Sterling & Wils. Q1 FY27 Earnings Call — Analysis (NSE: SWSOLAR)
Sterling & Wilson posts record unexecuted order value of ₹13,000 Cr but Q1 FY27 revenue falls 10% YoY to ₹1,590 Cr; full-year revenue growth guidance trimmed to 10-15%.
The take
Q1FY27 Revenue ₹1,590 Cr ( -10% YoY ) . New guidance — FY27 fy27 consolidated revenue growth 10-15% .
Results
Revenue ₹1,590 Cr (-10% YoY); Gross margin 9.9% vs 10.5% in FY26; Operational EBITDA ₹78 Cr (margin 4.9%); PAT ₹53 Cr (+36% YoY).
Financial highlights
| Metric | Value | Change | Basis |
|---|---|---|---|
| Revenue | ₹1,590 Cr | -10% | yoy · Q1FY27 |
| PAT | ₹53 Cr | +36% | yoy · Q1FY27 |
| Gross Margin | 9.9% | -60bps | yoy · Q1FY27 · vs FY26 full year |
| Operational EBITDA | ₹78 Cr | none · Q1FY27 | |
| Operational EBITDA margin | 4.9% | none · Q1FY27 | |
| O&M revenue growth | ~40% | yoy · Q1FY27 | |
| Unexecuted Order Value (UOV) | ₹13,000 Cr | +highest ever | point_in_time · Q1FY27 · as of Jun-26 |
| Net Working Capital | negative ₹260 Cr | +from -₹329 Cr | qoq · Q1FY27 |
| Gross borrowings change | ₹-130 Cr | −declined by ~₹130 Cr | qoq · Q1FY27 |
Guidance
FY27 revenue growth guided at 10-15% (revised from earlier ~15%), driven by H2 execution pickup, with O&M revenue expected at ₹400-450 Cr.
What management committed to
- FY27 consolidated revenue will grow 10-15% over FY26. — 10-15%, FY27
- Q2 FY27 revenue will be in a similar range as Q1 FY27 (~₹1,590 Cr). — Q2FY27
- Revenue from the six newly-awarded turnkey projects (total ~₹9,000 Cr UOV) will start contributing meaningfully during H2 FY27. — H2 FY27
Key themes
Record order book overshadowed by near-term execution delays
Operational commentary
- Record unexecuted order value of ₹13,000 Cr with 6 turnkey projects (~₹9,000 Cr) yet to commence execution, expected to ramp in H2 FY27.
- Received $560M letter of award for West Minya (Egypt) 1,000 MW AC solar + 600 MWh BESS, joint venture with Hassan Allam Construction.
- O&M portfolio reached record 18.3 GW; full revenue contribution expected from Q3 FY27.
- Three new international projects (2 South Africa, 1 Egypt) set to begin execution this quarter.
- Secured fresh credit lines > ₹3,200 Cr to support growth; net working capital negative ₹260 Cr.
- Bid pipeline robust at 27.7 GW, 90% India-focused; BESS ordering activity expected to equal PV in value terms.
- Deliberately selective on order intake: back-to-back pricing, no commodity price risk on new international projects, negative working capital discipline.
- Deep engagement with Reliance Group for Kutch gigawatt-scale renewable hub; confident of securing a large share.
- Successfully completed 4 international projects (South Africa, Spain, Italy) within or above targeted margins.
- Floating solar: executing large NTPC-DVC project, pursuing upcoming large tenders.
Analyst Q&A
Q. Why did revenue decline 10% YoY despite strong order momentum, and why was the targeted quarterly run rate not met?
NTP/LOA dates for new orders were delayed, so contributions from those orders couldn't add this quarter; existing projects were at advanced stages with supplies already recognised, causing a seasonal dip.
Q. What is the execution timeline for the Egypt mega order, and when will revenue start?
Project duration 13-15 months after NTP, with NTP expected in September 2026; revenue contribution expected to start from Q4 FY27.
Q. Is there any risk of bank guarantee invocation or contract termination due to the delayed orders?
No, because the contract dates for the delayed new orders haven't commenced; LOA is still awaited, so no risk of invocation.
Q. How much of the outstanding claims (~₹1,800 Cr and ₹3,800 Cr frivolous claims) is covered by indemnity, and when might they be resolved?
Large US claims will take 2-3 years in court; ₹110 Cr of LDs in Australia covered by indemnity; for the ₹3,800 Cr frivolous claims, quantity is difficult, but we don't foresee any likely impact on the company; we will get back on exact quantification.
Q. Will Reliance Group orders flow faster due to the parentage, and what will be the scope?
Execution timeline would be shorter; both listed companies will transact on arm's length basis; cannot reveal contract composition at this stage.
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