Sterling and Wilson Renewable Energy Q3 FY26 Results & New IT Head Appointment

Mumbai, January 15, 2026: Sterling and Wilson Renewable Energy Limited (BSE: 542760, NSE: SWSOLAR) announced the outcomes of its Board meeting held today, approving the unaudited financial results for the quarter and nine months ended December 31, 2025, and a key senior management appointment.

Financial Performance Snapshot (Standalone)

The company reported a profit before tax of ₹69.74 crore for the quarter ended December 2025 (Q3 FY26), a significant recovery from a massive loss in the previous quarter. This was driven by revenue from operations of ₹1,805.51 crore.

However, the results for the nine-month period (9M FY26) and the previous quarter (Q2 FY25) were severely impacted by exceptional items.

For the nine months ended Dec 2025, the company posted a net loss of ₹2,432.02 crore, primarily due to an exceptional item of ₹2,638.42 crore booked in Q2 FY25.
This exceptional item comprised a write-off and impairment of ₹2,638.42 crore related to the company's investment in, and loans to, a wholly-owned subsidiary. The auditors noted this was due to an "unfavourable outcome arising from the arbitration and uncertainty surrounding the projected cashflow" of a key contract.

Consolidated Results Show Strain

The consolidated picture, which includes subsidiaries, remains challenging.

For Q3 FY26, profit before tax was a slim ₹4.39 crore.
For 9M FY26, the group reported a net loss of ₹437.38 crore, also burdened by an exceptional item of ₹610.94 crore related to an arbitration loss and associated costs in a subsidiary.

Key Appointment

The Board approved the appointment of Mr. Rajesh Mittal as the Senior Vice President – Information Technology (IT) and Senior Management Personnel, effective January 20, 2026. Mr. Mittal, an IIM Kozhikode alumnus with 25 years of experience, brings expertise in IT strategy, cybersecurity, and SAP implementations.

Auditors' Emphasis on Indemnity Agreement

The review reports from joint statutory auditors, Kalyaniwalla & Mistry LLP and Deloitte Haskins & Sells LLP, drew attention to the critical Indemnity Agreement with the Promoter Selling Shareholders (Shapoorji Pallonji and Company Private Limited and Khurshed Yazdi Daruvala).

The agreement indemnifies the company for net claims exceeding ₹300 crore related to specified legacy issues, including liquidated damages, old receivables, and tax litigations. The company has recently raised a claim of ₹174.54 crore under this agreement for crystallized items up to September 2025, with ₹143.12 crore expected by January 2026. The auditors noted that this agreement caps the future financial impact of these legacy issues on the company.

Other Legal and Operational Highlights

The financial statement notes detail several ongoing legal proceedings:

A major claim of ₹92.45 crore from a customer/developer and ₹64.10 crore from a bank under a Letters of Credit, both of which management is confident of recovering.
Significant sums in wrongful bank guarantee encashments by customers in international projects (notably USD 54.23 million and AUD 16.59 million), which the group is contesting legally.

Segment-Wise Performance

The Engineering, Procurement, and Construction (EPC) segment continues to be the primary revenue driver, contributing ₹1,756.52 crore (Standalone) and ₹2,028.17 crore (Consolidated) in Q3 FY26.

The Board meeting commenced at 10:01 AM and concluded at 12:15 PM on January 15, 2026.