Sterling And Wilson Renewable Energy Limited (SWSOLAR) AI Stock Analysis

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Sterling And Wilson Renewable Energy Limited

(NSE:SWSOLAR)

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Rating:46Neutral

Price Target:INR 146.00▼(-5.84% Downside)

Action:reiterated

Date:10/16/26

Weak financial performance driven by persistent losses and negative cash flows is the dominant factor limiting the score. Earnings call positives around order book strength and returning profitability offer partial support, while neutral technicals and unattractive valuation due to negative earnings add further constraint.

Positive Factors

O&M expansionRapid O&M growth adds a more recurring service component to the project-led business and broadens revenue beyond new EPC awards. The expanding portfolio, including third-party assets, can support better visibility and the targeted 20% gross margin over the next several quarters.

Negative Factors

Weak cash generationNegative operating and free cash flow reduces internally generated funding for project execution and growth, particularly in a business requiring working capital during construction. If the pattern persists, reliance on credit lines or other financing could increase and constrain financial flexibility.

Sterling And Wilson Renewable Energy Limited (SWSOLAR) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 38.77B
Dividend Yield: ―
Average Volume (3M): 93.21K
Price to Earnings (P/E): 17.7
Beta (1Y): 1.86
Revenue Growth: -9.04%
EPS Growth: ―
Country: India
Employees: 1,208
Sector: General
Sector Strength: 55
Industry: Solar

Sterling And Wilson Renewable Energy Limited Business Overview & Revenue Model

Company Description

Sterling and Wilson Renewable Energy Limited specializes in providing comprehensive Engineering, Procurement, and Construction (EPC) services for solar energy initiatives. Its core EPC offerings encompass project design and technical planning, procur...

Sterling And Wilson Renewable Energy Limited Earnings Call Summary

Earnings Call Date:Oct 15, 2026(Q2-2027)|% Change Since:-9.70%|Next Earnings Date:Jan 21, 2027

Earnings Call SentimentNeutral

The call had a mixed but cautiously improving tone. The company reported a strong order book, a return to profitability, growth in domestic EPC and O&M, substantial international and storage opportunities, and expected second-half execution. However, these positives were offset by an 11% first-half revenue decline, sharply lower international revenue, delayed project starts, domestic pricing pressure, supply-chain and transmission constraints, higher finance costs, and a reduction from the previously indicated 10%-15% growth range to up to 10%.

Positive Updates

Strong Long-Term Indian Renewable Energy Growth

India's renewable and large hydro capacity reached about 308 GW as of September 2026, representing roughly 53% of total generating capacity. Installed solar capacity grew from under 3 GW in 2014 to about 171 GW, and India added about 34 GW DC of solar capacity in the first half of calendar 2026, 38% more than a year earlier. Full-year additions are expected to be around 50 GW DC, ahead of the 49 GW added in 2025.

Negative Updates

First-Half Revenue Decline

Q2 revenue was INR 1,527 crores versus INR 1,749 crores in Q2 FY 2026 and INR 1,590 crores in Q1 FY 2027. First-half revenue declined to INR 3,118 crores from INR 3,510 crores, about 11% lower year over year.

Company Guidance

For FY 2027, management maintains guidance of up to 10% revenue growth, ex Reliance, with Q3 expected to be better than Q2 and Q4 to be heavily loaded and “our stronger quarters”; it expects EPC gross margin of 8%-10%, O&M gross margins of around 20%, operational EBITDA margins of 4%-4.5% as the minimum requirement, O&M revenue of more than INR 400 crore in the current year, and the order book to remain above INR 10,000 crores at the end of financial year 2027. Management also expects international revenue to rise significantly in H2, the four stalled projects in India and few IPP projects to contribute towards quarter four, the O&M portfolio to reach around 20 GW-25 GW by the year end, and O&M revenue mix to increase from around 5% of overall revenue to up to 10%, with annual growth of minimum 10% to 15%.

Sterling And Wilson Renewable Energy Limited Financial Statement Overview

Summary

Persistent net losses, negative operating and free cash flows, and elevated leverage continue to weigh on performance despite revenue recovery and asset expansion.

