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| Product | Quantum (Rs. Cr) (SEBI) | Quantum (Rs. Cr) (Other FSR) | Long Term Rating | Short Term Rating | Regulated By |
| Bank Loan Ratings | 0.00 | 4571.47 | ACUITE BBB- | Downgraded & Withdrawn | - | RBI |
| Bank Loan Ratings | 0.00 | 825.00 | ACUITE BBB- | Negative | Downgraded | - | RBI |
| Bank Loan Ratings | 0.00 | 1628.53 | Not Applicable | Withdrawn | - | RBI |
| Bank Loan Ratings | 0.00 | 175.00 | - | ACUITE A3 | Downgraded | RBI |
| Bank Loan Ratings | 0.00 | 50.00 | - | ACUITE A3 | Downgraded & Withdrawn | RBI |
| Bank Loan Ratings | 0.00 | 200.00 | - | Not Applicable | Withdrawn | RBI |
| Commercial Paper (CP) | 0.00 | 100.00 | - | Not Applicable | Withdrawn | RBI |
| Total Outstanding | 0.00 | 1000.00 | - | - | - |
| Total Withdrawn | 0.00 | 6550.00 | - | - | - |
| Note:- For activities or ratings of instruments falling under the purview of Financial Sector Regulators other than SEBI, the grievance / dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available. |
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Rating Rationale |
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Acuité has downgraded its long-term rating to ‘ACUITE BBB-’ (read as ACUITE triple B minus) from ‘ACUITE BBB’ (read as ACUITE triple B) and short-term rating to ‘ACUITE A3' (read as ACUITE A three) from ‘ACUITE A3+ '(read as ACUITE A three plus) on the Rs. 1000.00 Cr. bank facilities of Sterling and Wilson Renewable Energy Limited (SWREL) (Erstwhile Sterling and Wilson Solar Limited). The outlook is revised to ‘Negative‘ from ‘Stable’.
Acuite has downgraded and withdrawn its long term rating to ‘ACUITE BBB-’ (read as ACUITE triple B minus) from ‘ACUITE BBB’ (read as ACUITE triple B) and short term rating to ‘ACUITE A3' (read as ACUITE A three) from ‘ACUITE A3+ '(read as ACUITE A three plus) on the Rs.4621.47 Cr. bank facilities of Sterling and Wilson Renewable Energy Limited (SWREL) (Erstwhile Sterling and Wilson Solar Limited). The rating is being withdrawn on account of request received from the issuer, and NOC (No Objection Certificate) received from the lender. Acuite has withdrawn its long-term rating on Rs. 10.23 crore bank facilities of Sterling and Wilson Renewable Energy Limited (SWREL) (Erstwhile Sterling and Wilson Solar Limited) without assigning any rating as the instrument is fully repaid. The rating is being withdrawn on account of request received from the issuer and No Due Certificate received from the lender. Acuite has withdrawn its short term rating on the Rs.100.00 Cr. of short-term commercial papers without assigning any rating of Sterling and Wilson Renewable Energy Limited (SWREL) (Erstwhile Sterling and Wilson Solar Limited) as it is not placed. The rating is being withdrawn on account of request received from the issuer. Acuité has withdrawn the long-term and short-term rating on the Rs. 1818.30 Cr. Proposed bank loan facilities of Sterling and Wilson Renewable Energy Limited (SWREL) without assigning any rating as it is a proposed facility. The rating is being withdrawn on account of request received from the issuer. The rating withdrawal is in accordance with Acuité's policy on withdrawal of rating as applicable to the respective facility / instrument. Rationale for rating downgrade and revision in outlook The revision in the outlook factors in the Company's sustained pressure on its liquidity position marked by insufficient cash accruals against debt obligations. The rating downgrade considers significant deterioration in the financial risk profile marked by erosion in net worth, high gearing and weak coverage indicators. Further, the rating also factors in significant deterioration in net profitability during FY2026, primarily on account of one-time exceptional losses, which resulted in a substantial erosion of its net worth thereby deteriorating the financial risk profile. The rating is further constrained due to moderately intensive working capital operations and susceptibility of profitability to price volatility and timely completion of the projects. However, the rating continues to derive strength from the company's established presence in the solar EPC segment, strong parentage, moderate improvement in revenues backed by healthy order book position, which provides adequate revenue visibility. Any delay in the receipt of expected indemnity claim recoveries and project-related advances thereby straining the liquidity would remain a key monitorable.
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| About the Company |
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Mumbai based Sterling and Wilson Renewable Energy Limited (SWREL) was promoted by Shapoorji Pallonji and Company Private Limited (SPCPL) and Mr. Khurshed Daruvala and was a part of Shapoorji Pallonji Group (SP Group). In 2017, the Solar EPC business was demerged from Sterling & Wilson Private Limited and hence Sterling and Wilson Renewable Energy Limited was formed. SWREL is engaged in EPC and O&M for Solar Power Plants. Further, in FY2022, there was an acquisition of stake in SWREL by Reliance New Energy Limited (REL), a subsidiary of Reliance Industries (RIL). The company has a presence over 25 countries including India, Africa, Spain, USA, Australia, Chile, Egypt, and the Middle East among other countries. SWREL is listed on BSE and NSE.
