Ladies and gentlemen, good day and welcome to Sterling and Wilson Renewable Energy Limited Q2 FY26 earnings conference call. This conference call may contain forward-looking statements about the company, which are based on beliefs, opinions, and expectations of the company, as on the date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Sandeep Thomas Mathew, Head Investor Relations, for his opening remarks. Thank you and over to you, sir.
Yeah, thank you and good evening, everyone. We have with us today Mr. Chandra Kishore Thakur, our Global CEO, and Aziz Prabhu, our CFO, and SGA, who are our Mutual Relations Advisors. We will start today's call with the key operational highlights for the quarter and industry outlook, followed by the financial highlights by Aziz, post which we will open up for Q&A. Thank you and over to you, sir.
Thanks, Sandeep. A very good evening and best of luck to all the participants on this call. Before we move to the operational and financial highlights, I would like to begin by addressing certain important legal and financial developments during the quarter that have had a material bearing on our results. During Q2 FY26, three legal matters concerning our U.S. subsidiary, Sterling and Wilson Solar Solutions Inc. (SWSS), reached critical stages. These pertain to legacy projects executed a few years ago. The first issue is the Conti LLC arbitration. As previously disclosed, Sterling and Wilson Solar Solutions Inc. was engaged in arbitration proceedings with Conti LLC, U.S.A., relating to a project executed a few years ago.
During Q2 FY26, the arbitral tribunal issued an interim award under which the claims filed by SWSS, amounting to $55.06 million, approximately INR 485.64 crore, were dismissed, and Conti LLC was granted an award of $6.44 million, approximately INR 56.8 crore, plus interest. As this amount of these INR 485 crore was reflected as receivables in our consolidated books, we have fully written off this amount during the quarter. Consequently, this resulted in a one-time non-cash impact on our profit and loss statement for Q2 FY26 and the corresponding reduction in our consolidated net worth. Accordingly, we have written off an amount of INR 580 crore in our books for the award value, including applicable interest and the prox legal charges payable towards the amount awarded to Conti LLC. The second matter pertains to our earlier disclosure regarding a customer of SWSS in the United States.
During the quarter, the customer invoked a standby letter of credit amounting to $7.19 million, approximately INR 63.47 crore, which was subsequently honored by the issuing bank and reimbursed by SWSS. The SWSS invocation was related to a contractual dispute for which litigation is already ongoing with the said customer. We will seek recovery of the amount paid through the ongoing legal proceedings. Lastly, we have concluded a mutual settlement with OEG Inc., another U.S.-based counterparty, thereby closing another litigation matter. As per the terms of the settlement agreement signed on October 9, 2025, SWSS will make a settlement payment of $2.25 million, approximately INR 19.95 crore, to OEG Inc. as against their claim of approximately $7 million in two tranches payable during October and November 2025. This settlement has been accounted for in Q2 FY26, leading to a one-time financial impact of INR 19.95 crore.
To summarize, the cumulative impact of these three matters, comprising the write-off of INR 580 crore and the settlement payment of INR 19.95 crore, has materially impacted our Q2 FY26 reported results, primarily as one-time non-recurring items. While these are largely legacy project-related issues in our U.S. subsidiary, the resolutions, while financially painful in the short term, represent a significant step towards cleaning up the balance sheet and enabling management to focus squarely on operational performance and profitable growth going forward. Now moving to the operations, our order inflows have picked up a lot of momentum. We have bagged five new orders since Q1, including our first order from the international market this year and four projects from the domestic market. Our cumulative order inflow this fiscal now stands at approximately INR 3,775 crore, and we have already picked up orders of nearly INR 3,000 crore since Q1.
In the international market, we received an LOI for a 115 MW turnkey project in South Africa, valued at approximately $120 million. As we have stated in the call before, South Africa continues to remain a key focus market for us, and this will be the third project that we will be executing there. In addition to these three projects, we continue to be in close dialogue with a few large players there and are hopeful of concluding a few more projects soon. Our domestic solar EPC market has continued to grow at a rapid pace, and we have been able to bag new projects primarily from U.S.-based this fiscal. There was a slight pushback in the reverse auction calendar, which meant a large number of these auctions happened in late September or towards early October, and many more continue to be in the pipeline.
