Sterling & Wilson Renewable Energy Ltd Management Discussions

Global Economic Overview1

The world economy grew at 3.3% in 2024 at similar levels in 2023, amidst geopolitical tensions. There was a noticeable disparity in growth across countries, with a pick-up seen in the US in contrast to slower growth witnessed in the Euro region. Global headline inflation is expected to decline to 4.2% and 3.5% in 2025 and 2026, converging to the target earlier in advanced economies than in emerging markets and developing economies (EMDEs).

Region (% change YoY)	2023	2024	2025	2026
Global economy	3.3	3.3	2.8	3.0
Advanced economies	1.7	1.8	1.4	1.5
Emerging markets and developing economies	4.4	4.3	3.7	3.9
India*	9.2	6.5	6.3	6.5

Source: World economic outlook - April 2025 by IMF; *data is taken from Mospi and World Bank. Also, 2023 is FY24, 2024 is FY25, 2025 is FY26 and 2026 is FY27

World GDP growth is estimated at 2.8% in 2025 and at 3% in 2026, led by the swift escalation of trade tensions and extremely high levels of policy uncertainty. A series of new tariff measures by the United States and countermeasures by

IMF Economic Outlook, April 2025)

2Mospi its trading partners have been announced and implemented, leading to a global trade war-like situation. New challenges arise as global commodity prices become volatile, supply chains may witness disruption, and global economic growth may slow down. A ceasefire between Russia and Ukraine are expected to impact the global economy positively.

Indian Economy

The Indian economy exhibited strong resilience and emerged as one of the fastest-growing major economies in the recent past. Robust domestic demand, structural reforms, and policy support have paved the way for economic growth amidst global uncertainties. According to the Second Advance Estimates, Indias GDP growth is expected to be 6.5%2 in FY 2024-25, lower than the 9.2% GDP growth in FY 2023-24. Manufacturing, services, and infrastructure investment sectors witnessed good traction. Strong export growth was seen in pharmaceuticals, textiles, and engineering goods.

Inflation in November 2024 was 5.8%, well above the RBIs target of 4%. Continued global supply chain disruptions and commodity price volatility heightened inflationary pressure in FY 2024-25. However, with gradual easing, retail inflation reduced to its slowest pace in over six years (since August 2019) in March 2025 to 3.3% on the back of lower food prices. This paved the way for rate cuts by the RBI. The RBIs Monetary Policy Committee while maintaining a neutral stance, reduced the repo rate by a total of 100 basis points to 5.5% in FY 2024-25 led by three rate cuts of 25 bps on February 7, 2025 and April 9, 2025 each, and by 50 bps on June 6 2025. Consumer Price Index (CPI) inflation for FY 2024-25 is projected at 4.9% compared to 5.4% in FY 2023-24.

India has been consistently committed to a substantial focus on green energy growth and sustainability. In the Union Budget 2025, allocation for the Ministry of Power was increased to INR 21,847 crore, up from INR 19,845 crore in the previous budget. The Ministry of New and Renewable Energy allocation saw a substantial rise to INR 26,549 crore, up from INR 17,298 crore in the last budget. The government is encouraging clean-tech manufacturing, nuclear energy expansion, and financial stability of power utilities and critical minerals.

The National Manufacturing Mission has been launched to establish India as a global manufacturing hub for clean energy. The initiative is supported by a funding increase: a 60% rise in solar energy to INR 24,100 crore, a 100% increase in green hydrogen allocation to INR 600 crore, and an 80% higher allocation to Pradhan Mantri Surya Ghar Yojna.

According to the World Bank, the Indian economic growth is estimated at 6.3% in FY 2025-26 and 6.5% in FY 2026-27. The governments push for digitalisation, financial inclusion, and ease of business has attracted FDI primarily due to the production-linked incentive (PLI) schemes to boost domestic manufacturing. Other factors indicating robust future growth include healthy monsoon prospects, expected recovery in industrial activity, and positive household consumption trends aided by the recent tax reliefs.3

Global Energy Industry4

According to the International Energy Agency (IEA), global energy demand grew by 2.2% in 2024, reaching nearly 650 exajoules (EJ). The growth was faster than the annual average of 1.3% witnessed between 2013 and 2023. The power sector fuelled this increase as electricity demand surged by 4.3%, above the 3.2% global GDP growth rate, driven by record temperatures, electrification, and digitalisation. A spike in electricity consumption reflects structural trends such as growing access to electricity-intensive appliances like air conditioning, a shift towards electricity-intensive manufacturing, growing popularity of electric vehicles, increasing power demand from digitalisation, such as data centers and AI, and the increasing electrification of end-uses.

Key global growth rates and the share of energy demand growth by source, 2024

Renewables accounted for the largest share of the growth in global energy supply at 38%, followed by natural gas at 28%, coal at 15%, oil at 11%, and nuclear at 8%. Emerging markets and developing economies accounted for over 80% of global energy demand growth. The energy demand growth rate in these regions slowed in 2024, falling to below 3%, down from nearly 4% in 2023. Advanced economies saw a notable return to growth in energy demand after several years of decline, with demand rising by almost 1%. The rise in energy-related CO2 emissions slowed to 0.8%, compared with 1.2% in 2023.

Energy security is facing heightened risks due to geopolitical tensions and global fragmentation. Rising costs and supply chain issues have led to a dwindling of action on reducing emissions. Total CO2 emissions have plateaued over the past decade despite the slowdown in 2024, led by the continued decarbonisation of energy systems and an imminent shift from coal to gas and fossil fuels to renewables. Decreasing CO2 emissions is the need of the hour to achieve the net-zero target and stabilise global temperatures.

3World Bank - Global Economic Prospects June 2025 ‘International Energy Agency (IEA)

Global Renewable Energy Industry5

In 2024, 585.2 gigawatts (GW) of total renewable capacity were added globally, taking the total to 4,448 GW, a 15% increase, the highest annual increase since 2000. This is a new milestone in renewable capacity addition, with a second consecutive year adding over 500 GW of capacity. The steady increase in renewable energy results from ever-increasing policy support and declining costs, especially for solar PV. However, significant disparities are observed among countries and regions. The share of renewables in total capacity expansion increased substantially in 2024, reaching 92.5%, compared to 85.8% in 2023. The renewable share of total installed power capacity also increased to 46.4% in 2024 from 43.1% in 2023.

