Sterling & Wilson Renewable Energy Limited (SWREL) has experienced a significant setback as Infomerics Valuation and Rating Limited downgraded its credit ratings across multiple facilities. The downgrades affect bank facilities totaling Rs 5,903.99 crore, signaling potential financial challenges for the renewable energy company.

Credit Rating Downgrades

Infomerics has revised the ratings for SWREL's facilities as follows:

Additionally, one facility worth Rs 22.75 crore was withdrawn following full repayment and at the company's request.

Financial Position

An analysis of SWREL's consolidated balance sheet reveals some insights into the company's financial position:

While the company has shown growth in its asset base and equity, the significant increase in current liabilities (32.62%) outpaces the growth in current assets (25.68%), which could be a contributing factor to the credit rating downgrades.

Implications and Outlook

The downgrade in credit ratings may have several implications for Sterling and Wilson Renewable Energy:

1. Higher borrowing costs: The lower ratings could lead to increased interest rates on future loans or debt issuances.
2. Investor perception: The downgrade might affect investor confidence and potentially impact the company's stock performance.
3. Financial flexibility: SWREL may face challenges in accessing new credit facilities or refinancing existing debt on favorable terms.

As the renewable energy sector continues to grow, SWREL will need to focus on improving its financial metrics and operational efficiency to regain a stronger credit profile. Investors and stakeholders should closely monitor the company's future financial performance and any strategic initiatives aimed at addressing these challenges.

Note: All financial figures are based on the latest available data as of March 2025.

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

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.