We have been awarded a 304 MWp turnkey project in Kahara worth INR 818 crore. In addition, we were also declared L1 in two Balance of System projects of a leading PSU in Rajasthan and Uttar Pradesh, respectively. The combined EPC value of these two BOS projects is approximately INR 760 crore for 943 MWp. In addition to the PSU order wins, we also received an order from a large private IPP for a 421 MWp BOS project in Rajasthan worth INR 372 crore. The values I have indicated are excluding taxes and refer to the attributable EPC order value to our EPC order backlog. Now, coming to our unexecuted order value, it currently stands at INR 9,287 crore compared to INR 9,096 crore as of March 2025 and approximately INR 8,348 crore as of June 2025.
About 84% of our current order book comprises domestic Indian projects, while the international unexecuted order book comprises primarily two projects in Europe and three projects in South Africa. As I had indicated in the previous call, financial year 2026 is stepping up to be a very good year for the domestic solar EPC market on the strong bid pipeline. Awarding activities from both PSU banks and private IPPs is expected to remain strong traction in the second half. Despite healthy ordering activities seen in the first half, we are still seeing a pipeline of nearly 25.2 gigawatts with over 17 gigawatts selected for ordering in the second half of this fiscal in India alone. Over and above the solar EPC pipeline, we will continue to target this project and select hybrid wind EPC projects as well.
In terms of execution, our scale-up plans continue to remain on track, and execution remains steady despite the seasonal challenges associated with monsoons and the improved top line of Q2, which has grown 70% year on year, which is reflective of the same. I would like to reiterate that we continue to remain patient and carefully evaluate projects in India and overseas and are focused in targeting profitable orders. Our O&M portfolio outlook remains strong. Our current portfolio stands at 9.1 gigawatts as of September 2025. We are hopeful of bagging a few large third-party O&M orders, as well as benefit from our internal large stream of EPC projects, which are nearing completion, which will feed our O&M portfolio and should aid a meaningful pickup in the revenues.
From the financial perspective, our Q2 FY2026 results include the full recognition of one-time exceptional item arising from the legal matters discussed earlier. Excluding these, the core business performance continues to remain operationally strong. We continue to maintain our overall target margins, including O&M, in the range of 10% to 11%, with the O&M segment sustaining margins of over 20%- 23%. Our focus remains firmly on timely execution, cash flow discipline, working capital optimizations, and profitability. With this, I'll ask Aziz to take you through the consolidated financial highlights. Thank you very much.
Thank you, Sajati. And happy Diwali, everyone. Our operational performance has been largely in line with our expectations during the first half. Execution continued to improve despite monsoon-related disturbances in Rajasthan and Gujarat.
Our second quarter revenue grew by 70% year on year to INR 1,749 crore as against INR 1,031 crore in the second quarter of FY25, while our first half FY26 revenue is up 80% to INR 3,510 crore as against INR 1,946 crore in the first half of FY25. Our top-line performance in the first half is fairly indicative of what we set out to achieve at the start of this fiscal. On the gross margin side, our first half FY26 gross margin was 10.3% compared to FY25 gross margin of 10.1%. Sequentially, also, our gross margin dipped to about 8.9% this quarter versus 11.7% in Q1 as domestic EPC margins were impacted by commencement of revenue recognition in a few large turnkey projects, including module in our scope, which tend to have overall lower margins compared to sole BOS projects.
Our operational EBITDA, which is operating revenues less recurring overheads, amounted to INR 62 crore this quarter compared to approximately INR 23 crore seen in Q2 of FY25 and INR 123 crore seen in prior quarter. Our recurring overheads are a marginal increase this quarter at INR 94 crore, primarily due to higher legal expenses. As C.K. had alluded to in his opening remarks, we had to provide for certain large one-off expenses related to U.S. arbitration ruling and finance admins, which pushed up non-recurring expenses to over INR 627 crore and resulted in a reported EBITDA loss of INR 470 crore during the quarter. Consequently, our PAT also was a loss for INR 478 crore during this quarter. In addition, in the standalone results, the company's investment in the subsidiary loans given along with the accrued interest thereon and other receivables aggregated to INR 3,196 crore.
