Ladies and gentlemen, good day and welcome to Sterling and Wilson Renewable Energy Limited Q4 FY 2026 earnings conference call. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as on date of this call. These statements are not the guarantees of future performance a nd 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 IR, for his opening remarks. Thank you, and over to you, Mr. Mathew.
Yeah. Good morning and welcome everyone to the Q4 FY 2026 earnings call. We have with us today Mr. C.K. Thakur, our Global CEO, Mr. Ajit Pratap Singh, our CFO, and SGA, who are our IR partners. We will start today's call with the key operational highlights for the quarter and industry outlook by Mr. Thakur, followed by the financial highlights by Ajit. Post which, we will open up for Q and A. Thank you, and over to you, C.K.
Thanks, Sandeep. A very good morning to all of you. I'll begin today's call with an update on business operations and outlook. FY 2026 has been a very good year for us on multiple counts, where we achieved certain important milestones. First, we have been able to bag new orders of more than INR 10,000 crore in this fiscal, marking this fiscal as one of the most successful ever in the terms of order bookings for the company. The strong order inflow has reflected in our unexecuted order value, exceeding INR 11,800 crores, which provides good visibility for the future earnings. Second, we have been able to deliver and commission almost 4.5 GW AC, equivalent to nearly 5.9 GW DC of solar PV projects in India and international market.
To put that numbers into perspective, the whole solar utility scale installations in India was approximately 28.3 GW AC in FY 2026, as per MNRE data when you exclude rooftop solar. About 15% of solar projects commissioned in the country during last fiscal were by Sterling and Wilson, which is a very proud moment for all of us. Third, we continue to invest in building scale, looking at the growth prospects available to us. Our employees headcount have now touched about 3,500 compared to 2,005 a year ago. We are gearing up to do multiple GW scale projects for key clients as that is the way we see the solar market gearing up in India. Fourth, the operation and maintenance segments, which has still now been relatively a small contributor to top lines and profits, is beginning to reach an inflection point.
The total portfolio size has increased to 13.5 GW from 8.7 GW in last fiscal, making us probably one of the largest third-party O&M players globally. With a steady stream of our own EPC projects and third-party acquisitions, we believe the segments can be in a position to accelerate at a much rapid pace than in previous years. Finally, our financial performance, which Ajit will take you through in detail, has continued to improve despite some of the one-off litigations related costs we incurred in fiscal 2026. Now, let me give some additional color on our operational performance. New EPC orders inflow grew more than 43% year-on-year to INR 10,062 crore. While we had conservatively projected 15% growth in order inflows at the start of this fiscal year.
The unexpected geopolitical tensions, coupled with high commodity price fluctuations, meant that EPC ordering activities by developers in the fourth quarter was largely muted. During the fourth quarter, we bagged the prestigious new orders from Coal India, when we were declared L1 for 1.2 GW DC turnkey projects in Rajasthan. We also won a 50-MW project from a private IPP for a project in Maharashtra. Overall, in fiscal 2026, we bagged 12 new projects orders. Of these, 11 were EPC orders totaling nearly 5.2 GW DC, and one was a pure battery storage project of 790 MWh. In the Indian market, we won 10 projects totaling 4.8 GW DC with an order value of INR 7,659 crores. The growth in domestic order inflows in value terms was approximately 30% compared to last fiscal, showcasing the strong underlying momentum.
In the international market, we won two projects from South Africa worth $270 million, as we have reported previously. Another unique aspect of our orders this fiscal has been a larger skew towards turnkey projects, which accounted for nearly 70% of our total orders. As a result of the strong order inflow, our unexecuted order value is now at a record high of about INR 11,813 crores, compared to INR 9,096 crores last fiscal. Domestic orders comprise about 78% of current OoV or about INR 9,250 crores. We had reported revenue of INR 5,836 crore in domestic EPC in financial year 2026, so the growth visibility is good. Our OOV has projects where we have been declared L1 by PSU, and we will need final LOA to start execution in those, like the recent Coal India orders.
Our international OoV is about INR 2,562 crores, while our reported financial year 2026 revenue was INR 1,444 crores. Our international EPC business continues to grow rapidly due to the small base it has started from post-COVID. We would like to reiterate that the post-COVID international projects have been profitable, with gross margins higher than domestic EPC margins in many cases. Turnkey orders comprise about two-thirds of our current OoV, and BOS orders make up the rest. The skew towards turnkey is primarily due to recent Coal India and two South Africa projects within this fiscal. We remain confident of achieving our targeted margins in these projects. Now coming to the industry outlook. Our bid pipeline is pretty robust and heavily skewed towards India, as we are anticipating another good year to start with for solar EPC players.
