• Record order inflows of INR 10,062 crore in FY26, marking 43% YoY growth and one of the most successful years in company history
• Commissioned 4.5 GW AC (5.9 GW DC) of solar projects, representing approximately 15% of India's total utility-scale solar installations of 28.3 GW AC in FY26
• Order backlog reached record high of INR 11,813 crore vs INR 9,096 crore last year, with 78% from domestic market (INR 9,250 crore)
• Won prestigious Coal India 1.2 GW DC turnkey project in Rajasthan, declared L1 among competition including large players like L&T
• O&M portfolio expanded significantly to 13.5 GW from 8.7 GW last year, positioning company as one of largest third-party O&M players globally
• Secured two South Africa projects worth $270 million, demonstrating successful international expansion post-COVID
• Employee headcount increased to 3,500 from 2,005, reflecting investment in building scale for multi-gigawatt project capabilities
• Turnkey projects now represent 70% of total orders, with two-thirds of current order book being turnkey projects

Sterling and Wilson reported a strong FY26 with record order inflows of INR 10,062 crore (43% YoY growth) and highest quarterly PAT of INR 142 crore in Q4, though full-year remained in loss due to INR 611 crore in exceptional litigation costs. The company achieved record order backlog of INR 11,813 crore, commissioned 4.5 GW AC (15% of India's utility-scale solar), and maintained confident 15% revenue growth guidance for FY27 driven by strong domestic pipeline and expanding O&M business reaching 13.5 GW portfolio.

Sterling and Wilson achieved its highest annual revenue since listing at INR 7,548 crore (assumed typo in transcript, likely INR 7,548 crore), up 20% YoY. Q4 FY26 revenue was INR 1,946 crore, lower sequentially due to commodity price volatility impacting supply timing. Gross margins improved to 10.5% for FY26 vs 10.1% in FY25, driven by international EPC margins expanding to 13.2% vs 8% prior year. Operational EBITDA grew 53% YoY to INR 444 crore with 5.9% margin, while recurring overheads remained stable at INR 349 crore despite revenue growth. Q4 FY26 delivered record quarterly PAT of INR 142 crore since listing, aided by INR 35 crore ForEx gains. However, full-year FY26 reported a loss of INR 296 crore due to exceptional litigation costs of INR 611 crore in Q2/Q3. Debt declined by INR 149 crore QoQ, net working capital improved to negative INR 329 crore, and the company secured INR 2,800 crore in fresh credit lines while improving credit rating from BBB minus to BBB plus (two-notch upgrade).

Management conveyed strong confidence in the business trajectory, emphasizing FY26 as a transformational year with multiple milestones achieved. CEO CK Thakur highlighted pride in capturing 15% market share of India's solar installations and expressed confidence in maintaining 25%+ market share historically. The team demonstrated strategic discipline, particularly in international markets where they remain 'extremely prudent' and focused on Middle East, Africa, and select European markets. Management emphasized deep engagement with Reliance for their multi-gigawatt solar rollout, though provided limited specifics on timing. CFO Ajit Singh highlighted improving operational leverage with stable overheads despite 20% revenue growth. The tone reflected satisfaction with current performance while maintaining conservative guidance of 15% revenue growth for FY27, excluding potential Reliance contributions. Management emphasized margin stability expectations of 8-10% gross margins for EPC (depending on turnkey vs BOS) and 20% for O&M, with operational EBITDA trending toward 4-4.5% steady-state levels.

The company faces several significant challenges. Most critically, ongoing U.S. litigation represents potential liability exceeding INR 200 crore already paid out (backed by promoter indemnity), with management unable to quantify total exposure as cases could result in additional penalties and costs beyond settlement amounts, with resolution potentially taking two years. Q4 order activity was muted due to geopolitical tensions and commodity price volatility, particularly copper, aluminum, and silver prices surging from January 2026. Rupee-dollar volatility poses risks, though partially hedged. Rajasthan projects faced delays due to grid connectivity issues affecting 40+ GW of PPAs, though GIV court decisions have provided some clarity. The Nigerian project is moving slowly due to elections and may not materialize in FY27. Revenue declined sequentially in Q4 as commodity volatility forced deferral of supplies and revised execution plans. The company incurred INR 611 crore in exceptional litigation costs in FY26, with one case (INR 611 crore) being non-indemnified. Module price increases since January driven by Chinese production cuts, export credit removal (April 1), and commodity inflation pose margin risks, though management claims adequate back-to-back pricing protection and contingency buffers for existing orders. Reliance project timing remains uncertain despite 'deep engagement.'

Revenue Outlook: 15% revenue growth targeted for FY27 based on current order book and expected Q1-Q2 order inflows, excluding any Reliance contributions

Margin Outlook: EPC gross margins: 8-10% (higher for BOS, lower for turnkey); O&M gross margins: 20%; Operational EBITDA: 4-4.5%; Battery storage margins: 8-10% (10% for BOS-only, 8% with battery supply)

Key Targets:

• Order book growth of approximately 15% to ~INR 14,000 crore by FY27 end (conservative estimate)
• Maintain 25%+ market share in Indian solar EPC market
• Battery storage to represent ~20% of new order mix
• International revenue expected to grow from small base (FY26: INR 1,444 crore domestic EPC revenue reported)

The Q&A session revealed analyst focus on three primary areas: (1) Reliance project timing and terms, which management repeatedly declined to specify beyond 'deep engagement' and FY27 expectations; (2) litigation exposure and legacy international issues, where management's inability to quantify total liability beyond the INR 200 crore already paid raised concerns; and (3) near-term execution visibility given Q4 revenue decline and muted ordering activity. Analysts probed margin sustainability given commodity inflation, with management maintaining 8-10% EPC gross margin guidance and emphasizing back-to-back supplier contracts and contingencies. Multiple questions focused on understanding the 15% growth guidance in context of strong order backlog, with management explaining conservative approach excluding Reliance and citing geopolitical uncertainties. The O&M and battery storage opportunities generated positive interest, with management highlighting 13.5 GW O&M portfolio and 20% of orders expected from BESS. Concerns about international litigation remained prominent with at least three analysts probing total exposure. Management's responses were generally confident on operational execution and market positioning but cautious on timing (Reliance, Nigeria) and unable to provide specifics on litigation quantum. The Coal India win and market share gains were viewed positively, while legacy issues and commodity volatility remained key concerns. Overall, management struck a balanced tone - proud of FY26 achievements but conservative on FY27 outlook pending order inflows and Reliance clarity.