GLOBAL ECONOMY AND ENERGY MARKET
Overview
The global economic environment in 2026 is marked by heightened uncertainty due to the ongoing conflict in the Middle East. Disruptions in the Strait of Hormuz have significantly affected global energy supplies, resulting in increased commodity prices, supply chain interruptions, and elevated inflation. These developments come at a time when the global economy was already navigating headwinds from higher trade barriers and persistent uncertainty, partially offset by supportive financial conditions, technology- led investment, and policy interventions.
Against this backdrop, the International Monetary Fund [IMF)s World Economic Outlook (April 2026) projected global growth at 3.1% in 2026 and 3.2% in 2027 under its baseline scenario, moderating from around 3.4% in 2024-25 and remaining below the historical average of 3.7% observed during 2000-2019. Global headline inflation was expected to rise to 4.4% in 2026 before easing to 3.7% in 2027, reflecting upward revisions driven by commodity price pressures. The IMF also cautioned that the evolving geopolitical situation posed significant downside risks to the outlook.
Under an adverse scenario characterised by sustained energy price increases, amplifying inflationary pressures, and tightening financial conditions, global growth could slow to 2.5% in 2026, with inflation rising to 5.4%. In a more severe scenario involving disruptions to energy infrastructure, growth could decline further to around 2%, while inflation could exceed 6% by 2027, disproportionately affecting emerging and developing economies.
Outlook
Reflecting evolving economic conditions, the IMFs World Economic Outlook (July 2026) revised the baseline outlook to 3.0% growth in 2026 and 3.4% in 2027, with global headline inflation expected to rise to 4.7% in 2026 before easing to 3.9% in 2027, driven by the continued impact of higher energy and food prices. Continued geopolitical tensions, commodity price volatility, exchange rate pressures, tighter financial conditions, and supply chain disruptions remain key risks to global economic stability.
GLOBAL RENEWABLE ENERGY SECTOR
Overview
The global energy system continues to face structural pressures, with recent geopolitical developments underscoring vulnerabilities inherent in a fossil fuel-dependent framework, including exposure to price volatility, supply disruptions, and geopolitical risks. Against this backdrop, the transition towards clean energy is gaining momentum, with renewables offering enhanced energy security through domestic, inexhaustible resources.
Global energy demand growth moderated to 1.3% in 2025 from 2% in 2024, reflecting softer economic expansion, reduced weather-related demand impacts, and faster efficiency gains. Even as the global economy expanded by 3.1% in 2025, energy intensity improved by approximately 2%, indicating increasing efficiency in energy usage.
Electricity generation from renewables is expected to increase 60%-from 9,900 TWh in 2024 to 16,200 TWh in 2030. Solar PV alone accounts for over half of this increase, followed by wind [30%]. The share of renewables in global electricity generation is projected to rise from 32% in 2024 to 43% by 2030, while the share of variable renewable energy sources is set to almost double to 27%. From 2025 to 2030, renewables are expected to meet over 90% of global electricity demand growth.
A defining structural shift is underway in the power sector. Renewable energy sources accounted for 33.8% of global electricity generation in 2025, surpassing one-third for the first time and overtaking coal, whose share declined below one-third. This milestone reflects rapid scale-up across solar, wind, and other clean technologies, with renewables meeting the entirety of incremental global electricity demand during the year.
Global investment in the energy transition continued its upward trajectory during the year, reaching a record US$ 2.3 Trillion in 2025, reflecting an 8.1% Y-O-Y growth despite macroeconomic and geopolitical headwinds. Investment levels now consistently exceed fossil fuel capital expenditure, underscoring the structural shift toward low-carbon systems. Growth, however, has moderated compared to earlier years, declining from 27% in 2021 to single-digit levels in 2025, indicating a transition from rapid expansion to a more mature investment phase.
Renewable and power sector investment remained concentrated in core segments, with renewable energy at US$ 690 Billion [-9.5%], power grids at US$ 483 Billion [+17%], and energy storage at US$ 71 Billion [+18%], reflecting a shift toward system integration and reliability. Alongside electrified transport at US$ 893 Billion [+21%], these sectors together account for ~92.5% of total investment, indicating strong commercial maturity. Investment in clean energy supply chains reached US$ 127 Billion (+6%) in 2025, led by battery manufacturing and critical mineral development.
Wind Outlook
The global renewable energy sector is entering a new phase of scale and integration, supported by sustained policy momentum, improving cost economics, and increasing emphasis on energy security. Over the current decade, renewable capacity is expected to expand rapidly, with the International Energy Agency [IEA] projecting total additions of over 4,500-4,600 GW between 2025 and 2030, marking a step-change from historical deployment trends. While solar PV continues to account for a significant share of incremental capacity, wind energy remains a key contributor, particularly in markets with evolving system requirements.
As renewable penetration rises, the focus is moving beyond growth toward system integration, flexibility, and reliability. Variability in solar and wind output is driving the need for complementary solutions such as storage, grid expansion, and hybrid configurations. In this context, wind energy assumes increasing importance due to its ability to generate beyond solar hours and support balancing across demand cycles, thereby reducing the overall requirement for storage and enhancing system efficiency. This has led to the emergence of hybrid and storage integrated solutions, including firm and dispatchable renewable energy [FDRE] configurations, which combine wind, solar, and storage to overcome intermittency and deliver more predictable, demand aligned power supply.
GLOBAL WIND ENERGY SECTOR
Overview
The global wind industry entered 2026 with confidence, as a foundational pillar of the emerging ‘Electrotech era. Wind power added 165 GW of capacity to the grid in 2025, making it the best year ever for the wind industry, reflecting 40% Y-O-Y growth. Total installed wind capacity reached 1,299 GW, marking an increase of 14% Y-O-Y, supported by accelerated deployment across major markets.
Onshore wind continued to drive this growth, with annual installations surpassing the 150 GW milestone, as a record 155 GW was commissioned during the year, representing 42% Y-O-Y growth. Cumulative onshore capacity exceeded 1,200 GW globally, underscoring the scale and maturity of the segment.
Offshore wind additions stood at 9.2 GW, taking total installed offshore capacity to 92.3 GW, with annual additions registering growth of 16% over the previous year, indicating continued expansion of the segment despite execution and cost challenges.
Regionally, the Asia-Pacific market further strengthened its leadership position, accounting for nearly 80% of global installations. The regions two leaders, China and India, experienced explosive growth, together adding more than 126 GW of wind power.
The worlds top five markets for new installations in 2025 remained unchanged from the previous year-China (120 GW), the United States (6.9 GW), India (6.4 GW), Germany (5.7 GW) and Brazil (2.3 GW)-combined, they account for 86% of global additions.
Outlook
Global energy markets continue to face elevated uncertainty and structural pressures, with geopolitical developments and tensions in the Middle East highlighting vulnerabilities in the global energy system. Disruptions to critical energy infrastructure and supply routes have reinforced a key structural lesson: diversification of energy sources is no longer only a climate objective but a fundamental pillar of energy security. Countries that have accelerated renewable deployment and diversified their energy mix are comparatively better insulated from fossil fuel price volatility and supply disruptions.
In this context, policymakers are increasingly focused on strengthening resilience through diversification of power sources and scaling renewable energy deployment at pace. Wind energy, as a domestic, scalable, and cost- competitive source of power, continues to play a critical role in enhancing energy sovereignty and reducing dependence on volatile fossil fuel markets.
Looking ahead, the outlook for the wind industry remains strong. According to GWEC Market Intelligence, annual global installations are projected to reach 178 GW in 2026, surpassing previous records. Building on record installations in 2025, the industry is expected to maintain growth momentum, with ~969 GW of new capacity addition projected between 2026 and 2030, averaging annual installations of 194 GW at a CAGR of 5.2%.
INDIAN ECONOMY AND ENERGY MARKET
Overview
Despite global uncertainties, India continues to demonstrate economic resilience. The IMFs World Economic Outlook (April 2026) estimated GDP growth at 7.6% in 2025 and projected growth of 6.5% in 2026 and 2027, supported by the reduction in US tariffs on Indian goods from 50% to 10%, which helped offset the adverse impacts of the Middle East conflict. Inflation was expected to return to near target levels after a marked decline in 2025, driven by subdued food prices, while the current account deficit (CAD) was projected to remain moderate, reflecting a manageable external position. According to the report, Indias outlook was notably stronger than the regional average for emerging and developing Asia, where growth was projected to decline from 5.5% in 2025 to 4.9% in 2026.