Asia accounted for the majority of new capacity at 72%, increasing its renewable capacity by 421.5 GW to reach 2,382 GW (53.6% of the global total). China dominated the new capacity addition in Asia, totalling 373.6 GW. Europes capacity expanded by 70.1 GW (9%), with Germany contributing significantly to this growth, adding more than 18.8 GW. Ukraine experienced a notable decline, with its capacity decreasing by more than 7.5 GW. North Americas renewable capacity expanded by 45.9 GW (8.7%), which is driven by installations in the United States. Africa continued to grow steadily, with an increase of 4.2 GW (6.7%) driven primarily by Egypt, Ethiopia, and South Africa.

Renewable power capacity by region

1 North America
Capacity	573 GW
Global share	12.9%
Change	+45.9 GW
Growth	+8.7%

 

2 Central America and the Caribbean
Capacity	19 GW
Global share	0.4%
Change	+ 0.6 GW
Growth	+3.2%

 

3 South America
Capacity	313 GW
Global share	7.0%
Change	+22.5 GW
Growth	+7.8%

 

4 Europe
Capacity	849 GW
Global share	19.1%
Change	+70.1 GW
Growth	+9.0%

 

5 Middle East
Capacity	40 GW
Global share	0.9%
Change	+3.3 GW
Growth	+9.0%

 

6 Africa
Capacity	67 GW
Global share	1.5%
Change	+4.2 GW
Growth	+6.7%

 

7 Eurasia
Capacity	131 GW
Global share	2.9%
Change	+8.3 GW
Growth	+6.8%

 

8 Asia
Capacity	2,382 GW
Global share	53.6%
Change	+421.5 GW
Growth	+21.5%

 

9 Oceania
Capacity	74 GW
Global share	1.7%
Change	+8.7 GW
Growth	+13.3%

Renewable power capacity by energy source

To achieve the global goal set by IRENA, as agreed at COP28 of reaching 11,174 GW of renewable energy by 2030, this growth, though robust, needs to gain pace further. If the growth rate seen in 2024 is sustained to 2030, it would yield only 10.4 TW of renewables by 2030, falling 0.8 TW (7.2%) short of the target. To achieve the target by 2030, 16.6% capacity additional growth is needed hereon.

Globally, more than 5,500 GW of new renewable energy capacity is planned between 2024 and 2030, almost 3x the increase witnessed between 2017 and 2023. Solar PV will account for 80% of the growth, led by the construction of new large solar power plants and increased rooftop solar installations by companies and households. The wind sector is expected to be the second-largest contributor, with the rate of expansion doubling between 2024 and 2030, as compared to the period between 2017 and 2023.

Almost 60% of all renewable capacity installed worldwide between 2024 and 2030 will be in China, making China home to almost half of the worlds total renewable power capacity by 2030, up from a share of a third in 2010. While China is adding the biggest volumes of renewables, India is anticipated to witness the fastest growth rate among major economies.

Indias Renewable Energy Industry6

Indias energy landscape has drastically transformed into a greener, more sustainable energy future. India is moving at a fast pace to ensure energy security, promote environmental health, and meet its global climate commitments under the Paris Agreement. India is steadily reducing its dependency on fossil fuels and creating a diverse renewable energy base with vast solar parks, wind farms, and hydroelectric and bioenergy projects. India is on track to achieve the ambitious target set by the Prime Minister at COP26, of achieving 500 GW of non-fossil fuel energy capacity by 2030 and reach net-zero carbon emissions by 2070.

India added a record annual capacity of 29.52 GW of renewable energy in FY 2024-25, the highest ever green power capacity addition in a year. The total installed renewable capacity has reached 220.10 GW as of March 31, 2025, up from 198.75 GW in the previous fiscal. Government initiatives such as the waiver of inter-state transmission system (ISTS) charges, extension of solar park schemes, aggressive tendering by SECI and NTPC, and production-linked incentive (PLI) schemes for solar manufacturing have all contributed to accelerating deployment.

As of March 31, 2025, the installed capacity of small hydropower increased from 5 GW in FY 2023-24 to 5.1 GW. Wind power capacity increased from 45.89 GW in FY 2023-24 to 50.04 GW in FY 2024-25. During the same period, the capacity for bio-power generation marginally increased from 10.35 GW to 10.74 GW. Solar energy saw the highest growth, from 81.81 GW in FY 2023-24 to 105.65 GW in FY 2024-25, crossing the 100 GW milestone. Thermal energy installed capacity saw a small increase from 243.22 GW in FY 2023-24 to 246.94 GW in FY 2024-25, indicating Indias growing reliance on renewable energy to achieve its net zero goals.

Indias energy composition (GW)

Key solar growth drivers

Indias Green Hydrogen sector also saw significant developments. Incentives worth INR 2,220 crore were awarded for 1.5 GW per annum of electrolyser manufacturing, and an additional INR 2,239 crore was allocated for 4,50,000 tonnes-per-annum (TPA) of Green Hydrogen production. Under the National Green Hydrogen Mission, seven pilot projects were funded with INR 454 crore for decarbonising the steel sector. Additionally, five pilot projects in the transport sector, with INR 208 crore in funding, are expected to introduce 37 hydrogen-fuelled vehicles and nine hydrogen refuelling stations.

Under the Scheme for Development of Solar Parks and Ultra Mega Solar Power Projects, which was rolled out in December 2014, the ministry approved 55 solar parks across 13 states with a capacity of 41,137 MW as of March 2025. The solar park scheme aims to generate approximately 40 GW of solar power capacity by the year 2029. As of March 2025, around 13 GW of this targeted capacity has already been successfully commissioned, nearly 13 GW of the capacity is under tendering, while 15 GW is under construction. The major benefits of the solar park scheme include assured land availability and transmission infrastructure, the two main roadblocks in solar development.

Status of Solar Parks and Solar Projects Installed7

State	Capacity Sanctioned (MW)	Projects Installed (MW)	Installed to Sanctioned Ratio (%)
Andhra Pradesh	4,300	3,050	70.93
Chhattisgarh	100	100	100
Gujarat	12,150	1,000	8.23
Himachal Pradesh	53	32	60.38
Jharkhand	1,089	0	0
Karnataka	2,500	2,000	80
Kerala	255	105	41.18
Madhya Pradesh	4,330	2,263	52.26
Maharashtra	1,105	0	0
Mizoram	20	20	100
Odisha	40	0	0
Rajasthan	11,355	4,054	35.70
Uttar Pradesh	3,840	430	11.2
India	41,137	13,054	31.0

7MNRE; Energetica India Research

The Indian Renewable Energy Development Agency (IREDA) continues to play a crucial role in financing clean energy projects. In FY 2024-25, IREDA recorded a 27% increase in loan sanctions, reaching INR 47,453 crore, while loan disbursements rose by 20% to INR 30,168 crore.