Our current bid pipeline targets about 31 GW overall, of which India is more than 27 GW. Over and above, we also expect strong momentum from the battery storage market in this fiscal. In the international market, our key focus region continues to remain Middle East and Africa and select parts of Europe. We remain extremely prudent in terms of bidding in the international market and are very mindful of the risk. The post-COVID project wins and corresponding strong execution has been showing us that our strategy has been working well. In our core market, India has just crossed a landmark of 150 gigawatts of cumulative installed solar capacity. What makes this milestone truly extraordinary is the velocity at which it was accomplished. The last 50 gigawatts were added in just about 14 months, compared to the 11 years it took India to reach its first 50 gigawatt level.
I have no doubt that this growth will continue to benefit established solar EPC players like us. At current market dynamics, we are closely monitoring solar module prices. PV module prices globally have been rising since January, driven in part by production cuts in China and the removal of Chinese export tax credits effective April 1st, and due to the highly volatile commodity prices, especially key inputs like silver, et cetera. However, for our existing order book, we have adequate back-to-back pricing protection in place with suppliers, as well as appropriate contingencies buffers. On the Reliance front, we continue to remain in active dialogue. We have been putting in place strategies that will help us to quickly scale up as and when the need arises on the large multi-year, multi-gigawatt solar rollout.
With this, I'll ask Ajit to take you through the consolidated financial highlights. Thank you very much. Over to you, Ajit.
Thank you, C.K. Sir. Good morning, everyone. We are pleased to report two significant financial milestones we achieved during the quarter. First, we achieved our highest annual turnover since listing of INR 7,548 crore, which was 20% higher than FY 2025. Second, company achieved its highest ever reported quarterly PAT number since listing of INR 142 crore in quarter four FY 2026. Our top line growth has been driven primarily on the back of a growing domestic EPC business. For quarter four FY 2026, our revenue came in at INR 1,946 crore. Commodity price volatility impacted some of the supplies and material availability, and company had to defer some of the supplies and revise the execution plans accordingly in quarter four FY 2026, which led to the sequential and year-on-year drop in Q4 revenue.
On the gross margin front, our FY 2026 gross margin improved to 10.5% versus 10.1% in FY 2025, primarily aided by international EPC segment, where margins improved to 13.2% versus 8% in FY 2025. Q4 FY 2026 gross margins were strong in international EPC due to three projects achieving commissioning ahead of budget cost. Reiterating C.K.T.'s earlier point in his opening remarks on the attractiveness of current international projects in our portfolio. We reiterate that we anticipate EPC gross margins to range between 8%-10%, depending on whether they are turnkey or BOS orders. Quarterly fluctuations in margins are going to be dependent on type and quantum of projects recognized during a particular quarter. On the O&M side, we expect gross margin to stabilize at around 20% levels. Our operational EBITDA, which is operating revenues less recurring overheads, amounted to INR 444 crores this fiscal and grew 53% year-on-year.
The operational EBITDA margin was around 5.9%, and we believe these are beginning to trend towards steady-state levels. Our annual recurring overheads of INR 349 crore has remained steady this year and is at similar levels compared to last year, even with higher revenue growth this fiscal. It is reflective of the operational leverage in the business. On a quarterly basis, stronger gross margins from the international EPC segment and lower recurring overheads drove the operational EBITDA higher. Our Q4 FY 2026 reported EBITDA was also positively impacted by Forex gain of approximately INR 35 crore. Our Q4 PAT was a record INR 142 crore since listing. Reported FY 2026 PAT was negatively impacted by exceptional items of INR 611 crore, primarily related to litigation matters reported during Q3 and Q4 , leading to an annual loss of INR 296 crore.
Now coming to the balance sheet. Our debt levels have declined by INR 149 crore compared to last quarter, reflecting stronger cash flow generation and scheduled repayments done during the quarter. Our net working capital was at negative INR 329 crore compared to negative INR 407 crore in previous quarter, due to a pickup in vendor payments in Q4. We continue to make strong progress on fresh credit lines on non-fund and fund-based limits. We have cumulatively been able to raise fresh credit lines to the tune of nearly INR 2,800 crore. With this, we can now open the floor to questions and answers.
Thank you. We will now begin the question- and- answer session. Anyone who wishes to ask a question may press star and one on your touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. The first question comes from the line of Saurabh Srivastava with Arista Consulting. Please go ahead. Please go ahead, Mr. Srivastava. Mr. Srivastava, please unmute yourself and go ahead with the question.
Good morning, sir.
Just give me a moment. Mr. Srivastava, please go ahead with your question.
Yes. Am I audible now, sir?
Yes.
Sir, what sort of traction can we expect in the operation and maintenance going forward, though it has been a very wonderful appreciation from the last year? One question, and second, sir, by what time can we expect this Reliance New Energy to be on board, sir? Hello?
Ladies and gentlemen, the management line has been disconnected. Please be on hold while we quickly get them reconnected. Ladies and gentlemen, the management line has been reconnected. Please go ahead.