Driven by rapid economic growth, increasing electrification, and rising energy demand, India has emerged as a major force in the global energy landscape. However, the countrys energy market remained exposed to global commodity volatility, particularly in oil and gas, with higher import costs posing risks to inflation, the trade balance, and the current account. Electricity demand continued to be a key driver of long-term energy consumption. According to the IEA, electricity demand growth moderated to 1.4% in 2025, well below the 6% recorded over the previous four consecutive years.
India Outlook
The IMFs World Economic Outlook (July 2026) revised Indias baseline outlook, projecting growth of 7.7% in 2025, 6.4% in 2026 and 6.7% in 2027, while inflation was expected to moderate gradually as food and energy price pressures eased. Indias outlook remained notably stronger than the regional average for emerging and developing Asia, where growth was expected to moderate from 5.6% in 2025 to 5.0% in 2026 and further to 4.8% in 2027. The IMF attributed Indias resilience to strong domestic momentum and lower US tariff pressures, although geopolitical tensions and global commodity price volatility continued to weigh on the external environment.
According to ICRA, Indias external position remained resilient in FY26, with the current account deficit (CAD) contained at 0.6% of GDP despite widening to US$ 25.2 Billion from US$ 22.9 Billion in FY25. The CAD is projected to widen to 1.7% of GDP in FY27, driven by a higher merchandise trade deficit amid elevated global energy prices following the West Asia conflict. While measures introduced by the Government of India and the Reserve Bank of India to attract capital inflows may provide some support, a sustained recovery in net foreign direct investment (FDI) inflows will be critical to maintaining external sector stability.
On the energy front, the IEA noted that subdued electricity demand growth in 2025 was largely driven by weather-related effects, suggesting a likely rebound as economic activity and weather conditions normalise. However, continued volatility in global oil and gas prices could increase import costs, placing pressure on inflation, the trade balance, and the current account.
INDIAS CLEAN ENERGY SECTOR
Overview
India is progressively transitioning toward a cleaner energy mix, while continuing to meet its growing demand through a diversified combination of conventional and renewable energy sources.
Indias commitment to achieving net-zero emissions by 2070 and meeting 50% of its electricity requirements from renewable energy sources by 2030 marks a significant step in the global energy transition. India continues to strengthen its position as a global renewable energy leader, ranking third in renewable energy installed capacity, fourth in installed wind power capacity, and second in solar power capacity.
As of March 2026, Indias total installed power capacity reached approximately 533 GW, of which 283 GW (53%) comprises non-fossil fuel sources, highlighting the increasing share of clean energy in the overall power system.
Foreign investment activity also remained resilient for India during FY26, with FDI equity inflows of ^ 303,402 Crore (US$ 35.18 Billion) recorded during April-September 2025. Non-conventional energy is attracting ^ 17,030 Crore 1,979 Million; 6%), reflecting sustained investor interest in Indias clean energy ecosystem. In terms of geographic concentration, leading industrial states such as Maharashtra (^ 91,337 Crore; 30%) and Karnataka (^ 80,997 Crore; 27%) continue to dominate inflows, reflecting strong investment ecosystems, manufacturing bases, and renewable project pipelines
Outlook
The IEAs Renewables 2025 report revised Indias renewable capacity expansion forecast for 2025-2030 upward by 9% compared with its Renewables 2024 outlook, reflecting a more favourable outlook than previously anticipated. Higher auction volumes, new support for rooftop solar projects, and faster hydropower permitting are driving Indias renewable expansion. The country is on track to meet its 2030 target and become the second-largest growth market for renewables, with capacity set to rise by 2.5 times in five years.
INDIAS WIND ENERGY SECTOR
India continues to be one of the worlds leading and fastest- growing wind energy markets, supported by ambitious renewable energy targets, rising electricity demand, and a strong domestic manufacturing base. The sector plays a critical role in the countrys broader transition toward a clean, secure, and affordable energy system.
During 2025, India added 6.34 GW of new onshore wind capacity, marking its highest level of annual installations since 2017 and reflecting growth of 85% Y-O-Y. This strong performance enabled India to regain its position as the third-largest wind energy market globally.
Support for domestic manufacturing continues to strengthen, with the Union Budget 2026 extending concessional customs duty on key wind components to boost localisation. Wind energy has also been included in the National Manufacturing Mandate 2025-2026, further enhancing domestic supply chain capabilities.
Onshore wind remains the backbone of Indias wind sector. As of March 2026, installed onshore wind capacity reached 56.1 GW, with India emerging as a key hub for turbine assembly and component manufacturing in the Asia-Pacific region. New installations are increasingly driven by hybrid and firm and dispatchable renewable energy (FDRE) tenders, supported by policy measures such as annual wind bidding trajectories and corporate decarbonisation demand.
Outlook
India aims to achieve 500 GW of non-fossil fuel capacity by 2030, including 100 GW from wind energy, underscoring winds importance in maintaining a balanced and cost- effective energy mix. Policy measures-including the annual 10 GW bidding trajectory, stronger Renewable Purchase Obligation [RPO] compliance, development of a robust Renewable Energy Certificate [REC] market, improved financial health of DISCOMs, greater long-term project pipeline visibility, and rising demand from the commercial and industrial [C&I] segment-are expected to support sustained sector growth.
A key trend shaping the outlook is the increasing shift toward hybrid and Firm and Dispatchable Renewable Energy [FDRE] projects, where winds complementary generation profile alongside solar is expected to play a critical role. As of the end of 2025, approximately 9.7 GW of FDRE capacity was under construction in India. Approximately 38.3 GW of renewable energy capacity was cancelled during 2020-2024, reflecting broader challenges across the tendering ecosystem, particularly the complexity of FDRE and Round-the-Clock [RTC] procurement structures. Notwithstanding these shortterm frictions, the FDRE segment remains strategically vital for improving grid reliability, peak power supply, and the contribution of wind to future renewable additions.
GWEC Market Intelligence expects over 40 GW of new onshore wind capacity additions over the next five years, supported by policy support and improving market mechanisms. In parallel, repowering ageing assets is expected to improve generation efficiency and optimise existing infrastructure.
Sustaining this growth trajectory will require addressing several execution and structural challenges, including delays in land acquisition, grid connectivity, right-of- way approvals, and power purchase agreement [PPA] finalisation. State-level policy variations, financial health of DISCOMs, and transmission readiness in high renewable penetration regions remain critical factors influencing project timelines and bankability.
ABOUT SUZLON ENERGY LIMITED
Suzlon 2.0 - Strategic Transformation and Focus Areas
Suzlon Energy Limited (‘Suzlon, ‘the Company) has entered a new phase of growth under its ‘Suzlon 2.0 strategy, focused on strengthening its core business, improving execution capabilities, and aligning with evolving market requirements in the renewable energy sector. This evolution goes beyond strengthening the core wind business-it reflects a deliberate broadening of scope across wind, solar, storage, and emerging clean energy technologies, enabling Suzlon to offer integrated solutions aligned with the markets shift from standalone capacity addition toward reliable, dispatchable, and technology-led energy delivery.
The next phase of growth is driven by four structural shifts: rising focus on dispatchable renewable energy, where wind complements solar and storage improves grid reliability; unlocking execution capacity to convert strong demand into installations; policy support like ALMM strengthening domestic manufacturing ecosystems; and increasing global demand positioning India as a competitive export hub for wind energy solutions.
Suzlon 2.0 is centred on four strategic pillars: launching DevCo, a standalone project development vertical that will anchor its ambitions across wind, solar, and battery energy storage systems (BESS); transforming Operations & Maintenance Services (OMS) into a digital-first, predictive platform; establishing smart manufacturing facilities to enhance output quality and unit economics; and capitalising on global market opportunities through a structured international expansion. The strategy is supported by an asset-light model, enhanced execution discipline, and a renewed focus on order book quality and portfolio profitability.
As part of this evolution, Suzlon has outlined key strategic focus areas aligned with the most consequential emerging opportunities in the renewable energy sector.
Key Focus Areas Under Suzlon 2.0
1. Advanced Turbine Technology: Next-Generation Platforms
Suzlon continues to strengthen its technology roadmap through advanced turbine platforms across domestic and international markets. In India, its 3 MW series (S144, S120) addresses diverse wind regimes, with the S144 achieving a product carbon footprint of 6.17 gCO2/kWh, the lowest in the country. Internationally, the ‘Blue Sky platform expands Suzlons portfolio into 5-6.3 MW turbines, including the S175 for low wind sites and S163 for higher wind regimes, both with tip heights up to 250 metres. These platforms are designed for higher energy yields, improved reliability, and lower LCoE, aligned with global industry trends toward larger turbines, with average capacities now moving into the 4-6 MW range.