With key enablers in place, India is on the path to becoming the worlds third-largest renewable energy capacity holder. These remarkable achievements reaffirm Indias commitment to its clean energy transition and leadership in the global renewable energy sector. As per CRISIL Intelligence, Indias total renewable energy capacity, excluding large hydro, is projected to exceed 220 GW by FY 2029-30 with solar accounting for more than 110 GW of new additions. Annual solar installations are expected to stabilise between 18-22 GW from FY 2025-26 onwards. Over 80 GW of these additions will be utility-scale projects, with the remainder coming from commercial & industrial, and rooftop installations.

Global Solar Energy Industry8

The solar energy industry is undergoing a remarkable transformation due to technological advancements and improvements in efficiency. Significant cost reduction has steadily made solar power increasingly competitive with traditional energy sources. This cost reduction has been accompanied by improvements in photovoltaic (PV) technology, including developing more efficient bifacial panels, automated robotic cleaning systems, and advanced tracking technologies that optimise solar energy generation throughout the day. Integrated solar solutions and smart grid technologies, which incorporate solar storage solutions, smart monitoring systems, and grid integration technologies, have led to improved power management and distribution. Technological improvements led by artificial intelligence and IoT technologies are aiding in improving efficiency.

In 2024, solar contributed 81% of all new renewable capacity added worldwide. The Asia-Pacific region dominated the market, accounting for 70% of global capacity additions and a 37% annual growth. The Americas also increased by 40% to a 14% market share. Europe also saw growth, albeit at a slower pace, rising by 15% to 82.1 GW, with a 14% market share. Conversely, the Middle East and Africa were the only regions to experience a year-on-year decline in 2024, decreasing 2% to 14.5 GW and accounting for 2.4% of the global market.

Europes solar market, despite breaking installation records again, grew at a much slower rate. Following expansion rates of 48% in 2022 and 50% in 2023, the market decelerated in 2024 to 15% growth. With its stagnating market, Europe fell from second place to fourth in regional market share, losing 2% to 14%. Within Europe, Germany continued to dominate, while Spain experienced a slight slowdown in its annual market due to a decline in both the rooftop and utility-scale segments.

The growth of the solar energy market is mainly driven by the rise of governmental provisions for incentives and duty rebates to install solar panels and reduce environmental pollution. The growing prices of fossil fuels, led by fast-paced depletion, are leading to a rise in environmental concerns regarding greenhouse gases and carbon emissions.

The Middle East and Africa (MEA) region experienced a 2% decrease in 2024 with 14.5 GW of additions, which follows the steep increase in 2023 with a 78% annual growth rate. Saudi Arabias market, largely dependent on a few large-scale solar PV parks, decreased by 28% in 2024. Meanwhile, South Africas annual installations plunged, dropping 66% to 1.1 GW in 2024 from 3.3 GW installed in 2023. Following a market surge in 2023 due to regulatory reforms driving the PPA market, and important load-shedding rates driving residential solar PV demand, 2024 installations dropped even below 2022 levels, as the market is now limited by the pace of regulatory reforms (or lack thereof) and limited grid-connection capacity. The United Arab Emirates, which reached the GW-scale in 2023, did not repeat this performance in 2024 and was replaced as the third-largest solar market by Qatar, which did not reach the GW-scale either. Overall, with all its main markets shrinking, the MEA region not only remained marginal on the global solar landscape, but its market share also declined by 2.4%.

In terms of solar capacity per person, three countries, namely, Australia, the Netherlands, and Germany, surpassed the milestone of 1 kW per inhabitant. While the global average stands at 276 W per capita, Europe remains the leader with the highest per capita solar installation ratio at 480 W.

The growth of the solar energy market is mainly driven by the rise of governmental provisions for incentives and duty rebates to install solar panels and reduce environmental pollution. The growing prices of fossil fuels, led by fast-paced depletion, are leading to a rise in environmental concerns regarding greenhouse gases and carbon emissions. The growing government initiatives and favourable policies to curb the adverse effects of toxic gas emissions are driving the growth of the global solar power market. Governments across the globe are providing incentives and tax rebates for installing solar panels, boosting the demand for solar cells. In addition, the demand for solar power towers and parabolic troughs in electricity generation is expected to propel the demand for concentrated solar power systems.

Indian Solar Energy Industry

The Indian solar energy sector is experiencing significant growth due to multiple factors. The most crucial factor is the governments support and its policies promoting solar energy development. Indigenous production of solar power equipment has been a major focus of the government in a bid to reduce the dependence on China. The government has come up with several steps, including a production-linked incentive (PLI) scheme, high customs duty on modules and cells, and the approved list of models and manufacturers (ALMM) to supply government-backed projects. India is developing the largest solar renewable energy park in the world at Khavda, with a RE capacity of 30 GW, which is expected to be operationalised in the coming five years.

The energy storage capacity requirement is projected to be 82.37 GWh10 (47.65 GWh from PSP and 34.72 GWh from BESS) in FY 2026-27 according to National Electricity Plan (NEP) 2023 of Central Electricity Authority (CEA). By FY 2031-32, this requirement is further expected to increase to 411.4 GWh (175.18 GWh from PSP and 236.22 GWh from BESS). By the year 2047, the requirement of energy storage is expected to increase to 2,380 GWh (540 GWh from PSP and 1,840 GWh from BESS), due to the addition of a larger amount of renewable energy in light of the net zero emissions targets set for 2070. To ensure that sufficient storage capacity is available with obligated entities, a long-term trajectory for Energy Storage Obligations (ESO) has been notified by the Ministry of Power. As per the trajectory, the ESO shall gradually increase from 1% in FY 2023-24 to 4% by FY 2029-30, with an annual increase of 0.5%. This obligation shall be treated as fulfilled only when at least 85% of the total energy stored is procured from renewable energy sources annually.

The solar module manufacturing capacity in the country has almost doubled to 74 GW in March 2025 from 38 GW in March 2024. As of December 31, 202411, 79.2 GW of utility-scale solar capacity has been commissioned in India, while another 71.8 GW is under pipeline. In 2024, 18.5 GW of utility-scale solar capacity and 4.59 GW of rooftop solar capacity were added in India. In 2025, 22.8 GW of new utility-scale solar projects and 5.8 GW of rooftop/on-site solar projects are expected to be commissioned.

