Q1 Results: SWREL Revenue Jumps 93%, PAT Rises to ₹39 Crore

Sterling and Wilson Renewable Energy Limited (SWREL), a home-grown renewable EPC company, reported strong revenue growth of 93% YoY in Q1 FY26, driven by an increased pace of execution in both domestic and international EPC projects, despite challenges in domestic execution due to cross-border tensions.

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Gross margins improved to 11.7% (gross profit at ₹205 crore) in Q1 FY26 compared to 11.1% (gross profit at ₹102 crore) in Q1 FY25, aided by the softening of key input costs. Gross margins across key segments — Domestic EPC, International EPC, and O&M — witnessed improvement and trended higher in Q1.

SWREL reported Q1 EBITDA at ₹102 crore (5.8% EBITDA margin), up from ₹37 crore in Q1 FY25. This represents a 176% YoY increase, facilitated by higher margins and stable recurring overheads. Q1 FY26 PAT stood at ₹39 crore, reflecting a 680% YoY rise.

Factors Affecting Company Performance

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In its financial results, SWREL also highlighted several factors that impacted overall performance. Notably, the cost of construction materials rose sharply to ₹1,122.42 crore in Q1 FY26 from ₹641.47 crore in Q1 FY25. This escalation eroded margins, indicating pressures from input prices or supply chain constraints.

Additionally, other income dropped from ₹39.60 crore in Q1 FY25 to ₹21.11 crore in Q1 FY26, limiting its contribution to the bottom line, especially amid rising operating costs.

A significant translation loss of ₹39.10 crore on foreign operations also adversely affected “Other Comprehensive Income,” contributing to a net comprehensive loss of ₹1.24 crore in the latest quarter.

Compared to Q4 FY25 (ended March 2025), both revenue and profit declined. Revenue dropped from ₹2,519.11 crore to ₹1,761.63 crore, while profit fell from ₹55.01 crore to ₹38.69 crore. The company attributed this to seasonality or project completion timing issues.

Speaking on the quarter results, CK Thakur, Global CEO, Sterling and Wilson Renewable Energy Group, shared, "SWREL's Q1 FY26 results reflect the strong focus on execution and a disciplined approach in our financial strategy. Our operational efficiency demonstrated in all the markets has driven a steadfast revenue growth of 93% year-on-year. As we deepen our presence in India, our priority will always be to deliver unmatched value through performance, innovation, and a robust clean energy portfolio.”