Suzlon Energy shares rally 20% in one month: Here’s why it is an ‘unintended beneficiary’ of Iran-US war

Shares of Suzlon Energy have seen a sharp surge recently, with JM Financial seeing another 30% upside potential from current levels as the domestic brokerage sees the renewable energy player as an “unintended beneficiary” of the war between Iran and the US.

Shares of the company have surged more than 20% in one month, and 10% in the past five days as temperatures continue to rise across India, increasing hopes for peak power demand. JM Financial, in its latest report, noted that peak power demand during hot and humid evenings is similar to solar hour demand in an El Nino year, hence there is more stress on supply at night when 80 GW of solar generation is not available.

Why wind energy will become crucial this summer

“When peak demand rises during non-solar hours, variable generation from gas, hydro and partially flexible coal substitutes the loss of solar generation. But due to the Middle East crisis, gas-based generation has fallen from 8-12GW to just 2GW, it said. Also, there is a high probability of a shortfall in hydro energy this summer due to a deficit in winter rainfall and snow cover in the first four months of 2026, it further said, adding that all these factors put India at the risk of evening peak power deficit.In this background, wind energy has a strong diurnal (daily) complementarity with solar energy and is available in the evening hours as well, JM Financial noted. It explained that wind speed often increases in the late afternoon, evening, and early morning, when solar generation is low or zero. Also, wind energy is highly seasonal and complements solar power, particularly in India, where 80% of annual wind generation occurs during the South-West monsoon (May-September). “Currently, wind contributes approximately 10GW during evenings and up to 20-25GW during August-September. Hence, incremental wind addition during H1 FY27 can add to evening supply during El Niño-affected months,” it added.

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JM Financial expects India to achieve its highest-ever capacity addition in FY27, surpassing the peak of 6.1GW recorded in FY26. It noted that Suzlon has been struggling with an increasing gap between deliveries and installations. “As of 31st Mar’25, it had 371MW of sets erected and ready for commissioning (10% > installations), which increased to 776MW on 31st Dec’25 (76% > installations), creating apprehensions on execution and new order inflows,” it said, adding that it now expects Suzlon to sharply improve its commissioning in the first half of the ongoing financial year 2027, which may result in cash flow improvement and a new stream of orders.

Should you buy Suzlon Energy shares?

The domestic brokerage kept a ‘Buy’ call on the stock, with a target price of Rs 64 apiece. This implies an upside potential of more than 30% from the stock’s previous closing price of Rs 49.13 apiece. Notably, Suzlon has the highest upside potential among all the power stocks under JM Financial’s coverage.

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Suzlon Energy shares were trading with marginal gains at around Rs 49.41, as seen at 10.45 am on Thursday. Although the stock has declined nearly 6% in 2026 so far, in the longer term, the multibagger stock rallied more than 510% in five years and over 1,030% in five years.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)