This article first appeared on GuruFocus .
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Unexecuted Order Value (UOV):Exceeded INR13,000 crore, a record high post-COVID.
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Revenue:INR1,590 crore for Q1 FY27, lower both sequentially and year-on-year.
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O&M Segment Growth:Top-line grew around 40% year-on-year.
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Gross Margin:9.9% for Q1 FY27, compared to 10.5% in FY26.
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Operational EBITDA:INR78 crore with a margin of 4.9%.
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Reported EBITDA:INR96 crore, positively impacted by ForEx gains.
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Profit After Tax (PAT):Grew 36% year-on-year to INR53 crore.
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Gross Borrowings:Declined by INR129 crore due to scheduled repayments.
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Net Working Capital:Negative INR260 crore, improved from negative INR329 crore in the previous quarter.
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Fresh Trade Lines:Obtained more than INR3,200 crore to support growth momentum.
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Warning! GuruFocus has detected 3 Warning Signs with BOM:542760.
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Release Date: July 17, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Sterling and Wilson Renewable Energy Ltd ( BOM:542760 ) secured a significant international project in Egypt, marking their third gigawatt-scale order win in nine months, enhancing their global presence.
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The company achieved a record unexecuted order value (UOV) of INR13,000 crore, providing strong visibility for future revenue growth.
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Operations and maintenance (O&M) segment saw a 40% year-on-year growth, with expectations of continued improvement as the full portfolio contributes from Q3 FY27 onwards.
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The company is working closely with the Reliance Group on a large-scale renewable energy project, indicating potential for significant future collaboration.
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Sterling and Wilson Renewable Energy Ltd ( BOM:542760 ) maintains a robust bid pipeline of 27.7 gigawatts, primarily focused on the Indian solar PV market, indicating strong future growth potential.
Negative Points
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Revenue for Q1 FY27 was lower both sequentially and year-on-year due to delays in project execution and completion of previous international projects.
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The domestic solar EPC market remained slow due to geopolitical tensions, volatile commodity prices, and high domestic module prices, affecting new project awards.
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The company reduced its revenue growth guidance for FY27 from over 15% to 10%-15%, indicating potential challenges in achieving previous targets.
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Execution delays in new orders, particularly in the domestic market, could impact revenue recognition in the short term.
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There are significant claims and arbitration cases pending, which could take years to resolve, potentially impacting financial stability.
Q & A Highlights
Q: Despite strong order inflow, why did revenues decline by 10% year-on-year, and why has the growth guidance been adjusted to 10%-15%? A: The revenue decline was due to delays in receiving Letters of Award (LOA) for new projects, which affected revenue streams. Existing projects were in advanced stages, with most supplies accounted for in previous quarters. The guidance adjustment reflects these delays, but we expect a strong pickup in the second half of the fiscal year. - Chandra Thakur, CEO
Q: Can you explain the lifecycle and execution timeline for the mega order from Egypt? A: The Egypt project is a landmark for us, with an expected execution timeline of 13 to 15 months after the Notice to Proceed (NTP), anticipated in September. Revenue contribution from this project is expected in the last quarter of this fiscal year. - Chandra Thakur, CEO
Q: How exposed is your Unexecuted Order Value (UOV) to domestic module price fluctuations and certification backlogs? A: The Coal India orders are under the Domestic Content Requirement (DCR) category, but we have locked in prices, mitigating the impact of market fluctuations. We do not anticipate any significant impact on project IRRs from DCR cost tariffs. - Chandra Thakur, CEO
Q: What measures are in place to manage working capital and financing costs amid rising input costs and potential project delays? A: We have diversified our pool of lenders and secured credit lines locally for international projects. We operate on a negative working capital cycle, leveraging customer advances and payment terms to manage working capital effectively. - Ajit Singh, CFO
Q: How are you planning to scale up the Operations and Maintenance (O&M) portfolio, and what revenue growth do you expect from this segment? A: Our O&M business is integrated with EPC projects, and we have seen significant growth from third-party orders. We expect O&M revenue to exceed INR400 crore this year, with margins stabilizing around 20%. - Chandra Thakur, CEO
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
