Sterling and Wilson Renewable Energy (SWSOLAR) Q4 25/26 earnings summary

Executive summary

• Achieved record new orders exceeding INR 10,000 crore in FY26, with unexecuted order value at INR 11,813 crore, providing strong earnings visibility.

• Commissioned 4.5 GW AC (5.9 GW DC) of solar PV projects, representing 15% of India's utility-scale solar installations for the year.

• O&M portfolio expanded to 13.5 GW in FY26, positioning as a leading global third-party O&M player.

• Employee headcount increased to 3,500, reflecting scaling for multi-GW projects.

• Audited standalone and consolidated financial results for FY26 were approved with unmodified opinions from statutory auditors.

Financial highlights

• FY26 consolidated revenue reached INR 7,548 crore, up 20% year-over-year; Q4 revenue was INR 1,946 crore.

• Achieved highest-ever quarterly PAT of INR 142 crore in Q4; annual PAT impacted by exceptional items, resulting in a consolidated net loss of INR 296 crore.

• FY26 gross margin improved to 10.5% (vs. 10.1% in FY25), with international EPC margins rising to 13.2%.

• Operational EBITDA for FY26 was INR 444 crore, up 53% year-over-year, with a margin of 5.9%.

• Debt reduced by INR 149 crore sequentially; net working capital at negative INR 329 crore.

Outlook and guidance

• Targeting 15% revenue and order book growth for FY27, excluding potential Reliance orders.

• Robust bid pipeline of 31 GW (over INR 50,000 crore), with India accounting for 27 GW.

• Expecting 20% of new orders from battery energy storage systems (BESS); margins for BESS similar to solar EPC (8%-10%).

• O&M gross margins expected to stabilize at 20%-25% for third-party contracts.

• Management remains confident in the recoverability of key receivables and bank guarantees, supported by indemnity agreements.