Sterling & Wilson Reports Net Loss of ₹2,505.11 Crore for H1 Ended Sept 2025

Sterling and Wilson Renewable Energy Limited announced its unaudited standalone financial results for the quarter and half-year ended September 30, 2025. The company reported a net loss of ₹2,505.11 crore for the first half of the fiscal year. This includes an exceptional item related to an arbitration outcome and contract revisions. The company is pursuing recoveries under an indemnity agreement. Revenue from operations stood at ₹2,639.18 crore.

Financial Performance Overview

Sterling and Wilson Renewable Energy Limited declared its unaudited standalone financial results for the quarter and six months ended September 30, 2025. Key highlights include:

  • Revenue from operations: ₹2,639.18 crore
  • Net Loss After Tax: ₹2,505.11 crore

The results reflect the challenges faced, including an exceptional item, but the company is actively pursuing recoveries and strategic realignments.

Exceptional Items Impact

The reported net loss includes a significant exceptional item primarily due to the unfavourable outcome of an arbitration and uncertainty surrounding cashflows related to a contract. Specifically:

  • ₹599.70 crore is considered non-recoverable from a wholly-owned subsidiary and has been written off.
  • ₹2,038.72 crore impairment recognized due to unfavourable contract term revisions.

Indemnity Agreement and Recovery

The company is actively pursuing recoveries under an indemnity agreement with Promoter Selling Shareholders and Reliance New Energy Limited. This agreement covers potential claims exceeding ₹300.00 crore related to liquidated damages, old receivables, tax litigations, and other matters. A claim of ₹177.88 crore has been raised for the period from October 1, 2024, to September 30, 2025.

Segment Performance

The company reports its financials based on two primary business segments:

  • Engineering, Procurement and Construction (EPC)
  • Operation and Maintenance Service

Segment-wise revenue and results are detailed in the financial results statement.

Ongoing Legal and Recovery Actions

The company is actively pursuing legal avenues to recover outstanding amounts. This includes claims related to a ₹92.45 crore balance from a customer/developer and ₹64.10 crore from a Letter of Credit dispute, both covered under the indemnity agreement.

Source: BSE

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