Sterling And Wilson Renewable Q2 Revenue Drops 13% on EPC Execution Delays
Sterling And Wilson Renewable Energy Limited (NSE:SWSOLAR) reported a 12.67% year-over-year decline in second-quarter revenue from operations to Rs 1,527 crore for FY27. Quarter-on-quarter revenue dropped 3.97% from Rs 1,590.13 crore. Profit after tax fell 68.43% sequentially to Rs 16.82 crore, though the company recovered from a loss of Rs 477.62 crore in the same period last year. Shares of the company dropped 5.42% to 165.5 INR following the update.
The revenue decline was driven by a slowdown in international engineering, procurement, and construction work during a transition in the company's project portfolio. Older contracts are nearing completion while newly secured projects have not yet moved into full execution. Despite the quarterly slowdown, first-half net profit reached Rs 70 crore compared to a Rs 439 crore loss a year earlier, supported by a 12.6% rise in domestic EPC revenue to Rs 2,768 crore and a 48% increase in operations and maintenance revenue to Rs 183 crore.
Investors will be watching how quickly unexecuted projects transition into active revenue generators. The company has eight awarded projects that have not yet started, along with new developments including a 534.3 MWp solar facility in Rajasthan, battery storage projects in South Africa totaling 616 MWh, and a joint venture solar project in Egypt.
Key points
- Q2 FY27 revenue for Sterling And Wilson Renewable Energy Limited fell 12.67% year-over-year to Rs 1,527 crore.
- Net profit for Q2 FY27 declined 68.43% sequentially to Rs 16.82 crore, but improved from a Rs 477.62 crore loss a year ago.
- Revenue was impacted by execution delays in international EPC projects as older contracts wound down.
- First-half operations and maintenance revenue grew 48% year-over-year to Rs 183 crore.
- The company has eight awarded projects waiting to begin execution, alongside new project additions in India, South Africa, and Egypt.
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How we writeDisclaimerQuestions and answers
Why did Sterling And Wilson Renewable Energy's Q2 revenue fall?
Revenue dropped due to slower execution of international EPC projects as older contracts finished while newly awarded projects had not yet entered the execution phase.
Was Sterling And Wilson Renewable Energy profitable in Q2 FY27?
Yes, the company posted a net profit of Rs 16.82 crore for Q2 FY27. Although this was down 68.43% from the previous quarter, it represented a recovery from a loss of Rs 477.62 crore in Q2 FY26.
What new renewable energy projects has the company secured?
Recent additions include a 534.3 MWp solar project in Rajasthan, two battery storage projects in South Africa totaling 616 MWh, and the West Minya Solar Power Project in Egypt through a joint venture.