Quarterly Financial Results
Sterling and Wilson Renewable Energy Q1 FY27 Results: Revenue Declines, PAT Rises 36% YoY
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Sterling and Wilson Renewable Energy Limited (SWREL) reported a mixed Q1 FY27 performance with lower revenue and EBITDA due to delayed execution of turnkey EPC projects, while profitability improved year-on-year. The company also achieved a record unexecuted order value of ₹13,024 crore and secured a ₹2,641 crore order in Egypt, strengthening future revenue visibility.Â
PRICE-SENSITIVE TRIGGER
Event: Q1 FY27 Unaudited Consolidated Financial Results and Investor Presentation.
Type: Quarterly Financial Results
Impact: Neutral
Immediate Effect: Revenue and operating profitability declined during the quarter due to lower EPC revenue recognition, while order book strength and growth in the O&M business supported the company’s medium-term outlook.Â
Metrics:
Key Metrics:
- Revenue: ₹1,590 crore (▼ 9.8% YoY, ▼ 18.3% QoQ)
- Gross Profit: ₹157 crore (▼ 23.4% YoY)
- Gross Margin: 9.9% (vs 11.7% YoY)
- EBITDA: ₹96 crore (▼ 5.9% YoY)
- EBITDA Margin: 6.0% (vs 5.8% YoY)
- PAT: ₹53 crore (▲ 35.9% YoY, ▼ 62.7% QoQ)
- PAT Margin: 3.3% (vs 2.2% YoY)
Segment Performance:
- Domestic EPC Revenue: ₹1,403 crore
- International EPC Revenue: ₹103 crore
- O&M Revenue: ₹84 crore
- Domestic EPC Gross Profit: ₹126 crore
- International EPC Gross Profit: ₹11 crore
- O&M Gross Profit: ₹20 crore
Highlight:
- Record Unexecuted Order Value: ₹13,024 crore as of June 2026.
What Happened ?
Sterling and Wilson Renewable Energy reported lower revenue during Q1 FY27 as execution of six major turnkey EPC projects—three in India and three international—had not commenced during the quarter. As a result, revenue recognition from the EPC business remained subdued.
Despite softer revenue, the company posted a 36% year-on-year increase in PAT, supported by improved profitability and continued growth in the Operations & Maintenance (O&M) segment. During the quarter, SWREL secured a marquee Egypt project, expanded its O&M portfolio to 18.3 GW, and achieved its highest-ever unexecuted order value, providing strong visibility for future execution. Â
key details
Operational Developments:
- Secured a 1 GW Solar + 600 MWh BESS project in Egypt through a 50:50 joint venture.
- SWREL’s share of the project is approximately USD 280 million (₹2,641 crore).
- Record unexecuted order value increased to ₹13,024 crore.
- O&M portfolio expanded to 18.3 GW.
- Gross debt reduced through scheduled repayments during the quarter.Â
Note:
- Management expects revenue recognition from delayed EPC projects to accelerate during the second half of FY27.
Business Outlook:
Domestic EPC:
- Domestic order book of approximately ₹7,900 crore provides execution visibility.
- Pipeline for EPC and Battery Energy Storage System (BESS) projects remains robust.
- Gross margins are expected to stabilize between 8% and 10% depending on project mix.Â
International EPC:
- Middle East and Africa continue to be key growth markets.
- Revenue contribution is expected to improve as execution begins on South African and Egypt projects.Â
Operations & Maintenance:
- O&M portfolio increased from 13.5 GW to 18.3 GW.
- Management expects higher recurring revenue and EBITDA contribution from the expanding portfolio.
- The segment continues to provide stable annuity income with improving operating efficiency.Â
Balance Sheet Highlights:
- Shareholders’ Equity: ₹709 crore
- Bank Borrowings: ₹1,035 crore (reduced from ₹1,164 crore)
- Cash & Bank Balance: ₹400 crore
- Net Working Capital: Negative ₹260 crore, improved from Negative ₹329 crore in March 2026.Â
Note:
- Scheduled debt repayments reduced borrowings by approximately ₹129 crore during the quarter.Â
Risk Analysis
Summary:
- The company’s near-term earnings remain dependent on timely execution of large EPC projects. While the record order book strengthens revenue visibility, execution delays could continue to affect quarterly financial performance.
Key Risks:
- Lower EPC revenue recognition impacted Q1 FY27 performance.
- Gross margin declined to 9.9% from 11.7% a year ago.
- Revenue remains concentrated in project execution timelines.
- International project execution carries operational and execution risks.
Worst Case:
- Any further delay in commencement or execution of large domestic and international EPC projects could postpone revenue recognition and pressure earnings over subsequent quarters.
Risk Level: Medium
Company Commentary
- Q1 FY27 revenue was impacted by delayed commencement of six turnkey EPC projects.
- Revenue recognition is expected to improve during the second half of FY27.
- O&M revenue increased approximately 40% YoY, with management expecting stronger EBITDA contribution going forward.
- EPC gross margins are expected to normalize between 8–10%, while O&M margins are expected around 20%.
- The company reported a record unexecuted order value of ₹13,024 crore, supporting future growth visibility.Â
Official Exchange Filing: Sterling and Wilson Renewable Energy Limited
