Downgrades

Suzlon Energy's (SUEL) consolidated revenue came in at INR38.7b, exceeding our estimates by 39% (higher than expected deliveries), while EBITDA was 71% above our estimates at INR7.2b.

We recently hosted Mr. J.P. Chalasani, Group CEO of Suzlon Energy (SUEL), for an expert session on the wind industry. Mr. Chalasani has reiterated his long-term commitment to SUEL, highlighting that his position as CEO carries no defined sunset clause.

Bharat Heavy Electricals Ltd (BHEL), a public sector entity, is India's largest engineering company. It supplies power plant equipment such as gas turbines, generators, thermal sets, diesel shunters, turbo sets, hydro sets, power transformers, switchgears, circuit breakers and boilers. The company also builds compressors, valves, rectifiers, pumps, capacitors, oil rigs, etc., and undertakes castings and forgings....

EBITDA margin fell to 11.1% in Q3CY25, from 12.1% in Q3CY24, underscoring a marginal contraction of 100bps. Reported PAT fell 30.4% YoY to Rs. 369cr, primarily due to a fall in other income (23.8% YoY) and demerger of its energy business. Siemens India reported a solid financial performance in Q3CY25 because of significant revenue growth. The company has a robust order inflow, including two significant wins in the mobility business, despite uncertainties related to tariffs, trade agreements and supply chain disruptions. With a continued emphasis on solidifying its position as a leading technology-driven player in the industry,...

Suzlon began FY26 on a strong note, with higher capacity utilization driving improved margins in the wind turbine segment. Backed by a robust 5.7 GW order book, we project a 42% CAGR in revenue over FY2527E, supported by management's guidance and strong delivery momentum. Enhanced utilization is expected to unlock volume leverage, leading to a 117 bps margin expansion, primarily from the WTG and forging businesses. With...

Siemens had an eventful Q3FY25; it concluded the demerger and separate listing of its energy business in the quarter. Further, it won a signalling and telecom contract worth INR 12bn for India’s first bullet train.

headwinds from demand normalization and pricing pressure. We revise our FY26/FY27 estimates by -3.9%/-1.2% factoring in the slower execution pace in the LV and Digital segments, which is impacting on the overall margin profile. We maintain Accumulate' rating with a TP of Rs3,431 (Rs3,233 earlier), valuing the stock at a PE of 53x Mar'27E (53x Sep-26E earlier). The stock is currently trading at a PE of 60.8x/51.8x on SY25/26E. Despite short term cautious stance on private/ industrial capex, we believe SIEM to sustain long-term growth given 1) continued traction in public capex in...

We revise our FY26/27E EPS estimate by -30.8%/-9.5% factoring in weaker pace of execution and higher other expenses. BHEL reported a dismal quarter with a flattish revenue of Rs54.9bn and an EBITDA level loss of Rs5.4bn due to sharp increase in other expenses. Continued execution challenges in the Power continue to drive robust order inflows, including ~14.6 GW of thermal orders won in FY25 and a Rs65bn equipment order won from Adani Power during the quarter. BHEL's active diversification into transmission, transportation, defense, and Oil & Gas is yielding results with award of the prestigious 6 GW...

ABB India (ABB) reported disappointing numbers in Q2CY25 on both ordering and financial fronts. While the orderbook (OB) was healthy at INR 100.6bn as of Jun’25 (book-to-bill of 0.8), order inflow (OI) fell 12% YoY.

We revise our FY26/FY27 EPS estimates by -10.6%/-15.8% accounting for slippage of orders and execution due to geopolitical uncertainties. Triveni Turbine (TRIV) reported a weak quarter, with revenue declining 19.9% YoY and EBITDA margin contracting 81bps YoY to 19.8%. Performance was impacted by geopolitical uncertainties, which led to inspection delays, affecting dispatches, revenue recognition, and export order bookings. Despite a subdued quarter, the management remains optimistic about FY26, supported by a strong increase of ~130% YoY in domestic enquiry pipeline, driven by demand...

Triveni Turbine (TRIV)’s 1QFY26 result was significantly lower than our expectations due to deferred dispatches and order execution. Geopolitical issues resulted in delayed customer decision-making regarding dispatches.

Consolidated revenues fell 20% y-o-y to Rs. 371 crore as dispatches were delayed by geopolitical tensions across India, Iran and Israel.

ABB India’s 2QCY25 results were lower than our estimates as margins contracted significantly owing to forex fluctuations, quality control order (QCO) implementation and competitive pricing.

We cut our EPS estimates for CY25/CY26 by -16.3%/-14.2% and downgrade the stock from BUY' to Accumulate' factoring in near term challenges such as higher import content in raw material and delays in larger orders. ABB India (ABB) reported a revenue growth of 12.2% YoY while EBITDA margin contracted by 612bps YoY to 13.0% . Management attributed the delays in large orders to slower customer decision-making, with a recovery expected in H2CY25. Meanwhile, base order inquiries remain strong, driven by continued traction in data centers, electronics, and renewables. Despite healthy...

Voltamp Transformers (VAMP) reported a soft operational performance in Q1FY26. Revenue and EBITDA declined by 1% and 4% while PAT remained flat on YoY basis buoyed by higher other income led by higher mark to market gains. VAMP clocked in sales volume of 3,260 MVA in Q1FY26 which is a decline of ~8% YoY in MVA terms. Voltamp has been a preferred vendor amongst its clients due to its prudent execution track record and working capital management despite the cyclical nature of the business. We believe growth will be soft over FY26 owing to capacity constraints. However, we expect significant pick up in volume...

Q1FY26 numbers were decent and in line with our estimates, with revenues at Rs 5,073 crore, rising 11% y-o-y, mainly led by the T&D; business which grew 26% y-o-y. EBITDA margins rose ~98 bps y-o-y to 7.0%. As a result, PAT rose 42% y-o-y to Rs 125 crore.

The stock is currently trading at 24x/17x FY26E/27E EPS. We maintain our BUY rating on the stock with a TP of Rs 950/share, implying an upside of 10% from the CMP.

We recommend a BUY rating on the stock with a target price of Rs 187/share, implying an upside of 10% from the CMP.

*over or under performance to benchmark index CG Power and Industrial Solutions Ltd manufactures and distributes electrical equipment, such as transformers, reactors and control equipment, as well as industrial motors and pumps and communication systems. CG Power's consolidated revenue for Q4FY25 grew 25.6% YoY to Rs. 2,753cr, led...