SWREL Raises Order Book Guidance to ₹11,000 Crore

In its Q3 FY2026 investors call, Sterling and Wilson Renewable Energy Limited (SWREL) announced a significant upward revision in its order inflow guidance and reported its highest-ever third-quarter revenue since listing.

The management expressed confidence in the company’s growth trajectory, driven by a domestic boom in renewable energy. Importantly, the mnegement remained optimistic about the state of its disputed projects under arbitration abroad, besides a resolution of the issue of erstwhile promoters the Shapoorji Pallonji Group and Khurshed Daruvala and their final dues to the firm. The firm confirmed a cash outgo of Rs 750 crores towards legal cases that is coivered indemnity provided by the erstwhile promoters.  

Facing a barrage of questions, and plaints on the unpredictability of the firm's earnings thanks to exceptional items each quarter, the management expressed the hope that the last of its legal cases were heading for an end, allowing the firm to actually deliver on its 20% growth target with gross margins of between 8-10%. 

Order Inflows and Strategic Partnerships

C K Thakur reported that the company has achieved ₹6,929 crore in new orders year-to-date. Consequently, the company has revised its order inflow guidance for FY26 to over ₹11,000 crore—a projection representing more than 60% year-on-year growth. With a 75:25 breakup between domestic and overseas projects.

“While we had conservatively projected 15% growth in order inflows at the start of this fiscal year, we have already achieved significant milestones,” said Thakur.

Key business wins in Q3 totaled ₹3,086 crore, headlined by:

• Adani Green Energy Deal: A gigawatt-scale order valued at ₹1,381 crore for the balance of system package at the Khavda Renewable Energy Park in Gujarat. With L&T the only other significant EPC being used, SWREL management expressed the hope that with massive plans ahead, order inflows from this end would continue strongly. 

• International Success: A $147 million (approx.) turnkey order for a 240 MW project in South Africa, marking the company’s second win in the region this fiscal.

• BESS Expansion: A 790 MWh Battery Energy Storage System (BESS) project from Serentica, solidifying the company’s credentials in the storage sector following last year's JSW win.

The management clarified that the revised ₹11,000 crore guidance does not include potential orders from Reliance Industries, with whom they remain in active dialogue regarding a multi-gigawatt renewable rollout. Inflows, if any from Reliance could start by the end of Fy 27, many analysts believe. Reliance has announced a 130 GW plus plan for the 550,000 acres of land it has in Khavda.

Financial Performance: Record Revenue and EBITDA Growth

The company's Q3 FY26 revenue touched ₹2,092 crore, the highest third-quarter top-line performance since the company's listing. On a nine-month basis, revenue surged 48% year-on-year to ₹5,602 crore, driven by accelerated execution in the domestic EPC business.

Key financial metrics included:

• Operational EBITDA: Jumped to ₹105 crore in Q3, up from ₹62 crore in the preceding quarter. For the nine-month period, operational EBITDA rose 115% to ₹289 crore.

• Gross Margins: Stood at 9.5% for Q3, showing sequential improvement from 8.9% in Q2.

• Order Book: The unexecuted order value (UOB) stands at ₹10,413 crore, with 75% comprising domestic projects and the remainder largely from South Africa and Europe.

Strategy and Market Outlook

The company’s Operations and Maintenance (O&M) portfolio has crossed the 10 GW mark. Looking ahead, the company outlined a bullish landscape for FY27, expecting market bids to surpass 30 GW.

"We are increasingly engaging in projects that are part of multi-year capacity rollouts," Thakur stated. "We view this partnership [with Adani] as a strong endorsement of our execution capabilities... where scale, reliability, and repeatability will be critical differentiators."

The CEO has also highlighted the immense potential in the Battery Energy Storage System (BESS) market. With India’s installed BESS capacity currently at a nascent 0.5 GWh against a projected need of 34.7 GW by FY27, Sterling and Wilson aims to play an active role in this capital reallocation across the power value chain.

Balance Sheet and Liquidity

The company reported a stable balance sheet with net debt decreasing marginally to ₹738 crore. The company continues to operate with a favorable negative working capital cycle, which improved to negative ₹407 crore in Q3.

Regarding liquidity, the company has raised approximately ₹2,500 crore in fresh fund-based and non-fund-based limits this fiscal. On the topic of indemnity proceeds, the management confirmed receipt of the full amount from Khurshed Daruvala and expects the payment from the Shapoorji Group by January 31st.

What Investors Should Track Going Forward

The Q3 FY26 investor interaction provided multiple forward indicators that will shape SWREL’s earnings trajectory over the next 12–24 months.

Margin stabilisation from Q4 FY26 will be the first key monitorable. Management expects EBITDA margins to normalise above 5 percent from the March quarter onwards as exceptional legal costs subside and overhead rationalisation takes effect. Investors should track whether this guidance translates into visible bottom-line consistency after several quarters of volatility.

Execution ramp-up under the Adani framework agreement is likely to become the primary driver of revenue visibility. With a minimum execution expectation of 1 GW annually, translating to roughly ₹1,381 crore per year, the pace and repeatability of orders from Khavda will indicate the sustainability of the new long-term pipeline model.

Progress on Reliance New Energy orders will be another critical catalyst. Management expects initial traction by the end of the current quarter, with formal execution likely to begin in early FY27. Clarity on project scope, margins, and annual execution capacity will materially influence medium-term growth estimates.

BESS vertical development remains an emerging opportunity. The recently secured 790 MWh project, valued at ₹170 crore with margins expected above 10 percent, provides early validation. Further order wins and repeatability in this segment could meaningfully diversify SWREL’s EPC portfolio beyond conventional solar.

Order inflow momentum in Q4 FY26 will also be closely watched. With ₹10,000 crore already in hand and an additional ₹4,000 crore in advanced negotiations, the company’s ability to close large PSU and private IPP orders will determine revenue visibility for FY27 and FY28.

Interest cost trajectory from FY27 onwards is another swing factor. With peak interest expected in Q4 FY26 and repayments beginning next year, sequential decline in finance costs should directly support EBITDA and PAT recovery.

O&M margin recovery will be monitored for confirmation that the recent dip was indeed event-driven. Management has reiterated long-term guidance of 20–25 percent margins, positioning the O&M segment as a stable, high-margin annuity business.

Module price volatility and ALMM transition remain sector-level variables. While SWREL has now contractually shifted module price risk to clients until NTP, developments in domestic cell and wafer capacity, and pricing stability under ALMM, will influence execution risk and bidding behaviour.

Finally, legal overhang and contingent liabilities appear largely behind the company. With the Conti case closed, major exposures indemnified, and no foreseeable crystallised losses, balance sheet risk perception has materially reduced. Sustained absence of exceptional items will be crucial for rebuilding long-term investor confidence.

Taken together, the next two quarters are likely to determine whether SWREL transitions from a high-growth but volatile EPC player to a more predictable, framework-led execution platform with stable margins and recurring profitability.