Sterling and Wilson Q2 FY27: ₹1,527 cr, PAT ₹17 cr

What the company flagged in its Q2 FY27 call

Sterling and Wilson Renewable Energy Ltd used its Q2 FY27 investor call to set expectations around a slower first half of FY27. Management described H1 FY27 as a “transition period”, driven by the timing of project starts rather than execution issues at project sites. The company said several new projects did not reach the “notice to proceed” (NTP) stage on time, delaying revenue recognition. At the same time, older international projects were largely completed, while new ones were waiting on customer readiness and financing. This shift changed the revenue mix, with domestic EPC and operations and maintenance (O&M) becoming the main contributors in the quarter.

Regulation 30 disclosure and key dates

The company disclosed the audio recording of its Q2 FY27 investors call under Regulation 30 on October 16, 2026. The board approved the unaudited financial results on October 15, 2026. The investor communication, including the call recording, was positioned as part of the company’s regular disclosure process. Management also referenced that the complete transcript would be available separately.

Q2 FY27 revenue: lower year-on-year and sequentially

For Q2 FY27, revenue from operations was ₹1,527 crore. This compared with ₹1,749 crore in Q2 FY26 and ₹1,590 crore in Q1 FY27. Management linked the lower revenue to project timing, particularly the completion of international work and delays in commencing new projects both in India and overseas. In the earnings call, Global CEO C.K. Thakur said the revenue gap reflected the difference between a strong order book and the timing of when projects move into execution and become eligible for revenue recognition.

Segment mix: domestic EPC leads, O&M grows off a smaller base

In Q2 FY27, domestic EPC contributed ₹1,366 crore of revenue, while international EPC contributed ₹62 crore and O&M contributed ₹99 crore. The company highlighted that domestic EPC revenue grew about 13% in the first half. It also said O&M revenue grew about 55% in Q2, indicating faster growth even though the absolute base remained smaller than EPC. With international EPC contribution limited in the quarter, the overall mix leaned towards domestic activity and services.

Profitability improves despite slower revenue

Sterling and Wilson reported gross profit of ₹140 crore in Q2 FY27. Gross margin improved to 9.2% from 8.9% in Q2 FY26. For the first half, gross margin was about 9.5% according to the call commentary. The company also reported operational EBITDA of ₹56 crore, translating to a margin of 3.7%, defined as gross profit minus recurring overheads.

On the bottom line, profit before tax and profit after tax were both ₹17 crore in Q2 FY27. This compared with a loss of ₹478 crore in Q2 FY26, with the prior-year quarter described as having a one-time impact related to the outcome of a United States arbitration.

Why eight projects did not move from LOA to NTP

Management said eight new projects were awaiting the start of execution, comprising four projects in India and four overseas. In response to a question on why H1 results were weak despite a strong order book, the CEO explained that three large domestic projects did not receive final NTP because power purchase agreements (PPAs) were not signed with utilities. These three domestic projects included one from Coal India and two from NTPC, as described in the call discussion.

For the four international projects, management attributed delays to financing arrangements. The CEO said that if the projects had started by mid-Q2, results would have been better. The company added that the Egypt (West Mania) project has now begun.

Guidance retained at up to 10%, but below earlier target band

The company maintained its FY27 revenue growth guidance of up to 10%. Management said it expects Q3 to be better than H1 and Q4 to be the strongest quarter, driven by the eight projects moving into execution. However, it also clarified that the guidance is around 10%, not 0%, and that it is “ex-Reliance”.

Management further explained that four new projects representing about 40% of the order book as of April 1, 2026 had still not started because NTPs had not come through. This was cited as the reason the company could not commit to the earlier 10% to 15% target band.

Order book mix: India larger, but international still meaningful

The company provided a geographic mix split of 56% India and 44% international. The amounts stated were ₹6,943 crore for India and ₹5,538 crore for international. This mix was presented alongside the discussion on timing differences between the order book and quarterly revenue recognition.

Key figures at a glance

Market impact and what investors should track next

The call framed H1 FY27 as a period impacted by administrative and financing milestones rather than on-ground execution setbacks. For investors, the key variable discussed was how quickly projects move from LOA to NTP, since that directly affects revenue recognition and profitability timing. Management’s comments also linked domestic start delays to PPA signings and international delays to financing, both outside pure construction execution.

The company said the Egypt (West Mania) project has now begun, and it expects substantial revenue from the new PSU projects to come in Q4. It also indicated domestic projects may take another one to two months to start moving meaningfully, as per the CEO’s response in the Q&A.

Conclusion

Sterling and Wilson Renewable reported ₹1,527 crore in Q2 FY27 revenue with improved profitability, even as project start delays limited revenue conversion from its order book. Management retained FY27 growth guidance of up to 10% and reiterated expectations of a stronger second half, with Q4 positioned as the strongest quarter as delayed projects move into execution.