Sterling & Wilson Renewable Energy Ltd (SWSOLAR)

📊 Quarterly Results (₹ Cr)

Revenue has declined sequentially over the past four quarters, dropping from ₹2,092 Cr in Dec 2025 to ₹1,590 Cr in Mar 2026, reflecting the timing of project execution and revenue recognition. However, net profit improved sharply to ₹53 Cr in Q1FY27 from a loss of ₹478 Cr in Sep 2025, indicating cost control and operational leverage. Operating margins remain volatile, with EBITDA margin at 4.7% in Q1FY27 compared to 7.3% in the prior quarter. The company continues to build its order backlog, which now stands at INR 13,024 Cr, suggesting future revenue visibility, though recognition is likely to be back-ended.

🔮 Management Outlook & What's Next

Management expects O&M revenue to improve significantly this fiscal and gross margins for EPC projects to stabilize at 8-10%. PAT margin is anticipated to rise, supported by scale in operations and better project execution. The company is focused on monetizing its record UOV of INR 13,000 Cr, particularly from the Egypt solar JV and BESS project. No formal financial guidance beyond margin and revenue trajectory was provided, but management emphasized that UOV growth will impact topline and bottom-line in the coming months.

Extracted from official company announcements. Not StockFin.ai's opinion.

🏦 Balance Sheet (₹ Cr)

The balance sheet shows stable equity at ₹23 Cr but declining reserves, falling from ₹984 Cr in Mar 2025 to ₹447 Cr in Mar 2026, suggesting reserve utilization or reclassification. Borrowings remain low at ₹1,164 Cr as of Mar 2026, down from ₹1,226 Cr in the prior year, with net debt at just ₹78 Cr. Cash & bank balances of ₹400 Cr provide comfortable liquidity, while total assets have declined to ₹4,859 Cr from ₹5,630 Cr YoY, reflecting project completion and asset roll-off. The company is not over-leveraged but is not reinvesting aggressively either, indicating a conservative capital structure.

💰 Cash Flow Statement (₹ Cr)

👥 Shareholding Pattern

Institutional investor holding has declined from 7.19% in Q3FY26 to 5.06% in Q1FY27, indicating gradual de-risking or reallocation by FIIs. DII holding has also dipped slightly from 3.19% to 4.8%, though public shareholding remains stable. The promoter holding remains steady at 45.72%, with no changes observed. The declining institutional interest may reflect concerns over near-term execution risks or sector sentiment, despite strong order inflows. The growing number of shareholders (3,29,077 as of Q1FY27) suggests retail interest but limited institutional conviction.

⚖️ Peer Comparison — Infrastructure Developers & Operators

🔗 Peer Stock Analyses

⚠️ Risk Factors

1. Execution risk in EPC projects leading to delayed revenue recognition and margin compression. 2. Exposure to international project risks, as seen in the arbitration initiated by SWSAPL against Shell over the Gangarri Solar Farm dispute in Australia, with potential liability up to AUD $28 million. 3. Credit rating downgrade and withdrawal of long-term facilities by Acuité Ratings, signaling rising perceived credit risk and potential impact on borrowing costs. 4. Volatile profitability and negative ROE/ROCE, which may limit investor confidence and access to capital.

📋 Recent Filings

• 🔴 Announcement2026-09-22Sterling and Wilson Renewable Energy announced it secured new orders worth over INR 985 crore, including a 534.3 MWp domestic project in Rajasthan and…
• 🔴 Announcement2026-09-22Sterling & Wilson Renewable Energy disclosed a GST order demanding INR 27.72 Crore in tax and penalty for 2020-21, which it says is largely covered by…
• 🔴 Announcement2026-09-22Sterling & Wilson Renewable Energy informed BSE that its officials cannot attend the JM Financial investor conference scheduled for September 24, 2026…
• 🔴 Announcement2026-09-21Sterling & Wilson Renewable Energy announced it will attend an investor conference hosted by JM Financial Services on September 24, 2026, as part of i…
• 🔴 Announcement2026-09-16Sterling & Wilson Renewable Energy announced it will attend an investor conference hosted by Anand Rathi on September 21, 2026, as part of its regulat…
• 🔴 Announcement2026-09-10Sterling & Wilson Renewable Energy disclosed on September 10, 2026 that its US subsidiary SWSS has commenced new arbitration against OEG Inc. to pursu…
• Announcement2026-08-24Sterling and Wilson Renewable Energy Limited announced an investor meeting scheduled for August 27, 2026, organized by DAM Capital Advisors, to discus…
• 🔴 Announcement2026-07-31Sterling and Wilson Renewable Energy Limited disclosed a credit rating downgrade by Acuité Ratings & Research on its long-term bank facilities totalin…
• Announcement2026-07-24Sterling and Wilson Renewable Energy Limited reported Q1 FY27 revenue of INR1,590 crores with a 9.9% gross margin and INR96 crores EBITDA, up 36% YoY …
• regulation 312026-07-23Sterling and Wilson Renewable Energy Limited disclosed that promoter Khurshed Y. Daruvala, along with persons acting in concert, has not created any n…

🧠 Analyst's Read

Sterling & Wilson Renewable Energy is building momentum through a large order backlog and growing O&M capabilities, but near-term financial performance remains uneven due to project execution timing. Investors should watch for sequential revenue recovery and margin improvement in upcoming quarters, particularly as the Egypt BESS project and other UOV items begin to contribute. The company’s long-term potential is tied to execution discipline and resolution of arbitration risks, but current volatility and credit concerns warrant caution.

Based on filing content and financial data. Not a recommendation.