Suzlon Energy share price fell by about 8.4% in August 2025, going from a high of around ₹66 at the beginning of the month to around ₹55–57 at the end of the month. The stock had a great run, but then it fell sharply, doing worse than the broader market as a whole and losing a significant portion of its value. This came after a bigger drop, with the stock down nearly 30% in the last three months because of problems in the renewable energy sector.
Why Did Suzlon Share Price Decline?
Some of the main reasons for the drop in Suzlon share price include:
- Weak Q1 FY26 Results: Suzlon (NSE: SUZLON) reported a 7% year-over-year profit gain to ₹324 crore and a robust order book growth, but the results were lower than what analysts had expected. The main cause for this was a significant accounting change in the books. The deferred tax asset of ₹6.3 billion that Suzlon had recorded in the previous quarter is now being unwound, resulting in a deferred tax charge of ₹1.34 billion in the first quarter of FY26. This charge, which was not a cash transaction, hurt the company’s profit after tax, which was lower than what analysts had expected.
- Changes in Leadership: The departure of CFO Himanshu Mody injected worry about the company’s stability and capacity to carry out its strategies in the future. Mody was seen as a key player in Suzlon’s efforts to turn around its finances and restructure its debts. His departure, especially as the company is going through a transition phase, and could potentially disrupt its financial plans. The company said that it was in the final stages of choosing a replacement, but this uncertainty has caused a brief drop in investor confidence.
- Concerns and Delays in Execution: Widespread concerns around wind energy project delays amid high valuations resulted in increased downward pressure on Suzlon Energy share price.
The market expected better quarterly figures, but the company didn’t do as well as its competitors.
Arrow depicting Suzlon Energy share price performance in August. Source: TradingView
What Could Change in September?
As September begins, investors will want to know if the things that caused the August drop will continue or if new factors will come along to help the market recover. The forecast generally seems cautiously optimistic, with a number of factors that could potentially turn the recent bearish trend around.
Analysts are mostly still positive about the company since it is well-positioned to leverage India’s push for renewable energy. The forthcoming Annual General Meeting on September 25, 2025, possible new order announcements, and highlights from the sustainability report could all be short-term catalysts.
But there are risks that could limit profits, such as ongoing changes in leadership, tariffs on exports, or a broader global economic downturn. Overall, most analysts anticipate that things will slowly get better, thanks in part to India’s green energy projects. The company’s long-term fundamentals are still strong. The near-term outlook is still weak as the headwinds generated by the August short-term are still in play.
Meanwhile, Suzlon is getting ready to re-enter the global market, even though it is still focused on the home market. The company plans to start exporting to Europe and the Middle East by FY27, with an emphasis on supplying equipment to lower the risks of execution. This move into other countries could boost revenues and make the company less dependent on the Indian market.
The stock caved in under pressure on the back of soft Q1 earnings, the resignation of its CFO and growing concerns over the pace of its project implementation.
The outlook is cautiously optimistic, built on favourable government policies and a strong order book. This could help trigger a rebound in the coming weeks.
The recent stock price decline offers long-term investors to buy low. However, they should be aware of the near-term risks related to the slowdown in order execution amid leadership change
In Summary
Suzlon Energy is in a good position to get back on track since it has a strong order book, government policies that favour it, and a defined long-term growth plan. Investors should still be aware of execution concerns, but the basic story of a market leader in a high-growth area is still compelling. August’s volatility may have given long-term investors who trust in the company’s capacity to profit from India’s growing renewable energy market an opportunity to buy when Suzlon share price is still low.
This article was originally published on InvestingCube.com. Republishing without permission is prohibited.