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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.
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Q2 2026 earnings summary17 Oct, 2025

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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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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