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| Unsupported Rating |
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Not Applicable
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| Analytical Approach |
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Acuité has considered the standalone business and financial risk profile of SWREL to arrive at the rating.
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| Key Rating Drivers |
| Strengths |
| Established presence in solar segment and strong parentage
Sterling and Wilson Renewable Energy Limited is promoted by Reliance New Energy Limited (REL), a subsidiary of Reliance Industries (RIL), Shapoorji Pallonji and Company Private Limited (SPCPL) and Mr. Khurshed Daruvala. SWREL has executed projects for reputed clientele such as Neoen, Light Source BP, Soft Bank, Marubeni, Total, AMEA, NTPC Green, Brookefield, JSW, Serentica to name a few. SWREL is one of the leading Solar EPC players globally. Further, the company has EPC portfolio of more than 28.7 GWP capacity across geographies including Australia, USA, Asia, Africa, Europe, Latin America and Middle East amongst others. The company has executed its largest single location Solar Photovoltaic Plant of 1177 MW in Abu Dhabi. The extensive experience of one of the promoters in REL will continue to benefit from its established position in the solar segment and healthy order book position of approx. Rs 13,000 Crores backed by strong parentage and the group’s presence of more than 100 years. Improvement in revenue along with healthy order book position SWREL reported improved operating performance in FY2026, with total revenue increasing to Rs. 6,163.81 crore from Rs. 5,387.06 crore in FY2025, reflecting a growth of ~14.42x driven by healthy execution of its order book. Further, the Company reported revenue of Rs. 1,487.11 crore in Q1FY27 as compared to Rs. 1,363.11 crore in Q1FY26. The unexecuted order book stood at approximately Rs. 9,959 crores as on June 30, 2026, and around Rs. 13,024 crore including L1 orders, providing healthy revenue visibility over the medium term. Absolute EBITDA improved to Rs. 430.77 crore in FY2026 from Rs. 362.59 crore in FY2025, with EBITDA margins improving to 6.99 percent from 6.73 percent during the same period. Acuité believes that the continuous and timely execution of orders leading to sustained improvement in the overall scale of operations and profitability will remain as a key rating monitorable |
| Weaknesses |
| Subdued net profitability in FY2026
The company reported net loss in FY2026 of Rs. 2510.86 Cr. was primarily attributable to a one-time exceptional item to the tune of Rs. 2802.18 Cr. relating to the write-off and impairment of exposures to its subsidiary following an unfavourable arbitration outcome and related settlements. Further, company has exposure of ~Rs. 670.37 Cr. to its subsidiaries in the form of investments, loans and advances as on March 2026. Acuite believes that the company's ability to improve its net profitability significantly, will remain as a key rating monitorable. Deterioration in financial risk profile with significant erosion in net worth SWREL’s financial risk profile deteriorated in FY26 with significant decline in net worth, high gearing and weak debt coverage indicators. The net worth of the company significantly declined and stood at Rs. 452.48 Cr. as on March 31, 2026, as against Rs. 3002.87 Cr. as on March 31, 2025, due to one-time exceptional losses arising from impairment provisions and write-offs related to exposures in its wholly owned subsidiary. Further, SWREL has exposure to its subsidiaries/JVs to the tune of Rs. 670.37 Cr. as on March 31, 2026, as compared to Rs. 2,505.80 Cr. as on March 31, 2025, in the form of investments, loans and advances. Also, corporate guarantees extended to the tune of Rs. 1,658.95 Cr. as on March 31, 2026. Further, the gearing of the company stood at 2.61 times as on March 31, 2026, as against 0.31 times as on March 31, 2025. The company has a total debt of Rs. 1180.21 Cr. as on March 31, 2026, as against Rs. 925.24 Cr. as on March 31, 2025. The total debt of Rs. 1180.21 Cr. consists of Rs. 513.84 Cr. of long-term debt, Rs. 47.39 Cr. of short-term debt and Rs. 618.98 Cr. of Current portion of long-term debt. Furthermore, the debt protection matrices of the company deteriorated with interest-coverage-ratio (ICR) and debt-service- coverage-ratio (DSCR) of 2.17 times and 0.88 times for FY2026 as against 2.95 times and 1.31 times in FY2025 respectively. Acuite believes that overall financial risk profile is likely to remain average in near to medium term. Moderately intensive working capital operations SWREL’s operations remained moderately working capital intensive albeit improving marked by Gross Current Asset (GCA) of 205 days for FY2026 as against 382 days for FY2025. The improvement was primarily driven by a decline in other current assets consequent to the write-off and impairment of receivables from its subsidiary. The receivable days increased and stood at 96 days for FY2026 as against 74 days for FY2025. Average utilization of non-fund-based bank limits stood at ~83.89 percent and nil for fund-based limits for the seven months ended June 2026. Acuite believes that the operations of the company would continue to remain moderately intensive considering the nature of the business. Susceptibility of the profits linked to risks associated with price volatility and timely completion of the projects The company undertakes EPC contracts for construction of solar power projects across geographies which stipulates timelines for the completion of the project as per the agreed schedule and cost. Additionally, the profitability is susceptible to volatility in module prices. The team believes that the company’s ability to maintain its operating profitability despite the disruptions will remain a key rating sensitivity. |
| ESG Factors Relevant for Rating |
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SWREL is a renewable power producer based on solar photo voltaic technology and therefore, directly contributes to the reduction of carbon emissions. The other material factors from the environmental perspective are green supply chain and waste management. On the social front, occupational and workforce health & safety management are of primary importance to this industry given the nature of operations. The policies on responsible procurement and product safety as well as quality are of utmost significance.
