Major Breakout for the Small Cap Company
Sterling & Wilson Renewable Energy Ltd (SWREL), a small cap company backed by Reliance, saw a 5% gain after securing a massive ₹1,381 crore contract from Adani Green Energy. The deal is part of a five-year strategic partnership to deliver 1 GW of solar installations to the Khavda Renewable Energy Park in Gujarat. With this triumph, SWREL's overall order inflows for the fiscal year have now exceeded ₹6,450 crore, solidifying its leadership in renewable EPC and O&M. Because of its rapid order speed, investors are wondering if this small cap company is one of the best stocks to buy in the renewable market.
With a market cap of Rs 5,483 Cr Sterling & Wilson Renewable Energy Ltd saw its shares hit an intraday high of Rs 238.50, which is 5.5 percent higher than the previous close of Rs 225.95.
With a market cap of Rs 5,483 Cr Sterling & Wilson Renewable Energy Ltd saw its shares hit an intraday high of Rs 238.50, which is 5.5 percent higher than the previous close of Rs 225.95.
Details of the New Adani Green Solar Project
On Monday morning, SWREL declared that it had obtained a significant EPC contract for three large solar power plants in Khavda that included onsite services, product delivery, and BoS (Balance of System) packages. A long-term Strategic Partnership Framework Agreement was also signed with Adani Green to enhance collaboration between the two industry titans. The company is currently developing a 6 GW solar project in the Khavda region, of which 5 GW should be delivered this fiscal year. This new order bolsters SWREL's increasing domestic EPC portfolio and illustrates India's growing need for renewable energy infrastructure.
Strong Order Book and FY26 Growth Outlook
The company's order inflows totaled ₹7,051 crore in FY25, up 17% from the previous year, with 84.5% of business coming from India and 15.5% from foreign regions. SWREL has added five major projects during Q1FY26, including its first overseas solar EPC project and many domestic turnkey orders. Globally, it managed to secure a 115 MW, USD 120 million project in South Africa. Among the significant domestic successes include projects in Gujarat, Rajasthan, Uttar Pradesh, and a large private IPP BoS agreement. FY26 is anticipated to be a prosperous year with a 25.2 GW solar EPC pipeline and an unexecuted order backlog of ₹9,287 crore, increasing the company's attractiveness to investors searching for the best stocks to buy in the clean energy space.
Financial Performance: Sharp Revenue Rise but Profit Pressure
From ₹1,031 crore in Q2FY25 to ₹1,749 crore in Q2FY26, SWREL's revenue grew by an incredible 70% year over year. On a quarterly basis, revenue did, however, marginally decrease by 0.7%. Profitability is still a problem, as the company reported a ₹478 crore loss in Q2FY26 compared to a ₹39 crore profit in Q1FY26. Even in cases where performance is unpredictable, the size of order wins and long-term contracts offer insight into future income stability. Investors must consider both long-term industry growth and financial fluctuations when evaluating small-cap firms with a renewable focus.
A Global Renewable Energy EPC Leader with Strong Backing
With a portfolio of more than 24.4 GWp and an O&M capacity of 9.1 GWp spread throughout 28 countries, including the USA, UK, UAE, Australia, and Saudi Arabia, Sterling & Wilson Renewable Energy Ltd. has established a stellar name on a global scale. The company continues to provide top-notch solar EPC, O&M, and hybrid renewable solutions under the solid Reliance group parentage. SWREL is one of the small-cap firms that investors watch when looking for the finest stocks to purchase in the renewable energy sector because of its growing domestic and international presence, which positions it as a potential long-term growth story as India speeds up its clean energy transformation.
Conclusion
Sterling & Wilson Renewable Energy Ltd stands out as a high-potential small cap company making significant strides in India’s renewable energy expansion. The recent ₹1,381 crore Adani Green order, coupled with a strong multi-GW project pipeline and robust international footprint, reinforces its position as a key player in the solar EPC space. While short-term profitability remains under pressure, the company’s long-term prospects are supported by strong parent backing, surging order inflows, and a rapidly growing clean energy market. For investors evaluating the best stocks to buy in the renewable sector, SWREL presents a compelling story—one driven by scale, strategic partnerships, and long-term sectoral demand.
Disclaimer
This blog is for educational and informational purposes only and should not be considered financial, investment, or trading advice. Stock markets are subject to risks, and past performance does not guarantee future results. Always consult a SEBI-registered financial advisor before making any investment decisions. The companies or stocks mentioned here are included solely for learning and research purposes—not as recommendations. NexGen Trade encourages readers to perform their own analysis and invest responsibly.
Frequently Asked Questions
Why did Sterling & Wilson Renewable Energy Ltd (SWREL) stock jump 5%?
SWREL stock surged 5% after securing a massive ₹1,381 crore EPC order from Adani Green Energy for 1 GW solar projects at Khavda, boosting investor confidence.
Is SWREL considered a strong small cap company in the renewable sector?
Yes, SWREL is a high-potential small cap company with strong parent backing, a large solar EPC portfolio, and growing international presence, making it appealing to long-term investors.
How large is SWREL’s current order book?
SWREL has an unexecuted order backlog of ₹9,287 crore and a strong FY26 pipeline of over 25.2 GW, highlighting strong revenue visibility.
What makes SWREL’s deal with Adani Green significant?
The ₹1,381 crore contract includes BoS packages for three major solar plants and is part of a five-year strategic partnership, strengthening collaboration between two renewable energy leaders.
Is SWREL among the best stocks to buy in the renewable energy space?
While short-term profitability challenges exist, SWREL’s rising order inflows, global projects, and long-term demand outlook make it a potential candidate among the best stocks to buy in the renewable sector.
What is SWREL’s financial performance in recent quarters?
SWREL reported 70% YoY revenue growth in Q2FY26 but posted a ₹478 crore loss due to cost pressures. However, strong project wins indicate potential recovery ahead.
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