Sterling and Wilson Renewable Energy FY26 Results

Sterling and Wilson Renewable Energy reported consolidated revenue of ₹7,548.05 crore for the fiscal year 2025-26, a significant increase from ₹6,301.86 crore in the previous year. The company also saw its consolidated EBITDA rise to ₹480.75 crore from ₹276.19 crore.

However, the company posted a consolidated loss after tax of ₹295.79 crore for FY26, a shift from a profit of ₹85.55 crore in FY25. This loss was primarily driven by exceptional items.

Reader Takeaway: Strong revenue and order growth overshadowed by significant standalone losses from international subsidiary impairments.

What just happened

Sterling and Wilson Renewable Energy announced its financial results for FY2025-26. Consolidated revenue grew to ₹7,548.05 crore, and EBITDA improved to ₹480.75 crore. The company also achieved a record operational performance by commissioning 4.5 GW AC of solar capacity. New order inflows were strong at ₹10,062 crore, pushing the unexecuted order value (UOV) to ₹11,813 crore.

Why this matters

While revenue and order book show positive momentum, the consolidated net loss of ₹295.79 crore raises concerns. A substantial standalone loss of ₹2,510.18 crore was reported, largely due to a ₹2,802.18 crore exceptional item from writing off investments and loans in its subsidiary, Sterling and Wilson International Solar FZCO, following arbitration outcomes.

The backstory

Sterling and Wilson Renewable Energy is a significant player in the solar energy EPC (Engineering, Procurement, and Construction) sector. The company has been working to improve its operational execution and secure new orders. Recent financial periods have seen efforts to stabilize operations and manage challenges, including those related to international ventures.

What changes now

Investors will closely watch the company's ability to convert its strong order book into profitable execution. The significant write-off impacts the standalone financials, and the management's strategy to handle margin pressures on fixed-price contracts will be crucial. A special resolution is also proposed at the AGM to waive the recovery of excess remuneration paid to a manager due to the company's loss.

Risks to watch

Margin pressure from commodity price volatility and fixed-price EPC contracts remains a key risk. The standalone loss highlights the financial impact of international subsidiary issues, which could continue to be a concern. Additionally, any adverse developments from ongoing arbitration or legal matters related to the subsidiary need monitoring.

Peer comparison

Sterling and Wilson Renewable Energy operates in a competitive solar EPC market in India. While specific peer results for FY26 are not detailed here, companies in this space often face similar challenges related to project execution, supply chain volatility, and contract management. The company's record commissioning of 4.5 GW represents a significant portion of utility-scale solar capacity in India for the year.

Context metrics (time-bound)

Consolidated Revenue FY2025-26: ₹7,548.05 crore (vs ₹6,301.86 crore FY2024-25)
Consolidated EBITDA FY2025-26: ₹480.75 crore (vs ₹276.19 crore FY2024-25)
Consolidated Profit/Loss After Tax FY2025-26: (₹295.79 crore) (vs ₹85.55 crore FY2024-25)
Unexecuted Order Value: ₹11,813 crore
New Order Inflows FY2025-26: ₹10,062 crore
Global EPC Portfolio: 27.3 GWp
O&M Portfolio: 13.5 GWp
Record Solar Capacity Commissioned FY2025-26: 4.5 GW AC

What to track next

Investors will be looking for updates on the resolution of international subsidiary issues, management's strategies to mitigate margin pressures, and the conversion of the healthy order book into profitable revenue streams. The outcome of the AGM's special resolution regarding remuneration will also be noted.