Sterling and Wilson Renewable Energy Q1 Net Profit ₹67.8 Crore

Summary of Key Information:

Reporting Period: Quarter Ended June 30, 2026

Nature of Filing / Announcement: Outcome of Board Meeting and Unaudited Financial Results

Audit Opinion:

Unmodified conclusion (clean opinion) with emphasis of matters

Key Financial Highlights [₹ in crore]:

Standalone Results:

| Revenue from Operations | 1,487.11 | 1,719.12 | 1,363.11 |

| Total Income | 1,501.84 | 1,756.34 | 1,425.77 |

| Net Profit | 67.80 | (78.16) | 78.43 |

| EPS (Basic) | 2.90 | (3.35) | 3.36 |

Consolidated Results:

| Revenue from Operations | 1,590.13 | 1,945.61 | 1,761.63 | 7,548.05 |

| Total Income | 1,610.31 | 1,998.54 | 1,782.74 | 7,751.72 |

| Net Profit | 53.27 | 141.59 | 38.69 | (295.79) |

| Net Profit Attributable to Owners | 54.22 | 134.57 | 31.97 | (309.43) |

| EPS (Basic) | 2.32 | 5.76 | 1.37 | (13.25) |

Segment-wise Performance [₹ in crore]:

Standalone Segment Performance:

| EPC Business | 1,417.90 | 139.89 | 1,654.88 | 144.38 |

| Operation & Maintenance | 67.83 | 14.51 | 63.31 | 9.03 |

| Total | 1,485.73 | 154.40 | 1,718.19 | 153.41 |

Consolidated Segment Performance:

| EPC Business | 1,503.91 | 137.69 | 1,863.42 | 208.97 |

| Operation & Maintenance | 84.80 | 18.15 | 81.26 | 14.32 |

| Total | 1,588.71 | 155.84 | 1,944.68 | 223.29 |

Corporate Actions:

No dividend declared
Received applications for issue of 9,671 equity shares of ₹1 each fully paid-up on exercise of stock options by employees under Employee Stock Option Plan (allotted subsequent to period end)

Indemnity Agreement:

The company has an Indemnity Agreement dated December 29, 2021, with Shapoorji Pallonji and Company Private Limited, Khurshed Yazdi Daruvala (jointly the "Promoter Selling Shareholders") and Reliance New Energy Limited. The promoters would indemnify and reimburse the company for net amounts exceeding ₹300 crore on settlement of:

Liquidated damages pertaining to identified past and existing projects
Old receivables
Direct and indirect tax litigations
Certain legal and regulatory matters

Subsequent to September 30, 2025, the company raised a claim amounting to ₹174.54 crore to be recovered from Promoter Selling Shareholders for crystallized items from October 1, 2024, to September 30, 2025, which has been received.

Legal Disputes:

1. 100 MW AC Photovoltaic Plant Dispute: Customer/Developer owes ₹92.45 crore. Multiple legal proceedings initiated including:

Claim before Claim Management Advisors (admitted)
Appeal admitted by Supreme Court of India (September 11, 2023)
Chargesheet filed before Magistrate Court, Mumbai
Summary Suit before Bangalore City Civil Court

Additionally, ₹64.10 crore under irrevocable Letters of Credit arranged by Customer were discounted but Customer's bank refused payment citing NCLT proceedings. Legal proceedings initiated with NCLAT and Bombay High Court. Customer's Bank deposited ₹61.40 crore with Court.

2. International EPC Project Dispute: Customer wrongfully recovered liquidated damages of ₹227.61 crore (USD 24.06 million). Company submitted arbitration claims of ₹772.51 crore (USD 81.66 million). Customer submitted revised counter claim of ₹1,363.10 crore (USD 144.09 million) during quarter ended September 2025.

3. Subsidiary Disputes:

Remediation costs of ₹25.04 crore (USD 2.65 million) due to defective parts
Wrongfully invoked bank guarantees aggregating ₹512.84 crore (USD 54.23 million) by customers
Wrongful termination and bank guarantee invocation of ₹108.15 crore (AUD 16.59 million)

Other Significant Information:

Subsidiary Exposure:

Company's investment in wholly owned subsidiary, loans with accrued interest, and other receivables aggregated ₹706.61 crore as at June 30, 2026. The company carries impairment provision of ₹2,403.47 crore created in previous year (which along with amount written off aggregated to ₹2,802.18 crore and was classified under Exceptional Item for year ended March 31, 2026).

Branch Operations:

The company has branches located at Australia, Argentina, Chile, Dubai, Egypt (2 branches), Greece, Jordan (2 branches), Kenya, Mexico, Namibia, United Kingdom, Vietnam (3 branches), Tanzania, Mali, Zambia, Saudi Arabia and Italy. Greece and Mexico branches have no transactions till date.

19 branches included in financial results reflect total revenue of ₹18.23 crore, total net loss after tax of ₹2.37 crore, and total comprehensive loss of ₹2.37 crore for quarter ended June 30, 2026.

Subsidiaries Included:

The consolidated results include the following subsidiaries:

Sterling and Wilson International Solar FZCO
Sterling and Wilson Singapore Pte. Ltd.
ConstructPro LLP (formerly Sterling and Wilson International LLP)
Sterling and Wilson Solar Solutions Inc
Sterling and Wilson Solar Solutions LLC
Sterling and Wilson Renewable Energy Nigeria Limited
Sterling and Wilson Solar Australia Pty. Ltd.
GCO Solar Pty Ltd.
Sterling and Wilson Middle East Solar Energy LLC
Sterling and Wilson Engineering (Pty) Ltd
Sterling and Wilson Renewable Energy Spain S.L.
Sterling and Wilson Solar Spain S.L.
Sterling and Wilson Renewable Energy, Unipessoal LDA
Sterling and Wilson Renewable Energy S.R.L
Esterlina Solar Engineers Private Limited
Sterling and Wilson (Thailand) Limited
Sterling and Wilson Saudi Arabia Limited
Sterling Wilson - SPCPL - Chint Moroccan Venture
Sterling and Wilson Solar LLC

19 subsidiaries included in consolidated results reflect total revenues of ₹109.92 crore, total net loss after tax of ₹48.51 crore, and total comprehensive loss of ₹64.22 crore for quarter ended June 30, 2026.