Hello, sir. Good morning, sir.
Good morning.
First of all, congratulations on a very good number, sir. My first question is, sir, there has been a decent traction in the operation and maintenance. Sir, what sort of view will you give going forward, especially the third-party operation and maintenance project? Sir, in the last call, you said that in the fourth quarter, we may see something from the Reliance New Energy. So is there any clarity, any vision, and what sort of margins can we expect from those projects, if any data available? Sir, any update on Nigeria project, sir? Is it still on, sir?
Yeah. Thank you, Saurabh. First question's on your O&M business outlook, right? Third party-
Right
O&M business. You've seen that there has been good tractions on the O&M orders in the last few quarters. All those, our own EPC O&Ms would be added, part of them have been added in the last quarters, and we'll continue to add. In the last quarters we have also bagged one orders from the large IPP company, Serentica, for about 900 MW O&M orders. The last years, all those projects which have been trial operation that has been completed, for them, the opportunity will be coming up. We are expecting apart from our own EPC O&M orders, the third party orders will continue to flow in.
Sir, are the third party orders annual or multi-year contracts, sir?
Mostly they are all multi-year, at least for 2-3 years. Some contracts are two years, most of them are for three years, and few of them are also for the very long time. It all depends.
What sort of margins do we plan to settle for these third party O&Ms, sir?
They're all in the range of 20%-25%. It all depends on what kind of orders or what kind of the scopes are, but it is not the fixed basically for every single orders will go for more than 25%. Of course, this all depends on the scope. In Indian markets, we are operating for more than 20% orders as of now.
This is gross margin?
Gross margins, yeah.
Right, sir.
On the second question of Reliance. Reliance, as you have been guiding the market sources, we have been deeply engaged with them. There has been discussions on the technical parameters, the kind of configuration of the projects that they're going to have and all. On all fronts, we are deeply engaged with them. Traction would be seen in this financial year, I'm sure.
Any clarity on margins, sir?
No. All terms and conditions, everything is yet to be decided, discussed. At this moment, we can't tell you any number.
The Nigerian one, sir?
Nigeria, yeah. Basically, it's on the slow pace. Again, the election coming in and all, so you can say that this will take much longer times, may not be happening in maybe this financial years. Yeah.
Thank you, sir.
Thank you. Thanks, Saurabh.
Thank you. A reminder to all the participants that you must press star and one to ask a question. Next question comes from the line of Sameer Dalal with Natverlal & Sons Stockbrokers. Please go ahead.
Yeah, hi. Congratulations on the good profitability. I have two questions. The first is, we saw some amount of slowdown or no pickup per se, if you can say, in the order execution given our order backlog. Q4 de-growth in the top line. If you can throw some understanding on why this is? The second question, would you be willing to give us some sort of guidance on what kind of revenue we can expect in the next financial year, given the fact that order book is more or less, I think, INR 1,000 crore more than what it was last year when we finished the previous year.
Does that mean that growth is going to taper down or do you think that order inflow in the first half will be so strong that you will be able to capture some of it and be able to grow stronger by the second half?
Yeah. Sameer, on the quarter four order pickup, the market has been generally showing less traction because of some uncertainty in the commodity pricing and all. All those orders that were slated to be concluded in Q4 , most of them have been shifted to quarter one. Not that our share has gone down. In general, the industry was seeing lower traction, slowdown on the order book side. Your second question was on the revenue guidance, right? Last year, our track record has been very good and with the pretty good EOE of over INR 11,000 crore and orders will keep on flowing. There's no question of tapering down. We'll definitely be growing at a reasonably, let's say, 15% growth. Yeah.
The 15% growth that you're targeting, does this include maybe future orders from Reliance or that would be an add-on to the 15% that you're giving us kind of a view on based on your current order book?
No, this is based on the current order books and the orders that we'll be getting in quarter three and quarter four. Because some of the projects would definitely be coming under execution. The orders in hand, and a few of the orders will be coming Q3, Q4. Reliance is excluded out of this. We don't consider Reliance in this because Reliance orders, unless it comes in, we can't commit anything on this. Right?
Fair enough. Last question, if you allow me. You talked about doing the battery energy storage part of it. What kind of tie-ups do you have with companies that are making all these batteries, so when you set up your storage? If you do a fully integrated project with setting up the solar plant with battery energy storage, just to understand, how would the revenue look for a similar project where you're purely doing a solar park versus with the battery energy storage, and what would be the margin profile of that kind of orders and business?
This financial year will definitely witness the combination of solar plus battery. As far as our strategic tie-up with few of them is concerned, so I don't have, as of now, the fully tie-up, but we keep on engaging with the manufacturers based on the opportunities coming on project-on-project basis. Before bid is submitted, we definitely get into the dialogue with the manufacturers to lock our prices with them so that any fluctuations during execution is not affecting us on our supply patterns or on the bottom line. Why I'm telling you this is the battery market in India itself is not very mature. There's no point at this stage when getting stuck up with one and then getting into trouble. That is on the battery part. Your second question was?
