Translation: Original published in Finnish on 9/24/2026 at 9:19 am EEST.

Exel Composites announced on Thursday morning that it has signed a new multi-year supply agreement with Suzlon Energy Limited. We consider the news to be very significant for the company's scale and a demonstration of strategic success regarding Exel's Indian plant. The potentially massive scale of the agreement provides significant backing for our strong growth forecasts for the coming years. Overall, we take a positive view of the news, and according to our preliminary assessment, the agreement will cause at least slight upward pressure on our forecasts.

Exceptionally large contract for Exel's scale

Under the new agreement, Exel's Indian joint venture Kineco Exel Composites India (KECI) will supply pultruded carbon fiber planks for the structural support of Suzlon's wind turbine blades. The parties estimate that the potential value of the deliveries will exceed 100 MEUR by the end of March 2029. The agreement is a continuation of the cooperation that started in 2024, which led to an order of ~10 MEUR announced in February 2025 from a then-unnamed customer. Thus, in connection with the new delivery agreement, Exel has, in our view, also succeeded in taking a leap in its relative supplier position. Compared to our current year revenue forecast of ~130 MEUR for Exel, the potential contract value of over 100 MEUR over a period of a little over two and a half years is exceptionally large. Although the final value and timing depend on the customer's actual production needs, we estimate that the agreement will provide excellent support for the company's volume growth in the coming years. On the other hand, the minimum delivery volumes were not disclosed in the press release, which, in our view, increases the range of final deliveries at this point.

In our current forecasts, we had already expected the company's revenue to grow very strongly in the coming years (revenue 2027e: 153 MEUR, 2028e: 171 MEUR). Although there is uncertainty regarding the final value and timing of the deliveries, the contract brings clear additional concreteness behind our rapid growth forecasts for the coming years, and we see at least slight upward pressure on our forecasts preliminarily.

Strong evidence of strategy progress and Indian plant potential

In our view, the recent contract is a strategically significant success, as the ramp-up of the Indian factory and the increase in production volumes, particularly in the wind power sector, have been among the core cornerstones of Exel's turnaround strategy. In our view, the increase in the factory's utilization rates also provides fundamental support for profitability. However, we believe it should be noted that in high-volume wind power applications, the material margin is typically lower than in the company's Engineered Solutions. In addition, Exel owns 55% of the Indian joint venture, so part of the earnings is attributable to minority shareholders. Overall, we believe the Suzlon contract is an undeniable demonstration of Exel's competitiveness in the wind power market, and it also reinforces the outlook for achieving the company's ambitious long-term growth target (revenue in 2028: 200 MEUR). Following the recent contract, we believe the focus will shift in particular to the Indian plant's delivery capability (incl. quality) and profitability development as volumes grow into the next size category in the near future.