Considering the unfavorable outcome arising from the Conti LLC arbitration order, which we've spoken earlier, resulting in loss of amounts that were considered recoverable and the outflows towards only segments, INR 600 crore are considered non-recoverable from the wholly owned subsidiary, and hence, the company has written off the loans to that extent. Further, considering the inordinate delays with respect to the Nigeria project, we have made an impairment provision of INR 2,038 crore from the wholly owned subsidiary during the quarter in our standalone financials. The set amount aggregating to INR 2,638 crore has been classified under exceptional item in the statement of unaudited financial results for the quarter and six months ended September 30, 2025. This was already considered in consolidated results as prior years' losses from international business. With this exceptional provision in standalone financials, net worth of our standalone and consolidated financials will get aligned.
Now coming to the balance sheet, our gross borrowings have increased to INR 1,194 crore due to a fresh INR 475 crore term loan that we have held and got disbursed from IREDA during Q2 FY26. Our cash and bank balances stand at INR 452 crore. Our net debt increased during the quarter due to higher payment of vendors from the term debt of IREDA and Bank of Maharashtra and stands at INR 742 crore. We've also raised an indemnity claim for September 2025 on the promoters, SP Group and Mr. Kashyad Daruwala, for approximately INR 178 crore, which is expected to be paid by November 30, 2025. We continue to make progress on our banking limits front and have been able to obtain sanction of fresh credit lines to the tune of nearly INR 2,000 crore since the start of this fiscal, including surety bonds.
With this, we can now open the floor to questions and answers.
Thank you, sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handset while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. Participants, to ask a question, you may press star and one. First question is from the line of Pratig Jalan from Tradex Capital. Please go ahead.
Hi.
Hi, Mr. Pratik.
I'm audible? Yeah.
Yes, please go ahead.
Yeah. Greetings for Diwali. My first question is regarding the Nigerian project. What is the update on the Nigerian project and the Reliance project?
Yeah. Hi, Pratig. On Nigeria Estate Settlements Corp, although there have been some developments, the development is like the earlier, in the last call, we probably discussed that the agreement was signed between the utilities of the Nigeria government, a lot of utilities like NPPC in India and all, and Sterling and Wilson. Now, the SPV has been formed, and the terms of the payments are being procedurally, it is taking a little time, but the project is still on. I mean, it is getting delayed unexpectedly. What are the?
If you don't mind saying, you know the Nigerian project and the Reliance Nigerian project is on the book from the past two years, and that's also creating a misleading to investors, you know, because a lot of people are investing just because of the Nigerian order, and it's been delayed for the past two years.
That is true. The project is still not abandoned. Once the contract agreement was signed up between Sterling and Wilson Renewable Energy Limited and the utilities, whatever timeline was selected for that is procedurally taking a little longer. That's the concern, basically, but the project is still on.
Okay. Thank you.
Thank you. Next question is from the line of Saurabh Srivastava from Arista Consulting. Please go ahead.
Good evening, sir. Am I audible, sir?
Yeah, I can hear you.
Am I audible, sir?
Yes, we can hear you.
Since you people are present at Kahara in a big way, and Adani Green is also present in a big way, is there any possibility that you may take there some part of O&M maintenance and maintenance part going forward in a bit? Or is there any plan of that sort?
Yes. Basically, not only Adani, Adani for Sewers, they have invited us for the participation in the bids for the O&M portfolio. Other than Adani, there are other IPPs which may also look for the third-party O&M services. We, being the largest there, will be looking for these kind of business opportunities.
That was my first question. Nigerian engineer, what's the status about this Reliance New Energy project? By what time can we see some sort of start?