How would the revenue profile change and how would the margin profile change when we do these combined projects?
Margin profile on the battery also will remain same. We have been, let's say, working depending upon the supply of battery in our scope or only BOS for the battery. It will be around 8%-10%. If it is only, let's say, the BOS, margin could be little more, if it is supply, then the margin would be less, depending upon the type of the orders that is coming on. I'll say, let's say around 20%-25% in the Q2 , Q3 , not in quarter one, but Q2, Q3 is, 20% orders, 20%-25% orders add on will keep on happening. That kind of traction is being seen. For sure, the battery market seems to be very good for this year and onwards. Over 50 gigawatt hour battery opportunities are being seen.
Out of that, definitely we'll be getting some part on our shares.
Yeah. Fair enough. Thank you very much for the info, and I'll get back to you. Thank you for the time.
Thank you. A reminder to all the participants that you may press star and one to ask a question. Next question comes from the line of Bhavik Shah with Invexa Capital. Please go ahead.
Yeah. Hello, sir. Am I audible?
Yeah, Bhavik. Hi, good morning.
Good morning. My first question is how much of inflows can we expect from Reliance in the current financial year? Say, in terms of execution, when can we see the execution coming once we get the orders?
Just before this question, while I was addressing to Sameer, I addressed this part. I told you that we are deeply engaged with them. Discussions are happening on the technologies and all those kind of tie-ups and things by them.
I just want to understand where is it getting hindered? Like what is making it delay?
No, I can't be discussing more on these kind of things, but of course, Khavda being a large project, the cuts being a very large project, so they're evaluating the pros and cons on the various technologies and all. Finally, once they come to a point where they feel that the project is now quite fully launched on, and thereafter only our role starts. We are fully engaging them to support all those things, understanding of the project, technical parts and other things. As and when it comes, then we'll come back to you on the size of the orders and the timing of the orders and all.
Okay, until now, we don't see any clarity in near term, right?
No, clarity is that we are deeply engaged with them and the project is on with them. The largest shares maybe we'll be expecting out of the project that will be coming for EPC stage.
Okay. Sir, in terms of our margins this quarter, was there any one-off in terms of completion or anything? Because we have not seen such margins when our revenue has dropped, but our gross margins have improved. What are those reasons which led to that improvement?
There were three projects, international projects, which were towards the fag end of completion. There were certain savings over the budgeted cost that has improved our overall margin, particularly that came from international projects.
Okay. Because in our presentation, you have guided, like we'll continue to do at 8%-10% gross. That's the reason I'm asking. Is it a one-off we should consider?
It's like savings over the budgeted cost in international projects.
Okay. Sir, in this savings, how do we see that INR 11,000 crore order book in terms of our execution? How much of it is a fixed order book? How much of the raw material inflation will affect this?
All major items are tied up. Mostly, let's say, for the portions of the turnkey projects where the module comes up in our scope. There also we have tied up back-to-back with the suppliers. The rest of the project, see the project timelines are short. Six to nine months, let's say, or one year. The fluctuations of the pricing of commodities also will not be impacting much.
When you say six, nine , 12 months is my project execution, and I have my INR 11,000 crore order book, so can we see a INR 10,000-11,000 crore execution this year then?
I mean, these orders, a few of them are orders coming where the NTP is still to be received. Those projects would be, let's say, for 15 months, 14 months, but part of that will be coming in this fiscal. On the revenue side, I mean, we'll be growing, let's say, at the 15% growth rates from the last quarter, last year.
Okay, sir. Understood. All the best.
Thank you. A reminder to all the participants that you may press star and one to ask a question. Next question comes from the line of Jayesh Shroff with Cask Capital. Please go ahead.
Yeah. Hi. Thanks for giving me opportunity. I had couple of questions. In terms of the recent hike in raw material prices and coupled with a very volatile USD, INR rates, you think that this could adversely affect our margins? Although you have already mentioned that your raw material supplies are tied up, but can rupee dollar play a spoilsport in terms of margins?
Not really. Because if you see the dollar valuation part of things, that is not to our account. Basically, most of the need for domestic supply we are purchasing from India, so they're all fixed contract and such fluctuations is not impacting us. For the internationals, I think we'll be benefiting from the variations in some ways.
In international there is a natural hedge available because our revenue is also in USD, so there won't be any impact in terms of
Okay.
Significant impact in terms of any foreign exchange variation.
All right. Net, a depreciating rupee is actually beneficial to us. I mean, that's what is reflected in this quarter's result also.
Yeah, for the international markets, sure. Yeah.
