Sterling and Wilson Renewable Energy (SWSOLAR) Q1 26/27 earnings summary

Executive summary

• Secured a landmark $560 million, 1,000 MW solar PV and 600 MWh BESS project in Egypt via a 50/50 JV, marking the third gigawatt-scale order in nine months.

• Ended Q1 FY 2027 with a record unexecuted order value (UOV) of INR 13,024 crore, with six large turnkey projects yet to commence execution.

• O&M portfolio reached a record 18.3 GW as of June 2026, up from 13.5 GW in FY26, with full revenue contribution expected from Q3 FY 2027.

• Achieved highest annual turnover post-IPO in FY26 and commissioned 4.5 GW AC capacities in FY26.

• Unaudited consolidated and standalone financial results for the quarter ended 30 June 2026 were approved by the Board and reviewed by auditors, with no material misstatements identified.

Financial highlights

• Q1 FY 2027 revenue was INR 1,590 crore, down sequentially and year-over-year due to delayed project execution, especially in international EPC.

• O&M segment top line grew 40% year-over-year, driven by portfolio expansion.

• Q1 gross margin was 9.9% (vs. 10.5% in FY 2026); operational EBITDA was INR 78 crore (4.9% margin), with reported EBITDA at INR 96 crore due to forex gains.

• Q1 PAT rose 36% year-over-year to INR 53 crore, aided by lower effective tax rates.

• Gross debt reduced to INR 1,035 crore as of June 2026 (from INR 1,164 crore in March 2026); net working capital at INR -260 crore.

Outlook and guidance

• Revenue growth guidance for FY 2027 revised to 10%-15%, with significant pickup expected in H2 as new projects commence.

• EPC gross margin expected to range 8%-10% depending on project mix; O&M gross margin to stabilize around 20%.

• O&M revenue projected to exceed INR 400 crore in FY 2027, up from INR 268 crore last year.

• Order book growth expected at 10%-15% over last year’s high base.

• Management remains confident in the recoverability of significant receivables and claims, supported by ongoing legal actions and indemnity agreements.