Sterling and Wilson Posts Higher Profitability Despite Lower Revenue
The renewable EPC firm's net profit margin improved year-on-year, even as quarterly revenue and profit declined sequentially.
Sterling and Wilson Renewable Energy reported a 37.7% YoY profit rise in Q1 FY27, with margins expanding, though revenue fell both annually and sequentially.
Sterling and Wilson Renewable Energy delivered a mixed first quarter for FY27, with profitability improving on an annual basis even as revenue softened. The company's net profit grew 37.7% year-on-year to ₹53.27 crore, while revenue declined 9.7% to ₹1,590.13 crore. This divergence highlights a significant improvement in operational efficiency, with the net profit margin expanding by 120 basis points to 3.4% compared to Q1 FY26.
However, the quarter-on-quarter picture shows a sequential slowdown. Revenue fell 18.3% from the previous quarter, and profit dropped 62.4%. This follows a strong Q4 FY26, where profit was ₹141.59 crore on a 7.3% margin. The recent quarterly trajectory illustrates the project-based volatility typical in the EPC sector.
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin
| Metric | CurrentQ1 FY27 | PreviousQ4 FY26 | Same quarter LYQ1 FY26 |
|---|---|---|---|
| Period | Quarter ended June 2026 | Quarter ended March 2026 | Quarter ended June 2025 |
| Revenue (₹ Cr) | 1,590.13YoY -9.7% | 1,945.61 | 1,761.63 |
| Profit (₹ Cr) | 53.27YoY +38% | 141.59 | 38.69 |
| Net Profit Margin | 3.4%YoY +55% | 7.3% | 2.2% |
Key Points
- The trailing twelve-month (TTM) figures remain in negative territory, with a net loss of ₹281.21 crore and a -3.8% margin, reflecting the substantial loss incurred in Q2 FY26.
- The stock has declined 23.3% over the past year, closing at ₹209.4 on the results date.
- The company's balance sheet shows a debt-to-equity ratio of 1.8 and a negative return on equity of -35.85%.
While quarterly profitability has recovered from the deep losses of a year ago, the challenge remains to stabilize revenue and translate project wins into consistent earnings growth.
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· SWSOLAR
(BSE)
ISIN: INE00M201021
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