Sterling and Wilson Renewable Energy Reports ₹477.62 Crore Q2 Loss on Exceptional Item; Revenue Rises 75% YoY

New Delhi, October 17, 2025: The shares of Sterling and Wilson Renewable Energy Limited (SWREL) ended lower by 7.48%, as the firm registered a consolidated net loss of ₹477.62 crore during the quarter that ended on September 2025, primarily on account of a one-time exceptional loss of ₹580.10 crore following an adverse arbitration ruling.

One-Time Exceptional Item Impacts Profitability

The loss was due to a write-off related to a terminated subcontractor contract for a wholly owned subsidiary. During the quarter, an arbitral tribunal denied ₹485.64 crore claims by the subsidiary and instead granted ₹56.80 crore, including interest, to the subcontractor. Therefore, SWREL wrote off ₹580.10 crore, inclusive of predicated legal expenses, as an exceptional item in its unpublished financial results.

Revenue Surges Over 75% YoY

Even though the exceptional loss occurred, the company’s total income stood at ₹1,859.65 crore in Q2 FY26, up from ₹1,064.45 crore in the same quarter of the previous year. During the April–June quarter, the net profit of the SWREL was ₹38.69 crore.

These costs reduced its profitability, while its reported EBITDA was also hurt by a one-time write-off of approximately ₹637 crore due to the arbitration outcome and provisions.

Robust Order Book and Strong Pipeline

SWREL maintained healthy operational momentum by securing new projects worth approximately ₹3,000 crore since Q1. This added to the FY26 order inflow total of ₹3,775 crore and the unexecuted order book of ₹ 9,287 crore, providing good execution and revenue visibility. The company noted that its pipeline of orders stays healthy with bright prospects in Europe, Africa, and India.

Management Outlook

The company highlighted that non-recurring write-downs have tempered reported performance; however, the underlying fundamentals of the business remain healthy. Management also reinforced its areas of concentration on execution effectiveness and global renewables EPC market positioning.

SWREL Share Price Update

Sterling and Wilson Renewable Energy Limited’s stock ended down with a 7.48% loss at ₹224.90. It opened at ₹244.00 and touched intraday highs and lows of ₹247.54 and ₹223.52, respectively. The company records a market capitalization of ₹5,300 crore and a price-to-earnings (P/E) multiple of 48.42. Over the last 52 weeks, the stock has traded between ₹218.45 and ₹641.70, reflecting considerable volatility in its valuation. Sterling and Wilson Renewable Energy Limited is a global market leader in end-to-end renewable engineering, procurement, and construction (EPC) solutions.

REF: https://nsearchives.nseindia.com/corporate/SWSOLAR_17102025144617_SignedPressRelease.pdf

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