Yeah, on Reliance, yeah. I'm sorry, Pratig, you had asked on Reliance also. I missed responding to that question. Good that Saurabh asked. On the Reliance side, in the Kutch region, I'll say not in Kahara, in the Kutch region nearby. The prelims work, I mean, they have started. While the modules manufacturing has commenced, it's difficult to say at this stage when exactly it will start, but now it is expected that maybe Q1 of next financial year, they will start the tendering activities. It is more or less in line with the announcement that they have made in their press release on the various calls and other things, right? Now the Reliance projects are getting momentums, and the traction is happening around.
The last question, sir, there is a lot of buzz about this battery energy storage solutions thing. Are we getting there also in a big way, sir?
Yeah. Basically, yes. I mean, the dynamics of the business today is that the few contracts are being, RFQs are being floated for the hybrid projects. Hybrid with solar and battery or maybe wind and battery like this. Also, the policy said that 10% of the capacity of the solar plants necessarily have to be from this. We have the advantage of earlier starting one of the largest site projects in India with JSW and a few projects on hybrid in the international market. The tenders are being out, and a few of the projects are still stuck up because of Chetan Khulbe. Yes, we are well-placed for participating in all the bids that are going to be floated.
What margins can we expect going forward in this segment?
It would be similar to the solar. I mean, similar, yeah, around 10% or so. Yeah.
Thank you, Sajit.
Thank you. Before we move to the next question, a reminder to the participants: to ask a question, you may press star and one. Next question is from the line of Maitreisha from Supplier Capital. Please go ahead.
Yeah. Hello, good evening. Am I audible?
Yeah, I can hear you.
Yeah, thank you for the opportunity. I just have a few questions. Firstly, on the clarification, how are we calculating the operational EBITDA, the number that you gave INR 62 crore in the presentation? If someone can clarify that.
Operational EBITDA is basically after our cost of material and services and recurring overheads.
The guidance that we gave about 5.5%- 6% EBITDA margins that we want to maintain, is this the operational EBITDA % that we are guiding for?
That's right.
Okay. Any reason why there was a dip in the operational EBITDA barring the exceptional item, that huge exceptional one-time loss that we had? There was still a dip in the operational EBITDA. Any reason for that?
Yes. As I mentioned in my opening remarks also, a lot of revenue during the quarter came from the projects which are including module. In those cases, the revenue is high, but the margins are low. That's the reason the operational EBITDA for the quarter was less.
The current, I would say the current order book that we have of around INR 9,200 crore, could you give us a split of the projects that would need to include our modules and the projects that don't include our modules? What sort of split do we have in those in the order book?
Yeah. Out of the total five projects, four are from domestic in these quarters, and one is the turnkey EPC contract, which includes the module supply as well. The one international, which is completely turnkey, so there also the module supply is part of the scope. Now, since the module market is pretty stable, we may expect to better off the margins, in fact, going forward.
Now that we have a higher % of order book with modules included, do we expect the EBITDA margins to go down? Maybe, like even if the module market is pretty stable, do we expect the margins to even dip any further?
Not to go down. We can expect around the same level, yeah, flat levels, so 4% to 6%.
Could you give me a range for any quantification?
4% to 6% you can consider.
4% to 6%.
Yeah.
Okay. The next question I had was on the guidance. We have been guiding for a 20% growth, and we had an exceptional growth in the first and the second quarter. Considering the 20% growth, we are seeing a 7% big growth in our second half. Are we going to reiterate our guidance or maybe increase it for the second half of the year?
We continue to maintain the same guidance, what we indicated in the start of the year, around 20% growth in terms of revenue.
Okay, that is it from my side. Thank you so much.
Thank you.
Thank you. Participants who wish to join the question queue, you may press star and one. Next question is from the line of Jayesh Roth from SAS Capital. Please go ahead.
Hi. Thanks for taking my question. My first question is on the write-off. We've written off the investment and the loan amount, but there is still a hanging sword of corporate guarantees that we've given to the subsidiary to the tune of INR 1,700 crore. What is the status of that? I mean, it could be revoked in the future. Is that danger still lurking? If you see, the net assets in our foreign subsidiary, that amount is recoverable. There is no risk or negligible risk on the corporate guarantee being removed because the difference between standalone and consolidated net worth, we have already made a provision.
