Sterling & Wilson's 3.67% margin trails Industrials peers
Interest of Rs 49.8 cr absorbed most operating profit, while management pointed to execution delays despite Rs 985 cr of Q2 orders.
Filed 15 Oct 2026, 17:36 IST · after market close · Sterling & Wilson Renewable Energy Ltd (SWSOLAR)
Key takeaways
- Consolidated operating margin was 3.67%, the second-lowest among 9 Industrials peers that had reported.
- Interest of Rs 49.8 cr consumed most of the Rs 56.1 cr operating profit, while other income of Rs 14.22 cr supported pre-tax profit of Rs 16.83 cr.
- Management said domestic and international UOV of Rs 6,943 cr and Rs 5,538 cr provide revenue visibility despite execution delays and slower domestic order wins.
Price around the results
A thin operating cushion after interest
The consolidated business converted revenue into operating profit at a 3.67% margin, leaving limited room after operating costs. Interest of Rs 49.8 cr was close to the Rs 56.1 cr operating profit, making financing costs the main drag between operating profit and pre-tax profit. Other income of Rs 14.22 cr was a substantial part of pre-tax profit, while the Rs 0.01 cr tax charge meant net profit was almost unchanged from pre-tax profit.
Execution delays offset order wins
Management said domestic EPC faced a temporary slowdown in new order bookings and that execution had not started on a couple of large projects awarded in FY26. It also said international EPC revenue was lower in H1 FY27 because newly awarded orders had not yet entered execution. The company received two Q2 orders worth Rs 985 cr, including a 534 MW domestic EPC BOS project in Rajasthan and a 2 x 308 MWh BESS project in South Africa. Management said O&M revenue grew by approximately 50% year over year, while the domestic and international order books provide visibility through UOV of Rs 6,943 cr and Rs 5,538 cr.
Second-lowest margin among 9 Industrials peers
Sterling & Wilson's 3.67% operating margin was 10.7 percentage points below the 14.37% median for the 9 Industrials peers that had reported the quarter, placing it second from the bottom. The results were filed after market close on 15 October 2026, so the filing does not provide a same-day market reaction to assess.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 |
|---|---|
| Revenue | ₹1,528 cr |
| Other income | ₹14 cr |
| Expenses | ₹1,471 cr |
| Operating profit | ₹56 cr |
| Operating margin (%) | 3.67% |
| Interest | ₹50 cr |
| Depreciation | ₹4 cr |
| Profit before tax | ₹17 cr |
| Tax | ₹0 cr |
| Net profit | ₹17 cr |
| EPS (₹) | ₹0.82 |
Operating margin of 3.67% compares with a Industrials sector median of 14.37% across 9 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- The company received two orders in Q2 FY27 totaling INR 985 crore.
- O&M revenue grew by approximately 50% year over year.
Guidance & outlook
- Domestic UOV of INR 6,943 crore provides revenue and growth visibility despite a slowdown in order wins.
- The pipeline for Domestic EPC and BESS continues to remain strong.
- International EPC UOV of INR 5,538 crore provides revenue visibility.
- Execution in some recently awarded international projects is likely to commence in H2 FY27.
New orders
- The company received a domestic EPC BOS order for a 534 MW project in Rajasthan.
- The company received an EPC order for a 2 x 308 MWh BESS project in South Africa.
Problems & risks
- Domestic EPC experienced a temporary slowdown in new order bookings.
- Execution has yet to start in a couple of large projects awarded in FY26.
- International EPC revenue was lower in H1 FY27 because newly awarded orders had not started execution.
What to watch
- Whether operating margin moves up from 3.67% as execution improves.
- Whether the Rs 5,538 cr international UOV begins converting into reported revenue through project execution.
- Whether the Rs 6,943 cr domestic UOV offsets the reported slowdown in new order bookings.