Suzlon Energy Limited , a prominent player in the renewable energy sector, has successfully secured approval from its unsecured creditors for a significant financial restructuring initiative. The company's proposed scheme of arrangement for reserve reorganization and reclassification received overwhelming support during the National Company Law Tribunal (NCLT) convened meeting held on December 12, 2025.

Meeting Outcome and Voting Results

The unsecured creditors meeting, conducted through video conferencing from 12:30 PM to 12:50 PM IST, resulted in decisive approval for the reserve reorganization scheme. Mr. Chirag Shah, Practicing Company Secretary, served as the appointed scrutinizer for the electronic voting process.

Key Points of the Approved Scheme

The scheme aims to reorganize and reclassify the company's reserves through a comprehensive arrangement that addresses accumulated losses from previous years while reflecting current profitability:

• Scheme Objective: Adjust the company's negative retained earnings against various reserves including Capital Reserve, Capital Contribution, Capital Redemption Reserve, Securities Premium, and General Reserve
• Post-Adjustment Plan: Any remaining balance in the General Reserve will be transferred to Retained Earnings
• Voting Process: Remote e-voting was available from December 9-11, 2025, followed by electronic voting during the meeting

Financial Context and Rationale

Suzlon Energy has reported profits in recent financial years, including 2022-23 and 2023-24, as well as for the period ending June 30, 2024. However, the company's balance sheet continues to reflect accumulated losses from previous years, presenting a less favorable picture of its current financial health.

Regulatory Compliance and Next Steps

The approval from unsecured creditors represents a crucial milestone in the scheme's implementation. The company had previously conducted a separate meeting for equity shareholders at 10:30 AM on the same day. The scheme still requires final approval from the NCLT and other relevant regulatory authorities.

Implications and Assurances

The approved scheme provides several key benefits while maintaining stakeholder protection:

• No Capital Reduction: The scheme does not involve any reduction in the company's share capital or shareholding pattern
• No Fund Outflow: There will be no outflow of funds from the company as a result of this scheme
• Future Flexibility: The reorganization may enable the company to explore shareholder-friendly initiatives, such as dividend payments, in the future

As Suzlon Energy continues its journey in the renewable energy sector, this overwhelming approval from unsecured creditors marks a significant step towards presenting a more robust financial position and potentially unlocking greater financial flexibility for future growth initiatives.

Suzlon Energy , a prominent player in India's wind energy sector, is maintaining its full-year growth guidance at 60%, despite achieving a 70% revenue increase in the first half. This announcement comes amidst a slight decline in the company's share price, which fell 0.55% to ₹59.66, despite reporting robust quarterly results.

Strong Q2 Performance and Growth Outlook

Suzlon Energy posted impressive financial results for the second quarter:

The 565 MW delivery volume marks a significant milestone, being the highest quarterly figure in the 30-year history of India's wind industry.

Suzlon Group CEO JP Chalasani confirmed that the company's 6.2 GW order book remains secure despite recent tender cancellations by the Ministry of Power. Contracts are signed only after power purchase agreements are finalized, providing stability to the order book.

Government Measures and Domestic Manufacturing

Chalasani stated that recent government measures, including amended Listed Models and Manufacturers norms and the Renewable Energy Equipment Import Monitoring System, will strengthen domestic manufacturing and create a level playing field against cheaper imports. Suzlon sources over 90% of its components domestically and plans to use policy benefits to sustain affordable tariffs rather than increase margins.

Analyst Perspectives

Despite the strong results and positive outlook, analysts have expressed some concerns about long-term growth sustainability:

JM Financial

• Maintained 'Buy' rating
• Target price: ₹70.00
• Concerns: Growth sustainability beyond FY28
• Reasons: Execution bottlenecks including connectivity issues and land acquisition constraints
• Projection: Annual wind installations likely capped at 7-8 GW
• EBITDA growth forecast: Moderation from 61% to 17% in FY28

Motilal Oswal

• Retained 'Buy' rating
• Revised target price: ₹74.00 (up from previous)
• Adjustments:
  • Lowered valuation multiple to 30x from 35x
  • Raised estimates by 8% due to lower tax rates
• Note: Creation of deferred tax asset of ₹720.00 crore

While both brokerage firms maintain a positive outlook with 'Buy' ratings, they have highlighted potential challenges that could impact Suzlon Energy's growth trajectory in the long term.

The contrast between Suzlon's robust current performance and the analysts' long-term concerns presents an interesting dynamic in the wind energy sector. The company's market capitalization stands at ₹82,190.00 crore, though shares have declined over 13% in the past year. Investors may need to consider these factors alongside the company's current strong performance and management's confident outlook when making investment decisions.