No, I didn't get it. Can you, if you can, clarify?
Earlier, there was a difference between net worth of consolidated and standalone financials because the losses whatever international operations have incurred, those losses were accounted for in the control balance sheet. Yes, but that amount was considered good and recoverable in the standalone balance sheet.
Right now, because we have made a provision against the investments and loans given from Indian entity to Dubai entity, those losses have been accounted for. Now the net worth has been aligned between standalone and consolidated. That's why the corporate guarantees whatever have been given primarily doesn't have big risk of invocation or doesn't have any big risk of having any future impact on our financial standalone.
Are these guarantees given to the banks, or are these guarantees given to our customers or counterparties who may actually, you know, as in the past?
Next up.
No, our customers can still remove those guarantees. I mean, that risk still remains, right?
To that extent, as I'm saying, to that extent, we have already incurred the loss, and that loss has already been booked.
No, that loss has been booked. Customers cannot claim additional amount as energy license.
Like one of the customers, they removed the bank guarantee, right, and the money is already out. They have been paid. Okay, they got the amount. That's why I'm saying because the amount has already been paid to the customer against the bank guarantee, whatever it was issued by U.S. subsidiary. There is no risk on corporate guarantee of Indian entity to be removed because the amount has been paid to the customer.
Right. That may be one part, but like that, there may be many other customers who may still come and claim that, right?
Not exactly. All the litigations, whatever are there, those have already been accounted for and disclosed appropriately in the financials.
Okay. Earlier you said that, you know, there is a very less chance of this getting revoked. It is not a zero chance situation or something like that.
No, there is no fresh cases. All those old cases, legacy cases that we were discussing, they are this kind of, you know, the situations we have already accounted for. Going forward, all the orders that we are executing, they are all sound orders. This kind of.
Completely agree. I'm saying that legacy customers cannot come back to claim liquidated damages or whatever kind of damages, additional damages from us.
They have whatever damages they were supposed to claim, they have already encashed the bank guarantee. The cases are under legal proceedings. A few of them are under arbitration, a few of them in the court. The consolidation of the cases has already happened. There is no fresh legacy case where a new course of legal action is to be initiated. To that extent, we say that the cases are known. We know what was the impact to be taken; they have already taken it.
Okay. My second question is regarding the Reliance, you know, delay in Reliance orders. If Reliance has started manufacturing the modules, and our understanding was that a large amount of that module manufacturing, at least in the initial phase, was for capital consumption. Are they selling that in the international market? What is, I mean, is there any technical issue because of which the projects are getting delayed?
No, not really. I mean, we are really not sure about strategically, maybe they may be phasing out. Since the technology is edge-ate, right? In the domestic market, on the price point of view, I mean, they have to, they have to really reference with them out, right? For the domestic participants, they have to seek some kind of references for the plants that they have supplied and the performance is okay. For the international market, they have been supplying either from the Singapore factory and the other factories. I don't think this is a concern because edge-ate is, I mean, one of the best technologies that have to happen. Slightly, it is costly at this stage of time. Going forward, I'm sure they should be picking up the pace, right? Initially, yes, you are right.
Initially, I mean, those will be used only for the domestic consumption, for their own capital consumption, right?
Right, there is no plan on their side to take up EPC on their own or anything like that, right?
It's difficult to answer at this stage, but the kind of megawatt level that they are planning, they would definitely be distributing in a few, right? They will follow some kind of system, the system of selecting the EPC companies. We will also stay at arm's length distance, but there's no reason that we should not be competing, right? For any other clients, we are competing, we are getting the largest share, right? Here also, we are competing for something. Yeah, absolutely.
All right. I think that's it from my side. Thank you so much.
Thank you.
Thank you. Participants, to join the question queue, you may press star and one. Next question is from the line of Mohit from Hem Securities Limited. Please proceed.
Yes, am I audible?
Yes, you can hear me.
Yes, please go ahead.