On governance front, the company has adopted requirement of Corporate Governance from Provision of Companies Act 2013 and SEBI (LODR) Regulations 2015. The board of directors comprises of professionals having expertise and experience in diverse backgrounds such as construction, finance, banking, regulatory affairs, administration and management and technical operations of power plants. Hence, diverse board of directors ensures pooling of knowledge and balanced board. The governance factors that play an important role are ethical business practices, board oversight and management compensation. Further, risk management practices to minimize corruption associated with electricity distribution plays a crucial role. Additionally, regulatory compliance, shareholder’s rights and audit control are other material issues in the power generation industry. |
Rating Sensitivities
| Potential triggers (individual or collective) for an upward rating action: |
| -Significant growth in revenues and profitability margins
-Improvement in working capital cycle -Improvement in financial risk profile with DSCR above 1.3 times on a sustained basis |
| Potential triggers (individual or collective) for a downward rating action: |
| -Significant decline in revenues and profitability
-Deterioration in financial risk profile on the back of unexpected debt infusion or working capital borrowings -Elongation in working capital cycle with GCA days above 330 days on a sustained basis -Any delay in execution of work orders -Increase in exposure to subsidiaries or any material impairment thereof. - Delays in the receipt of expected indemnity claim recoveries and project-related advances, resulting in pressure on the Company's liquidity profile and weakening its ability to meet debt servicing obligations in a timely manner. |
| Liquidity Position |
| Stretched |
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SWREL's liquidity position is stretched marked by net cash accruals of Rs. 303.65 crore in FY2026 against scheduled debt repayments of Rs. 347.99 crore during the same period, with the shortfall being bridged by refinancing. Going forward, the Company is expected to generate net cash accruals of ~Rs.200 Cr. to Rs. 300 Cr. with its debt repayment obligations of Rs. 618.98 Cr. in FY2027 with additional liquidity support expected from indemnity claims, release of retention amount from customers and contract assets including project advances etc. The Company maintained cash and bank balances of Rs. 205.47 crore as on March 31, 2026. Average utilization of non-fund-based bank limits stood at ~83.89 percent and nil for fund-based limits for the seven months ended June 2026. The Company's current ratio stood at 0.92 times as on March 31, 2026. Acuite believes that the Company's liquidity position will remain stretched over the near to medium term.
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| Outlook: Negative |
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| Other Factors affecting Rating |
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None
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| Particulars | Unit | FY 26 (Actual) | FY 25 (Actual) |
| Operating Income | Rs. Cr. | 6163.81 | 5387.06 |
| PAT | Rs. Cr. | (2510.86) | 318.26 |
| PAT Margin | (%) | (40.74) | 5.91 |
| Total Debt/Tangible Net Worth | Times | 2.61 | 0.31 |
| PBDIT/Interest | Times | 2.17 | 2.95 |
| Status of non-cooperation with previous CRA (if applicable) |
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Not applicable
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| Any other information |
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All members who participated in the rating committee hold interest in M/s Reliance Industries Ltd (RIL), which through its wholly owned subsidiary M/s Reliance New Energy Limited, holds 32.5% stake in STERLING AND WILSON RENEWABLE ENERGY LIMITED (SWREL)
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| Applicable Criteria |
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• Default Recognition :- https://www.acuite.in/view-rating-criteria-52.htm • Service Sector: https://www.acuite.in/view-rating-criteria-50.htm • Infrastructure Sector: https://www.acuite.in/view-rating-criteria-51.htm • Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Commercial Paper: https://www.acuite.in/view-rating-criteria-54.htm |
| Note on complexity levels of the rated instrument |
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| Note:- For activities or ratings of instruments falling under the purview of Financial Sector Regulators other than SEBI, the grievance / dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available. |
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Contacts |
List of instruments and names of regulators of the instruments |
