Sterling and Wilson Renewable Energy reported a 36% rise in Q1 FY27 profit to ₹53 crore, despite a 9.8% dip in revenue to ₹1,590 crore. The company's strong order book and growing O&M business provide future revenue visibility.
Sterling and Wilson Renewable Energy Q1 FY27 Results
Sterling and Wilson Renewable Energy reported a Profit After Tax (PAT) of ₹53 crore for the first quarter of FY27, marking a significant 36% increase from ₹39 crore in the same period last year. Revenue for the quarter stood at ₹1,590 crore, a decrease of 9.8% compared to ₹1,762 crore in Q1 FY26.
Reader Takeaway: Profit growth driven by operational efficiency despite revenue timing; strong order book for future visibility.
What just happened
For Q1 FY27, Sterling and Wilson Renewable Energy posted a PAT of ₹53 crore, up 36% year-on-year. Revenue declined 9.8% to ₹1,590 crore from ₹1,762 crore in Q1 FY26. Gross margin compressed by 1.8 percentage points to 9.9%. The company reduced its bank borrowings by ₹129 crore, with net debt at ₹635 crore.
Why this matters
The 36% profit growth demonstrates the company's ability to improve profitability even with lower near-term revenue from EPC projects. The strong unexecuted order value (UOV) of ₹13,024 crore and a growing O&M portfolio of 18.3 GW provide substantial revenue visibility for future periods. The reduction in debt also signals improved financial health.
The backstory
Revenue in Q1 FY27 was impacted by the timing of project execution, with six turnkey projects yet to commence. This back-ended revenue recognition is expected to drive higher revenue in the second half of FY27. The company is focusing on its O&M business, which is considered an annuity-like, high-margin segment.
What changes now
The company has secured a new 1 GW solar plus 600 MWh BESS project in Egypt, with Sterling and Wilson's share valued at approximately ₹2,641 crore. Management expects EPC margins to stabilize between 8-10% and O&M margins to remain around 20%. The focus remains on executing the large order book and expanding the O&M business.
Risks to watch
The primary watch point is the execution timing of the six pending turnkey projects. Any delays could impact the expected revenue ramp-up in the second half of FY27. Gross margin compression in Q1 FY27 is also a concern, though management expects stabilization.
Peer comparison
Sterling and Wilson operates in the highly competitive renewable energy EPC and O&M sector. Its peers include companies involved in solar, wind, and hybrid project development and execution. The company's focus on a large order book and its O&M segment aims to differentiate it by providing recurring revenue streams.
Context metrics (time-bound)
As of June 2026, the unexecuted order value was ₹13,024 crore, and the O&M portfolio reached 18.3 GW. Net debt stood at ₹635 crore, with bank borrowings at ₹1,035 crore. Net working capital was negative ₹260 crore.
What to track next
Investors should monitor the commencement and progress of the six pending turnkey projects, the ramp-up of revenue recognition in H2 FY27, and the continued growth and profitability of the O&M segment.