered 0.12 percentage points sequentially.
Filed 25 May 2026, 15:09 IST · Suzlon Energy Ltd (SUZLON)
Key takeaways
- Consolidated revenue grew 44.94% year on year, but expenses rose 46.27%, narrowing operating margin by 0.75 percentage points to 17.55%.
- Net profit fell 5.64% year on year as the tax-rate change of 80.5 percentage points offset a 51.16% rise in profit before tax.
- Suzlon's 17.55% operating margin was 1.89 percentage points above the 15.66% median for 71 Industrials peers that had reported.
Price around the results
Revenue scaled, but not at last year's margin
Suzlon's consolidated revenue rose 44.94% year on year in Q4FY26, while expenses grew faster at 46.27%; that mismatch cut operating margin by 0.75 percentage points. Sequentially, revenue increased 29.68% and expenses 29.5%, allowing margin to improve by 0.12 percentage points. The quarter's 17.55% margin remained 1.89 percentage points above the 15.66% median for 71 reported Industrials peers.
Tax credit made net profit look weaker than pre-tax profit
Profit before tax rose 51.16% year on year, but net profit declined 5.64% because the tax rate moved 80.5 percentage points from the prior-year level. The tax line was also a major sequential swing, with the tax rate changing by -55.17 percentage points from Q3FY26. Other income contributed 11.69% of pre-tax profit, so reported earnings included a meaningful non-operating component.
Margin trend stabilised after two quarterly declines
Operating margin fell from 19.13% in Q1FY26 to 18.62% in Q2FY26 and 17.43% in Q3FY26 before recovering to 17.55% in Q4FY26. The latest market response was modest: the stock gained 0.45% on the result date and 1.43% after five sessions. That was smaller than Suzlon's 4.36% median absolute move after its last eight results, during which it rose three times and fell five times.
Management outlined an overseas platform and faster delivery cycle
Management said Suzlon is launching its Blue Sky Platform with country- and grid-specific certifications to expand beyond India. The presentation also said the business is organised around four integrated pillars—RE Tech, RE DevCo, RE Projects and RE AMS—and that it is pursuing a crash programme to reduce project delivery cycle time.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹5,493 cr | ₹4,236 cr | +29.68% | +44.94% |
| Other income | ₹97 cr | ₹23 cr | +332.50% | +176.31% |
| Expenses | ₹4,529 cr | ₹3,498 cr | +29.50% | +46.27% |
| Operating profit | ₹964 cr | ₹738 cr | +30.53% | +39.01% |
| Operating margin (%) | 17.55% | 17.43% | — | — |
| Interest | ₹135 cr | ₹114 cr | +18.29% | +59.54% |
| Depreciation | ₹93 cr | ₹80 cr | +16.23% | +0.25% |
| Profit before tax | ₹833 cr | ₹567 cr | +47.02% | +51.16% |
| Tax | ₹-281 cr | ₹121 cr | — | +55.36% |
| Net profit | ₹1,114 cr | ₹445 cr | +150.26% | -5.64% |
| EPS (₹) | ₹0.81 | ₹0.32 | +153.13% | -6.90% |
Operating margin of 17.55% compares with a Industrials sector median of 15.66% across 71 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +0.45% | -0.87% |
| Next session | +1.54% | — |
| 5 sessions | +1.43% | +2.43% |
| 15 sessions | +7.76% | — |
| 30 sessions | -1.15% | — |
Volume on the results session was 1.46× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Expansion
- Suzlon is launching the Blue Sky Platform with country- and grid-specific certifications to expand beyond India.
New initiatives
- Suzlon is launching the Blue Sky Platform to expand its market beyond India.
- Suzlon has organised its business around four integrated pillars: RE Tech, RE DevCo, RE Projects and RE AMS.
- Suzlon is pursuing a crash project delivery cycle-time programme.
What to watch
- Whether operating margin holds above 17.55% after the Q4FY26 recovery.
- Whether the tax rate remains as volatile as the 80.5-percentage-point year-on-year change.
- Progress on the Blue Sky Platform and the crash project delivery cycle-time programme described by management.