Sterling And Wilson Renewable Energy Posts ₹477 Crore Q2 Loss After Arbitration Write-Off, But Order Inflow Hits ₹3,775 Crore

New Delhi: Sterling and Wilson Renewable Energy on Friday reported a consolidated net loss of Rs 477.62 crore in the September quarter, due to an exception item of Rs 580.10 crore during the period under review.

The company posted a consolidated net profit of Rs 8.57 crore in the quarter ended on September 30, 2024, a BSE filing showed.

Last year, a wholly owned subsidiary (WOS) company of the group terminated a contract with a major subcontractor in a particular geography for delays and default of its obligations under the contract, the statement said.

During the quarter, an arbitral tribunal passed an interim award in this matter whereby the claims made by WOS, totalling Rs 485.64 crore (USD 55.06 million), considered recoverable were dismissed, and the subcontractor has been granted a claim amount of Rs 56.80 crore (USD 6.44 million) plus interest.

Accordingly, it stated that during the quarter, the group had charged off Rs 580.10 crore (including estimated legal cost) in the statement of Unaudited Financial Results for the quarter and six months ended September 30, 2025, and classified the same as an exceptional item.

However, it stated that the total income of the company rose to Rs 1,859.65 crore in the quarter from Rs 1,064.45 crore in the same period a year ago.

The company had reported a consolidated net profit of Rs 38.69 crore in the April-June quarter.

Reported EBITDA and profitability were impacted by a one-time write-off of approximately Rs 637 crore, following an adverse arbitration ruling in the US, along with other provisions. This one-time exceptional write-off has led to a reported PAT loss of Rs 478 crore in Q2 FY26, the company said.

The company sustained strong order booking, securing projects (including L1) worth nearly Rs 3,000 crore since Q1, which took total order inflow this fiscal to Rs 3,775 crore. The current unexecuted order value stands at Rs 9,287 crore, providing execution and revenue visibility.

The overall order pipeline continues to remain healthy, driven by upcoming opportunities in India, Africa and Europe.

"Despite industry headwinds, SWREL delivered steady operational performance during the quarter, underlining our strong execution focus and strategic market positioning. Our consistent order inflow and expanding opportunities in India and the international market reinforce our future potential. While certain non-recurring write-offs have affected the reported results, our underlying business fundamentals remain sound," C K Thakur, Global CEO of Sterling and Wilson Renewable Energy Group, said.

Sterling and Wilson Renewable Energy Limited (SWREL) is a global pure-play, end-to-end renewable engineering, procurement, and construction (EPC) solutions provider.

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