, one of the most widely held stocks among retail investors, has had a challenging ride in 2026, hitting multi-year lows as the Street grew concerned about the company’s execution, despite its solid order book.
The stock has remained on a downward trajectory, closing each of the past three months in the red, with selling pressure intensifying further in October and taking its cumulative losses to 36%. Persistent selling has widened its year-to-date losses to 29%, putting the stock on track for its steepest annual decline since 2019, when it plunged 66%.
While part of the decline can be attributed to the broader market sell-off, a key concern among investors is whether the company can convert its strong order book of more than 6 GW into actual revenue. Similar concerns were evident in 2025, when a slowdown in installations meant that execution lagged behind deliveries in recent quarters.
Gaurav Garg, Head of Research at Lemonn, said Suzlon is still growing fast, but Suzlon the quality of its earnings is now the question. In Q1 FY27, revenue rose 22% year-on-year to ₹3,829 crore. EBITDA stayed flat at ₹595 crore because margin slipped to around 16% from 19%. Interest rose 30% and depreciation rose 51%, which pulled pre-tax profit down 15%.
He said the 6,135 MW order book gives multi-year revenue visibility. The weak spot is cash: FY26 operating cash flow was only about 40% of EBITDA. Institutions are buying the fall anyway. Combined FII and DII holding rose to 35.3% in June 2026, up from 20.7% three years earlier. He said the test is H2 FY27 and whether margins will climb back to the 17–18% guidance.
In terms of valuation, Garg said the headline P/E of around 16x makes the stock look cheaper than it is. Trailing profit includes large one-off tax credits, and two of the last four quarters show negative tax rates.
If trailing pre-tax profit is taxed at a normal 25%, the stock trades nearer 29x. That is still below the industry’s 33.7x, but it is no longer a deep discount.
Has Suzlon entered a fresh downtrend?
Garg noted that the stock topped near ₹85 in late 2024. It then spent about 18 months in a Stage 3 distribution range, roughly ₹46 to ₹80. Over that period, the 40-week EMA flattened and then rolled over.
A mid-2026 bounce briefly pushed the price above the average, but the recovery failed and the stock fell back below it. Garg described that failure as a classic last-gasp rally at the end of Stage 3. The price is now about ₹37.4, roughly 24% below the 40-week EMA at ₹48.95, and the average is clearly sloping down. A price below a falling 40-week average is the definition of Stage 4.
Garg said the 52-week low going into this period was ₹38.17. This week’s low of ₹36.31 breached that level, with the stock headed for a close below it, down 3.9% so far. He said a new 52-week low while the stock trades below a declining 40-week EMA is the Stage 4A trigger, not just a weak patch.
Garg said the RS-10 line is at −0.16 and has stayed below zero for most of 2025–26. The only move above zero came during the mid-2026 bounce and faded quickly. RS spent two years making lower highs while the price moved sideways, indicating that the stock was underperforming even before the breakdown. Suzlon is down about 28% over the past year and about 26% year-to-date, indicating sustained underperformance rather than just a volatile trading pattern.
Which key levels should investors watch in Suzlon?
Garg said overhead supply starts at ₹46–47, where the old range floor now acts as resistance. The next resistance level is the 40-week EMA near ₹49. Until the stock reclaims ₹49, any bounce is a reaction within Stage 4, not a recovery.
On the downside, Garg said the key structural reference is the early-2024 consolidation zone in the low-to-mid ₹30s. He advised confirming the exact swing lows on the chart before quoting a specific level.
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