Sterling and Wilson Renewable Energy (SWSOLAR) Q3 25/26 earnings summary

Executive summary

• Achieved highest-ever Q3 revenue since listing at INR 2,092 crores, with 48% year-on-year growth for the nine-month period to INR 5,602 crores, driven by strong domestic EPC execution and robust order inflows.

• Expanded into wind EPC and energy storage, with a global presence in 28 countries and a 26.1 GWp EPC portfolio.

• Entered a multi-year strategic partnership with Adani Green, targeting at least 1 GW of orders annually, and secured major new contracts including a gigawatt-scale order.

• O&M business portfolio crossed 10 GW, expected to contribute to revenue stability and margin resilience.

• Recognized with multiple industry awards for project execution, safety, and leadership.

Financial highlights

• Q3 FY26 revenue: INR 2,092 crores, up 14% year-on-year; nine-month revenue: INR 5,602 crores, up 48% year-on-year.

• Gross margin for Q3: 9.5%, up from 8.9% sequentially and 9.4% year-on-year; nine-month gross margin: 10%.

• Operational EBITDA for Q3: INR 105 crores, up from INR 62 crores in the prior quarter; nine-month operational EBITDA: INR 289 crores, up 115% year-on-year.

• Net debt at INR 738 crores, with net working capital at INR -407 crores, indicating a negative working capital cycle.

• PAT for Q3 FY26 at INR 2 crore, impacted by an exceptional item of -INR 31 crore due to arbitration.

Outlook and guidance

• Order inflow guidance for FY26 raised to over INR 11,000 crores, representing more than 60% year-on-year growth; strong bid pipeline for Q4 FY26 and FY27 with expected 15%-20% revenue growth.

• Gross margin guidance maintained at 8%-10%; EBITDA margin expected to stabilize above 5% from Q4 onwards.

• O&M margins expected to return to 20%-25% after one-off expenses in the current quarter.

• Management expects to recover significant receivables and bank guarantees under an indemnity agreement, limiting future financial impact from crystallized claims above INR 300 crores.