Yeah. Sir, apart from these two legal cases for which we have given this provision or the exceptional item in the profit and loss account, what are the other legal cases that are still pending for which we haven't made the provisions yet? If the outcome of those come against us, what will be the amount that will be charged to the profit and loss account?
All these legal cases with whatever is going on have been appropriately disclosed in our financials. At this point in time, based on the legal advice and the status of those legal cases, we don't feel any amount will be charged in our profit-loss account. We are already out of money in certain cases where our bank guarantees have been encashed. We are fighting for that along with our claims against the wrongful invocation of our bank guarantees.
In this case, if those are charged against us, what is the amount that will be covered from indemnity?
Most of the legal cases, whatever are going on, are covered under indemnity. This Conti was the largest case which was not covered under indemnity, and that's why the hit came on Sterling and Wilson.
Sir, can you explain how this INR 580 crore has been charged to the profit and loss account? Is it the write-off of the amount which we were expecting from our clients, plus this INR 56.80 crore which we are supposed to pay to them?
One of the largest amounts was already sitting in our receivables because we already executed the work and did the invoices. That amount was lying in our receivables. Because we lost that case, the recoverability of the receivable has been written off along with the legal expenses, likely legal expenses, and the interest cost in the fit case.
What will be the guidance for FY 2027?
Please, please.
We have the order book of around INR 9,000 crores in your books. You have the visibility. What will be the guidance for FY 2027?
I think it will be better if you can wait for some time for the next quarter and then see finally. Otherwise, normally, you can expect the similar growth that we have been witnessing these quarters, the last quarters, the balance quarter, or the next years. I mean, industry is doing good. We should be expecting the similar growth.
Sir, are you planning for any fundraise, like QIP or through loans?
Not at this point in time. We have already raised some debt, as I mentioned in my remark. At this point in time, we are not planning to raise any fresh equity.
Okay, sir. That's it from my side. Thank you.
Thank you. Participants, to join the question queue, you may press star and one. Next question is from the line of Isita Lodha from Swan Investments. Please go ahead.
Hi, sir. Thank you for the opportunity. The two L1 positions that you announced in Uttar Pradesh and Rajasthan, is it included in the order book of INR 9,300 crore, or it does not include?
Yes, they are included.
Okay, when are we expecting the LOIs to come?
Normally, after the L1 announcement, it takes around two to three weeks. Intimacy has already come. Intimacy for the award positions or our, I mean, L1 positions have already come for these projects. A detailed LOA and contract signing will happen in two to three weeks' time.
Okay. Apart from the INR 600 crore exceptional item, any other non-recurring overheads charged in P&L in the current quarter?
No.
Okay. This INR 600 crore is already paid and reflected in our cash flow, or it will be paid in the next half of the financial year?
No, it is not a cash flow of INR 600 crore. It is not a cash outflow of INR 600 crore. The cash outflow would be around probably $8- $10 million. This is basically a reversal of receivables, whatever is not recoverable because of the adverse ruling from the arbitral tribunal.
Got it. The legal expenses and the interest cost, that is already paid or yet to be paid?
That is yet to be paid. That is yet to be finalized, actually. As of now, we got the interim order. The moment they issue the final order, that will be with the legal cost.
Got it. Can you give the split of the order book, INR 9,300 crore? How much of this is BOS and how much of this is with modules?
As I have told sometime before, out of the projects, five projects, right? Two projects, let's say the first one is with module, it's around INR 800-plus crore. The second ones which have come from South Africa, that would be around close to INR 1,200 crore, right? Rest also at the BOS project.
Okay. At this time, we have seen that our credit turned days have decreased to 130 days. I remember we were talking earlier in the call that we were getting support from the vendors in the form of supplier credit. Right now, what is the scenario?
During the quarter, we raised a debt of INR 475 crore from IREDA, and that has helped us in payment to creditors and reduction of creditors' age. Now we have, over and above, sufficient non-fund-based limits from the banks, bank guarantees, and LCs. We are also optimally utilizing our non-fund-based limits to get the credit period very well we need. We can get the LC issued for 180 days where the vendor can get the LC discounted and get the money upfront, whereas we'll get the credit of 180 days. That flexibility is available because of our additional trade lines available.
