Sterling & Wilson Renewable Energy (SWSOLAR) is that engineering contractor who once went bankrupt building solar parks for others, then got adopted by Reliance and suddenly started eating protein shakes. In FY25, sales doubled, profits returned from the grave, and order book ballooned to ₹9,096 Cr. Stock price? Still lying 60% lower YoY. Promoters? Pledging 27% of holdings like it’s pawnshop clearance sale.
2. Introduction
This company is basically the Bollywood redemption arc of the EPC world. Once part of Shapoorji Pallonji’s stressed family, Sterling & Wilson was rescued in 2022 when Reliance New Energy (Mukesh bhai’s green bet) bought 40%. As of March 2025, Reliance still holds 32.5% while SP Group clings to 6.9% like that one relative who refuses to leave your house.
Their core business? End-to-end EPC for solar power projects—design, build, handover, then collect O&M fees for babysitting panels. Asset-light model, global reach, but the risk appetite of a compulsive gambler. In FY22–23, international projects burned them (negative margins), but now domestic solar EPC has rescued the narrative with 10% gross margins.
In FY25, 80% of business came from India, reversing the old model of chasing risky African and Middle Eastern deals. That pivot plus Reliance’s backing is why analysts still dare to look at this balance sheet without crying.
3. Business Model – WTF Do They Even Do?
Think of Sterling & Wilson as the “solar contractor-for-hire.” They don’t own power plants, they build them for clients like NTPC, Brookfield, Aditya Birla, JSW, and Sembcorp. Once construction is done, they earn a small annuity stream from O&M (~4% of revenue).
Revenue split (FY25):
EPC: 96% (was 91% in FY23).
O&M: 4%.
Portfolio scale-up:
EPC executed: 22.6 GWp (up from 14.7 GWp in FY23).
O&M: 8.7 GWp.
New kids on the block:
Battery Energy Storage Solutions (BESS): Got projects from JSW.
Wind EPC: First contract in FY25—a solar-wind hybrid.
International pivot: From -50% gross margin in FY23 to +8% in FY25. A rare comeback story—like an IPL player dropped for fitness, then returning to smash 80 off 40.
4. Financials Overview
Metric
Latest Qtr (Q1 FY26)
YoY Qtr (Q1 FY25)
Prev Qtr (Q4 FY25)
YoY %
QoQ %
Revenue (₹ Cr)
1,762
915
2,519
92.5%
-30.1%
EBITDA (₹ Cr)
85
25
134
240%
-36.6%
PAT (₹ Cr)
32
5
55
540%
-41.8%
EPS (₹)
1.37
0.18
2.37
661%
-42%
Commentary: Q1 FY26 growth looks like a T20 scoreboard, but margins are still slim. Annualised EPS ~₹5.5 → CMP ₹260 implies P/E ~47. For an EPC business, that’s luxury pricing.
5. Valuation – Fair Value Range Only
P/E Method: Annualised EPS ~₹5.5. Assign 20–25x multiple (in line with industrial EPC peers) → ₹110–₹140.
