Sterling and Wilson Renewable Energy Limited announced its Q2 FY26 results, significantly impacted by one-time non-cash charges of INR580 crores and settlement payments of INR19.95 crores related to legacy legal matters in its U.S. subsidiary. Despite these setbacks, the company secured new orders and anticipates continued growth in the domestic solar EPC market. The order backlog currently stands at INR9,287 crores.
Financial Performance Overview
Sterling and Wilson Renewable Energy Limited’s Q2 FY26 results were materially impacted by the resolution of legacy legal issues concerning its U.S. subsidiary. These resolutions led to a write-off of INR580 crores and settlement payment of INR19.95 crores, classified as one-time non-recurring items. The company has written off an amount of INR580 crores in its books for the award value, including applicable interest and legal charges related to the Conti LLC arbitration.
Operational Highlights
The company has experienced strong order inflows, securing five new orders since Q1, including its first international order of the year, bringing the cumulative order inflow to approximately INR3,775 crores. A significant LOI was received for a 115-megawatt turnkey project in South Africa, valued at approximately USD120 million. The domestic solar EPC market is growing rapidly and Sterling and Wilson has secured new projects, primarily from the PSU space. Awarded a 304-MWp turnkey project in Khavda worth INR818 crores and declared L1 in two Balance of System projects worth approximately INR760 crores for 943 MWp.
Order Book and Future Outlook
The current unexecuted order value stands at INR9,287 crores. The company expects the domestic solar EPC market to be strong in the second half of FY26, with awarding activities gaining traction from both PSU and private IPPs. The company maintains its overall target margins, including O&M, in the range of 10% to 11%, with the O&M segment sustaining margins of over 20% to 23%. Second quarter revenue grew by 70% year-on-year to INR1,749 crores as against INR1,031 crores in Q2 FY25. First half FY26 revenue is up 80% to INR3,510 crores as against INR1,946 crores in first half of FY25.
Nigeria Project
The Nigerian project has experienced procedural delays, but the project remains active. An agreement was signed between Sterling and Wilson and Nigerian utilities, with an SPV formed, and the project continues to progress, albeit with unexpected delays.
Source: BSE
