Suzlon Energy Ltd is positioning itself for the next phase of India's renewable energy expansion, with plans to evolve from a wind turbine manufacturer into a broader clean-energy solutions provider, according to a note by Nuvama Institutional Equities.

The brokerage said rising electricity consumption globally and in India could support a long-term growth cycle for power generation. Global power demand could double by 2050, while India's electricity demand may increase nearly fivefold, driven by data centers, electric mobility, industrial activity, buildings and cooling requirements. Air-conditioning alone is expected to contribute more than 20 per cent of India's incremental power demand.

Nuvama highlighted the significant growth potential for the domestic wind sector. India's wind energy potential at a 150-meter hub height exceeds 1.1 terawatts, compared with an expected installed capacity of around 400 gigawatts by FY47. Suzlon's management expects industry-wide wind installations to exceed 8 gigawatts this year and rise beyond 15 gigawatts annually by FY31, supported by demand from commercial and industrial users as well as public-sector entities.

The brokerage also underscored while solar remains the lowest-cost standalone source of electricity and is expected to continue leading capacity additions, annual solar additions are projected to flatten from FY27 onward. According to Nuvama, the mismatch between daytime solar generation and evening demand increases the need for battery energy storage systems (BESS) and pumped storage projects. Wind generation, which better aligns with evening demand patterns, is expected to play a critical role in firm and dispatchable renewable energy projects.

Suzlon's 2.0 strategy includes expansion into solar through partnerships, BESS with a targeted assembly capacity of 3–4 gigawatts, and entry into international markets. The company has outlined FY31 goals that include a 25 per cent revenue compound annual growth rate (CAGR), more than 40 per cent share of India's wind market, over 60 per cent co-development participation, export order intake exceeding 3 gigawatts and renewable energy assets under management of more than 70 gigawatts, compared with roughly 18 gigawatts currently.

A key part of the strategy is its development business, which aims to provide end-to-end project execution with secured land and transmission connectivity. Management expects this model to reduce project timelines from about three years to 15–18 months.

With that being said, Nuvama maintained its 'Hold' rating on Suzlon. The brokerage slightly raised its target price to Rs 56 from Rs 55, citing expectations that much of the company's projected growth will materialise in later years. It estimates FY31 earnings per share of about Rs 3.7 and a profit-before-tax compound annual growth rate of around 23 per cent.

Meanwhile, shares of Suzlon Energy jumped in Tuesday's early trade, rising 5.79 per cent to Rs 58.79 level at last check.