Okay. Secondly, in terms of our wind escalation to get into wind energy projects also, what is the status there?
We are doing one project for one of our clients, and the project's on track. To remove the intermittency and all the orders inflow this year, we are expecting that few... I mean, there will be better tractions on the wind projects. With one projects which we are doing is already on track, we are expecting that we'll be adding few more into the wind side.
Okay. When you're giving a guidance of about 15% growth, that would also include the potential wind projects.
Few of them, yes, it could be. This is all inclusive.
Is it over and above our guidance? I mean, I just wanted to check that.
No. That would be including battery, wind, and solar, everything. Yeah.
All right. Okay. Just one more thing. I know you've been asked a lot of times about Reliance New Energy. You've answered so many of them. Any guidance or any idea in terms of when could the execution start?
So just to-
At least when could the order inflow start for us?
The current year it should happen, but, I mean, just to pinpoint that it is going to happen this quarter or next, I'm not in a position to tell you now, but this year definitely it should happen.
Okay. I don't want to push you much on that, but I mean, this year, it will not happen that this year means Q4 of FY 2027, right?
I'll say no comment at this point.
Okay. All right. Just one last thing, I mean, we've taken a lot of hit on our international portfolio in terms of taking the write-offs and everything. Is every kind of problem that we face there is behind us, or is there something more that we need to provide for?
We are almost done, but there are few cases in the U.S. market, so few under court cases, so that will take some time. Yes, you can say other than the U.S. cases more or less we are done.
What would be the approximate value of those likely hits, I mean, those projects?
Since it is a court case and it's all we have, we are not considering that we'll be losing the case and therefore the provision to be made at this stage because.
No. Forget the provision, but what is the value of the total contracts or for the cases that we are fighting for?
We are out of money for around more than INR 200 crore and that is predominantly backed by the promoters.
Okay.
Under an FTC agreement.
All right.
On the U.S. case.
INR 200 crore is the worst case scenario if we lose all the cases.
That's backed by promoter indemnity.
Yeah. That's backed by promoter. I mean, at least we'll have to take the hit first and then recover the money. INR 200 crore is the worst case scenario, right?
No, could be more, in fact. Yeah. We'll come back to you. I think on these numbers, we'll come back to you, right.
No, I mean, because this is important because you know the performance of stock has gone down drastically, primarily because we've taken so much of a hit. Now after taking so much of a hit, you're still saying that it could be a bigger number. How big that number could be? You know how many cases you are fighting for and what is the total amount of cases that we are fighting for?
See, I think at this point, since it is in litigation, and it is expected to take time, it is difficult to ascertain a certain number. I think what Ajit has already alluded to is the point that as a company, we are already cash out on INR 200 crore, and most of it is indemnified. So there's no question of taking any hit on this INR 200 crore. It is money that will come to the company from the promoters once the case is settled. Yeah. What C.K. was alluding to and what we've always maintained is, if the case goes adversely against us, then there is always a chance that there may be additional costs. For example, in the last U.S. case, there were litigation costs which we had to bear, which was over and above the settlement that had to happen.
Those are additional things, and those can only be ascertained at the time that the final resolution on those litigations happen. If it is in our favor, we won't have to pay anything. If it goes against us, then there could be additional cost. I think that's the point that C.K. was trying to allude to here, and that's exactly the reason why we are unable to put a number to it at this point of time as well.
No, I completely agree. If you're, let's say, fighting for a total of INR 200 crore, the litigation cost will be some percentage of that. It will not be a multiple of that number, right? Is that understanding correct?
Sir, can you just repeat that?
If we are saying that our total outstanding cases, the amount total that we are fighting for is about INR 200 crore, and we are unable to put an additional number to that because that could be some additional litigation cost if we lose, that we will have to pay. That litigation cost or that additional amount would be a percentage of this INR 200 crore. It will definitely not be multiple of INR 200 crore, right?
The point is that we are speculating at this point on what that amount could be, isn't it? Our view has been that we are in a very strong position with respect to this regard to this case, and effectively that this case will go in our favor. To say that, first of all, the case will go against us and then therefore the quantum of amount that.
Sir, we are talking of worst case scenario. My question is that if we have to pay additional litigation costs, it cannot be more than INR 200 crore. It can be 10%, 20%, 30%, 40% of INR 200 crore, right? It cannot be 2 times INR 200 crore or 3 times INR 200 crore. That's what I'm asking.
Litigation cost, yes. It all depends on the judgment, is the point, right?
Claims and counterclaims from the party.
Okay, there could be additional penalties. This is the worst-case scenario, again, I'm repeating, but there could be additional penalties over and above INR 200 crore. That's what you're saying.
Yeah, if we lose the case, which chances are very remote.
Okay. What is the likely timeline? You have any idea on this?
