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.

Sterling & Wilson Renewable Energy Limited announced its unaudited financial results for the quarter and nine months ended December 31, 2025, showcasing mixed performance with revenue growth but challenges in nine-month profitability. The Board of Directors approved these results at their meeting held on January 15, 2026.

Financial Performance Overview

The company's Q3FY26 performance demonstrates resilience in revenue generation despite market challenges. Key financial metrics reflect the company's operational dynamics across its business segments.

For the nine months ended December 31, 2025, the company faced significant challenges with a net loss of ₹2,432.02 crore compared to a profit of ₹226.08 crore in the corresponding period last year. This was primarily due to exceptional items worth ₹2,638.42 crore recognized during the period.

Segment-wise Performance

The company operates through two primary business segments, both contributing to overall revenue growth.

The EPC business segment demonstrated strong performance with revenue increasing by 22.2% year-over-year, while the operation and maintenance service segment experienced a marginal decline of 2.1%.

Key Management Appointment

The company announced the appointment of Mr. Rajesh Mittal as Senior Vice President – Information Technology, effective January 20, 2026. Mr. Mittal brings 25 years of experience in IT services and holds an MBA from IIM Kozhikode along with a B.Tech in Electronics and Telecommunications.

Mr. Mittal has received several industry recognitions including the CIO500 Accelerator X Award 2024, CIO100 Game Changer 2023, and multiple CIO100 Awards.

Exceptional Items Impact

The nine-month results were significantly impacted by exceptional items totaling ₹2,638.42 crore, primarily related to write-offs and impairments of investments in a wholly owned subsidiary. This included ₹599.70 crore written off due to unfavorable arbitration outcomes and ₹2,038.72 crore impaired due to uncertainty in projected cash flows from a specific contract.

Earnings Per Share

The company reported basic earnings per share of ₹3.13 for Q3FY26 compared to ₹3.32 in Q3FY25. For the nine-month period, the company reported a loss per share of ₹104.15 compared to earnings per share of ₹9.69 in the corresponding period last year.

Indemnity Agreement Benefits

The company continues to benefit from the Indemnity Agreement dated December 29, 2021, with Promoter Selling Shareholders. Under this agreement, the company raised claims amounting to ₹174.54 crore for the period from October 1, 2024, to September 30, 2025, with ₹143.12 crore expected to be received by January 31, 2026.