2. Participation in Hybrid, FDRE, and Storage-Led Opportunities
Suzlon is positioning itself to capitalise on Indias shift toward hybrid, FDRE, and storage-integrated renewable solutions, which are increasingly central to power procurement. The Company is strengthening its capabilities across hybrid integration, FDRE participation through its DevCo vertical, and grid- aligned project execution. As of end-2025, ~9.7 GW of FDRE capacity was under construction, although the sector faced near-term challenges, including over 40 GW of unsigned PSAs due to tariff differentials. Suzlon secured a key milestone with an 838 MW FDRE-linked order from TPREL, its largest in FY26, and partnered to explore project development opportunities. These developments reinforce the Companys growing role in complex, dispatchable renewable solutions.
As per CEAs Long-Term National Resource Adequacy Plan (2026-27 to 2035-36), India requires ~321 GWh of BESS by FY36 for short-duration balancing and reliability support. As of FY26, around ~70 GWh of BESS capacity has been tendered, and ~29 GWh is under construction, highlighting a significant scale-up required over the next decade.
3. Expansion in International Markets
Suzlon is executing a calibrated re-entry into international markets as a core pillar of its Suzlon 2.0 strategy, leveraging its global installed base of approximately 21.5 GW across 17 countries, including ~6 GW outside India. The Company is targeting markets with strong wind demand and active repowering cycles, particularly in Europe. In FY26, Suzlon unveiled its ‘Blue Sky platform at WindEurope 2026, featuring the S175 (5 MW) and S163 (6.3 MW) turbines with tip heights up to 250 metres, with Europe identified as the initial market. The appointment of a dedicated Europe leadership head further strengthens execution focus in the region.
4. Strengthening Core Operations and Service Business
Suzlon continues to expand and digitally transform its Operations & Maintenance Services (OMS) business, managing ~15.5 GW of assets in India, making it one of the largest wind O&M platforms in the country. The Company is enhancing operational efficiency through AI-driven predictive maintenance, performance analytics, and lifecycle optimisation, leveraging three decades of operating data. This business provides stable, recurring revenue streams while strengthening customer relationships across IPPs and C&I clients.
Technology: Selected Achievements from a Period of Strong Growth and Progress
Suzlon has built a robust and evolving turbine portfolio across the 2-6 MW class, with established platforms like S120 and S144 driving strong deployment in India, complemented by next-generation platforms such as S175 and S163 addressing low-wind and high-wind site requirements, respectively. This progression, underpinned by the ‘Blue Sky platform, reflects continuous technology advancement in rotor diameter, hub heights, and energy yield optimisation. With a clear roadmap for next-generation products under development, Suzlon is well-positioned to expand addressable market coverage while improving efficiency, scalability, and lifecycle performance across diverse wind regimes.
Key Business Imperatives
FY26 marked a transformative year for Suzlon, delivering one of the most successful milestones in its journey. As record-breaking Revenue, EBITDA, and PAT-its strongest it celebrates its 30th anniversary, Suzlon continues to performance since FY17. This achievement reflects the exemplify resilience, innovation, and a forward-looking unwavering commitment of its teams, making the year vision that will drive the next phase of growth.
The Companys key strategic priorities to sustain this momentum include:
| Full-Stack RE Solutions: Transition from a wind OEM to an integrated renewable energy partner, offering Wind + Solar + BESS through a unified, customer-centric solution stack. | Execution at Scale: Timely delivery of a strong order book with consistent focus on quality, safety, and ESG standards, building execution reliability as a key differentiator. | End-to-End Value Chain Control: Strengthening capabilities across DevCo, EPC, and Asset Management to ensure lifecycle ownership, faster execution, and improved margin capture. |
| Customer-Centric Growth: Building long-term partnerships through execution certainty, tailored solutions, and lifecycle services that maximise customer returns and asset performance. | Technology-Led LCOE Leadership: Leveraging next-generation turbine platforms, digitalisation, and hybrid solutions to enhance energy yield, improve reliability, and reduce overall cost of energy. |
Business Risks and Mitigation Measures
Suzlon follows a comprehensive risk management framework to assess internal and external factors, enabling proactive mitigation and informed decision-making.
Key risks and mitigation strategies are outlined below:
Operational Risks
Technology Risk
Driven by increasing cost pressures, the wind energy sector continues to advance through technological innovation, enabling more efficient, and cost-competitive solutions. Suzlon leverages its integrated India-Europe R&D ecosystem and strong in-house design and engineering capabilities to develop a differentiated product portfolio tailored for Indias low-wind conditions. The Company remains focused on enhancing performance, optimising component costs, and improving efficiency across the entire lifecycle of its solutions.
Supply Chain Risk
Wind turbine manufacturing requires precise, time- sensitive supply chain planning, particularly for critical components such as gearboxes, bearings, generators, converters, towers, and blades, which involve long lead times and limit flexibility. Suzlon addresses this through a robust supply chain framework that ensures efficient resource deployment and optimal utilisation. This is achieved by building a diversified and geographically distributed supplier base, supported by vendor development, localisation, and component standardisation to ensure timely availability while maintaining cost discipline.
A significant portion of component costs is linked to commodity price movements-such as steel, copper, and crude oil-exposing the Company to market volatility. Additionally, geopolitical disruptions continue to impact global logistics and supply chains, potentially affecting timelines, and costs. To mitigate these risks, Suzlon focuses on supply chain resilience through alternate vendor development and long-term supply agreements, complemented by contractual pass-through mechanisms to manage input cost volatility and protect margins.
Project Execution Risk
The wind energy sector in India continues to face execution challenges, primarily driven by delays in land acquisition and statutory approvals, leading to potential cost overruns and project delays. Additional risks include extreme climatic conditions, environmental factors, grid evacuation constraints, availability of suitable land, timely access to installation infrastructure such as cranes, and dependency on subcontractor performance.
Suzlon mitigates these risks through disciplined project monitoring, ensuring close tracking of timelines and proactive issue resolution. Under Suzlon 2.0, the Company is further addressing execution bottlenecks through its RE DevCo model-focused on developing a robust pipeline of pre-secured, shovel- ready projects with land and grid connectivity in place. This approach enhances project readiness, reduces execution uncertainties, and enables faster, more reliable delivery.
Business Volume Risk
As of May 2026, Suzlon has achieved an order book of ~5,9 GW, reinforcing its leadership across PSU, Commercial & Industrial [C&I], and utility segments. FY26 also witnessed the Companys highest-ever deliveries in India, reflecting strong execution momentum and improving capacity utilisation. The Company continues to build a diversified and robust order pipeline, supported by favourable tariff levels of I 3.5-1 3.75/ unit, which have further strengthened visibility on wind installations and commissioning.
While the business remains exposed to potential policy changes, Suzlon actively mitigates this risk through continuous monitoring of regulatory developments, market dynamics, and execution progress to sustain growth momentum.
Financial Risks
Availability of Adequate Working Capital
The WTG business is inherently working capital intensive, requiring substantial non-fund-based limits to support execution. Suzlon has secured adequate non-fund-based working capital facilities through multiple banking partners, with additional limits available as required to support its order book.
This facility is structured as non-fund-based, primarily remaining off the balance sheet, which helps Suzlon maintain a debt-free position while significantly enhancing commercial terms with both customers and suppliers. With a strengthened balance sheet and improved credit ratings from external agencies, the Company is well-positioned to explore and leverage various financing options in the future.
Delay in Funding for Planned Capital Expenditure
Suzlons manufacturing capacity stands at ~4.5 GW, supported by operational nacelle facilities in Daman and Puducherry, along with expanded blade manufacturing across Madhya Pradesh and Rajasthan, positioning the Company to meet growing demand.
Backed by a net cash balance of ^ 2,384 Crore Suzlon is well- positioned to fund targeted capital expenditure-primarily towards blade mould development-while also supporting new growth initiatives under Suzlon 2.0. These initiatives are designed to follow an asset-light model, enabling scalable expansion with disciplined capital allocation. The Company continues to invest in technology upgrades and process efficiencies to drive sustainable growth.
Poor Financial Position of Distribution Companies
Electricity distribution companies in several Indian states continue to face financial stress, which, while not directly impacting Suzlon due to limited commercial exposure, may have indirect implications on business volumes, operational performance, and future cash flows. Such challenges may also influence overall market sentiment and the broader business environment.
However, Suzlons diversified customer mix-with a significant share of PSU and Commercial & Industrial [C&I] clients-helps mitigate this risk, resulting in limited exposure to the financial health of distribution companies.
