Suzlon Energy Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Last week, you might have seen that Suzlon Energy Limited (NSE:SUZLON) released its quarterly result to the market. The early response was not positive, with shares down 9.4% to ₹33.90 in the past week. Revenue of ₹49b surpassed estimates by 4.1%, although statutory earnings per share missed badly, coming in 28% below expectations at ₹0.29 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Following the latest results, Suzlon Energy's 13 analysts are now forecasting revenues of ₹217.5b in 2027. This would be a solid 18% improvement in revenue compared to the last 12 months. Statutory per-share earnings are expected to be ₹1.63, roughly flat on the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹218.6b and earnings per share (EPS) of ₹1.85 in 2027. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a real cut to EPS estimates.

View our latest analysis for Suzlon Energy

The average price target fell 11% to ₹55.00, with reduced earnings forecasts clearly tied to a lower valuation estimate. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Suzlon Energy analyst has a price target of ₹68.00 per share, while the most pessimistic values it at ₹40.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that Suzlon Energy's rate of growth is expected to accelerate meaningfully, with the forecast 40% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 27% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 19% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Suzlon Energy to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Suzlon Energy going out to 2029, and you can see them free on our platform here.

Before you take the next step you should know about the 2 warning signs for Suzlon Energy (1 doesn't sit too well with us!) that we have uncovered.

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