Sterling & Wilson Swings To ₹78 Crore Loss In Q4 FY26 On Exceptional Hit, Revenue Declines 15% YoY

Mumbai: Sterling and Wilson Renewable Energy reported a net loss of Rupees 78.2 crore in Q4 FY26, compared to a profit of Rupees 73.1 crore in the preceding quarter and Rupees 92.2 crore in the year-ago period. The reversal was driven by an exceptional loss of Rupees 163.8 crore during the quarter. Revenue from operations declined 4.8percent sequentially to Rupees 1,719.1 crore, reflecting moderation in project execution.

Operational Performance Weakens YoY

The company’s total income stood at Rupees 1,756.3 crore in Q4 FY26, down from Rupees 1,838.2 crore in Q3 and Rupees 2,052.1 crore in Q4 FY25. Revenue contraction was visible across periods, indicating slower EPC execution. Profit before exceptional items improved sequentially to Rupees 85.5 crore from Rupees 69.7 crore, showing some operational recovery. However, it remained lower than Rupees 107.3 crore reported in the year-ago quarter, highlighting persistent margin pressures.

Exceptional Loss Impacts Profitability

The key drag on earnings was an exceptional loss of Rupees 163.8 crore in Q4 FY26, which pushed the company into a pre-tax loss of Rupees 78.3 crore, compared to a profit of Rupees 69.7 crore in Q3. After accounting for taxes, the company reported a net loss of Rupees 78.2 crore. Expenses declined 5.5percent sequentially to Rupees 1,670.9 crore, providing some cushion. Cost of construction materials remained the largest expense component, while direct project costs rose sequentially, reflecting execution mix changes.

Sequential Improvement In Core Operations

Despite the headline loss, core operating performance showed improvement. Pre-exceptional profit rose 22.6 percent QoQ, supported by better segment profitability. EPC segment remained the dominant contributor, as seen in the segment data on page 10 of the results document.

Other income also increased to Rupees 37.2 crore from Rupees 32.7 crore in Q3, aiding operational performance. However, this was insufficient to offset the impact of exceptional charges.

Full-Year Performance Hit By Impairments

For FY26, the company reported a net loss of Rupees 2,510.2 crore, compared to a profit of Rupees 318.3 crore in FY25. The sharp decline was largely due to exceptional items amounting to Rupees 2,802.2 crore during the year, related to impairment and write-offs as detailed in notes on page 11. Revenue for FY26 rose to Rupees 6,163.8 crore from Rupees 5,387.0 crore, indicating growth despite profitability pressures.

Disclaimer: This summary is based on audited financial results and is not investment advice.