Foreign Exchange Risk
Suzlons operations are exposed to fluctuations in foreign exchange rates and commodity prices. The Company mitigates these risks through a combination of strategies, including price variation clauses in customer contracts, financial hedging, and pass-through mechanisms. These measures help manage input cost volatility and ensure stability in margins and overall financial performance.
High Level of Inflation in India
Inflation in India remains volatile, posing risks to input costs across commodities, raw materials, and operating expenses, which may exert pressure on margins. Elevated inflation levels also reduce cost visibility and make forecasting more challenging. In certain scenarios, the Company may not be able to fully pass on increased costs to customers, impacting financial performance. Additionally, sustained high inflation could lead to higher interest rates, potentially affecting profitability and pricing dynamics.
Internal Control Systems and Their Adequacy
Suzlon has established a robust internal control framework, wherein the Management Assurance team- supported by in-house experts and co-sourced partners- conducts independent reviews of risks, controls, and operational processes. These reviews enable timely identification of control gaps and implementation of effective mitigation measures.
The Company also operates a dedicated Risk and Misconduct Management Unit, which supports leadership in strengthening governance frameworks and reinforcing ethical business practices across the organisation.
Whistleblower complaints are regularly reviewed to ensure transparency and accountability. Oversight is provided by the Audit Committee of the Board, which periodically reviews audit findings, plans, recommendations, and management responses. During FY26, the Audit Committee met four times. Additionally, Suzlon continues to invest in transformation initiatives focused on process automation, ERP upgrades, and digital enablement to enhance operational efficiency and strengthen its overall control environment.
CSR Strategy
‘At Suzlon, we believe true progress is measured not only by the wind power we generate, but by our commitment to empowering the communities around us.
Suzlons growth journey has always been closely interconnected with the communities that host and support its wind farm operations and manufacturing facilities. With wind energy projects operating over long lifecycles, sustained community engagement remains fundamental to the Companys approach towards responsible growth and long-term value creation. Its CSR philosophy is therefore centered on building resilient rural communities through focused interventions in livelihoods, environmental stewardship, empowerment of community institutions, education, healthcare, and community infrastructure.
Established in 2007, ahead of the introduction of the CSR mandate in India, Suzlon Foundation, a Section 8 Company, has been partnering with Suzlon in leading community development initiatives across its operational geographies for more than 18 years. Over time, Suzlon CSR has evolved into a structured rural development platform focused on participatory planning, community ownership, and measurable outcomes. As India accelerates towards its renewable energy ambitions, Suzlon remains committed to ensuring that social progress grows alongside clean energy expansion. Through strong partnerships, robust governance systems, and community-led execution, we continue to focus on creating scalable and outcome- driven impact that enables stakeholder trust, enhances community resilience, and contributes to inclusive rural development.
The SUZTAIN Model
The SUZTAIN model forms the foundation of Suzlon CSRs community development framework, guiding interventions across short-, medium-, and longterm objectives.
Long-Term Objective: Strengthen Village Development Committees (VDCs) and other collectives as selfreliant institutions driving local development and community ownership.
Medium-Term Objective: Focus on critical yet underserved, unarticulated needs of vulnerable and excluded groups through the ZERO Initiative (addressing issues until they reach zero).
Short-Term Objective: Address immediate basic rural development needs across six focus areas-Livelihoods, Education, Health, Environment, Civic Amenities, and Empowerment.
Together, these objectives drive community-led and need-based interventions implemented in partnership with NGOs, government agencies, and local institutions, contributing towards the achievement of the 17 Sustainable Development Goals (SDGs).
Suzlon CSR themes are the development pillars that guide sustainable community development, build local resilience, and create long-term social, environmental, and economic impact.
External Environment and Rural Development Context
Despite Indias rapid economic progress, a large section of rural households continues to face challenges related to livelihoods, access to basic services, and long-term economic resilience. For many families, moving above the poverty line does not necessarily translate into a secure or dignified quality of life. Access to essentials such as food, clean drinking water, healthcare, education, sanitation, energy, housing, and social security remains critical for enabling sustainable rural development and inclusive growth.
Suzlon CSR Programmes
Environment: Restoring Ecological Resilience
The Issue
Rural livelihoods remain closely dependent on environmental health, making communities vulnerable to declining green cover, biodiversity loss, land degradation, fodder scarcity, and increasing waste pollution.
Strategic Response
Suzlon CSR persisted in its focus on ecological restoration through afforestation, grassland development, biodiversity conservation, sparrow habitat restoration, and community-led waste management initiatives. Interventions included plantation of native species, restoration of degraded grasslands, installation of bird nests, turtle nest protection, plastic waste recycling drives including innovative items made from business waste for community needs, and large-scale community awareness and capacity-building programmes on ecological conservation across rural geographies.
Empowerment: Enabling Community Self-Reliance
The Issue
Limited access to institutional support, livelihood opportunities, rehabilitation services, and decisionmaking platforms often restricts the socio-economic participation of vulnerable individuals and persons with disabilities in rural communities.
Strategic Response
Guided by the ‘Engage-Empower-Sustain approach, Suzlon CSR further strengthened village development committees (VDCs), women-led self-help groups (SHGs), and vulnerable community groups through capacity building, awareness generation, rehabilitation support, and livelihood promotion initiatives. Focused interventions supported individuals with disabilities through physiotherapy, mobility support, and income generation opportunities aimed at improving independence and community participation.
Health: Fostering Community Health and Well-Being
The Issue
Limited healthcare access, low awareness, inadequate medical infrastructure, and socio-cultural barriers continue to impact preventive healthcare, womens health, eye care, and early disease detection in rural communities.
Strategic Response
Suzlon CSR sustained its efforts to foster community health and well-being through health camps, eye-care interventions, preventive screenings, womens health initiatives, adolescent awareness programmes, and cancer screening drives. The interventions focused on improving access to affordable healthcare, promoting preventive care, health awareness, and enabling early diagnosis and treatment across rural communities.
Education: Enabling Access to Quality Learning
The Issue
Limited access to quality learning infrastructure, digital resources, sanitation facilities, and learning support continues to affect educational outcomes and student retention in rural communities.
Strategic Response
Suzlon CSR advanced rural education through digital learning initiatives, school infrastructure support, WASH interventions, renewable energy solutions, student development programmes, and targeted support for economically vulnerable students. The interventions focused on improving access, learning continuity, digital exposure, hygiene awareness, and overall student development across schools and Anganwadis (government-run rural child-care centres).
Livelihoods: Co-Creating Rural Income and Self-Reliance
The Issue
Limited livelihood opportunities, low agricultural productivity, restricted market access, and inadequate skill development continue to impact income security and economic resilience in rural communities.
Strategic Response
Suzlon CSR intensified rural livelihoods through skill development, enterprise promotion, agriculture productivity enhancement, market linkages, SHG and VDC-led income generation, and inclusive livelihood initiatives for vulnerable groups. The interventions focused on improving household incomes, enabling selfemployment, promoting local enterprises, and promoting sustainable rural economic development.
Social Infrastructure: Reinforcing Rural Resilience and Essential Services
The Issue
Limited access to reliable energy, water infrastructure, public utilities, and sustainable community assets continues to impact service delivery, productivity, and quality of life in rural communities.
Strategic Response
Suzlon CSR enhanced rural infrastructure through renewable energy solutions, water conservation initiatives, community infrastructure development, and circular waste management practices. The interventions focused on improving access to energy, ensuring water security, enhancing public service delivery, and promoting sustainable community assets across rural geographies.
Employee Volunteering and Giving: Deepening Purpose-Driven Participation
The Issue
Sustainable social impact requires active participation beyond financial contributions, with employee engagement playing a critical role in enhancing community development and responsible corporate citizenship.
Strategic Response
Suzlon enhanced employee-led social engagement through volunteering, payroll giving, and cross-functional involvement across CSR initiatives. Guided by Suzlon leadership, employees, vendors, vendor staff, and customer teams also actively contributed time, skills, and financial support towards social and environmental development initiatives.
Donations Drives: Tree Plantation Drive Turtle Nest Conservation Drives Diwali Social Giving Clothes Donation Organic Manure Distribution Winter Blanket Donation Mobility Support For Persons with Disabilities Su-Siksha Student Support Initiative Humanitarian Medical Support Initiatives Awareness Session on Renewable Energy Participation in Village CSR Initiatives
Measuring Impact Created
An independent Environmental and Social Return on Investment (ESRoI) study assessed the impact of Suzlons CSR investments of ^ 12.68 Crore across five thematic areas, estimating total societal value creation of ^ 497 Crore. The assessment delivered an ESRol of 3,922%, equivalent to generating ^ 39.22 in social and environmental value for every ^ 1 invested. Strong returns were observed in Social Infrastructure, Livelihood, and Empowerment initiatives, reflecting the scale, effectiveness, and maturity of these programmes. Based on field visits, detailed project reviews, and beneficiary interactions, the study further highlighted the long-term ecological, social, and community well-being outcomes generated through Suzlon CSR initiatives.
