Sterling and Wilson Renewable Energy Ltd

Sterling and Wilson Renewable Energy FY2026 Results 📉: Revenue Up 20% to ₹7,548 Cr, But Net Loss Widens to ₹296 Cr

- Consolidated net loss for the year ended March 31, 2026, was ₹295.79 crore, compared to a net profit of ₹85.55 crore in the previous year.

- Revenue from operations for the year was ₹7,548.05 crore, up from ₹6,301.86 crore in the prior year.

- Exceptional items of ₹610.94 crore were recorded, primarily due to an adverse arbitration award against a subsidiary.

- An indemnity agreement with Promoter Selling Shareholders covers claims exceeding ₹300 crore, including liquidated damages and legal matters.

- Uncertainty exists over recoverability of ₹24.86 crore in remediation costs and ₹508.78 crore from wrongfully invoked bank guarantees, though management is confident in recovery.

- Total assets decreased to ₹5,317.42 crore as of March 31, 2026, from ₹5,630.02 crore the previous year.

- Cash and cash equivalents stood at ₹314.11 crore, down from ₹575.46 crore a year earlier.

- EPS for the year was negative ₹13.25, compared to positive ₹3.49 in the prior year.

- Segment-wise, EPC business revenue was ₹7,277.44 crore, and operation and maintenance service revenue was ₹268.37 crore for the year.

- Auditors issued an unmodified opinion, noting compliance with accounting standards and SEBI regulations.

- Sterling and Wilson Renewable Energy Limited's Board approved audited standalone and consolidated financial results for the quarter and year ended March 31, 2026.

- The company reported a net loss of ₹78.16 crore for Q4 March 2026 (unaudited) and a significant net loss of ₹2,510.18 crore for the full year ended March 2026 (audited).

- Revenue from operations for the year was ₹6,163.81 crore, compared to ₹5,387.04 crore in the previous year.

- Exceptional items of ₹2,802.18 crore for the year included write-offs and impairments related to a subsidiary, primarily due to an arbitration loss and uncertainty in projected cash flows.

- The auditors, Kalyaniwalla & Mistry LLP and Deloitte Haskins & Sells LLP, issued unmodified opinions on the audited financial results.

- An indemnity agreement with Promoter Selling Shareholders (Shapoorji Pallonji and Company Private Limited and Khurshed Yazdi Daruvala) covers claims exceeding ₹300 crore for past projects, receivables, and legal matters.

- Total assets decreased to ₹4,769.83 crore as of March 31, 2026, from ₹7,000.78 crore a year earlier, while liabilities stood at ₹4,310.90 crore.

- Earnings per share (EPS) were negative: basic and diluted EPS for the year was (₹107.50), compared to ₹13.64 in the prior year.

- The company operates in EPC (Engineering, Procurement, Construction) and Operation & Maintenance segments, with EPC revenue at ₹5,949.50 crore for the year.

- Legal disputes include a ₹225.81 crore liquidated damages claim and arbitration involving a subsidiary, with counterclaims up to ₹1,352.34 crore.