10 Ministry of New and Renewable Energy (MNRE)

Research - Annual India Solar Report Card

The Indian government is encouraging the expansion of the solar energy sector through various policies associated with subsidies, tax benefits, and improvements to the grid connection for solar power plants. Projects awarded under the PLI Scheme for High-Efficiency Solar PV Modules have invested around INR 41,000 crore and created direct employment for around 11,650 persons as of February 2025. Under the flagship rooftop solar scheme, PM Surya Ghar : Muft Bijli Yojana, rooftop solar installations reached 1.1 million households as of March 2025, and an amount of INR 5,437.2 crore disbursed as central financial assistance (CFA) to 6,98,000 beneficiaries.

Technological advancements are transforming the future of solar energy in India. Integrating energy storage solutions addresses the intermittent nature of solar power. Floating solar energy, one such promising development, is installed in lakes and reservoirs, saving land and reducing water evaporation. Another advancement is the solar-wind hybrid project, combining solar and wind energy to optimise resource use and ensure a more stable power supply. Significant advancements in PV technologies, such as bifacial solar panels and passive emitter and rear cell (PERC) technology, have also been made, which have increased energy output and efficiency. Bifacial panels can capture sunlight from both sides, increasing overall efficiency by 25%. Innovations in battery technology, like lithium-ion and solid-state batteries, promise longer life cycles and more storage capacity. The cost of solar photovoltaic panels has reduced steadily in the recent past due to developments in the manufacturing process and the economics of scale. The decrease in cost has made solar energy a more viable and appealing option for the countrys businesses, industries, and residential users.

The need for round-the-clock energy requirements has led to the emergence of battery energy storage systems (BESS) for energy storage in batteries, which allow for later use. Battery energy storage is a key enabler of a resilient and efficient power system. Battery systems are essential for homes, businesses, and utility companies to ensure a steady flow of electricity, significantly boosting the energy security of the system. Indias commitment to achieving 50% of installed capacity from non-fossil-fuel-based sources by 2030 makes it critical to consider the impact of the intermittent nature of renewable energy and its impact on the grid. Having BESS along with renewable energy ensures that the generated excess power is stored and used later, thus making renewable energy reliable and mitigating the impact of its intermittent nature. Various initiatives are being undertaken to ensure BESS deployment, including the National Framework for the Promotion of Energy Storage Systems 2023, which clearly identifies the quantum of need for BESS and provides viability gap funding of 40%, guidelines for competitive bidding for renewable and BESS projects, BESS obligation targets for states, etc.

Indias ambitious renewable energy targets are facing significant delays in commissioning, largely due to land acquisition challenges and slow transmission capacity expansion. Though renewable energy is picking up pace in the country, without adequate grid infrastructure, the projects are unable to deliver the clean energy they generate to consumers across the country. This lack of connectivity impacts project timelines and profitability. Transmission utilities are increasingly adopting predictive maintenance strategies and leveraging data analytics to assess equipment health and make proactive, informed decisions. Advanced technology solutions, such as drones equipped with thermal imaging, high-resolution video, and corona cameras, are being deployed for real-time monitoring of transmission lines, substations, and reactors. These tools enable utilities to detect grid vulnerabilities swiftly and efficiently, offering a faster, more cost-effective alternative to traditional ground-based inspections.

Land acquisition problems range from policy ambiguity and stringent permitting requirements to socio-cultural norms impacting land ownership and loss of livelihoods. These challenges are further complicated by the substantial upfront investments required for these energy projects, making land acquisition a significant roadblock in the path of renewable energy advancement. Various technological and policy solutions can help alleviate the impact of renewable power on land use and mitigate public opposition. Innovations in project management software, Geographic Information Systems (GIS) for site selection, and various communication tools can streamline the process, enhance transparency, and foster better relationships with local communities. Additionally, uniform land acquisition policies could standardise procedures and reduce conflicts.

Global Solar EPC Industry12

The global solar engineering, procurement, and construction (EPC) market is witnessing robust growth due to increasing awareness about renewable energy sources, several government initiatives, and reduced solar equipment prices. Solar EPC providers play a pivotal role in installing solar power projects, ensuring their design, procurement of necessary components, and construction meet the highest standards. Rising investment in renewable energy infrastructure creates new opportunities for solar EPC providers with a growing need for expert EPC services. Solar EPC providers play a crucial role in residential rooftop installations and large-scale solar farms.

The global solar EPC market was valued at US$ 407.6 billion in 2024. The market is expected to grow at an 8% CAGR to US$ 878.6 billion by 2034. The upcoming growth is expected to be led by the global transition to clean energy, the development of solar projects, government commitments to renewable energy, and growing awareness of the environment and sustainability.

The Middle East solar EPC market is driven by the lowest solar energy tariffs globally. Growing emphasis on integrating battery storage with solar installations to ensure a reliable and resilient energy supply will complement the industry landscape.

The US solar EPC market was valued at US$ 34.3 billion in 2024, with North America accounting for 8.5%+ market share in 2024 due to increasing government incentives and net metering policies. The continued rise in large utility-scale solar power projects, decreasing cost of solar power, and tax incentives such as the Investment Tax Credit (ITC) have made utility-scale solar power projects increasingly economically viable, augmenting the market growth.

Europes solar EPC market is estimated to exceed US$ 1.7 billion by 2034 on account of the incorporation of energy storage solutions and combining solar power generation with agricultural activities. The European Union has recently witnessed a substantial increase in solar generation capacity. Countries like Germany and France are leading through favourable policies, including tax incentives and feed-in tariffs, encouraging homeowners to adopt solar energy solutions.

The Middle East solar EPC market is driven by the lowest solar energy tariffs globally. Growing emphasis on integrating battery storage with solar installations to ensure a reliable and resilient energy supply will complement the industry landscape.

The Asia Pacific solar EPC market is set to grow by over 8.5% CAGR by 2034, which will be led by rapid expansion in residential solar installations across China and India. Several impactful government initiatives in India, including the PM Surya Ghar Muft Bijli Yojana, offer subsidies to homeowners for rooftop solar installations, stimulating product demand.

Technological advancements are revolutionising the solar EPC space. Rapid innovation in the solar energy industry, including developing high-efficiency solar panels and advanced energy storage solutions, necessitates robust EPC services to ensure the successful implementation of these technologies. High-quality solar EPC services, known for their technical expertise and project management capabilities, are expected to be in high demand.