Risk Management and Mitigation
Suzlon has fortified risk-responsive CSR implementation through structured governance, proactive community engagement, and resilient project planning. Key focus areas include robust NGO due diligence and governance reviews, community grievance redressal mechanisms to maintain trust and transparency, and climate- responsive planning to improve continuity and long-term effectiveness of interventions across geographies.
Business and Stakeholder Value Creation
Suzlon CSR plays a vital role in consolidating long-term relationships with communities and stakeholders by creating visible social impact, encouraging participation, and addressing local development priorities. These initiatives help build community trust, address community grievances, reinforce stakeholder engagement, enhance corporate reputation, and support smoother operations across project locations through stronger local partnerships and social acceptance.
Governance
Suzlon CSR operates through a structured governance framework with oversight from the CSR Committee, supported by defined project review mechanisms, periodic monitoring, NGO due diligence processes, and internal and external audit controls. This framework ensures transparent implementation, effective utilisation of resources, compliance with statutory requirements, and accountability across all CSR initiatives.
FY27-FY30 Roadmap
Over the next four years, Suzlon Foundation aims to enhance governance and standardisation across CSR programmes, deepen multi-year community development initiatives, and expand strategic partnerships for greater scale and continuity. The roadmap focuses on building replicable rural development models, enhancing programme effectiveness across geographies, and creating measurable long-term social impact while fortifying Suzlons position as a responsible development partner.
Environmental, Social, and Governance (ESG) Responsibility and Impact: Sustainability in Motion
At Suzlon, sustainability is embedded in its business model and operations. The Companys model integrates environmental stewardship, social responsibility, and strong governance to create long-term value for stakeholders while advancing Indias renewable energy transition.
Driving growth through agility, innovation, and sustainability, Suzlon is a ‘Business-to-Business-to- Society service company which is working to power a sustainable and resilient future by enabling clean energy transformation, creating positive impact across our value chain, and setting new benchmarks in responsible business leadership.
Our goal is to integrate sustainability into every aspect of our business through organisational excellence, sustainable product innovation, and responsible supply chains, delivering renewable energy solutions that create long-term value for our customers, communities, partners, and the planet.
The Company provides end-to-end solutions-from turbine manufacturing to project execution and maintenance- that are tailored for clients, providing sustainability solutions designed for the future.
Guided by clearly defined short-term (FY24-26], midterm [FY26-30], and long-term (FY30 onwards] ESG roadmaps, the Company regularly tracks and evaluates progress against measurable sustainability KPIs embedded across business units across all employees including top management to ensure accountability and continuous improvement.
ResGen: Suzlons Sustainability Model
Anchored by its ‘ResGen (Responsible Generation) framework, the cornerstone of its sustainability journey, Suzlon has established a dedicated ESG governance structure aligned with all 17 United Nations Sustainable Development Goals (SDGs) and leading global reporting and disclosure frameworks. As the Companys holistic sustainability model, ResGen balances growth with responsibility by embedding principles of environmental stewardship, social equity, and ethical governance into every aspect of operations, building a future that is cleaner, greener, and more inclusive.
Through the ResGen model, the Company integrates climate action, resource efficiency, circularity, biodiversity conservation, and inclusive community development into its core strategy. In FY26, Suzlons priorities include enhancing disclosures, strengthening impact measurement, and linking sustainability performance with long-term value creation. Guided by the Suzlon Foundation, the Company continues to empower rural communities through livelihoods and local capacity building, with 4,432 CSR activities across
1,268 villages, reaching more than 23 lakh villagers and 4.9 lakh households in collaboration with over 39 institutions. With Board-level ESG oversight, a robust Supplier Code of Conduct, and transparent reporting aligned with global benchmarks, Suzlon remains committed to aligning business performance with sustainability outcomes. The ResGen model reinforces its role as a responsible contributor to Indias low-carbon and inclusive growth journey, ensuring that every megawatt it generates creates cleaner energy, stronger communities, and lasting value.
Suzlons Achievements
Environmental Stewardship and Climate Action
Climate action remains a core pillar of Suzlons sustainability strategy. In FY26, the Company undertook site-level assessments across manufacturing and operations to identify decarbonisation opportunities aligned with its Net Zero roadmap. These efforts were supported by capacity-building initiatives, including training internal teams on Internal Carbon Pricing and integrating climate risk considerations into operational decision-making.
The key achievements during the year include a 23.14% reduction in Scope 1 emissions and a 22.79% increase in renewable energy consumption, resulting in 25.1% renewable energy usage at the Group level, aligned with the Companys RE100 commitments to achieve 100% renewable energy by 2030. Four manufacturing plants now operate entirely on renewable energy, supported by solar PV installations and renewable energy adoption across 21 OMS locations.
Suzlon advanced its EV100 commitments by deploying 20 electric vehicles across operations, avoiding over 41 tCO2e emissions. Energy efficiency initiatives, including LED installations, compressor optimisations, and inhouse equipment redesigns, delivered significant carbon savings. Its flagship S144 (3.x MW) turbine achieved a benchmark carbon footprint of 6.7 gCO2e/kWh, the lowest in India.
These initiatives reinforce Suzlons commitment to achieving Net Zero Scope 1 and Scope 2 emissions by 2035, with a continued focus on energy efficiency and reducing dependence on fossil fuels.
Biodiversity Management
In FY26, Suzlon strengthened its biodiversity governance framework by developing a Biodiversity Ready Reckoner to equip sites with clear KPIs, metrics, and indicators. Training programmes built internal capacity and aligned site-level actions with Indias National Biodiversity Targets, supporting its long-term goal of achieving no net loss of biodiversity by 2040. These efforts are now integrated into environmental management systems and project planning processes.
Circularity and Resource Efficiency
Suzlon advanced its circular economy journey through a Circularity Transition Indicator (CTI v4.0) assessment of the S144 (3.x MW] wind turbine, aligned with the WBCSD framework. The study established baselines for material circularity, recovery potential, and end- of-life performance across blades, towers, nacelles, rotors, transformers, and foundations. Several input
materials demonstrated high recycled content, including fibre-reinforced plastic, grease, oil, PA6, R134a, and steel (100% recycled], while aluminium and tower steel incorporated 93% recycled content. These outcomes highlight Suzlons commitment to reducing reliance on virgin resources and strengthening lifecycle resource efficiency.
Sustainable Supply Chain
Responsible supply chain management remained a material focus in FY26. Suzlon operationalised a Sustainable Supply Chain Framework aligned with ISO 20400, embedding ESG criteria into procurement processes. Nearly all Tier-1 critical suppliers were assessed using a structured 7-pillar ESG framework aligned with BRSR, GRI, and ILO standards. Supplier risk assessments strengthened resilience, while digital dashboards enabled continuous monitoring and improvement. Suzlon achieved ISO 20400 certification during the year, reflecting the maturity of its sustainable procurement practices, while maintaining a strong focus on local sourcing and MSME engagement.
Social Impact and Community Development
Suzlons social performance in FY26 reflects its commitment to inclusive growth. The Company implemented over 4,400 CSR activities across 1,267 villages, reaching more than 23 lakh individuals and nearly 4.9 lakh households. Investments of ^ 87 Lakh in aspirational districts and co-funding contributions from employees, customers, and community stakeholders amplified impact. Programmes spanned six focus areas-environment, empowerment, health, livelihoods, education, and civic amenities-delivering meaningful improvements in healthcare, education, livelihoods, and community infrastructure, particularly across tribal communities.
Health, Safety, and Employee Well-Being
Occupational health and safety governance was strengthened through the DSS+ Safety System Framework, supported by a Group- level Safety Board, Business Unit Safety Committees, and structured site-level implementation. Defined KPIs, dashboards, and five safety think tanks enhanced monitoring and capability development. Risk-based controls, ISO-aligned audits, and extensive training-including Global Wind Organisation standards-reinforced a culture of safety across employees, contractors, and management.
Governance and Business Ethics
Strong governance and ethical conduct remained central to Suzlons sustainability approach. In FY26, employees and Board members completed Anti-Bribery and Anti-Corruption training, with zero complaints reported relating to conflicts of interest, bribery, corruption, or anticompetitive conduct. Ethics and compliance frameworks were supported through Board- level oversight, robust internal controls, transparent grievance mechanisms, and regular monitoring.