Since it is under court, it can take maybe two years because U.S. court, all of you are aware that it's taking much longer times. It may take two years, in fact.
Okay. We've settled a few cases earlier where both the parties have withdrawn the cases and all. Considering a large write-off that we've taken, are there any chances of recoveries or we would want to settle it where both the parties just withdraw the cases?
No. Our efforts are always to mutually agree and settle the case in our favor. If that happens, then this is a win-win situation, right? If it doesn't happen, then in any case, we are either in the arbitrations or we are into the court. We will wait for the judgment from either arbitration panel or from the court.
Okay.
Our efforts are always there to settle if it comes to our terms and conditions.
All right. Okay, that's it from my side. Thank you, sir.
Thank you.
Thank you. Next question comes from the line of Nirmal with Aditya Birla Sun Life AMC Limited. Please go ahead.
Hello, sir. Thank you for taking my question. Am I audible?
Yeah. Hi, Nirmal. Good morning.
Hello. Yes, thank you, sir, for taking my question. Sir, you discussed briefly about BESS as a space. I just wanted to understand how are you approaching this in terms of building your order book in general? In addition to that, just wanted to understand what are the CapEx and timelines like? In terms of customer expectations, are they preferring standalone or hybrid, and how is your BESS capacity determined by an IPP?
This is a good question, basically, Nirmal. If you look at the overall industry scenario, one is that megawatt capacity addition from solar and wind is projected, which is on to the demand. Let's say from the Government of India target point of view, still we have to reach from, let's say, 250 MW to 500 MW. Solar alone will have a space for 150 MW additions, and then rest of the other renewables. Now, since the energy generated from the renewables has never been at par with the thermal power plants or the fossil fuel power plants, and therefore there has been a strong urge to add the batteries, the hybrid will continue. Therefore, the wind also will take traction, and the battery also will keep on adding.
On the current reports published by MNRE, we are expecting that around 60 gigawatt-hour kind of battery opportunity will be coming. There is also policy taken out by ministry that, with every single solar plant installation, there has to be two hours of this capacity additions. Now again, it depends on whether it is for the only utilities for two hours as per the mandatory condition requirement or from the captive point of view where people would be looking for round-the-clock battery additions. The battery storage opportunities will definitely keep on adding to this, and therefore we are also equally prepared. As of now, when you give the guidance for our revenue growth, this would be mixed of the battery, and then the solars and part of wind also. From the CapEx perspective if you see, then there's huge opportunities coming from all three.
Okay. For like a standalone project, what are the CapEx intensity like?
As I said, this is C.K. Out of our current order book, OoV, when you say 11,000 odd, we have around close to INR 300 crores coming from the battery. The orders that will inflow, that will come as a inflow in the rest of the quarters, will determine on the kind of the opportunity that will be coming in. On the conservative number, you can say that, let's say in our new orders books, I'm expecting 20% order to come from the battery. Rest will be from the solars and all.
Okay, sir. Just one last question. Currently, when you are approaching customers, they're preferring hybrid over standalone. Is that understanding correct? No standalone BESS projects, right?
No, there are standalone BESS projects also because as per all those projects that have been built only as a solar, they are also as per their obligations, now they are adding some 20%, 15%, 10%, depending upon the hours of energy requirement. That is also coming up. Both ways. The projects that will be coming as a hybrid for solar and battery or maybe wind and battery or maybe solar, wind, and battery, and there will be a standalone battery also. All three kinds of the market opportunities are being seen.
Okay, sir. Thank you. Thank you so much for the answers.
Thank you.
Thanks, Nirmal.
Thank you. Next question comes from the line of Akash Mehta with Canara HSBC Life. Please go ahead.
Hi, sir. Just I have this one question. Just wanted to understand on Reliance again. Historically, when you mentioned that you are engaging with Reliance, what exactly Sterling and Wilson has done till now? Have visited the ground and done some checks or what exactly is happening in terms of the engagement here?
No, on Reliance, see, we are the EPC players. Reliance is developer. Right? Since it is a large development project by them, so the mode of executions are being decided by them. Supply to their scope, part supply in the EPC scope, executions by EPC or the construction company, all those things are being discussed. Since it is a huge investments, therefore it's important that there should be enough time for them also to decide on the selection of the technology and all those kind of things. Our involvement in this project is that we, as a very strong and maybe India's number one EPC player in solar, have been deeply engaging with them in discussions of every single bit of things. Right?
Once it comes for the final rollout stage, then our expectation is that we should be getting the largest share from them.
Okay, thank you.
Ladies and gentlemen, the management line has been disconnected. Please be on hold while we quickly get them reconnected. Ladies and gentlemen, the management line has been reconnected. Please go ahead. I'll introduce the next participant. That is Faisal Hawa from H.G. Hawa & Co. Please go ahead.