12Solar EPC Global Market 2025

EPC cost structures have also become more favourable and competitive with the average cost of executing solar EPC projects in India (including modules) currently ranging between INR 30-32 million per MWp. This is a result of significant declines in solar module prices (which have fallen by over 85% since FY 2009-10), economies of scale in construction, and modular design standardisation. Solar power tariffs in India continue to remain globally competitive, with recent bids in the range of INR 2.20-2.60 per kWh. While this pricing discipline benefits end consumers, it requires EPC providers to operate with high execution efficiency and tight cost control.

Several policy enablers are expected to continue supporting solar EPC growth including sanctioning of PLI Schemes over INR 41,000 crore, plan to commission several solar parks, ALMM policy, ISTS waivers, etc.

Regionally, while India remains the largest opportunity, international markets such as Africa and Spain offer future growth optionality. In Africa, solar is increasingly being used for energy access and grid stabilisation, with projects often funded by development finance institutions. Spain, despite a temporary market slowdown in FY 2024-25, remains committed to its energy transition targets under its National Energy and Climate Plan (NECP), opening the door to selective EPC participation.

The competitive landscape in India is also consolidating. The market has gradually moved from a fragmented field to one being dominated by 8-10 players with deep domain knowledge, financial stability, and integrated design-execution capabilities. However, the industry is also laden with a few challenges. Land acquisition delays and evacuation infrastructure remain critical bottlenecks. Execution is sometimes impacted by delayed approvals, force majeure events, or client-side readiness. Fluctuating input costs, especially in commodities like steel, copper, and aluminium, and regulatory uncertainties surrounding ALMM or import duties add to project risk. Moreover, working capital management can be stressed due to delayed milestone-based payments and GST input claim timelines. The Indian solar EPC industry offers a multi-decade growth opportunity, with a stable 18-22 GW annual installation outlook and increasing project sophistication.

Solar O&M Industry13

Providing Operation and Maintenance (O&M) services has emerged as an important field for the photovoltaic (PV) sector. The global solar O&M market was valued at US$ 12 billion in 2023 and is expected to grow to US$ 27.9 billion by 2030 with a CAGR of 12.7% during the review period. Driven by a surge in solar installations globally, the solar O&M market is experiencing robust growth. Advanced monitoring technologies, predictive analytics, and automation revolutionise maintenance practices, offering more efficient and proactive solutions. Technological advancements help revolutionise solar farm maintenance by facilitating remote monitoring, real-time data analysis, and automation of key operational processes.

Engaging professional O&M services offers several benefits, including standard system upkeep, maximising profitability, minimising downtime, and optimising energy output. Through advanced analytics and expert oversight, O&M teams can anticipate potential issues and implement pre-emptive solutions, preventing costly failures. Apart from maintenance activities, O&M providers also help investors identify areas for optimisation and modernisation, from fine-tuning monitoring systems to upgrading infrastructure in response to evolving technological and regulatory requirements.

The solar O&M market is experiencing distinct trends within each service type category. Preventive maintenance is undergoing a shift towards predictive strategies, leveraging data analytics and IoT technologies to anticipate potential issues and optimise equipment performance. Corrective maintenance increasingly adopts rapid-response solutions, minimising downtime through advanced diagnostic tools and real-time monitoring. Monitoring and analytics are at the forefront of innovation, with a surge in integrating AI and ML for more robust predictive modelling, fault detection, and performance optimisation. Asset management services are evolving to encompass holistic approaches, incorporating smart technologies to provide real-time visibility into solar assets health and financial aspects, aligning with the industrys focus on transparency, sustainability, and long-term value creation.

Engaging professional O&M services offers several benefits, including standard system upkeep, maximising profitability, minimising downtime, and optimising energy output. Through advanced analytics and expert oversight, O&M teams can anticipate potential issues and implement pre-emptive solutions, preventing costly failures.

13Global Info Research

The Indian solar PV segment has been witnessing remarkable growth, propelled by the surge in installations and favourable government policies, crossing the 100 GW milestone. Coupled with declining tariffs, effective solar O&M practices have become increasingly critical. The Indian solar O&M market is largely constituted of big solar independent power producers and EPC players having in-house O&M teams since they mainly operate large utility-scale solar projects. The remaining market is under third-party O&M service providers or EPC contracts. The third-party O&M business model, which includes independent service providers, though highly fragmented, is gaining traction. As the demand for specialised O&M services increases, the re-tendering of O&M contracts is becoming commonplace, presenting significant opportunities for independent service providers to expand their footprint. Several specialised third-party service providers have entered the market, leveraging economies of scale, technical expertise, and advanced tools to deliver efficient and cost-effective solutions.

The growth of Indias solar O&M market requires a strong commitment to operational excellence across its expanding solar fleet. The fast-paced adoption of advanced technologies and the implementation of best practices are mandatory to ensure that solar installations operate at their optimal capacity. Technology-driven strategies are enhancing operational efficiency, minimising risks, and contributing to the longevity and reliability of solar power plants.

Currently, the market for third-party O&M in India is valued at INR 5.83 billion for 16.76 GW of capacity. Most industry players anticipate this market to reach INR 50 billion, driven by increased outsourcing by private developers to complement PSU energy majors. By 2030, Indias total solar capacity is projected to reach 292 GW, resulting in an O&M market of around INR 2,550 crore at the current rate of outsourcing. The trend towards outsourcing is fuelled by the growing role of specialists and evolving technologies in the industry, prompting many developers to follow PSU examples and eventually outsource their O&M needs.

Wind EPC industry14

India boasts the fourth-highest wind installed capacity in the world. Indias wind energy sector is led by the indigenous wind power industry and has shown consistent progress. The expansion of the wind industry has resulted in a strong ecosystem, project operation capabilities, and manufacturing base of about 18 GW per annum. During the year, wind energy witnessed sustained progress, with 4.15 GW of new capacity added, compared to 3.25 GW in FY 2023-24. The total cumulative installed wind capacity now stands at 50.04 GW, reinforcing wind energys role in Indias renewable energy mix.

