Sterling and Wilson Renewable Energy reports Rs 477.62 cr loss in Q2

Sterling and Wilson Renewable Energy Limited (SWREL) is a global pure-play, end-to-end renewable engineering, procurement, and construction (EPC) solutions provider.

Sterling and Wilson Renewable Energy on Friday reported a consolidated net loss of Rs 477.62 crore in the September quarter, largely due to an exceptional item of Rs 580.10 crore during the period under review.

The company had posted a consolidated net profit of Rs 8.57 crore in the quarter ended September 30, 2024, according to a BSE filing.

Last year, a wholly owned subsidiary (WOS) of the group had terminated a contract with a major subcontractor in a particular geography for delays and default of obligations under the contract. During the quarter, an arbitral tribunal passed an interim award in this matter, dismissing the subsidiary’s claims of Rs 485.64 crore (USD 55.06 million) and instead granting the subcontractor a claim of Rs 56.80 crore (USD 6.44 million) plus interest.

Accordingly, the group charged off Rs 580.10 crore (including estimated legal costs) in its unaudited financial results for the quarter and six months ended September 30, 2025, classifying it as an exceptional item.

However, the company’s total income rose to Rs 1,859.65 crore during the quarter from Rs 1,064.45 crore in the same period a year ago. Sterling and Wilson Renewable Energy had reported a consolidated net profit of Rs 38.69 crore in the April–June quarter.

Reported EBITDA and profitability were hit by a one-time write-off of approximately Rs 637 crore, following an adverse arbitration ruling in the US along with other provisions. This one-time exceptional write-off led to a reported PAT loss of Rs 478 crore in Q2 FY26, the company said.

Despite this, the company sustained strong order bookings, securing projects (including L1) worth nearly Rs 3,000 crore since Q1, taking total order inflow for this fiscal to Rs 3,775 crore. The current unexecuted order value stands at Rs 9,287 crore, providing execution and revenue visibility.

The overall order pipeline remains healthy, driven by upcoming opportunities in India, Africa and Europe.

“Despite industry headwinds, SWREL delivered steady operational performance during the quarter, underlining our strong execution focus and strategic market positioning. Our consistent order inflow and expanding opportunities in India and the international market reinforce our future potential. While certain non-recurring write-offs have affected the reported results, our underlying business fundamentals remain sound,” said C K Thakur, Global CEO of Sterling and Wilson Renewable Energy Group.

Sterling and Wilson Renewable Energy Limited (SWREL) is a global pure-play, end-to-end renewable engineering, procurement, and construction (EPC) solutions provider.