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Suzlon Energy Share Price Declines 17%, Touches One-Month Low

Written by: Suraj Uday SinghUpdated on: Apr 7, 2025, 4:27 PM IST
Suzlon Energy share price fell sharply to ₹46.15, a one-month low, as order downsizing and a ₹7.47 lakh penalty sparked investor concerns despite strong quarterly results.
Suzlon Energy Share Price Declines 17%, Touches One-Month Low
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Suzlon Energy share price saw a sharp 17% fall on Monday morning, April 7, making a weak start to the new trading week. The stock slipped to an intraday low of ₹46.15, marking its lowest level in the past month. This sudden dip has added to an already downward trend, with the Suzlon Energy share price declining for two consecutive days.

Over the last six months, the stock has seen a near 30% drop, raising concerns among investors. The Relative Strength Index (RSI), a technical indicator used to evaluate momentum, currently stands at 48.9. This suggests that the stock is neither overbought nor oversold, pointing to an uncertain zone for potential buyers or sellers.

Why the Sharp Fall?

While the broader market conditions may have added some pressure, a recent regulatory issue might have also impacted investor sentiment. Suzlon Energy recently disclosed that its wholly-owned subsidiary, Suzlon Global Services Ltd (SGSL), has been penalised ₹7.47 lakh by the Office of the Commissioner of Customs (Imports), Mumbai.

The penalty is linked to a 2017 order concerning casting parts imported from China. The company has clarified that this issue will not materially affect its financials or operations and that SGSL will appeal against the order. Still, news of such regulatory penalties can sometimes trigger cautious moves by the market.

Mixed Sentiments Despite Strong Financials

Interestingly, this fall in Suzlon Energy share price comes at a time when the company has been showing significant improvements in its financial performance. In the third quarter, revenue jumped by 91% to ₹3,002 crore, and profits rose by 90.5% to ₹387 crore. Moreover, the company’s debt-to-equity ratio now stands at just 0.04, reflecting better financial discipline and reduced reliance on debt.

However, despite the improved financials, the market may be reacting to other developments. Recently, the company confirmed a large contract win with a major renewable player in March 2025, which initially boosted sentiments. But this positive news was soon overshadowed by the cancellation or downsizing of three significant wind energy orders. This included a 99 MW project with Vibrant Energy, a 100 MW deal with a global firm, and a 201.6 MW order with O2 Power Pvt Ltd, which was later scaled down to 100.8 MW.

Such order revisions may have dampened investor confidence, especially at a time when growth expectations were riding high.

Looking at Today’s Numbers

On April 7, Suzlon Energy share price opened at ₹46.90, reached a high of ₹52.49, and is closed trading at ₹52.12 — down by over 5% for the day. The upper circuit (UC) limit for the stock is ₹66.43, while the lower circuit (LC) limit stands at ₹44.28, indicating a volatile trading range.

With the stock already down more than 20% in 2025, investors are keenly watching the next few sessions to understand whether this is a temporary correction or the start of a longer trend.

What Lies Ahead?

Despite the recent dip in the Suzlon Energy share price, the long-term potential of wind energy in India continues to generate interest. Wind power still holds untapped opportunity, especially given India’s relatively low penetration compared to global leaders. Suzlon expects wind energy installations in India to touch around 4 GW in the ongoing financial year, followed by 6 GW in FY26, and grow further to 7–8 GW annually starting FY27.

However, the road ahead will depend on consistent execution, reliable order inflows, and a stable regulatory environment. For now, the Suzlon Energy share price remains under pressure, and investors will be watching closely for signs of recovery or further decline.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.

Published on: Apr 7, 2025, 4:27 PM IST

Suraj Uday Singh

Suraj Uday Singh is a skilled financial content writer with 3+ years of experience. At Angel One, he excels in simplifying financial concepts. Previously, he cultivated his expertise at a leading mortgage lending firm and a prominent e-commerce platform, mastering consumer-focused and engaging content strategies.

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