Currently, how much of our non-fund-based limits are not utilized, which we can use for future order inflows?
Our utilization is around 80% total. In terms of utilization, it changes every time, but around INR 1,000 crore would be the unutilized limit. We are also getting support now from insurance companies in the form of surety bonds. We have availed surety bonds from five insurance companies. Put together, the value would be in the range of INR 400 to 500 crore. That is another option available to us. Based on the cost and availability of credit times, we can use our limits, banking limits, or surety bonds.
Okay. What is the cost of this new IREDA term loan?
It's 11.15%.
Okay, thank you. That's it from my side. All the best.
Thank you. Participants, you may press star and one to join the question queue. Next question is from the line of Faisal Hawa from Eji Hawa & Company. Please proceed.
Sir, this will lead to a whole cascading effect now to us because our net worth is eroded, and banks will now, you know, downgrade our credit ratings. Again, the liquidity will become tight. How do you propose to take even more orders, and how will you execute those orders? Because even now, our suppliers will be wary of supplying to us.
Generally, we have not seen bankers taking back the lines, whatever they have sanctioned, particularly the PSU banks. If you see the recent sanctions, all sanctions are from PSU banks. As of now, we don't foresee any major issue in terms of availability of credit lines for us.
No, just generally, credit rating agencies are slow on this. They will downgrade you in maximum 30 days from today. When that happens, the interest rates will go higher, and the projects that you have already taken may get difficult to execute. What I'm not able to understand is that there are three promoters sitting in this, yet there is no one promoter who puts up his hand and says that I'm going to take charge of the situation and get this company out of the mess it is into.
In terms of cash flow, we will also get the amount from our 12 promoters in the form of indemnity payment, which is likely to come in November, around INR 175 crore. Cash flow-wise, also, we feel that will be quite good and strong. As I said, in terms of credit lines, even if the rating changes, we don't foresee any issue in withdrawal of existing credit lines, whatever we have, because these are from PSU banks. Earlier, also, we have not seen PSU banks withdrawing the limit. We are hopeful that there won't be any significant impact in our credit lines as well as in terms of business forecast, whatever we projected.
Sir, if at all there is some problem with the credit line, do we then expect that our turnover will just remain stagnant at what we are at, or because taking more orders would then be extremely risky?
No, not really. I mean, business growth will happen. Because of this one-time impact, and as I already told, it has not majorly impacted on the cash flow side. The apprehensions of rating reduced and all, that in any case, if it is not going to impact our, you know, the limits and other things, then we have the ability to expand further and the business growth will happen, right?
Thank you, sir.
Thank you. Ladies and gentlemen, to ask a question, you may press star and one. Next question is from the line of Naveen from Sai Investments Limited. Please go ahead.
Hey, am I audible?
Yes, you can.
Yes, yes.
Please go ahead.
Yeah. I think I don't have any question, but I have a suggestion because I'm following all the calls from the last three to four years. I'll point out specific things. I think that management should take care of it. This one-time cost which happened just now, from the last three years, when we were clearing the balance sheet, we were saying there will be no this kind of write-off again, I think before three years. The same thing happened three years before, and the same story is repeating. Previously, two quarters back when we had this war kind of situation, one of the persons in the call pointed it out that what will be the impact if we face a situation of a war.
I think the CEO laughed, and they said, "Oh, no, there will be not any impact." When the next quarter comes and the impact has been shown. This shows, and one more is like when we removed or say the CEO, he stepped down, they promised over and then delivering less. I think something is not setting the price. We are here just to support, or it's our benefit also, but we are thinking of betting on the company and to the management. We don't think things are what you are delivering, saying, and what is executing is all on the same page, or either you are not able to see what is coming. That's all from my side. You can respond what you think on this.
Okay.
Thank you. Ladies and gentlemen, we will take this as the last question for the day. With that, we conclude today's conference call. On behalf of Sterling and Wilson Renewable Energy Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.