Sterling and Wilson Solar Ltd is one of the leading end-to-end solar engineering, procurement and construction (EPC) solutions provider globally and is also engaged in the operation and maintenance (O&M) of solar power projects. The company is backed by strong parentage of the Reliance Industries
Q3 FY26 Earnings Results
- Revenue from Operations (Standalone): ₹1,805.51 crore, up 21.4% YoY from ₹1,487.29 crore and up 3.2% QoQ from about ₹1,749 crore in Q2 FY26.
- Revenue from Operations (Consolidated): ₹2,092.21 crore, up ~13.9% YoY and 20% QoQ from ₹1,749 crore, reflecting strong execution and ramp‑up across EPC projects.
- Total Income: ₹1,838.19 crore vs ₹1,535.50 crore in Q3 FY25, up 19.7% YoY.
- Total Expenses: ₹1,768.45 crore vs ₹1,445.68 crore in Q3 FY25, up 22.3% YoY, driven by higher project execution and related costs.
- EBITDA (Standalone, reported): ₹66 crore; EBITDA margin at 3.5%, lower than the previous quarter due to project mix and higher costs, despite higher revenue.
- Net Profit (Standalone): ₹73.09 crore vs ₹77.47 crore in Q3 FY25, down 5.7% YoY, mainly due to margin compression even as topline grew strongly.
- Segment performance (Q3 FY26 revenue):
- EPC Business: ₹1,756.52 crore vs ₹1,437.55 crore, up 22.2% YoY, remaining the principal growth driver.
- Operation & Maintenance: ₹48.20 crore vs ₹49.24 crore, down 2.1% YoY.
- 9M FY26 snapshot (consolidated):
- Revenue from Operations: ₹4,444.69 crore vs ₹3,368.73 crore in 9M FY25, up 31.9%.
- Net Loss: ₹2,432.02 crore vs profit ₹226.08 crore in 9M FY25, primarily due to exceptional items of ₹2,638.42 crore (write‑offs and impairments).
Management Commentary & Strategic Decisions – Q3 FY26
- Management highlighted that operational recovery continued in Q3 with strong revenue growth and a return to healthy standalone profitability, driven mainly by robust EPC execution in India and select overseas markets.
- Margin pressure in the quarter was attributed to project‑mix, elevated legal/professional costs and some legacy project cost overruns, even as underlying gross margins remained broadly stable.
- Exceptional items at the 9M level (₹2,638.42 crore) were linked to:
- Write‑offs and impairments in a wholly owned subsidiary, including ₹599.70 crore written off after an unfavourable arbitration outcome.
- Impairment of ₹2,038.72 crore due to uncertainty in future cash flows from a specific contract.
- Strategic focus areas reiterated:
- Execution excellence and risk management on large EPC projects to avoid repeat of arbitration/legacy‑project issues.
- Strengthening the balance sheet with improved credit rating, which has unlocked fresh credit lines and enhanced customer confidence, aiding order conversion and working‑capital support.
- Scaling domestic solar EPC, grid‑connected projects and emerging segments like battery energy storage, while selectively pursuing international opportunities.
- Order‑book and pipeline: unexecuted order book around ₹9,287 crore as of Q2, with order inflows of ~₹3,775 crore till September 2025 and raised FY26 order‑inflow guidance to over ₹11,000 crore.
- The Board approved the appointment of Rajesh Mittal as Senior Vice President – IT, effective January 20, 2026, to strengthen digital, systems and process capabilities across projects.
Q2 FY26 Earnings Results
- Revenue from Operations: ₹1,749 crore, up 70% YoY from ₹1,030 crore in Q2 FY25, supported by stronger domestic and international project execution; Q3 revenue grew 20% QoQ over this base.
- Total Income: ₹1,859.65 crore vs ₹1,064.45 crore in Q2 FY25, up 75% YoY.
- Gross Profit: ₹156 crore; gross margin 8.9%, broadly stable YoY.
- Operational EBITDA: ₹62 crore vs ₹23 crore in Q2 FY25; operational EBITDA margin 3.5% vs 2.2% YoY, reflecting improved cost efficiencies and better execution discipline.
- Reported EBITDA & PAT:
- One‑time exceptional write‑off of ~₹637 crore due to an adverse US arbitration ruling on a terminated subcontractor contract and related provisions.
- Reported PAT: loss of ₹477.6 crore vs profit ₹9 crore in Q2 FY25 and ₹38.7 crore in Q1 FY26.
- EPS: negative ₹20.27 due to non‑cash exceptional provision.
- Order inflows & book:
- New order inflows FY26 YTD (as of Sep 30, 2025): ~₹3,775 crore, driven by large utility‑scale grid and EPC projects in India, Africa and Southeast Asia.
- Unexecuted order book: ~₹9,287 crore, providing strong revenue visibility.
Management Commentary & Strategic Directions – Q2 FY26
- Global CEO C.K. Thakur stated that Q2 reflected strong operational momentum with 70% YoY revenue growth and stable gross margins, despite geopolitical and arbitration‑related setbacks.
- The large exceptional loss was described as non‑recurring and tied to an adverse arbitration award; management underscored that core operating performance remains intact and improving.
- Strategic priorities coming out of Q2:
- Focus on execution discipline, project selection and contractual protections to lower future legal and arbitration risk.
- Continued emphasis on cash‑flow improvement, working‑capital optimisation and leveraging improved lender support after rating upgrades.
- Expanding the clean‑energy portfolio across key growth markets, including utility‑scale solar, hybrid and storage projects, while targeting operational EBITDA margins in the 4–6% range over the medium term.
To view the company’s previous earnings and latest concall transcripts, click here to visit the Alphastreet India news channel.