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Sterling and Wilson Renewable Energy (SWSOLAR) investor relations material
Sterling and Wilson Renewable Energy Q2 2026 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Q2 FY26 results were significantly impacted by one-time legal and financial events, including a major arbitration loss, subsidiary impairments, and litigation settlements, resulting in substantial write-offs and non-cash charges.
Despite these setbacks, order inflows accelerated, with five new orders since Q1, including a major international project in South Africa and several large domestic projects, bringing cumulative order inflow to INR 3,775 crore for the fiscal year.
Achieved 70% year-over-year revenue growth in Q2 FY26, driven by strong execution in both domestic and international EPC projects.
Management emphasized that the resolution of legacy issues positions the company for improved operational focus and profitable growth.
Unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2025, were approved by the Board and reviewed by statutory auditors, with an unmodified conclusion issued.
Financial highlights
Q2 FY26 consolidated revenue was INR 1,749 crore (up 70% YoY); H1 FY26 revenue rose 80% to INR 3,510 crore.
Q2 FY26 operational EBITDA was INR 62 crore, but reported EBITDA loss of INR 470 crore due to non-recurring expenses exceeding INR 627 crore.
PAT loss of INR 478 crore in Q2 FY26; standalone net loss was INR 2,583.54 crore, mainly due to exceptional items.
Exceptional items of INR 2,638 crore (standalone) and INR 580 crore (consolidated) were recognized, primarily due to write-offs and impairments related to subsidiaries and arbitration outcomes.
Cash and cash equivalents at the end of the period were INR 81.80 crore (standalone) and INR 253.22 crore (consolidated).
Outlook and guidance
Revenue growth guidance of 20% for FY26 is maintained, with similar growth expected for FY27.
EBITDA margin guidance for operational business remains at 4%-6%, with O&M margins expected to stay above 20%.
Management expects continued strong order inflows, especially in the domestic solar EPC market, and is targeting hybrid and battery storage projects.
Management remains confident of recoverability of certain disputed receivables and bank guarantees, supported by ongoing legal actions and indemnity agreements.
No provision has been made for certain large counterclaims, as management believes these are not tenable.
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