One of the small-cap stocks engaged in end-to-end solar engineering, procurement, and construction (EPC) solutions and also operation and maintenance (O&M) of solar power projects. The stock jumped by 6.19 percent after receiving an order worth Rs. 1200 crore for a 500 MW (AC) solar PV project
Stock Price Movement:
In Monday’s trading session, Sterling and Wilson Renewable Energy Limited’s share jumped to an intraday high of 6.19 percent from the previous close of Rs. 443.55. The stock opened at Rs. 471 and is currently trading at Rs. 462.20, with a high of Rs. 471 and a low of Rs. 452.10. The market capitalization now stands at approximately Rs. 10,794.44 crore.
What Happened:
Sterling and Wilson Renewable Energy Limited (SWREL) has secured a prestigious domestic order worth approximately Rs. 1,200 crore in Gujarat.
The order includes design, engineering, procurement, and construction of the Balance of System (BoS) for a 500 MW (AC) solar PV project on an EPC basis, along with a comprehensive three-year operations and maintenance (O&M) contract.
Key Orders:
Sterling and Wilson Renewable Energy Limited has secured key orders, including a 2×250 MW AC Battery Energy Storage System in Rajasthan, India’s largest BESS project, and a 20 MW floating solar project at Vijaynagar.
The company’s additional orders include a 633 MW DC Balance of System project from Brookfield, PV projects from ENGIE and AMPYR, and a 250 MW AC turnkey project from NTPC in Rajasthan.
Revenue and Margin Guidance:
Sterling and Wilson Renewable Energy Limited anticipates a strong execution ramp-up in H2 FY25, targeting Rs. 8,000 crores in revenue. Strengthened teams and a Rs. 500 crore loan from IREDA, alongside a credit rating upgrade, will support these targets.
The company’s domestic gross margins are expected to be around 10-11%, with O&M margins at 25%. The EBITDA margins are projected to improve as operational leverage increases with growing revenue.
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Future Plans
Sterling and Wilson Renewable Energy Limited is transitioning to turnkey projects, focusing on PSUs and securing stronger contracts with Tier 1 suppliers to manage price risks.
The company is implementing employee retention initiatives, including ESOPs and dedicated execution teams. It expects a conservative CAGR of 15% to 20% for FY26, driven by order book growth and enhanced execution capabilities.
Recent quarter results and ratios:
Sterling and Wilson Renewable Energy Limited’s revenue has increased from Rs. 759.52 crore in Q2 FY24 to Rs. 1,030.49 crore in Q2 FY25, which has grown by 35.68 percent. The net profit of Sterling and Wilson Renewable Energy Limited has converted its net loss into net profit, from Rs. -54.51 crore in Q2 FY24 to Rs. 8.57 crore in Q2 FY25.
In terms of return ratios, the company’s ROCE and ROE should be 7.84 percent and -5.28 percent, respectively. The debt-to-equity ratio of the company is to be 0.94x, which shows the company is almost debt-free.
Company Overview:
Sterling and Wilson Renewable Energy is a global leader in providing end-to-end EPC solutions for renewable energy, specializing in utility-scale solar projects. Backed by Reliance Industries, it also offers operation and maintenance (O&M) services for solar power projects.
With over 20.7 GWp of commissioned and under-construction projects, the company operates in 28 countries, including India, Southeast Asia, the Middle East, Africa, Europe, Australia, and the Americas.
Written By – Nikhil Naik
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