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Sterling and Wilson Renewable Energy (SWSOLAR) investor relations material

Sterling and Wilson Renewable Energy Q1 25/26 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q1 25/26 earnings summary18 Jul, 2025

Executive summary

  • Q1 FY26 revenue grew 93% year-over-year, driven by strong execution in EPC and O&M segments, despite order inflow delays, project disruptions, and cross-border tensions.

  • Gross margin improved to 11.7% in Q1 FY26, aided by softening input costs and higher margins in both domestic and international EPC.

  • PAT for Q1 FY26 was INR 39 crore, up 680% year-over-year, with consolidated net profit attributable to owners at INR 31.97 crore.

  • Order inflow for Q1 FY26 was INR 813 crore, entirely from domestic projects, with a robust bid pipeline of 30 GW for FY26.

  • O&M portfolio reached 9.3 GW as of June 2025, with expected revenue pickup in H2 FY26 as large EPC projects near completion.

Financial highlights

  • Q1 FY26 consolidated revenue was INR 1,762 crore, up from INR 915 crore in Q1 FY25; standalone revenue was INR 1,363 crore, up 54% year-over-year.

  • Operational EBITDA for Q1 FY26 was INR 102 crore, up 392% year-over-year; consolidated EBITDA was INR 197.97 crore.

  • Gross profit for Q1 FY26 was INR 205 crore, up from INR 102 crore in Q1 FY25.

  • Standalone EPS was INR 3.36; consolidated EPS was INR 1.37 for the quarter.

  • Net working capital remains negative at INR 348 crore as of June 2025, reflecting efficient capital management.

Outlook and guidance

  • Management maintains 15–20% year-over-year order booking growth guidance, targeting 20% revenue growth for FY26.

  • Order inflows expected to accelerate in Q2 and Q3 as delayed tenders and connectivity issues resolve.

  • Battery energy storage segment expected to contribute meaningfully to revenues from mid-FY26, with policy mandating 20% battery integration in new solar tenders.

  • Management remains confident in recoverability of large receivables and investments, supported by ongoing legal actions and indemnity agreements.

  • No impairment considered necessary for investments in subsidiaries or disputed receivables as of June 30, 2025.

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Frequently asked questions

Sterling and Wilson Renewable Energy Limited is active in the engineering, procurement, and construction (EPC) services sector, focusing primarily on solar power projects. It operates through two main segments: EPC and Operations & Maintenance (O&M). The EPC services encompass a wide range of functions including design and engineering, procurement, construction, and commissioning of solar projects. They also offer hybrid energy solutions, integrating solar with battery energy storage systems, and microgrids for various applications. The O&M segment provides maintenance and asset management services to third-party projects. The company is headquartered in Mumbai, India, and its shares are listed on the NSE.

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