Suzlon Energy and Inox Wind, both are the massive and rapidly growing green energy brands in India
Suzlon Energy and Inox Wind are among the biggest and thriving companies in the Indian green energy space, especially in the growing wind energy sector. Both companies, via their strong order book and robust financials, offer investors multibagger returns.
Both companies shares are gaining their high and lows, and Administ this, both wind energy companies poise incredible potential to contribute to India’s growing green energy sector and lead a path to sustainable energy-led country. Here, we’ll talk about India’s leading wind energy companies, Suzlon Energy and Inox Wind and see which one gives the best return by looking at their potential and financials. Let’s dig in.
Developments & Partnerships
Suzlon Energy
Suzlon Energy recently secured a new 302.4 MW wind power project from Jindal Renewables’ subsidiary JSP Green Wind 1 Pvt. Ltd. in Karnataka. This will add to the company’s record 400 MW project from Jindal Renewables won last month.
Talking about the company’s vast order book, the Commercial and Industrial (C&I) customers now account for 56% of its total order book. This is an all-time high number in Suzlon’s order book accounting of 5.4 GW. Suzlon’s shares are up by 70& YTD and peaked in September with a share value of Rs. 86.04.
Inox Wind
Inox Wind has an order book of 3.3 GW which includes 1.2 GW of new orders. The company also executed 140 MW orders in Q2 FY25, that is up from 77 MW in Q2 FY24. Inox Wind’s stock gained around 57% year-to-date and reached its peak in September with a share value of Rs. 261.90.
Financial Performance
Suzlon Energy
In Q2 FY25, Suzlon Energy posted a revenue of Rs. 2,103 crores with a YoY growth of 48%. The company’s net profits have also increased and nearly doubled to Rs. 200 Crore while the EBITDA grew to Rs. 293.7 Crore, a jump of 31.3% from the last. Suzlon’s order book consists of orders from 54% C&I, 23% government bids, and 23% PSUs. According to several analysts, the company’s EBITDA is expected to decline to the low teens due to the low-margin wind turbine generator (WTG) business which is growing faster than the company’s high-margin Operations & Maintenance (OMS) segment.
Inox Wind
In Q2 FY25, Inox Wind’s revenue grew to Rs. 742 Crore which shows a YoY growth of 93%. The company’s net profits also increased to Rs. 90 Crore compared to a loss of Rs. 27 crore last year. The margins have also been upgraded from 15% TO 17%, showing potential increase in the coming months. The company has a net cash positive of Rs. 278 Crore in its reserves.
Conclusion
Both Suzlon Energy and Inox Wind have secured a well reputed positions in India’s growing wind energy business and benefits from country’s renewable energy growth. However, Suzlon’s wide order book in various operations poises higher growth in profit. And due to its lower valuation, it makes it a more attractive option for investors who are going for long term value gains.
Disclaimer – The information presented in this article is only for educational purposes and does not recommend any kind of financial advice. Investing in stocks is a risky decision, consider consulting a financial adviser before making any investing decision.
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