The government is promoting wind power projects throughout the country by providing various fiscal and financial incentives such as the Accelerated Depreciation benefit, concessional customs duty exemption on certain components of wind electric generators, etc. Besides, the Generation Based Incentive (GBI) Scheme was available for the wind projects commissioned before March 31, 2017. In addition, the government has implemented several schemes including Wind Renewable Purchase Obligation (Wind RPO) up to the year 2030, waiver of ISTS charges for inter-state sale of solar and wind power for projects to be commissioned by June 30, 2025. The government also issued Guidelines for Tariff Based Competitive Bidding Process for Procurement of Power from Grid Connected Wind Power Projects, technical support including wind resource assessment and identification of potential sites through the National Institute of Wind Energy.

The complementary nature of wind and solar energy is leveraged in the deployment of hybrid systems to stabilise and strengthen the energy supply. Solar panels are integrated into wind farms to maximise land use and energy output and enable a more consistent energy flow. Wind EPC companies play a crucial role in harnessing wind energy and providing end-to-end solutions for wind energy projects by integrating the entire engineering design, procurement of equipment, and construction processes. These players offer comprehensive solutions, ensuring the efficient and cost-effective implementation of wind energy projects. EPC companies implement eco-friendly construction practices and thus contribute to sustainability. They aid in optimising energy production through advanced technologies and ensuring the long-term viability of wind farms through effective maintenance and monitoring.

Company Overview

Globally, Sterling and Wilson Renewable Energy Limited (hereafter referred to as "SWREL” or "the Company”) is a leading solar engineering, procurement, and construction (EPC) and Operations & Maintenance (O&M) solutions provider with rich operational experience. Well known as end-to- end concept to commission solar EPC player, SWREL offers design, detailed engineering, procurement, construction, installation, commissioning, and O&M services (both its own and external projects) under turnkey EPC and BoS (Balance of System) solutions for utility-scale, rooftop, and floating solar power projects. It also offers solutions for solar plus storage (hybrid energy and storage energy). The Company has crafted a unique place for itself in the global energy space, led by its vast global reach, strong relationships with customers and other key stakeholders, and strong track record in project execution, leading to high customer retention and repeat business. During the year, SWREL forayed into wind EPC and BESS categories to strengthen its foothold in the renewable energy sector.

“Ministry of New and Renewable Energy (MNRE)

Other than India, the Company has a widespread global presence in 28 countries spread across Southeast Asia, the Middle East, Africa, Europe, Australia, and the Americas. As a diversified renewable solutions provider with projects in 20 countries, SWREL is poised to become a global leader in the energy market of the future. The Company leverages the low-cost India base for global execution, providing cost-competitive solutions. SWRELs strong in-house design and engineering team provides customised solutions with an excellent execution track record and access to cutting-edge technology.

Company segments

The Companys two main business segments are Engineering, Procurement and Construction (EPC) and Operations and Maintenance (O&M).

EPC Business

SWREL is a global, comprehensive, pure-play, end-to-end solar EPC solutions provider from "concept” to "commissioning” with a core focus on project design and engineering. Its current EPC portfolio is sized at 22.6 GW (including projects commissioned and under various stages of construction). Applying an asset-light business model, the Company offers EPC services for utility-scale solar, floating solar, hybrid, and energy storage solutions. It has widespread operations across India, Africa, the Middle East, Australia, Latin America, Europe, and the United States.

Utility-Scale Solar

SWREL has an explicable track record in EPC capabilities, providing customised solutions, including Turnkey, Balance of Systems (BoS), and packaged BoS. To date, SWREL has successfully executed several remarkable projects globally. The Company also offers solar plus storage solutions.

SWRELs turnkey EPC solutions cover solar power projects design, engineering, procurement, construction, project management, testing, supply, installation, commissioning, operation, maintenance, and grid connection. All project design and execution services include BoS solutions, excluding module and component procurement. The Company has extensive experience with various technologies, including crystalline and single-axis tracker string inverters.

Expertise in utility solar includes project management, long-term operations, plant maintenance, designing, testing, procuring, connecting solar projects to the grid, and engineering and commissioning.

Floating Solar

Having the first-mover advantage in the floating solar sector, SWREL has an in-depth understanding of the sector. This makes it a strong candidate to handle larger projects.

SWREL has an explicable track record in EPC capabilities, providing customised solutions, including Turnkey, Balance of Systems (BoS), and packaged BoS. To date, SWREL has successfully executed several remarkable projects globally. The Company also offers solar plus storage solutions.

Expertise in floating solar includes Project Management and Planning, Maintenance Manual Development, Anchoring and Mooring, Issuance of Design Book Module and Equipment Installation on Floating Structures, and Conducting Bathymetric and Geotechnical Assessment Studies.

Energy Storage

Riding on the growing popularity of solar installations, SWRELs proficient and experienced BESS (Battery Energy Storage System) team is working tirelessly to meet customers expectations successfully and deliver optimal technological solutions. The Company has built strong in-house expertise in designing energy storage solutions in collaboration with leading battery manufacturers and energy storage solution providers. This places SWREL in a sweet spot to benefit from the growth opportunities in the renewable energy space. During the year, the Company won LOI for EPC for one of the Indias largest BESS projects.

Wind EPC

During the year, the Company forayed into the wind EPC segment, establishing a holistic presence across the renewable energy spectrum. The company is working with a private IPP on a hybrid project in Rajasthan. The scope of work includes engineering, procurement, and construction of a 69.3 MW wind balance of the Plant and 55 MW AC (75 MW DC) solar BoS, along with a 132 kV/33 kV pooling substation. This enables SWREL to strengthen its foothold in the hybrid model space, which is witnessing strong traction.

O&M Business

With an impressive track record of providing superior services to existing EPC projects and third-party clients, the Company has been a successful global leader in O&M and asset management solutions. It has an operation and maintenance (O&M) portfolio of 8.7 GW of solar power projects, including projects constructed by third parties. The Company delivers high-return projects to its customers. This segment provides a stable income stream for the business due to the annuity-based nature of contracts and high gross and net profit margins. Taking advantage of its robust EPC portfolio and client relationships, SWREL utilises insurance and warranty provisions in the O&M segment.

Performance of O&M Business in FY 2024-25

- O&M Revenue increased by 12.2% to INR 236 crore

- The Company secured contracts for O&M services covering 8,731 MW across 156 sites, including third-party projects

- This segment now accounts for 3.7% of total revenue, compared to 9.4% in FY 2023-24

- The Gross Margin for the O&M business increased to 21% from 16% in FY 2023-24

Third-party contracts, constituting 53.6% of SWRELs O&M portfolio, are being expanded into new-energy ventures, including projects such as hybrid solar and wind (incorporating battery storage and generation).