Income Statement

35Negative

Balance Sheet

40Negative

Cash Flow

30Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	71.55B	75.48B	63.02B	30.35B	20.15B	51.97B
Gross Profit	5.45B	5.18B	8.06B	3.27B	-7.59B	-4.18B
EBITDA	4.09B	-1.04B	2.47B	780.90M	-10.13B	-8.77B
Net Income	2.05B	-3.09B	814.50M	-2.12B	-11.70B	-9.09B
Balance Sheet
Total Assets	52.32B	53.17B	56.30B	43.01B	31.90B	35.00B
Cash, Cash Equivalents and Short-Term Investments	2.91B	5.34B	7.11B	3.03B	925.10M	4.58B
Total Debt	9.43B	11.91B	9.36B	5.16B	20.30B	4.46B
Total Liabilities	45.13B	46.66B	46.35B	33.45B	34.31B	25.94B
Stockholders Equity	7.23B	6.50B	10.07B	9.69B	-2.25B	9.17B
Cash Flow
Free Cash Flow	0	-4.07B	335.30M	5.37B	-18.38B	-17.04B
Operating Cash Flow	0	-3.96B	378.80M	5.38B	-18.29B	-16.90B
Investing Cash Flow	0	-1.22B	-749.50M	-47.10M	-117.80M	9.49B
Financing Cash Flow	0	2.57B	3.17B	-2.86B	14.31B	9.78B

Sterling And Wilson Renewable Energy Limited Technical Analysis

Technical Analysis SentimentNeutral

Last Price155.05

Price Trends

50DMA165.74Negative

100DMA191.34Negative

200DMA192.68Negative

Market Momentum

MACD-3.15Negative

RSI48.77Neutral

STOCH68.41Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SWSOLAR, the sentiment is Neutral. The current price of 155.05 is above the 20-day moving average (MA) of 150.85, below the 50-day MA of 165.74, and below the 200-day MA of 192.68, indicating a neutral trend. The MACD of -3.15 indicates Negative momentum. The RSI at 48.77 is Neutral, neither overbought nor oversold. The STOCH value of 68.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:SWSOLAR.

Sterling And Wilson Renewable Energy Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:SWSOLAR against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:WEBELSOLAR	78Outperform	INR 31.47B	8.95	―	0.35%	97.39%	67.02%
IN:WAAREEENER	66Neutral	INR 737.83B	19.83	―	0.08%	75.43%	38.62%
IN:PREMIERENE	61Neutral	INR 404.92B	22.82	―	0.14%	32.46%	48.22%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:SWSOLAR	46Neutral	INR 37.17B	17.65	―	―	-9.04%	―
IN:SWELECTES	44Neutral	INR 9.37B	22.11	―	0.57%	-10.86%	55.28%

* General Sector Average

Performance Comparison

IN:SWSOLAR and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:SWSOLAR	Sterling And Wilson Renewable Energy Limited	155.05	-77.80	-33.41%
IN:GENSOL	Gensol Engineering Limited	10.25	-21.26	-67.47%
IN:PREMIERENE	Premier Energies Limited	896.90	-117.23	-11.56%
IN:SWELECTES	Swelect Energy Systems Limited	618.40	-134.01	-17.81%
IN:WAAREEENER	WAAREE Energies Limited	2544.00	-756.01	-22.91%
IN:WEBELSOLAR	Websol Energy System Limited	71.16	-54.97	-43.58%

Sterling And Wilson Renewable Energy Limited Corporate Events

Sterling and Wilson Renewable Energy Cuts Kenyan Tax Exposure in Settlement

Oct 21, 2026

Sterling and Wilson Renewable Energy has reached a full and final tax settlement with the Kenya Revenue Authority covering assessments for 2020 to 2023. The original demand of about INR 26.50 crore, including interest and penalties, has been cut to r...

Sterling and Wilson Renewable Energy Subsidiary Sues Insurers Over South African Project Bonds

Oct 19, 2026

Sterling and Wilson Renewable Energy has disclosed that its South African step-down subsidiary, Sterling and Wilson Engineering (Pty) Ltd, has initiated material litigation in the High Court of South Africa against two insurers and a former sub-contr...

Sterling and Wilson Renewable Energy Closes Trading Window Ahead of Q2 Results

Sep 30, 2026

Sterling and Wilson Renewable Energy Limited has announced that its trading window for company securities will be closed for designated persons and their immediate relatives from October 1, 2026, in line with its internal Code of Conduct and SEBI’s P...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 16, 2026

Sterling And Wilson Renewable Energy Limited AI Stock Analysis