The stock of Suzlon Energy, a wind turbine business company, is witnessing a rise today (Tuesday, October 29). The company has released the results for the second quarter of the financial year 2025 i.e. July-September a day earlier. After the results, the company said that there may be pressure on EBITDA margin in the coming time. However, the wind turbine business is expected to grow more rapidly than the operation & maintenance business.

After the results, in a conversation with CNBC-TV18, Himanshu Modi, CFO of Suzlon Group, said that the wind turbine business is a low-margin business. Currently, it is around 7-9%. Whereas, OMS business usually offers up to 40% margin. This is the reason why Suzlon Energy's margins may come under pressure due to slow growth in this business.

He said that Suzlon Energy's EBITDA margin may slip by 2-4% due to increased WTG delivery. During the current quarter, the margin has come down from 15.74% to 13.97%. The company is going to execute many big orders in the second half of the current financial year. This includes projects of 1.3 GW to 1.5 GW. The management said that the wind turbine business is their largest business, which will show faster growth than the operation & maintenance business. The company's total delivery in the second quarter was 256 MW. In the June quarter, it was at 274 MW. But, it has doubled as compared to 132 MW in the same quarter of the previous financial year. In this way, the company has delivered 530 MW in the first half of the current financial year. Himanshu Modi also said that the company has completed about 35% of the delivery of the whole year in the first half. The remaining delivery will be completed in the second half. In August this year, the company acquired Renom Energy Servies. This acquisition has been done from Sanjay Ghodawal Group. This company does operation and maintenance through all types of technology related to wind turbines. The company has assets under management of about 2.5 GW in India. The December quarter will be the first quarter when the full impact of the acquisition of Renom will be seen. Currently, this company is working as a separate unit. Analyst opinion on the stock Brokerage firm Nuvama has set a target price of ₹ 67 per share with a Hold rating on this stock. The brokerage firm said that this stock has already digested operating income and profits. The current valuation of the company for the financial year 2027 is 45 times. During early trading on Tuesday, this stock was seen trading at ₹ 72.75 per share with a gain of 3%.