SYNOPSIS:
Sterling & Wilson Renewable Energy reported Rs. 1,749 crore revenue in Q2 FY26, up 70 percent YoY, but posted a Rs. 478 crore loss due to a one-time US arbitration write-off despite strong order inflows.Shares of a global pure-play, end-to-end renewable engineering, procurement, and construction (EPC) solutions provider tumbled nearly 8 percent on Friday, after the company reported a net loss of Rs. 477.6 crores in Q2 FY26, marking its first quarterly loss after six consecutive profitable quarters.
With a market cap of Rs. 5,295.6 crores, shares of Sterling & Wilson Renewable Energy Limited closed in the red at Rs. 226.8 on BSE, down by around 7 percent, as against its previous closing price of Rs. 243.1.
The stock has delivered negative returns of over 63 percent in one year, and has fallen by nearly 15 percent in the last one month. Additionally, the stock is currently trading at a discount of 65 percent from its 52-week high of Rs. 642.
What’s the News
Sterling & Wilson Renewable Energy Limited (SWREL) announced the financial results for the second quarter of FY26 on Friday during market hours, as per the latest regulatory filings with the stock exchanges.
For Q2 FY26, the company reported a consolidated net revenue from operations of Rs. 1,748.6 crores, reflecting a sequential decline of around 1 percent QoQ compared to Rs. 1,761.6 crores in Q1 FY26, but a year-on-year increase of about 70 percent from Rs. 1,030.5 crores recorded in Q2 FY25. The revenue was driven by higher execution pace across large-scale domestic EPC projects and improving international contributions.
During the same period, SWREL reported a net loss of Rs. 477.6 crores, compared to a net profit of Rs. 38.7 crores in Q1 FY26 and Rs. 8.6 crores in Q2 FY25. This marks the company’s first quarterly loss after six consecutive profitable quarters, with the previous loss recorded in Q3 FY23.
The company reported an operational EBITDA of Rs. 62 crore for Q2 FY26, nearly 3x higher year-on-year, driven by continued operating discipline and effective overhead cost management. Gross profit for the quarter stood at Rs. 156 crore, with margins reflecting a favourable mix shift toward turnkey domestic projects initiated during the period.
However, reported EBITDA and profitability were impacted by a one-time exceptional write-off of ~Rs. 637 crore, following an adverse arbitration ruling in the United States, along with certain other provisions. Consequently, the company reported a PAT loss of Rs. 478 crore in Q2 FY26.
On the business front, the company maintained robust order booking momentum, securing projects (including L1) worth nearly Rs. 3,000 crore since Q1 FY26, taking the total order inflow for the fiscal year to Rs. 3,775 crore. The unexecuted order book currently stands at Rs. 9,287 crore, ensuring strong execution and revenue visibility. The overall order pipeline remains healthy, supported by upcoming opportunities across India, Africa, and Europe.
About the Company
Sterling and Wilson Renewable Energy Limited is a renewable energy EPC contractor with a pan-India presence and international operations in the Middle East, Southeast Asia, Africa, Philippines, Thailand, Europe, South America, Latin America, Australia and USA.
The company specialises in complete turn-key and rooftop solutions and Renewable Energy EPC solutions, with principal activity including import, export and trading of solar modules, structures, inverters and related accessories, installation and maintenance of renewable energy power generating facilities and other related activities.
Additionally, SWREL is engaged in setting up solar, hybrid, and energy storage (BESS/ESS) power plants utilising non-fossil fuel-based technologies, and in developing integrated solid waste and biomass management solutions, such as waste-to-energy projects using municipal solid waste (MSW), biomass-based power generation, and power-to-synthetic gas systems. The company also focuses on power generation for the demand response market, reinforcing its commitment to sustainable and diversified clean energy solutions.
Written by Shivani Singh
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