Suzlon Energy Shares Jump 3% Following Major Wind Order Win from ArcelorMittal
Suzlon Energy Limited, a prominent player in India's renewable energy sector, witnessed its share price surge by over 3% during intra-day trading on Wednesday, January 28. This upward movement came in response to the company announcing a significant new order from global steel giant ArcelorMittal, marking a pivotal development for Suzlon's business trajectory.
Landmark Order Details and Strategic Significance
The company secured its first-ever wind energy order from the ArcelorMittal Group, amounting to 248.5 megawatts (MW). This project is part of a larger 550 MW hybrid initiative located in Gujarat. Specifically, the wind component has been awarded to Suzlon for captive power use at ArcelorMittal Nippon Steel's manufacturing facilities within India.
In an official exchange filing, Suzlon highlighted that this order reinforces its position as the largest wind energy player in Gujarat, boasting an installed capacity base of 4.5 gigawatts (GW) that continues to expand. The company will supply 79 units of its S144 wind turbine generators, each with a rated capacity of 3.15 MW.
Management Insights on Industrial Decarbonisation
Girish Tanti, Vice Chairman of the Suzlon Group, commented on the partnership, emphasizing the growing synergy between renewable energy adoption and industrial decarbonisation efforts. "Steel forms the backbone of India's infrastructure development, yet it remains among the most energy-intensive industries. As this sector accelerates its journey toward decarbonization, renewable energy has emerged as a competitive and viable contributor," Tanti stated.
With this new project, Suzlon is now powering approximately 1,156 MW of renewable energy capacity dedicated specifically to decarbonising steel manufacturing in India. Over the past year, the company has actively partnered with several leading steel producers to facilitate their transition toward low-carbon operations.
Strategic Shift Toward EPC Business Expansion
JP Chalasani, Chief Executive Officer of the Suzlon Group, noted that this order underscores the company's strategic pivot toward growing its Engineering, Procurement, and Construction (EPC) business segment. "This project reflects Suzlon's strategic focus on the EPC segment, where we aim to gradually increase its share to 50% of our overall order book," Chalasani explained. He added that the EPC segment is expected to drive a significant portion of future order wins.
ArcelorMittal Sustainable Solutions India also expressed its commitment to sourcing clean energy, citing Suzlon's established track record and reliability in wind energy as key factors behind this collaboration. The partnership aligns with shared objectives to scale green steel production and support India's broader energy transition goals.
Suzlon Energy Share Performance Analysis
The renewable energy stock jumped as much as 3.3% to reach an intra-day high of ₹47.38. However, it remains approximately 36% below its 52-week high of ₹74.30, which was recorded in May 2025. The stock had touched its 52-week low of ₹44.84 just a day earlier, on January 27, 2026.
Recent performance metrics indicate some pressure on the stock:
- Declined by 6% over the past year
- Fell by 23% in the last six months
- Dropped by 16% over the past three months
- Shed 12% in the past one month
Brokerage Outlook and Investment Perspective
Domestic brokerage firm Motilal Oswal Financial Services maintains a positive stance on Suzlon Energy, citing a favourable risk-reward profile. The brokerage has retained its 'buy' rating on the stock with a target price of ₹74, suggesting an upside potential of approximately 56% from current levels.
Motilal Oswal acknowledged near-term concerns, including rising competition, slower wind installation rates, and potential cannibalisation from solar-plus-BESS (Battery Energy Storage Systems) projects. However, the firm anticipates significant incremental demand for wind power over the coming decade.
"We estimate that data centres, commercial and industrial (C&I) consumers, and public sector undertakings (PSUs) could collectively drive incremental wind demand of 20–24 GW by 2030, beyond India's targeted 100 GW wind capacity by FY30," the brokerage noted.
With around 15–17 GW of wind projects currently at the bidding or award stage, Suzlon enjoys strong visibility for near-term order inflows. The company's order book stands at 6.5 GW, providing full coverage for estimated wind turbine generator deliveries through the second half of FY26 and FY27. Motilal Oswal projects a 52% year-on-year revenue growth for the December 2025 quarter, with EBITDA margins expected around 18%.
Disclaimer: The views and recommendations presented above are those of individual analysts or broking companies, and not of Mint. Investors are advised to consult with certified experts before making any investment decisions.