Where do we stand on the bank ratings? Is there any chance of any improvement, and are we finding it now difficult to get BGs issued because of the downgrade of our ratings?
No, sir, there is no downgrade in the rating.
What are the kind of terms they have set if we have to improve our ratings? Does it mean addition to any kind of equity?
First question, there's no downgrade in the rating. We are rated as BBB+. In the beginning of the year, we were rated as BBB-. During the year, we have been upgraded for a rating by two notch. In terms of support from the bank, we have been able to secure broadly INR 2,800 crore new credit lines during the last fiscal. Bankers are supporting. In fact, recently we got additional sanction from our lead bank also, and we have added few new banks in our consortium during the year. We are getting support from the banks. Our cost for LC and bank guarantees also got reduced during the year significantly. The moment we get additional orders and we have better visibility in terms of revenue, we are hopeful to get additional credit lines also based on the requirement.
Sir, about Adani orders, do you think that those may be much quicker because they are already on the go in Khavda and generally they are much more agile in the solar space?
Yeah. Basically, this timeline for this project execution is around 13 months, and the project is doing really well. That's the pace that we are keeping, and then orders will keep on flowing, I believe. That's our long-term understanding with Adani is right.
Sir, how do you see the international space going? Is there any chance that we get some larger orders from other places apart from the Nigeria order? Can you give some color as to what kind of bidding competition was there in the Coal India order, which we recently won? Has the bidding velocity subsided?
No. Coal India orders, we'll say yeah. Coal India, they have a good portfolio basically coming in. That was their, I think, second project of the large size. There were quite a few demos of the bidders in this, including L&T and the larger players. Of course, we have been declared L1. NTPC is still awaited. With this, we are expecting that we should be participating in the Coal India tenders as well. On the PSE front, if you say NTPC, Coal India, SJVN, they will remain to be our large developers. On the international order booking side, yes, these years you can see some skewness towards the more international projects. That's the traction we can clearly see. Our focus area still remain the Africa, Middle East, and select countries in Europe.
The size and the quantum of the orders I can't commit to at this stage, but then you can always expect that from the last years, the order book positions in international markets will definitely be more than that. We are closely working on few of the projects which are of fairly very large size, and we are in better positions to get this order.
Okay. Thank you so much, sir. I appreciate your answering my questions so well.
Thank you. Thanks.
Thank you. Next question comes from the line of Amish Kanani with Knowise Investment Managers. Please go ahead.
Yeah. Hi, sir. Sir, congrats on Coal India order L1, at least as of now. Sir, the observation is that we are able to engage with Reliance, Adani Group, and also PSUs, such as Coal India, which means it reiterates our market leadership position of all the CapEx on the solar side. The question to you, sir, is one, you had mentioned that we have an X kind of order book pipeline, and last year we were successful in achieving, say, 15% market share in all-India spending of solar. Sir, based on your understanding of this order book pipeline, which may be a subset of all-India orders, what is the likely win rate? Maybe a large percentage variation also may happen because a large Coal India order type win may not be predictable.
Any range of a likely win ratio would really help us to understand this year's order book growth, if at all we can get some visibility there, sir?
Historically, if you see that our hit ratio have been around 25%-28%, right? Even today, with respect to the last year's orders and the overall market positioning that we have, our market share in the solar space is around 25%, more than 25%. Right. With the next couple of years, four years to achieve the target of 2030, the opportunities are, if not, we'll say it is more than the opportunities that have been made available in the last year also. With this run rate, our cap market share would be definitely more than 25%. That's what I can give you at this stage.
Sure, sir. That's helpful. Sir, what are the key reasons why this slowdown has happened recently, and because of which this fourth quarter order book was a bit slower? Historically, we understood the execution timeline was 6-9 months in our case. You're mentioning one of the faster moving order also is now, say, 13 months. Maybe our ticket size of the order book has grown, which is probably taking this. If you can give us some sense of, one, outstanding order book execution timeline for the order book. Second, sir, what are the key reasons which is holding up this overall order pace? Is it more due to these international issues that you had mentioned about pricing of key material, including China export withdrawal subsidy that you had mentioned or silver prices?
Is it Indian issues in terms of land availability and some old issues which are continuing to bother us?
Yeah. Basically there are a couple of reasons. For the last quarter slowdown, I will say that there was basically commodity price surge. From January onwards, if you see the LME prices for copper, aluminum, other things going up. The developers chose to probably take a back seat for some time, I mean, just pause. That was one. For the larger industrial perspective, if you see the connectivity is particularly in one of the regions, Rajasthan. There have been two major areas in India, Rajasthan and Gujarat. In Rajasthan, some of the projects, the substation projects and so on, connectivity issues are really cropping up. Around more than 40 gigawatts of kind of things are where the PPA is already signed, but the connectivity is not there. There was a GIB issue as well.
