Sterling and Wilson Renewable Energy (SWSOLAR) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 saw consolidated revenue rise 92% year-over-year to INR 1,761.63 crore, with strong performance in both EPC and O&M segments and over 1 GW of projects commissioned.

• PAT increased to INR 39 crore, up 680% year-over-year, while standalone net profit was INR 78.43 crore; consolidated net profit attributable to owners was INR 31.97 crore.

• The unexecuted order book stood at INR 8,348 crore as of June 2025, with 88% from domestic projects and a robust bid pipeline of 30 GW for FY26.

• O&M portfolio reached 9.3 GW, a fivefold increase over seven years, with expectations for further growth as new EPC projects are completed.

• Net working capital remains negative at INR 348 crore as of June 2025, reflecting efficient capital management.

Financial highlights

• Q1 FY26 consolidated revenue was INR 1,761.63 crore, up from INR 915 crore in Q1 FY25; standalone revenue was INR 1,363.11 crore.

• Gross margin improved to 11.7% in Q1 FY26 from 10.1% in FY25, aided by softening input costs.

• Operational EBITDA for Q1 FY26 was INR 123 crore (7% margin) standalone and INR 102 crore (5.8% margin) consolidated, up significantly year-over-year.

• Standalone EPS was INR 3.36; consolidated EPS was INR 1.37 for the quarter.

• Consolidated profit before tax was INR 74.67 crore, up from INR 14.66 crore in Q1 FY25.

Outlook and guidance

• Management reiterated full-year guidance of 15-20% year-over-year growth in order bookings and revenue, expecting a strong pickup in Q2 and Q3 as delayed tenders are awarded.

• Battery energy storage (BESS) is expected to contribute meaningfully to revenue from the next financial year, with new government policies mandating 20% battery integration in new solar tenders.

• No impairment considered necessary for investments in subsidiaries or disputed receivables as of June 30, 2025.

• Management remains confident in recoverability of large receivables and investments, supported by ongoing legal actions and indemnity agreements.

• Market outlook remains strong with projected annual utility-scale PV installations in India expected to reach 58.6 GW by 2030.