This article first appeared on GuruFocus .

Release Date: January 16, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript .

Positive Points

• Sterling and Wilson Renewable Energy Ltd ( BOM:542760 ) achieved significant order inflows, surpassing initial guidance with a 60% year-on-year growth.

• The company secured a gigawatt-scale order from Adani Green, valued at approximately INR1,381 crore, enhancing its project portfolio.

• A multi-year strategic partnership framework agreement with Avani Green Energy Limited was established, indicating strong industry partnerships.

• The operations and maintenance business reached a 10 gigawatt portfolio, contributing to revenue stability and margin resilience.

• The company reported a 48% year-on-year increase in top-line revenue, driven by improved execution in the domestic EPC business.

Negative Points

• Gross margins have not improved significantly, remaining in the range of 8% to 10%, with some quarters showing a decline.

• The company faced an additional charge due to legal expenses related to the Conti case, impacting reported profits.

• Interest costs increased due to additional loans, affecting financial performance in the short term.

• The company experienced operational challenges in Australia, leading to unexpected costs and impacting margins.

• There is ongoing uncertainty regarding the resolution of certain legal cases, which could pose future financial risks.

Q & A Highlights

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Q: Can you explain the reason for lower gross margins despite increased revenue, and what is the outlook for margins going forward? A: The CFO explained that gross margins are expected to be in the range of 8% to 10%. The variation in margins is due to the type of orders executed, with balance of system (BOS) orders generally having better margins than those involving module supply. The company maintains its guidance of 8% to 10% overall margin. The Conti legal matter, which was not covered under indemnity, also impacted margins, but this issue is now resolved.

Q: What is the framework agreement with Adani, and does it secure any specific margins or volumes? A: The CEO explained that the agreement with Adani is a multi-year framework that defines the scope and terms. It is expected to provide consistent EPC orders annually, with margins aligned with market rates, around 10%. The agreement minimizes risks related to module price fluctuations and land issues, ensuring stability in margins.