Sterling and Wilson posts Q2 loss amid one-time charges

Sterling and Wilson Renewable Energy Limited (SWRE) reported a Q2 FY26 net loss of INR478 crores, significantly impacted by one-time exceptional items totaling over INR637 crores. This included a write-off of INR580 crores related to the Conti LLC arbitration, which dismissed claims and awarded Conti LLC $6.44 million. Additionally, a customer invoked a Standby Letter of Credit for $7.19 million, and a mutual settlement with OEG Inc. resulted in a payment of $2.25 million.

Despite these financial setbacks, SWRE's operational performance showed strength with Q2 FY26 revenue growing 70% year-on-year to INR1,749 crores. The company secured new orders totaling approximately INR3,775 crores since Q1 FY26, including a 115-megawatt turnkey project in South Africa valued at $120 million and several domestic projects in India, such as a 304-MWp project in Khavda for INR818 crores.

The unexecuted order book stands at INR9,287 crores as of October 2025, with 84% from domestic Indian projects. Gross borrowings increased to INR1,194 crores after securing a fresh INR475 crores term loan from IREDA, while net debt reached INR742 crores. The company maintains an O&M portfolio of 9.1 GW and targets overall margins of 10-11%, with O&M segment margins at 20-23%.