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Sterling & Wilson Renewable Energy Ltd
| Standalone Financial Results for Quarter & Year Ended March 31, 2026
Summary : Company reported significant losses due to exceptional items and ongoing legal disputes.
Quarterly Report Analysis & Insights
Financial Disclosures
- Standalone Total Expenses FY26: Rs. 6,067.49 Cr (vs FY25: Rs. 5,226.65 Cr).
- Consolidated Total Expenses FY26: Rs. 7,411.02 Cr (vs FY25: Rs. 6,178.92 Cr).
- Key expenses include cost of construction materials, direct project costs, employee benefits, and finance costs.
- Standalone Revenue from operations FY26: Rs. 6,163.81 Cr (vs FY25: Rs. 5,387.04 Cr).
- Consolidated Revenue from operations FY26: Rs. 7,548.05 Cr (vs FY25: Rs. 6,301.86 Cr).
- Revenue segments: EPC business and Operation and Maintenance service.
- Standalone Cash flow from operating activities FY26: Rs. 282.33 Cr (vs FY25: (Rs. 17.64) Cr).
- Consolidated Cash flow from operating activities FY26: (Rs. 257.35) Cr (vs FY25: Rs. 37.88) Cr.
- Standalone Net decrease in cash and cash equivalents FY26: (Rs. 175.57) Cr.
- Consolidated Net decrease in cash and cash equivalents FY26: (Rs. 261.35) Cr.
- Claims related to liquidated damages, old receivables, direct and indirect tax litigations, legal and regulatory matters covered by Indemnity Agreement (exceeding Rs. 300 crores).
- Uncertainty regarding recovery of remediation costs and wrongfully invoked bank guarantees, with management confident of recovery.
- Standalone Total Assets FY26: Rs. 4,769.83 Cr (vs FY25: Rs. 7,000.78 Cr).
- Consolidated Total Assets FY26: Rs. 5,317.42 Cr (vs FY25: Rs. 5,630.02 Cr).
- Standalone Other Equity FY26: Rs. 435.58 Cr (vs FY25: Rs. 2,983.31 Cr).
- Consolidated Other Equity FY26: Rs. 626.40 Cr (vs FY25: Rs. 983.71 Cr).
- Standalone Current Liabilities FY26: Rs. 3,718.66 Cr (vs FY25: Rs. 3,379.99 Cr).
- Consolidated Current Liabilities FY26: Rs. 4,107.92 Cr (vs FY25: Rs. 4,038.85 Cr).
- Indemnity Agreement with Promoter Selling Shareholders (Shapoorji Pallonji and Company Private Limited, Khurshed Yazdi Daruvala) and Reliance New Energy Limited.
- Standalone results show a net loss of Rs. 2,510.18 Cr for FY26, while consolidated results show a net loss of Rs. 295.79 Cr for FY26.
- Both standalone and consolidated reports highlight significant exceptional items impacting profitability.
- Consolidated results include financial information from 18 subsidiaries and 18 branches outside India.
Corporate Overview
- India
- Australia
- Argentina
- Chile
- Dubai
- Egypt
- Greece
- Italy
- Jordan
- Kenya
- Mali
- Mexico
- Namibia
- Saudi Arabia
- United Kingdom
- Vietnam
- Tanzania
- Zambia
- Significant write-off and impairment of investment in a subsidiary, loans, and receivables (Rs. 2,802.18 Cr exceptional item in standalone).
- Arbitration award resulting in Rs. 610.94 Cr exceptional item in consolidated results.
- Unfavorable arbitration outcome and uncertain projected cash flows.
- Disputes with customers regarding liquidated damages and wrongful invocation of bank guarantees.
- Managerial remuneration exceeding statutory limits requiring shareholder approval.
- Indemnity Agreement with Promoter Selling Shareholders for claims exceeding Rs. 300 crores.
- Complete Turnkey solution for Engineering, Procurement, Construction, Operation and Maintenance of Renewable Energy Power projects.
- EPC business
- Operation and Maintenance service
Risk Factors
- Large exceptional items impacting profitability.
- Uncertainty in recovering disputed amounts.
- Ongoing legal and regulatory challenges.
- Negative cash flow from operations.
Key Drivers
- Successful recovery of disputed receivables.
- Positive resolution of ongoing arbitration.
- Growth in renewable energy projects.
- Improved operational cash flow.
Auditor’s Report
- Unmodified opinion on Annual Standalone Financial Results for FY ended March 31, 2026.
- Unmodified opinion on Unaudited Standalone Financial Results for Q4 ended March 31, 2026.
- Unmodified opinion on Annual Consolidated Financial Results for FY ended March 31, 2026.
- Unmodified opinion on Unaudited Consolidated Financial Results for Q4 ended March 31, 2026.
- Indemnity Agreement with Promoter Selling Shareholders for claims exceeding Rs. 300 crores, ensuring no further impact on company results.
- Write-off and impairment of investment in a wholly-owned subsidiary, loans, and other receivables due to unfavorable arbitration outcome and uncertain cash flows, presented as an exceptional item.
- Uncertainty related to recoverability of remediation costs and wrongfully invoked bank guarantees, with management confident of recovery and no provision made.
Board Commentary
- Indemnity Agreement with Promoter Selling Shareholders for claims exceeding Rs. 300 crores.
- Significant write-off and impairment of investment in a subsidiary, loans, and receivables.
- Arbitration award leading to exceptional item.
- Uncertainty regarding recovery of remediation costs and wrongfully invoked bank guarantees.
- Ongoing disputes with customers over project delays and liquidated damages.
- Managerial remuneration exceeded statutory limits, seeking shareholder approval.
- Employee Stock Option Plan II 2025 approved, 21,48,822 stock options granted.
Corporate Governance
- Audit Committee reviewed and approved financial results.
- Managerial remuneration exceeded statutory limits, requiring shareholder approval.
Management Discussion & Analysis
Risk Control Measures
- Indemnity Agreement with Promoter Selling Shareholders covers claims exceeding Rs. 300 crores.
- Company initiated arbitration and legal actions to recover disputed amounts.
- Management confident of recovery for remediation costs and invoked bank guarantees.
Critical Risks
- Uncertainty in recovering remediation costs and wrongfully invoked bank guarantees.
- Ongoing legal disputes with customers regarding project delays and liquidated damages.
- Impact of new Labour Codes on employee benefit obligations.
- Managerial remuneration exceeding statutory limits.