Archive · 25 Sep 2026
Ambit Flags Solar Margin Risks While Backing Suzlon, Saatvik
Ambit Capital studied four Indian renewable-energy companies.
It remains positive about Suzlon Energy because it mainly makes wind-power equipment.
It also likes Saatvik Green Energy because its new 2.4 GW cell factory is expected to become more productive.
Ambit is less confident about Premier Energies and Emmvee Photovoltaic Power.
The brokerage expects many new solar factories to create more supply than demand.
That could push prices and profit margins lower.
It also expects companies to need more money for inventory and customer payments.
Solar technology is changing quickly, which may force factories to upgrade equipment sooner than expected.
Ambit therefore sees stronger risks for some solar manufacturers even though existing orders may provide support.
Ambit Capital retained Buy ratings on Suzlon Energy and Saatvik Green Energy.
The brokerage maintained a Sell on Premier Energies and assigned a Sell to Emmvee Photovoltaic Power.
Ambit expects solar manufacturing returns on invested capital to fall to 19%-21% from above 40%.
India has about 230 GW of module capacity against estimated annual demand of 65-84 GW during FY27-FY32.
Ambit expects easing cell shortages, lower spreads, rising working capital and technology upgrades to pressure manufacturers.
- Who
- Ambit Capital and the four companies it reviewed: Suzlon Energy, Saatvik Green Energy, Premier Energies and Emmvee Photovoltaic Power.
- What
- Ambit retained Buy ratings on Suzlon and Saatvik, maintained a Sell on Premier Energies and assigned a Sell to Emmvee Photovoltaic Power.
- When
- The assessment comes from Ambit Capital’s September 24, 2026 research report.
- Where
- India’s wind and solar manufacturing industry.
- Why
- Ambit expects new solar capacity, easing cell shortages, weaker spreads, higher working-capital needs and technology changes to reduce industry returns.
Positive investment cases
Margin-risk concerns
Company outlook
Positive investment cases
Ambit sees Suzlon’s wind-power exposure and Saatvik’s 2.4 GW cell line as supporting their Buy ratings.
Margin-risk concerns
Slower power-demand growth could reduce wind additions and Suzlon’s order book, while Saatvik’s earnings depend heavily on successfully ramping its cell line.
Solar manufacturing returns
Positive investment cases
Existing order books and customer advances could provide some resilience, and Saatvik’s Rs 1,040 crore Solar Energy Corporation of India order may support utilisation.
Margin-risk concerns
New capacity may exceed demand, easing cell shortages and lowering module and cell spreads, particularly for Premier Energies and Emmvee Photovoltaic Power.
Industry expansion
Positive investment cases
Ambit expects Emmvee to become one of India’s larger photovoltaic manufacturers, with an estimated 9 GW of cell and 16 GW of module capacity by FY28.
Margin-risk concerns
The brokerage says high returns are attracting new entrants, which could push industry returns down and increase working-capital and technology-upgrade pressures.
- Suzlon rating
- Buy; target price of Rs 59, implying 40% upside according to Ambit’s valuation table.
- Saatvik rating
- Buy; target price of Rs 480, implying 8% upside according to Ambit’s valuation table.
- Premier Energies rating
- Sell; target price cut to Rs 825 from Rs 899, implying 10% downside.
- Emmvee rating
- Sell; target price cut to Rs 315 from Rs 380, implying 5% downside.
- Solar module capacity
- India has around 230 GW of module capacity.
- Estimated demand
- Ambit estimates annual solar demand of 65-84 GW during FY27-FY32.
- Expected utilisation
- Effective module utilisation could fall to about 33%-34% from FY29, while cell utilisation may remain below 60%.