Sterling Wilson Renewable Energy Secures Credit Rating Upgrades After Successful Appeal

Sterling & Wilson Renewable Energy Limited (SWREL) has achieved a significant development in its credit profile after successfully appealing against previous rating downgrades. Following the company's appeal filed against Infomerics Valuation and Rating Limited's earlier decision, the credit rating agency has reaffirmed and upgraded ratings across multiple facilities totaling ₹5,903.99 crore.

Appeal Outcome and Rating Upgrades

Infomerics has revised the ratings for SWREL's facilities following the December 16, 2025 review, showing improvements from the previous December 8, 2025 ratings:

Facility Type	Amount (₹ Crore)	Current Rating	Previous Rating (Dec 8)	Original Rating (June 12)	Action
Long-term Bank Facilities	0.00	Rating Withdrawn	IVR BBB+/Stable	IVR BBB+/Stable	Withdrawn due to full repayment
Long-term Bank Facilities	5,675.99	IVR BBB/Negative	IVR BBB/Stable	IVR BBB+/Stable	Upgraded from Stable outlook
Short-term Bank Facilities	175.00	IVR A2	IVR A3+	IVR A2	Upgraded and reaffirmed
Long/Short-term Bank Facilities	53.00	IVR BBB/Negative/IVR A2	IVR BBB/Stable/IVR A3+	IVR BBB+/Stable/IVR A2	Upgraded short-term component

The company had enhanced its long-term bank facilities from ₹4,693.11 crore to ₹5,675.99 crore, while one facility worth ₹22.75 crore was withdrawn following full repayment and receipt of a no-dues certificate from the lender.

Rating Agency's Rationale

Infomerics Valuation and Rating Limited conducted a detailed review of Sterling & Wilson Renewable Energy's representation submitted on December 10, 2025. The reviewing authority considered the company's appeal against the ratings assigned on December 8, 2025, ultimately deciding to upgrade several facility ratings while maintaining the overall credit assessment.

The rating upgrades particularly benefited the short-term facilities, which were restored to IVR A2 from the downgraded IVR A3+ rating. However, the outlook for long-term facilities was revised to 'Negative' from 'Stable', indicating some ongoing concerns about the company's credit profile.

Financial Position Context

Based on the company's consolidated balance sheet analysis, SWREL's financial metrics show mixed signals:

Metric	FY 2025 (₹ Crore)	FY 2024 (₹ Crore)	YoY Change
Total Assets	5,630.00	4,300.50	+30.92%
Current Assets	5,179.00	4,120.90	+25.68%
Current Liabilities	4,038.90	3,045.50	+32.62%
Total Equity	994.50	955.00	+4.14%

While the company demonstrates growth in assets and equity, the significant increase in current liabilities (32.62%) compared to current assets (25.68%) continues to present challenges for the credit profile.

Implications for Stakeholders

The successful appeal and subsequent rating upgrades provide several benefits for Sterling & Wilson Renewable Energy:

Improved borrowing terms: The upgraded ratings may help secure better interest rates on future financing
Enhanced market confidence: The successful appeal demonstrates the company's proactive approach to credit management
Operational flexibility: Better ratings provide improved access to credit facilities for business operations

The rating upgrades, while positive, come with continued monitoring requirements. Infomerics has mandated monthly No Default Statements and quarterly performance reporting to track the company's financial health. The ratings remain valid for one year from December 16, 2025, subject to regular surveillance reviews.

As Sterling & Wilson Renewable Energy continues to navigate the growing renewable energy sector, these rating improvements provide a foundation for enhanced financial flexibility while highlighting the importance of maintaining strong operational performance.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.04%	+0.84%	-4.37%	-31.83%	-52.85%	-21.21%

Sterling & Wilson Renewable Energy Limited (SWREL) has made progress in collecting indemnity payments stemming from agreements dating back to 2021. The company recently received a significant portion of the total claim and is awaiting the remainder from one of its promoter selling shareholders.

Key Developments

Total Indemnity Claim: Rs. 174.54 crore
Payment Received: Rs. 31.42 crore from Mr. Khurshed Yazdi Daruvala
Pending Payment: Rs. 143.12 crore from Shapoorji Pallonji and Company Private Limited (SPCPL)

Payment Details

Particulars	Amount (in Rs. Crore)	Status	Due Date
Mr. Khurshed Yazdi Daruvala	31.42	Received	-
SPCPL	143.12	Pending	January 31, 2026
Total Claim	174.54	Partially Settled	-

The indemnity claim originates from agreements made in 2021 involving SWREL, the promoter selling shareholders, and Reliance New Energy Limited. These agreements include a Share Subscription Agreement dated October 10, 2021, and an Indemnity Agreement dated December 29, 2021.

SPCPL's Commitment

SPCPL has formally communicated its intention to fulfill its obligation. In a letter dated November 28, 2025, the company stated:

"We are working towards an expeditious payment of SPCPL Indemnity Claim Amount to SWREL and confirm that the same will be paid in full within 60 (sixty) days and no later than 31 January 2026."

SPCPL also reaffirmed its commitment to fully discharge all obligations under the agreements executed with SWREL.

Company's Disclosure

Sterling & Wilson Renewable Energy disclosed this information in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company's Chief Financial Officer, Ajit Pratap Singh, signed off on the regulatory filing.

This development demonstrates Sterling & Wilson Renewable Energy's active pursuit of agreed-upon indemnities and the responsiveness of its promoter selling shareholders. Investors and stakeholders will likely monitor the situation closely, particularly the pending payment from SPCPL, which constitutes a significant portion of the total indemnity claim.