The O&M segment has a skilled technical team that features in-house R&D expertise and a proficient design engineering team. The Company manages more than 164 solar plants under O&M, including various locations and time zones. Having strong relationships with global IPPs (Independent Power Producers), the Company endeavours to expand the business further in existing markets, grabbing the opportunity when the Defect Liability Period (DLP) ends at old plants maintained by other EPC operators. The team closely manages such contracts by capitalising on anti-incumbency sentiments.

The O&M segment has a strong presence in emerging markets and regions with historically established solar plants, with plans to further enhance its portfolio by focussing on third-party contracts. SWREL undertakes global customer mapping to tap into new opportunities in overseas markets by leveraging strategic partnerships with global IPPs.

Capitalising on O&M opportunities throughout the value chain:

- Solar, Wind and Hybrid

- Battery Storage + Solar + D.G. Set

- Utilising advanced and forward-looking satellite-based site monitoring systems with geo-tagging capabilities

During the year, SWREL continued to build on the strong ordering momentum in the domestic market with initial success in the overseas market.

01 Total order inflows touched INR 7,051 crores, with the domestic market contributing INR 5,900 crores, comprising 11 new projects. Of these 11 domestic projects won, 9 projects came from the private sector

02 Received first order for wind EPC from a private IPP for a hybrid project in Rajasthan of a 69.3 MW wind balance of the Plant and 55 MW AC (75 megawatts DC) solar BoS, along with a 132 kV/33 kV pooling substation

03 Achieved L1 status for a turnkey solar project of 200 MW AC (260 MW DC) PV plant in Gujarat, India, from a leading PSU developer j

04 Received a Letter of Award for a PV plant in Rajasthan, India, from a domestic IPP

05 Won a 396 MW DC project in Rajasthan from a private player

06 Received a second letter of award from a leading PSU for a 625 MW DC BOS project in Gujarat

07 Received the LOI for a 2 x 250 MW AC standalone BESS plant in Rajasthan by a private player. This project is Indias largest BESS project and one of the few projects of gigawatt-hour scale in a single location globally, which shall be executed by 2025

08 Awarded a LOI for a 20 MW floating solar project at Vijaynagar, Karnataka, from a private player, which marks the third such floating solar project the Company is currently executing in India

09 Secured 633 MW DC BOS order in Rajasthan with one of Indias leading global renewable private IPPs. Scope of work includes engineering, design, testing, and commissioning the PV plant, along with supply and works for a 220 kV switchyard.

10 Bagged repeat orders from private players for their PV projects in Gujarat and Maharashtra, each.

11 Received a turnkey project by a leading PSU for a 250 MW AC or 312 MW DC project in Rajasthan

12 Won a 900 MW DC project with a private player in Rajasthan, one of their largest solar installations in the country

13 Won 140 MW DC project for AMEA Power and 80 MW AC project in South Africa. These two turnkey project wins i totalled US$ 140 million

14 Commenced the pilot project for solar plus battery energy storage systems for a private player at Jamnagar, Gujarat

15 Unexecuted order value now stands at over INR 9,096 crore, with 80%+ comprising domestic Indian — projects, while the international UOV comprises primarily 2 projects, each in Europe and South Africa

Financial Performance

During FY 2024-25, Total Revenue from Operations grew 108% to INR 6,301.9 crore, compared to INR 3,035.4 crore in FY 2023-24.

Particular in crore	FY 2024-25	FY 2023-24
Revenue from operations	6,301.9	3,035.4
Other income	39.6	85.4
Total income	6,341.5	3,120.8
EBITDA	276.20	53.7
EBITDA margin (%)	4.4%	1.77%
EBIT	262	37.1
EBIT margin (%)	4.2%	1.22%
Net profit	85.6	(210.8)
Net profit margin (%)	1.4%	(6.94)%
Cash generated from operating activities	37.9	538.4
Earnings per share (INR)	3.5	(10.4)

The Company has taken significant steps to reduce and streamline overhead costs while improving operational efficiency. EBITDA grew 5 times to INR 276.20 crore, compared to INR 53.7 crore in FY 2023-24. EBITDA margin stood at 4.4% as compared to 1.77% in FY 2023-24. Net profit reached INR 85.6 crore, compared to a loss of INR 210.8 crore in FY 2023-24.

The Financial Statement of the Company for financial year 2024-25 have been prepared in accordance with the applicable accounting principles in India and the Indian Accounting Standards (Ind AS) prescribed under section 133 of Act read with the rules made thereunder.

As of March 31, 2025, the unexecuted order book stood at INR 9,096 crore, while the total order inflow was INR 7,051 crore, compared to INR 6,023 crore in

FY 2023-24. In terms of contribution to total revenue, customer concentration decreased to 54.81% from 68.22% in FY 2024-25.

The EPC business accounted for 96.3% of SWRELs total revenue, while the O&M business contributed about 3.7%. EPC business revenue increased 114.7% to INR 6,064 crore, compared to INR 2,824.7 crore in FY 2023-24. O&M business revenue increased 12.2% to INR 236.1 crore, compared to INR 210.4 crore in FY 2023-24.

Key ratios	FY 2024-25	FY 2023-24
Debtors Turnover Ratio	6.04	3.57
Interest Coverage Ratio	2.62	0.29
Current Ratio	1.28	1.35
Debt-Equity Ratio	0.9	0.50
EBITDA margin (%)	4.38%	1.77%
Net Profit margin (%)	1.36%	(6.94)%
Return on Net Worth	6.67%	(21.75)%

SWREL has an Unexecuted Order Value of INR 9,096 crore as of March 31, 2025, and a robust bid pipeline for FY 2025-26.

Business Outlook

With India as its single-largest focus market, the Company is constantly looking to expand its EPC offerings in the global renewable space. India continues to dominate ~85% of the total order inflow for SWREL. The order pipeline in the domestic business continues to remain very strong, with nearly 22-23 GW of orders to be bid out in the next six to nine months. The impact of the brief period of heightened tensions between India and Pakistan will need to be estimated. In addition to the robust solar EPC pipeline, the Company strives to target BESS projects and select wind EPC projects. In the international market, the Company is focussing on select projects in select geographies, including MENA and Europe.

The order pipeline in the domestic business continues to remain very strong, with nearly 22-23 GW of orders to be bid out in the next six to nine months. In addition to the robust solar EPC pipeline, the Company strives to target BESS projects and select wind EPC projects.