Looking Ahead
As Suzlon advances its sustainability journey, the Company will continue to deepen decarbonisation across operations and value chains, scale circular economy practices, strengthen biodiversity outcomes, enhance human rights due diligence, and improve impact measurement and disclosures. The BRSR for FY26 reflects Suzlons continued commitment to aligning business performance with sustainability outcomes and reinforces its role as a responsible contributor to Indias low-carbon, resilient, and inclusive growth pathway.
Key Highlights
Organisational Sustainability Resource Optimisation and Circularity
Suzlon continues to strengthen resource efficiency and circularity across its manufacturing operations, embedding sustainability into product design and production processes. At SE Forge in Coimbatore, casting manufacturing incorporates significant use of reused and recycled materials, with approximately 75% steel scrap and 90% recycled sand utilised in casting production. This approach reduces reliance on virgin resources and lowers lifecycle environmental impacts.
In line with its commitment to circular design, Suzlon has enhanced the S144 (3.x MW] Wind Turbine Generator (WTG] to reduce steel intensity and minimise the product carbon footprint across its cradle-to-grave lifecycle. This innovation supports resource optimisation at source and strengthens lifecycle sustainability.
Aligned with the WBCSD CTI v4.0 framework, Suzlon completed a detailed circularity assessment of the S144 (3.x MW] turbine, establishing a baseline for material circularity over its 25-year design life and identifying opportunities to enhance resource efficiency, durability, and end-of-life recovery.
Zero Liquid Discharge
In the area of water stewardship, 55,994 kL of water across manufacturing operations under Suzlon Energy Limited (SEL) and SE Forge were treated, recycled, and reused for non-process applications such as gardening and flushing during FY26, which is a 65.16% increase in water recycling as compared to FY25. Although water is not directly consumed in Suzlons core manufacturing processes, all manufacturing plants are equipped with Zero Liquid Discharge (ZLD) systems, enabling closed- loop water management within plant boundaries.
Product Sustainability
Suzlon has reinforced its leadership in sustainable innovation by successfully completing Product Carbon Footprint (PCF) certification and third-party verification for its flagship Wind Turbine Generator (WTG) models, S120 and S144. The PCF calculations were carried out in accordance with ISO 14067, with Life Cycle Assessments (LCA) conducted under ISO 14040 and ISO 14044 standards. Independent verification was performed by TUV SUD, while ERM India supported the assessments. Extending product stewardship beyond turbines, Suzlon also achieved PCF verification for castings manufactured at SE Forge, Coimbatore, with Bureau Veritas and IR Class providing independent validation.
Suzlon obtained Low Carbon Certification for the S144 (3.0 MW] WTG, under a cradle-to-grave boundary, with a verified PCF of 6.17 gCO2e/kWh. This compares favourably against Suzlons conventional turbines at 8.83 gCO2e/kWh and the industry benchmark of 7 gCO2e/kWh. Certification was aligned with ISO 14021:2016 + Amd 1:2021 and ISO/IEC 17029:2019, ensuring credibility and transparency of environmental claims.
The verified data underscores Suzlons commitment to low-carbon innovation:
The S144 (3.0 MW] turbine demonstrates reduced resource intensity, requiring only 38.984 MT of steel per tubular tower section compared to 103.821 MT in conventional turbines, while incorporating 225 kg of scrap steel per tower.
Suzlon prioritises sourcing low-carbon steel from Tier-1 suppliers with emission intensity below 2.2 tCO2e per tonne of steel produced.
Renewable electricity is utilised in manufacturing operations to reduce Scope 2 emissions.
The S144 (3.x MW] model has an extended product life of 25 years, compared to 20 years for earlier Suzlon turbine models, validated through third-party review.
Castings produced at SE Forge demonstrated a PCF of 0.43-0.47 kgCO2e/hr/ton under a cradle-to-gate boundary, verified by Bureau Veritas and IR Class.
By achieving these certifications well ahead of schedule, Suzlon has established new benchmarks in product stewardship, ensuring that its turbines and castings meet global standards for transparency, accountability, and environmental performance. These milestones reinforce Suzlons role as a responsible contributor to Indias clean energy transition and its long-term commitment to low- carbon innovation.
The Suzlon S144 combines higher efficiency, lower emissions, advanced design, and extended lifecycle to deliver world-class performance in Indias wind energy sector. It is not only a technological upgrade but also a sustainability milestone, reinforcing the Companys role as a leader in responsible renewable energy generation. It yields higher energy, is suitable for low-wind sites, has a reduced carbon footprint, and has improved lifecycle efficiency, making it one of Indias most advanced and sustainable wind energy solutions.
Sustainable Supply Chain
In FY26, 94.3% of Tier-1 critical suppliers were assessed for ESG risks as well as commodity and geographical risks related to E&S safeguards, on BRSR Core and 7-Pillar ESG assessment questionnaires. A total of 300 suppliers were assessed, which comprises 84.67% of local suppliers from India. The assessment included risk evaluation based on geographies and commodities. The other parameters for evaluation included Business Ethics, Health and Safety, Social, Climate Change, Environment and Biodiversity, and Responsible Sourcing. Suzlon has also received ISO 20400 Verification for alignment with Sustainable, Responsible, and Ethical Sourcing Principles. The assessment was carried out based on BRSR, GRI, SDG, ISO 45001, Suzlons Health and Safety requirements for suppliers, ILO, GRI, SASB, UNGC, Suzlons requirements for suppliers, and other Best Management Practices and International Standards.
Suzlon continues to prioritise local procurement, invest in supplier capacity-building, and conduct ESG assessments to ensure its supply chain reflects its core values.
Green Steel
Preferential sourcing for procuring low-carbon steel (major raw material] from Tier-1 critical suppliers with emission intensity less than 2.2 tCO2e/t of production.
Use of Renewables for Manufacturing
Use of renewable electricity in manufacturing was 92,428.30 GJ during FY26. There is a 22.79% increase in renewable energy consumption in FY26 as compared to FY25; overall, 25.1% renewable energy was consumed at the Group level as compared to the target of 100% RE by 2030.
Extended Life of WTG
Extended the design life of the S144 (3.x MW] turbine from 20 to 25 years, validated through an independent third-party review.
Water Stewardship
Achieved water positivity of 1.91x at the IB Projects site in Todkibad, Karnataka, and 2.35x at the Puducherry manufacturing plant, exceeding the 2030 water neutrality target, while reducing water withdrawal in water-stressed areas by 8.26%.
Waste Optimisation and Zero Waste to Landfill
Reduction in plastic usage in packing consignment to sites, SUP-free certification for Manufacturing and OMS.
Achieved Zero Waste to Landfill across all BUs, with a diversion rate of 97.5% in FY26 as compared to the FY28 target.
Instead of using aluminum, Suzlon has started using in-house FRP channels for the nacelle cover rimming process.
Modified transportation fixture for two sets of top parts in a single trip, thereby reducing fuel consumption.
Used MS waste materials for making nacelle cover storage racks.
Energy Optimisation
Suzlons energy optimisation work focuses on reducing emissions, improving efficiency, and embedding renewable energy across its operations. The Company has pledged 100% renewable energy use at all manufacturing units by
2030, achieved significant Scope 1 emission reductions, and implemented advanced energy-saving technologies across plants and projects.
FROM AUDITED CONSOLIDATED FINANCIAL STATEMENTS:
Balance Sheet:
A. Assets
1. Property, plant and equipment, investment properties, and intangible assets*
| Particulars | March 31, 2026 | March 31, 2025 |
| Property, plant and equipment | 1,019 | 736 |
| Right-of-use assets | 341 | 86 |
| Capital work-in-progress | 176 | 89 |
| Investment properties | 24 | 26 |
| Goodwill | 480 | 480 |
| Intangible assets | 432 | 452 |
| Intangible assets under development | 14 | 16 |
| Total | 2,486 | 1,885 |
*Net of depreciation, amortisation and impairment.
a. During the year, the Company ramped up its manufacturing facilities and therefore investment in property, plant and equipment was higher at I 442 Crore as compared to I 188 Crore in the previous year.
b. Right-of-use assets [ROU] are assets taken on lease. During the year, the net increase in ROU assets increased substantially, and it amounted to I 255 Crore. It was primarily on account of the setting up of blade manufacturing facilities.
c. Capital work-in-progress is primarily towards factory buildings under construction and plant and equipment under installation. Most of these are related to manufacturing facilities spread across various states.
d. Investment properties comprise certain old office premises that have been leased out. No additions were made during the year.
e. Intangible assets primarily comprise intellectual property rights (‘IPR) related to Wind Technology SAP, and other software, Customer Contracts, Customer Relationships, and Technical Know-how. Additions during the year amounted to I 105 Crore as compared to I 57 Crore in the previous year, largely attributable to investments in IPR.
f. Intangible assets under development primarily includes development cost of IPRs [design and drawings] by the in-house Technology Centres.