Those were the reasons why the projects development in Rajasthan were basically delayed. Now since GIB decisions from the court has already come and the substations, all those which were supposed to be commissioned in 2027 or maybe early 2028, I think delayed by quarter of weeks, a quarter of months, right? 2028 would be the time when then all those things will clear. I'm understanding that basically while it has impacted the development in Rajasthan, but going forward, the kind of the opportunity that we have seen, that will keep on coming.
Okay. Sir, this year may not be as bad as, say, last year in terms of execution? Is that the-
No, it should not be as bad.
Hopefully it should not be as bad.
Sure.
Sir, the last question is around the exceptional side. The question is, one, we provided for that INR 611 crore of this year's exceptional item because of which overall year is at a loss. The question is, one, is there any outstanding payment that we've done for which the Erstwhile promoters need to pay us and that can come as this year's income as a reversal, one. Two, the out-of-court settlement that you have done which press release was given yesterday, is there any upside or downside in terms of known and several cases? Just if you can update us there.
On the press release, whatever we have given yesterday on that settlement, there is neither any upside nor any downside. The case has been closed and without any liability or payment obligation, either of the party. On that INR 611 crore write-off, whatever we did, there was some payment outgo from our side to the party, and we have already paid the full amount by end of this quarter. This case was un-indemnified matter. There is nothing which can be recovered from the promoter on this particular case. On other cases, based on the crystallization of the liability and closure of the cases, we can raise the claim on the Erstwhile promoters, whatever cases are crystallized by 30th September, and we'll do that based on outcome of all those cases.
Okay. As of now, there is no claim on promoters, and they have been paying as and when that is crystallizing, sir. Can we assume that?
That's right.
Okay. Thanks.
Last year, whatever claims were raised on the promoters, they have paid it in full, around INR 180 crore.
Okay. Thanks a lot for all the clarification, and all the best, sir. Thank you.
Thank you.
Thank you. Next question comes from the line of Deepak Mundra with Sapphire Capital. Please go ahead.
Yeah. Am I audible, sir?
Yeah. Hi, Deepak. Morning.
Yeah. Hi. Good morning. Sir, just few queries from my side. Now, the bid pipeline that you have mentioned is around close to 31 gigawatt, right? Can you also tell me in terms of rupees, crores, how much would that amount to?
Overall opportunities, if you see, that is over INR 50,000 crores, basically. Maybe INR 55,000 crores. Right? Overall. As you have been out of this, let's say our market shares will continue to be 25%.
Uh-huh.
Order books would be in the range of 15% more than the order book that we have this year. Something like this. Right?
15%, currently close to INR 12,000 crores, so 15%. Basically close to INR 14,000 crores order book you may target by FY 2027 end. Would that be a fair assumption?
Yeah. Basically, depends on a lot of factors. You have seen the geopolitical wars and all those things. Conservatively, we feel that we must be growing at 15% growth rate, right, from the last year. Yeah.
15% growth rate, both in order book as well as in revenue, is what we are looking at, right?
I think so. Yeah, you're right.
Okay, understood. You had mentioned, I think, gross margin, in the presentation, gross margin from EPC business to stabilize around 8%-10%, and O&M at 20%. This is the medium-term view we have on the margin front, right?
Yeah, right.
That's right. Depending on the nature of the job, whether it is turnkey or only BOS.
Correct. What does it translate to EBITDA margin? I mean, 4%-5%, would that be a fair number to look at for us?
Yeah. Our overheads would be in the range of 4%-4.5% max to max.
Uh-huh.
Yeah. We can get to
4%-4.5%. Even if you assume an average of, let's say, 9%, so yeah, 4%-5% would be a fair range, whereas as a company we can work with, right? Hello?
Yes.
Yes.
Okay. That's right. Okay, understood. In terms of BESS, I think you mentioned about 20% of orders you expect to get from BESS opportunities going forward. Would that be right?
Yeah. That's the basically kind of mixed trend which is being witnessed in the market. Hybrid portions will definitely be adding on. Keeping that opportunity in mind, we expect that our orders will be also adding around, let's say, 20% of the overall market in the segment of battery and storage.
Okay. What's the margin profile we expect in BESS?
It would be same as the solar. The margin profile will not change.
8%-10% gross margin.
Yeah, 8%-10%. If it is, let's say, only the BESS, only the balance of supply for the battery project, the standalone battery project, could be 10%. If it is including the supply of the battery, then it could be 8%. Yeah.
Okay, understood. Fair point. I got it. Yeah, that would be it from my side. I wish you all the very best. Thank you.
Thank you.
Thank you. Thanks, Deepak.
Thank you. Ladies and gentlemen, due to time constraint, that was the last question. With that, we conclude today's teleconference. On behalf of Sterling and Wilson Renewable Energy Limited, that concludes this conference. Thank you for joining us. You may now disconnect your line.