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Stocks of Suzlon Energy and Inox Wind have jumped more than 6% on August 1, 2025, after the government introduced new regulations to increase domestic production of wind power equipment.
The Ministry of New and Renewable Energy (MNRE) has mandated that key components such as blades, towers, gearboxes, generators, and bearings be sourced from Indian suppliers.
The companies must maintain all reports and relevant technical and research data on wind turbines restricted to India, with cross-border transmission being prohibited.
The new regulations have sparked strong buying interest in both stocks. Suzlon and Inox Wind stock performance reflected this momentum, with Suzlon trading at Rs. 64–65, up about 5%, and Inox Wind rising to Rs. 153–155, gaining nearly 3% in early trade.
The policy shift is seen as a significant win for domestic renewable energy players, potentially sidelining foreign rivals and helping Indian firms secure more local contracts. Motilal Oswal Financial Services reaffirmed its positive outlook on Suzlon, indicating a 27% possible upside based on strong earnings and a strong order book.
The financial services firm also had a ‘Buy’ call on Inox Wind, pointing towards its 3.2 GW order book and setting a target price of Rs. 210. ICICI Securities also upgraded its target on Inox Wind to Rs. 230. Suzlon continues to strengthen due to its improved financials.
In FY25, the company commissioned nearly 2,500 MW of projects and maintains a strong order book of 5.6 GW. Supported by healthy cash reserves, Suzlon remains a leading player in the local wind turbine market and is well-positioned to benefit from the recently implemented wind turbine regulations that favor domestic manufacturers.
To distinguish itself, Inox Wind is gaining momentum on fresh orders and has a manufacturing capacity of 2.5 GW. The company recently merged with its subsidiaries, thus promoting lean and efficient operations.
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The rally is stemming from a larger strategic push. India's interventions and reforms provide enabling support to the local industry, the latest emphasis on local manufacturing and data localization being a blend in this vision-for energy security and self-reliance of India in the renewables domain.
The analysts expect the new regulations to be passed in the very near term and implemented well. Suzlon and Inox Wind continue to trade at levels below target valuations, signifying the potential for more upside with strong operational performance. The sentiment is quite positive, driven by domestic policy tailwinds and the bigger framework created under the India Wind Energy Policy 2025.
In short, policy-led momentum has lifted Suzlon and Inox Wind to position them as top gainers of India's renewable energy drive. With huge order books, better margins, and positive regulations, both players can benefit from the industry's growth in the next few years.