2. Financial assets
| Non-current | Current | Total | ||||
| Particulars | March 31, 2026 | March 31, 2025 | March 31, 2026 | March 31, 2025 | March 31, 2026 | March 31, 2025 |
| Investments | 0^ | 0^ | 217 | 43 | 217 | 43 |
| Trade receivables | 217 | - | 6,269 | 3,866 | 6,486 | 3,866 |
| Cash and bank balances | 1,186 | 1,071 | 1,246 | 1,113 | 2,432 | 2,184 |
| Loans | 5 | - | 2 | 0^ | 7 | 0^ |
| Other financial assets | 42 | 33 | 225 | 188 | 267 | 221 |
| Total | 1,450 | 1,104 | 7,959 | 5,210 | 9,409 | 6,314 |
* Less than I 1 Crore
Financial assets grew significantly to I 9,409 Crore from I 6,314 Crore in the previous year, representing an
increase of I 3,095 Crore, primarily driven by:
a. A rise in trade receivables of I 2,620 Crore, primarily attributable to higher sales volumes in the WTG business during the second half of the year, while receivables in other segments remained fairly stable;
b. An increase in bank balances and investments by I 248 Crore and I 174 Crore, respectively, supported by strong operating cashflows and order intake. Non-current bank balances are primarily held under lien against non-fund-based facilities;
c. Loans granted during the year to KPM; and
d. An increase in other financial assets by I 46 Crore primarily attributable to higher other receivables and interest accrual on fixed deposits.
3. Non-financial assets
| Non-current | Current | Total | ||||
| Particulars | March 31, 2026 | March 31, 2025 | March 31, 2026 | March 31, 2025 | March 31, 2026 | March 31, 2025 |
| Inventories | - | - | 4,512 | 3,234 | 4,512 | 3,234 |
| Other assets | 39 | 75 | 915 | 757 | 954 | 832 |
| Current tax asset, net | - | - | 115 | 50 | 115 | 50 |
| Deferred tax assets | 1,394 | 645 | - | - | 1,394 | 645 |
| Total | 1,433 | 720 | 5,542 | 4,041 | 6,975 | 4,761 |
Non-financial assets grew significantly to I 6,975 Crore from I 4,761 Crore in the previous year, representing an increase of I 2,214 Crore, primarily driven by:
a. A rise in inventories by I 1,278 Crore in line with constantly growing business volumes in the WTG segment;
b. An increase in other assets by I 122 Crore, mainly comprising advances to vendors, prepaid expenses, and balances with statutory authorities; and
c. An increase in deferred tax assets by I 749 Crore, reflecting recognition based on improved visibility of future taxable profits. This includes deferred tax assets on unabsorbed depreciation and a portion of brought- forward business losses of the Company and certain domestic subsidiaries, while deferred tax assets on remaining business losses in the Company and certain domestic subsidiaries remain unrecognised.
B. Equity and liabilities
1. Equity share capital
| Particulars | March 31, 2026 | March 31, 2025 |
| Authorised share capital | 21,053 | 21,053 |
| Issued share capital | 2,748 | 2,735 |
| Paid-up share capital | 2,745 | 2,732 |
Paid-up share capital stands at I 2,745 Crore as compared to I 2,732 Crore in the previous year. The increase is on account of issuance of equity shares to employees under Employee Stock Option Scheme. There has been no other fund-raising exercise during the year.
2. Other equity
| Particulars | March 31, 2026 | March 31, 2025 |
| Capital reserve on consolidation | 0^ | 0^ |
| General reserve | 1 | 1 |
| Securities premium | 311 | 144 |
| Capital contribution | 187 | 187 |
| Share application money, pending allotment | 1 | 0^ |
| Share options outstanding account | 128 | 123 |
| Retained earnings | 6,658 | 3,493 |
| Foreign currency translation reserve | (567) | (574) |
| Total | 6,719 | 3,374 |
* Less than I 1 Crore
a. The increase in securities premium is on account of the issuance of shares to employees under the Employee Stock Option Scheme.
b. The change in FCTR is due to exchange fluctuation resulting from translation of the financial statements of overseas subsidiaries into reporting currency of the parent company i.e. INR.
c. Pursuant to the NCLT order dated April 29, 2026, the Company implemented a Scheme of Arrangement effective September 30, 2024. The Scheme, applicable only to the Company, has been appropriately reflected in the consolidated financial statements, with comparatives restated. Under the Scheme, the debit balance in retained earnings as at the appointed date has been adjusted against specified reserves, and the general reserve has been reclassified to retained earnings. Refer Note 18 to the consolidated financial statements.
3. Financial liabilities
i. Borrowings
| Non-current | Current | Total | ||||
| Particulars | March 31, 2026 | March 31, 2025 | March 31, 2026 | March 31, 2025 | March 31, 2026 | March 31, 2025 |
| Secured | 103 | 129 | 135 | 114 | 238 | 243 |
| Unsecured | - | - | - | 18 | - | 18 |
| Total | 103 | 129 | 135 | 132 | 238 | 261 |
| Current maturities of long-term borrowings | - | - | 26 | 22 | 26 | 22 |
| Grand total | 103 | 129 | 161 | 154 | 264 | 283 |
Total borrowings reduced marginally by I 19 Crore, primarily reflecting repayments during the year. The outstanding borrowings pertain entirely to Renom and SE Forge Limited. The parent company continues to have no fund-based borrowings for its WTG and OMS business.
ii. Other financial liabilities
| Non-current | Current | Total | ||||
| Particulars | March 31, 2026 | March 31, 2025 | March 31, 2026 | March 31, 2025 | March 31, 2026 | March 31, 2025 |
| Trade payables | - | - | 5,083 | 2,935 | 5,083 | 2,935 |
| Lease liabilities | 263 | 25 | 29 | 15 | 292 | 40 |
| Other financial liabilities | 638 | 630 | 154 | 399 | 792 | 1,029 |
| Total | 901 | 655 | 5,266 | 3,349 | 6,167 | 4,004 |
Other financial liabilities significantly increased to I 6,167 Crore from I 4,004 Crore in the previous year, primarily driven by:
a. Trade payables increased by I 2,148 Crore as a result of higher procurement volumes in the second half of the year, as the Company embarked upon building up inventory for the forthcoming quarter, apart from posting good volumes in the last quarter of the financial year.
b. Lease liabilities increased by I 252 Crore, primarily driven by the addition of leasehold blade manufacturing premises, consistent with the expansion in right-of-use assets.
c. Other financial liabilities include deferred consideration of I 197 Crore payable in connection with the acquisition of Renom (refer Note 48.3 to the consolidated financial statements) and a liability of I 425 Crore recognised under a financing arrangement related to sale and lease back of the One Earth office property as disclosed in Note 6.3 of the consolidated financial statements. The reduction in financial liabilities of I 237 Crore during the year is mainly attributable to acquisition of incremental equity stake of 21.67% in Renom for a consideration of I 269 Crore.
4. Other liabilities and provisions
| Non-current | Current | Total | ||||
| Particulars | March 31, 2026 | March 31, 2025 | March 31, 2026 | March 31, 2025 | March 31, 2026 | March 31, 2025 |
| Contract liabilities | - | - | 1,977 | 1,744 | 1,977 | 1,744 |
| Other liabilities | 0^ | 0^ | 81 | 96 | 81 | 96 |
| Provisions | 215 | 155 | 701 | 564 | 916 | 719 |
| Current tax liabilities, net | - | - | 1 | 8 | 1 | 8 |
| Total | 215 | 155 | 2,760 | 2,412 | 2,975 | 2,567 |
* Less than I 1 Crore
a. Contract liabilities increased by I 233 Crore, driven by strong inflows of new orders resulting in advance receipts from customers against the confirmed orders, reflecting a robust and growing order book.
b. The increase in provisions is primarily attributable to higher employee retirement benefit obligations following the introduction of the New Labour Code (refer Note 28.2), along with an increase in contractual customer claims provision in line with higher volumes.
c. Other liabilities were marginally reduced due to the discharge of obligations under various taxes.
C. Cashflow
- Cash and cash equivalents marginally increased by I 113 Crore.
