Sterling & Wilson Renewable Energy Limited has delivered impressive financial performance in Q3FY26, demonstrating robust growth across key metrics and strengthening its market position in the renewable energy sector.

Financial Performance Highlights

The company's financial results for the nine months ended December 31, 2025, showcase strong operational performance:

The substantial revenue growth reflects the company's enhanced execution capabilities and improved customer confidence, supported by credit rating improvements and continued lender support through new credit lines.

Order Book Momentum and Revised Guidance

Sterling & Wilson Renewable Energy has demonstrated exceptional order acquisition momentum throughout FY26:

The strong order inflow performance and robust pipeline for Q4 have enabled the company to revise its order booking guidance upward to more than ₹11,000 crore for FY26, representing 60% year-on-year growth.

Strategic Partnerships and Market Expansion

During Q3FY26, Sterling & Wilson Renewable Energy achieved several strategic milestones that strengthen its market position:

• Adani Green Partnership: Signed a 5-year framework agreement with Adani Green Energy and secured the first Balance of System (BOS) order from them
• International Expansion: Secured second South African order worth USD 147 million
• Diversified Portfolio: Added two more Indian renewable energy projects, including a pure Battery Energy Storage System (BESS) order from a leading Indian Independent Power Producer

The Adani Green partnership represents a significant turning point, demonstrating confidence from one of India's leading developers and marking their strategic shift toward working with prestigious third-party EPC contractors to scale operations.

Management Commentary

C. K. Thakur, Global CEO of Sterling and Wilson Renewable Energy Group, highlighted the company's execution capabilities and strategic positioning: "SWREL has delivered robust revenue growth displaying our strong execution skills in the domestic segment. The marquee order from Adani Green and signing a strategic 5-year framework agreement with them is an important milestone reflecting the strong faith placed in our company's execution by globally renowned RE developers."

Company Profile and Market Presence

Sterling and Wilson Renewable Energy Limited operates as a global pure-play, end-to-end renewable engineering, procurement, and construction solutions provider. The company maintains a comprehensive portfolio:

• Total Portfolio: Over 26.1 GWp (including commissioned projects and those under construction)
• O&M Portfolio: 10.1 GWp solar power projects
• Global Presence: Operations across 28 countries spanning India, South-east Asia, Middle East, Africa, Europe, Australia, and the Americas

The company's strong fundamentals, growing order book, and strategic partnerships position it well for continued growth in the expanding renewable energy market.

Sterling & Wilson Renewable Energy Limited announced its unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025, during a Board meeting held on January 15, 2026. The renewable energy solutions provider demonstrated resilient performance with notable revenue growth despite challenging market conditions.

Financial Performance Overview

The company's standalone financial results for Q3FY26 showed mixed performance compared to the previous year. While revenue growth remained strong, profitability faced some pressure during the quarter.

Nine-Month Performance Analysis

The nine-month performance revealed significant challenges, primarily due to exceptional items that impacted overall profitability. The company faced substantial write-offs and impairments during the period.

Segment-Wise Performance

The company operates through two primary business segments: EPC (Engineering, Procurement, and Construction) business and Operation & Maintenance services.

EPC Business Performance

• Q3FY26 revenue: ₹1,756.52 crore vs ₹1,437.55 crore in Q3FY25 (+22.2%)
• Nine-month revenue: ₹4,294.62 crore vs ₹3,218.58 crore in 9M FY25 (+33.4%)
• Segment result for Q3FY26: ₹159.94 crore vs ₹135.67 crore in Q3FY25

Operation & Maintenance Services

• Q3FY26 revenue: ₹48.20 crore vs ₹49.24 crore in Q3FY25 (-2.1%)
• Nine-month revenue: ₹148.76 crore vs ₹148.99 crore in 9M FY25 (-0.2%)
• Segment result for Q3FY26: ₹2.30 crore vs ₹5.35 crore in Q3FY25

Key Management Appointment

The Board approved the appointment of Mr. Rajesh Mittal as Senior Vice President – Information Technology and Senior Management Personnel, effective January 20, 2026. Mr. Mittal brings extensive experience to the role:

Exceptional Items Impact

The company's nine-month performance was significantly affected by exceptional items totaling ₹2,638.42 crore. These items primarily related to:

• Write-off of ₹599.70 crore from a wholly owned subsidiary due to unfavorable arbitration outcomes
• Impairment of ₹2,038.72 crore (revalued to ₹2,137.00 crore) due to uncertainty in projected cash flows from a contract

Indemnity Agreement Benefits

The company continues to benefit from the Indemnity Agreement signed on December 29, 2021, with Promoter Selling Shareholders. Under this agreement, claims exceeding ₹300.00 crore related to liquidated damages, old receivables, and legal matters are recoverable from the Promoter Selling Shareholders. The company raised a claim of ₹174.54 crore for the period October 1, 2024, to September 30, 2025, with ₹143.12 crore outstanding as of December 31, 2025.

Consolidated Results

On a consolidated basis, the company reported revenue from operations of ₹2,092.21 crore for Q3FY26 compared to ₹1,837.20 crore in Q3FY25, representing growth of 13.9%. However, the consolidated net profit was ₹1.55 crore compared to ₹17.14 crore in the previous year quarter, primarily due to exceptional items of ₹30.84 crore during the quarter.