Centrum Broking turns positive on Indian renewable names, citing rising electricity demand and capacity expansion as key drivers, with sector’s medium-term outlook remaining robust despite near-term fluctuations.
Centrum Broking has turned positive on a cluster of Indian renewable energy names, arguing that rising electricity demand, capacity expansion and the shift towards more integrated clean-energy projects should support second-quarter numbers even if seasonal weakness hits some businesses. In its latest note, the brokerage assigned price targets of ₹74 for Suzlon Energy, ₹3,876 for Waaree Energies, ₹458 for ACME Solar and ₹124 for NTPC Green Energy, saying the sector’s long-term case remains tied to India’s accelerating power needs and build-out of renewable infrastructure. According to the note, some margins may soften in the September quarter because of product mix and weather-related pressure, but the broader operating backdrop remains constructive.
For Suzlon Energy, Centrum expects revenue to rise 17.9% sequentially and 16.6% from a year earlier, helped by stronger wind turbine deliveries. The brokerage sees deliveries of 630 megawatts, up 12% year on year, while EBITDA margin could ease slightly to 15.6% because of a greater contribution from lower-margin engineering, procurement and construction work. That comes against a wider company push to diversify beyond wind turbines into solar, battery storage and firm, dispatchable renewable energy, with market commentary suggesting Suzlon is aiming for 15 gigawatts of wind installations over time and trying to keep operating margins in the high teens. Company updates and market analyses also show Suzlon has been lifting execution volumes, with FY26 revenue and profit both rising sharply and deliveries reaching record levels.
Waaree Energies is expected to post a 2.9% sequential increase in revenue and a 34.5% annual jump, supported by higher module and cell output. Centrum estimates module production at 4.0 gigawatts in the quarter, up from 2.6 gigawatts a year earlier, while cell production could climb to 1.1 gigawatts from 0.6 gigawatts. Average realisations are likely to stay near ₹19 to ₹20 per watt-peak, with EBITDA margin seen slipping to 18.0% as supply-chain pressures linger. Even so, the company is widely viewed as one of the clearest beneficiaries of India’s move towards domestic solar manufacturing. Other recent company and analyst updates point to an ambitious expansion plan, with Waaree targeting much larger cell and module capacity over the next few years, a growing battery energy storage business and a broader ambition to become a fully integrated clean-energy platform.
ACME Solar and NTPC Green Energy are also expected to show strong year-on-year growth, though for different reasons. Centrum forecasts ACME’s revenue to increase 1.7% quarter on quarter and 86.4% from a year earlier, helped by the growing contribution from about 4 gigawatt-hours of battery energy storage systems operating on a merchant basis. It expects total operational capacity to rise to 3,057 megawatts, but margin pressure could emerge because storage revenue carries lower returns than some of the company’s legacy assets. NTPC Green, meanwhile, is projected to report revenue growth of 18.9% sequentially and 115.0% annually, driven by fresh capacity and strong power demand. Centrum expects the company to add 0.6 gigawatts in the quarter, taking operational capacity to 11.3 gigawatts by September 30, 2026, and says NTPC Green is planning another 7 gigawatts to 8 gigawatts of renewable capacity in FY27. Taken together, the brokerage’s view is that the sector’s near-term earnings may be uneven, but the medium-term backdrop remains underpinned by policy support, a robust project pipeline and demand for cleaner, more reliable power.
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