- Operating activities: Operating profit before working capital changes increased significantly to I 3,332 Crore as compared to Rs.1,984 Crore in the previous year. Net cash generated during the year is Rs.1,202 Crore as compared to Rs.1,092 Crore in the previous year. Despite the substantial increase in profitability, the growth in operating cash flows remained moderate, primarily due to higher sales in the last quarter and relatively slower execution of projects during the year, leading to an accumulation in trade receivables.
- Investing activities: Net cash outflow on investing activities was Rs.914 Crore as compared to Rs.752 Crore in the previous year. The outflow was primarily towards consideration paid on acquisition of Renom of Rs.269 Crore, capital expenditure (including intangible assets/IPR) of Rs.577 Crore and net investments in mutual funds of Rs.166 Crore. These were partially offset by interest income and rent income aggregating to Rs.97 Crore.
- Financing activities: Net cash outflow from financing activities during the year was Rs.155 Crore as compared to net cash inflow of Rs.343 Crore in the previous year. The outflow was primarily driven by repayment of lease liabilities and interest and other borrowing cost of Rs.228 Crore, along with a net outflow towards borrowings of Rs.20 Crore. These were partially offset by inflow from shares issued under ESOP Scheme of Rs.93 Crore.
D. Operating results
| Particulars | March 31, 2026 | March 31, 2025 |
| Revenue from operations | 16,679 | 10,851 |
| Other operating income | 53 | 39 |
| Finance income | 110 | 103 |
| Total income | 16,842 | 10,993 |
| Cost of goods sold | 10,803 | 6,887 |
| Employee benefits expense | 1,101 | 941 |
| Finance costs | 462 | 255 |
| Depreciation and amortisation expense | 318 | 259 |
| Other expenses | 1,806 | 1,204 |
| Total expenses | 14,490 | 9,546 |
| Profit before exceptional items and tax | 2,352 | 1,447 |
| Exceptional loss/ (gain] | (70] | - |
| Tax expense | (741] | (625] |
| Share of profit of joint venture | - | - |
| Net profit for the year | 3,163 | 2,072 |
Principal components of results of operations
1. Revenue from operations
The Groups revenue increased by 54% to Rs.16,679 Crore from Rs.10,851 Crore in the previous year. This substantial growth was driven by strong momentum in Indias renewable energy sector and the successful scale-up of WTG operations. The other business segments continued to grow steadily, maintaining their growth trajectory.
2. Finance income
Finance income marginally increased to Rs.110 Crore from Rs.103 Crore in the previous year. This growth is primarily driven by gains on sale and remeasurement at FVTPL of mutual funds.
3. Cost of goods sold (‘COGS)
COGS as a percentage of revenue from operations increased marginally to 64.8% from 63.5% in the previous year, primarily due to a change in sales mix with a higher contribution from the WTG business. The absolute increase in COGS is in line with the growth in WTG sales volume, as compared to the OMS business, where the cost ratio is relatively lower. The Group continues to focus on strategic sourcing initiatives and operational efficiencies across the supply chain, with a view to reducing COGS per MW.
4. Employee benefits expense
Employee benefits expense increased by 16.9% to Rs.1,101 Crore from Rs.941 Crore in the previous year, including an ESOP charge (non-cash in nature] of Rs.93 Crore as compared to Rs.115 Crore in the previous year. The increase in the balance cost is attributable to annual increments, including performance-linked incentives and higher headcount to strengthen organisational capabilities. Suzlon continues to invest in building a robust workforce to support higher volumes and larger-scale execution, aligned with its strategy to play a leading role in the renewable energy sector.
5. Finance costs
Finance costs increased to Rs.462 Crore as compared to Rs.255 Crore in the previous year, with bank charges contributing Rs.239 Crore as compared to Rs.149 Crore in the previous year. This rise is attributable to the cost associated with the utilisation of increased non-fund-based facilities, aligned with the volume growth and expansion of business operations.
6. Depreciation and amortisation expense
Depreciation and amortisation expense increased to Rs.318 Crore as compared to Rs.259 Crore in the previous year. This rise of Rs.59 Crore is attributable to depreciation on new capital investments in manufacturing facilities and IPR related to new WTG models.
7. Other expenses
Other expenses substantially increased to Rs.1,806 Crore from Rs.1,204 Crore in the previous year. While the ratio to sales remained stable at 11%, the absolute increase is mainly attributable to higher spares consumption, freight costs, O&M warranty provisions, and outsourced manpower in line with increased volume and towards consultancy costs related to certain high-impact projects undertaken during the current year to achieve process and system enhancements and productivity improvement.
8. Profit
The consolidated EBITDA reached Rs.3,022 Crore, and EBIT reached Rs.2,704 Crore, posting a substantial growth of 63% and 69% over the previous year. This remarkable performance was driven by higher volumes in the WTG business and the robust performance of all other business segments.
Net profit for the year stood at Rs.3,163 Crore as compared to Rs.2,072 Crore in the previous year. Of this, Rs.749 Crore pertained to the creation of net deferred tax assets as compared to Rs.639 Crore in the previous year, following the establishment of reasonable certainty regarding future profitability from the major part of previously incurred losses available for set-off.
E. Key financial ratios
| Particulars | March 31, 2026 | March 31, 2025 | Change (%) | Favourable/ Unfavourable |
| Debtors turnover ratio (1) | 3.22 | 3.81 | (15) | Unfavourable |
| Inventory turnover ratio (1) | 4.31 | 3.93 | 10 | Favourable |
| Interest coverage ratio (1) | 12.11 | 15.12 | (20) | Unfavourable |
| Current ratio (1) | 1.65 | 1.56 | 5 | Favourable |
| Debt-equity ratio (2) | 0.03 | 0.05 | 40 | Favourable |
| Operating profit margin (%) (1) | 18.12 | 17.12 | 6 | Favourable |
| Net profit margin (before exceptional) (%) (1) | 18.55 | 19.09 | (3) | Unfavourable |
| Return on net worth (%) (1) | 40.64 | 41.33 | (2) | Unfavourable |
(1) There is no significant change (i.e., a change of more than 25% as compared to the immediately previous financial year) in the key financial ratio.
(2) The improvement in the ratio is primarily due to higher net profits leading to an increase in shareholders equity.
Detailed explanation of ratios
1. Debtors turnover ratio
The above ratio is used to measure the Companys effectiveness in collecting its receivables from customers. It is computed as revenue from operations divided by average trade receivables.
2. Inventory turnover ratio
Inventory turnover measures the number of times the Company sells and replaces its inventory during a period. It is computed as cost of goods sold divided by average inventory.
3. Interest coverage ratio
The interest coverage ratio measures the Companys ability to meet its interest obligations from its earnings. It is calculated as earnings before interest and tax (EBIT) divided by interest cost.
4. Current ratio
The current ratio is a liquidity ratio that measures the Companys ability to pay short-term obligations or those due within one year. It is computed as current assets divided by current liabilities.
5. Debt-equity ratio
The ratio evaluates the Companys financial leverage and indicates the extent to which operations are financed through debt versus equity. It is calculated as total debt divided by shareholders equity.
6. Operating profit margin
This ratio indicates the profitability of the Companys core operations and is computed as EBITDA divided by revenue from operations.
7. Net profit margin
This ratio measures the proportion of net profit generated as a percentage of revenue and is calculated as net profit for the year divided by revenue from operations.
8. Return on net worth
This ratio indicates the return generated on shareholders equity and is computed as net profit for the year divided by average shareholders equity.
Cautionary Statement
Suzlon Group has included statements in this discussion, that contain words or phrases such as ‘will, ‘aim, ‘likely result, ‘believe, ‘expect, ‘will continue, ‘anticipate, ‘estimate, ‘intend, ‘plan, ‘contemplate, ‘seek to, ‘future, ‘objective, ‘goal, ‘project, ‘should, ‘will pursue, and similar expressions or variations of such expressions that are ‘forward-looking statements.
All forward-looking statements are subject to risks, uncertainties, and assumptions that could cause actual results to differ materially from those contemplated by the relevant forward-looking statement. Important factors that could cause actual results to differ materially from the Suzlon Groups expectations include:
- Variation in the demand for electricity;
- Changes in the cost of generating electricity from wind energy and changes in wind patterns;
- Changes in or termination of policies of state governments in India that encourage investment in power projects;
- General economic and business conditions in India and other countries;
- Suzlons ability to successfully implement its strategy, growth, and expansion plans and technological initiatives;
- Changes in the value of the Rs.and other currencies;
- Potential mergers, acquisitions or restructurings and increased competition;
- Changes in laws and regulations;
- Changes in political conditions;
- Changes in the foreign exchange control regulations;
- Changes in the laws and regulations that apply to the wind energy industry, including tax laws.
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