Stock Report

Sterling and Wilson Renewable Energy Q1 FY27 Results: Net Profit Rises 37.7% to ₹53.27 Crore Driven by Cost Rationalization

Posted On : 2026-07-17 00:33:41( TIMEZONE : IST )

Sterling and Wilson Renewable Energy Limited (NSE: SWSOLAR; BSE: 542760), a leading global pure-play renewable engineering, procurement, and construction (EPC) specialist, today announced its unaudited consolidated financial results for the first quarter of fiscal year 2027 ended June 30, 2026. The company recorded a substantial double-digit expansion in its net profit for the quarter, largely supported by lower expenses, which helped cushion a moderate decline in its core operational top line.

Income Architecture and Profitability Trajectory

Sterling and Wilson's consolidated financial statement reveals a resilient bottom-line expansion despite external execution headwinds affecting absolute income:

Total Income: Concluded at ₹1,610.31 crore for the quarter, registering a 9.7% year-on-year (YoY) decline compared to ₹1,782.74 crore in Q1 FY26. Sequentially, total income decreased by 19.4% from ₹1,998.54 crore recorded in the quarter ended March 31, 2026.

Revenue from Operations: Stood at ₹1,590.13 crore, down from ₹1,761.63 crore in the year-ago quarter.

Profit After Tax (PAT): Surged 37.7% YoY to ₹53.27 crore, up from ₹38.69 crore in Q1 FY26. However, reflecting typical quarterly project lifecycles, PAT contracted sequentially from ₹141.59 crore in Q4 FY26.

Total Comprehensive Income: Registered at ₹53.74 crore for the quarter, reversing the comprehensive loss of ₹1.24 crore suffered in the corresponding period last fiscal year.

Earnings Per Share (EPS): Basic and diluted EPS for the quarter advanced to ₹2.32 per share, up from ₹1.37 per share YoY.

The expansion in net profitability was primarily anchored by disciplined project execution cost parameters, which lowered total corporate outflows:

Total Expenses: Dropped significantly to ₹1,553.66 crore in Q1 FY27, compared to ₹1,708.07 crore in the base quarter last year.

Project Supply Costs: Costs of construction materials, stores, and spare parts declined to ₹979.56 crore, down from ₹1,122.42 crore YoY.

Direct Project Costs: Stood at ₹453.31 crore during the quarter versus ₹440.95 crore in the year-ago period.

Finance Costs: Adjusted to ₹38.92 crore for the quarter, compared to ₹29.09 crore in Q1 FY26.

Other Expenses: Experienced a sharp decrease, landing at ₹29.01 crore relative to ₹68.33 crore in the previous year's matching quarter.

Segment-Wise Performance Analysis

The company's primary business segments moved at varying paces during the quarter, with the Operation and Maintenance (O&M) services business proving to be a high-margin stabilizer:

EPC Business: Generated segment revenues of ₹1,503.91 crore, down from ₹1,701.02 crore in the corresponding quarter last fiscal. Segment results for the EPC division concluded at ₹137.69 crore, compared to ₹183.06 crore YoY.

Operation and Maintenance (O&M) Service: Revenues increased to ₹84.80 crore, marking a steady expansion from ₹60.32 crore in the prior year's base quarter. The business delivered stronger segment results of ₹18.15 crore against ₹14.91 crore in Q1 FY26.

Capital Employed: Total capital employed across the enterprise improved to ₹708.36 crore at the end of the quarter, up from ₹651.23 crore in the preceding quarter ended March 31, 2026.

Asset and Liability Architecture

The company optimized its asset base while managing institutional debt profiles across its business verticals:

Segment Assets: Total consolidated assets stood at ₹5,121.34 crore, compared to ₹5,317.42 crore as of March 31, 2026. The asset mix includes EPC business assets of ₹3,082.90 crore and O&M assets of ₹131.18 crore.

Segment Liabilities: Total corporate liabilities were effectively contained at ₹4,412.98 crore, down from ₹4,666.19 crore sequentially. The overall debt structure includes EPC business liabilities of ₹3,081.08 crore and O&M liabilities of ₹85.29 crore.

The company continues to back its future growth with a massive unexecuted order value (UOV) pipeline, positioned to translate into stronger top-line performance as major international and domestic renewable projects move deeper into active construction phases.

The quarter also witnessed a marquee international order which is a 50-50 joint venture with one of the leading contractors in Egypt and the MENA region valued at approximately USD 560 million for West Minya Solar Power Project in Minya Governorate, Egypt. This is a landmark mandate: a 1,000 megawatt-AC solar PV plant integrated with a 600 megawatt-hour battery energy storage system. Once complete, it will rank among Egypt's largest utility-scale renewable developments.

The domestic EPC has been the Company's growth engine with healthy Order Book position at ~INR 7,900 crore providing revenue and growth visibility with steady gross margins at ~9-10%.

Speaking on the results announcement, Mr. Chandra Kishore Thakur, Global CEO, Sterling and Wilson Renewable Energy Group, said, "We remain confident about our prospects because the company's UOV is robust We expect this growth to reflect on the topline and bottom-line in the months ahead. The growing order book is a testimony to the confidence our customers repose in us. As a company, we are certain that our experienced and competent workforce will be able to deliver projects on schedule adhering to committed timelines."

In addition to the unprecedented UOV, the company has a bid pipeline of over 27.7 GW and a business that is now diversified across solar, wind, battery storage and third-party O&M.

Shares of Sterling And Wilson Renewable Energy Limited was last trading in BSE at Rs. 220.70 as compared to the previous close of Rs. 239.65. The total number of shares traded during the day was 720715 in over 7211 trades.

The stock hit an intraday high of Rs. 242.85 and intraday low of 218.65. The net turnover during the day was Rs. 161978763.00.