Sterling & Wilson Renewable Energy Ltd – Q4 FY26 Results Analysis

key financial highlights

• Revenue from Operations:
  • Total Income (Q4 FY26): ₹1,998.54 Crore
    • QoQ Change: -5.32%
    • YoY Change: -20.23%
  • Previous Quarter (Q3 FY26): ₹2,110.79 Crore
  • Previous Year (Q4 FY25): ₹2,506.45 Crore
• Profit After Tax (PAT):
  • PAT (Q4 FY26): ₹141.59 Crore
    • QoQ Change: +9030% (Low base effect)
    • YoY Change: +157.25%
  • Previous Quarter (Q3 FY26): ₹1.55 Crore
  • Previous Year (Q4 FY25): ₹55.01 Crore
• QoQ Performance
  • Revenue Trend: Declining
  • Profit Trend: Sharp Recovery

Margin Analysis

Key Drivers:

• Significant reduction in expenses
• Improved project execution
• Lower cost pressure

Key Signal: Margins improving due to cost optimization, not revenue growth

Segment performance

Segment: EPC Business

• Revenue: ₹1,863.42 Cr

Insights:

• Core segment
• Declining YoY
• High volatility

Segment: O&M Services

• Revenue: ₹81.26 Cr

Insights:

• Stable and recurring
• Small contribution but steady

Segment insight

Company operates mainly in:

• EPC (Engineering, Procurement & Construction)
• Operations & Maintenance

Characteristics:

• Project-based revenue
• High volatility
• Dependent on order inflow

Earning quality check

Drivers:

• Cost reduction-led profitability
• Weak revenue base
• No strong recurring earnings

Interpretation:

• Earnings quality is moderate, driven more by cost control than strong demand

balance sheet Analysis

• Total Assets: ₹5,317.42 Cr
• Total Liabilities: ₹4,666.19 Cr

Insight:

• Moderate leverage; capital employed improving but still under pressure

key risks

• High dependence on EPC orders
• Revenue volatility
• Working capital stress
• Execution risks in large projects
• Global renewable project cycles

management strategy signals

• Strengthening EPC pipeline
• Improving execution efficiency
• Cost optimization
• Expanding O&M services

Financial Metrics

Quarterly Performance Context