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Sterling and Wilson Reports 70% Surge in Q2 Revenue Despite Arbitration-Linked Loss

Sterling and Wilson Renewable Energy Reports Rs 4.78 Billion Loss After U.S. Arbitration Verdict

Sterling and Wilson Renewable Energy Limited (SWREL) recorded a 69.8% year-on-year (YoY) increase in revenue, reaching Rs 17.49 billion (~$198.9 million) in the second quarter (Q2) of FY 2026, compared to Rs 10.3 billion (~$117.15 million) during the same quarter last year. This strong growth was attributed to faster execution of engineering, procurement, and construction (EPC) projects across domestic and global markets.

Despite the revenue surge, the company posted a net loss of Rs 4.78 billion (~$54.36 million) for the quarter, reversing the Rs 85.7 million (~$975,000) profit after tax reported in Q2 FY 2025. The setback primarily resulted from a one-time write-off of approximately Rs 5.8 billion (~$65.96 million) following an unfavorable arbitration ruling in the United States, along with additional financial provisions.

SWREL reported an EBITDA loss of Rs 4.7 billion (~$53.45 million), compared to a positive Rs 510 million (~$5.8 million) in the same period a year earlier. Earnings per share (EPS) declined to a loss of Rs 20.27 (~$0.23), down from Rs 0.3 (~$0.003) in Q2 FY 2025.

Half-Year Performance Overview

During the first half (1H) of FY 2026, the company’s revenue rose by 80.4% YoY to Rs 35.1 billion (~$399.2 million), compared to Rs 19.46 billion (~$221.3 million) in the corresponding period of FY 2025. However, the firm posted a net loss of Rs 4.39 billion (~$49.93 million), contrasting with a profit after tax of Rs 134 million (~$1.5 million) in the previous fiscal year’s first half.

For the same period, SWREL’s EPS was a loss of Rs 18.9 (~$0.21), compared to Rs 0.48 (~$0.005) in 1H FY 2025.

Operational Highlights

By FY 2026, SWREL managed an extensive EPC portfolio of 24.4 GW and an operation & maintenance (O&M) portfolio of 9.1 GW. The company is executing EPC and O&M projects totaling 1,177 MW in Abu Dhabi.

Its commissioned capacity has reached 11.6 GW, with another 12.8 GW currently under construction.
During the ongoing fiscal year, SWREL secured new project orders worth Rs 37.75 billion (~$429.3 million).
The company’s pending unexecuted order book stands at Rs 92.87 billion (~$1.05 billion).