The domestic EPC market continues to see robust growth and is expected to remain very buoyant in FY 2025-26, with expectations of stronger growth than FY 2024-25 in terms of EPC awarding. Another potential growth area is the anticipated pick-up of BESS projects across the country, with multiple developer bids already being awarded. Working on the largest BESS project awarded in the country to date, the Company remains confident that it can make further inroads in this segment.

SWREL has an Unexecuted Order Value of INR 9,096 crore as of March 31, 2025, and a robust bid pipeline for FY 2025-26. With an unwavering focus on large EPC markets and renewable energy expansion, the Company is poised for robust growth. The Company strives to work tirelessly to aid the country in achieving renewable energy targets by expanding its operations and supporting solar manufacturing initiatives. Globally, the renewable energy segment is witnessing increased traction within this fast-growing market. SWREL is well-positioned to tap the growth with its steady business operations and a strong balance sheet. SWREL is looking to capitalise on the rise of green energy solutions as a diversified end-to-end concept to commission solar EPC.

Risk Management

The energy industry, which is witnessing remarkable strides, grapples with multiple challenges, including land acquisition issues, regulatory hurdles, financial constraints, dependency on economic stability, etc. It is imperative that players are not only aware of the forthcoming risks but also have a plan in place to counter these emerging risks. SWREL has an extensive risk management framework in place in accordance with the industry in which it operates and the nature of its business operations. Internal and external risk factors are keenly observed through clearly defined internal processes. To contain/minimise the impact of these foreseeable risks on the organisation, the risk management framework contains well-defined mitigation measures. Based on various factors such as geographical footprint, market size, future opportunities, and geopolitical considerations, a thorough assessment and analysis of risks is conducted by the Risk Management team. To ensure satisfactory operational performance, adequate and appropriate measures are then undertaken.

Risk	Description	Mitigation measures
Industry Risk	Being an integral part of the global solar sector as a leading EPC player, the Companys performance is impacted by demand fluctuations for PV installations.	Solar growth is emerging as the preferred choice for incremental capacity worldwide. India is at the forefront of the clean energy landscape with a target to achieve 500 GW of renewable energy capacity by 2030. Strong government support, coupled with declining capital costs, technological advancements, and competitive tariffs, positions the Company for future growth.
Supplier Concentration Risk	The solar market is dominated by a few Chinese suppliers, causing a threat to operations and timely project completions in the event of delays or shortages in key raw material supplies.	The Company operates through a rigorous vendor selection process, with periodic supplier audits. Strong relationships with global suppliers and keeping a close watch on the market throughout the supply chain enable the Company to maintain an uninterrupted supply of raw materials. India is set to capture the complete solar value chain, led by substantial investments from leading Indian corporations and increased government support.
Competitive Risk	There has been a recent spike in interest in solar energy, given the growing environmental consciousness at the global level. Lucrative growth prospects of the industry lead to heightened competitive intensity.	With vast experience, widespread reach, and long-standing relationships, the Company has created a moat for itself as a preferred EPC player globally. The Company is able to have an edge over competition due to its strong brand equity, innovative prowess, access to advanced technology, comprehensive end-to-end solutions, and value pricing.
Business Continuity Risk	Failure to honour contractual obligations, inaccuracy in cost estimation, sub-par quality performance, or delay in project execution results in operational inadequacy. Such events pose a substantial threat to brand equity and business continuity.	The Company exercises stringent control across every stage of the project lifecycle, from design, procurement, supplier inspection, construction, and field quality monitoring to final commissioning. To ensure robustness in operations, the Company undertakes multiple checks at every stage, which are minutely governed by strong internal control processes, strong HR policies, and an extensive risk assessment framework.
Currency Risk	Volatility in exchange rates impacts the Companys earnings, given that its revenue is earned in different currencies due to operations in multiple countries. This leads to currency translation and transaction risks. The Companys earnings can take a direct hit if forex rates are volatile.	During the contract stage of major projects, SWREL enters into adequate hedging contracts using both derivative and non-derivative instruments. Fluctuation in the forex rate thus has minimal or no impact on the Companys earnings.
Input Price Risk	Polysilicon is a key input used in cell and module manufacturing. Fluctuations in polysilicon prices directly impact the cost of module price, thereby impacting business margins.	The Company enters long-term contracts structured with variable pricing for polysilicon purchases. Together with robust inventory management, the Company can insulate itself from volatility in input prices of critical raw materials like polysilicon.

Human Resources

Human capital is considered a key resource in the organisation. SWRELs HR policies centre around the philosophy that the Companys and its employees welfare are co-dependent. Human capital is considered a valuable asset and a partner in the organisations success. The Company is committed to prioritising employee well-being, focussing on the following key aspects:

• Having a diverse and skilled talent pool

• Having agile practices & policies wherein all employees are treated with dignity, equality, respect, and fairness

• Fostering a productive, safe, motivating, empowering, and supportive work culture

• Providing adequate training and support, allowing employees to exploit their full potential •

• Adopting a progressive approach for the continuous development of employees and the organisation

• Promoting a performance-driven work culture

• Providing opportunities for continuous education

• Mentoring

A well-structured onboarding process is essential for new employees to feel welcome, understand their roles and responsibilities, and integrate into the company culture. Providing opportunities for continuous learning and skill enhancement is vital for employees to grow professionally and contribute to the companys success. Implementing a well-designed performance management system that provides regular feedback and opportunities for improvement is very important for employee growth and companys prosperity.

Human capital is considered a key resource in the organisation. SWRELs HR policies centre around the philosophy that the Companys and its employees welfare are co-dependent.

Human capital is considered a valuable asset and a partner in the organisations success.

Fostering a positive and engaging work environment will lead to a good retention strategy. Building strong relationship with employees through open communication, such as town halls, departmental meeting, focus group meetings, etc. will create a positive and collaborative workplace. Offering a fair and competitive compensation and benefits is essential for attracting and retaining high-potential talents, including the top leadership team in the company. Diversity, equity, and inclusion in the workplace creates a more inclusive and equitable environment for all employees. Leveraging HR technology can streamline best practices and processes for employees as a user-friendly platform. Ensuring 100% compliance with relevant statutory provisions is very crucial for protecting the company and its employees. Prioritising workplace safety and well-being creates a healthier and more productive work environment for employees.

SWREL has devised various strategies to achieve desired results in different areas, such as recruitment, fair compensation, effective onboarding, training and development programmes, employee feedback mechanisms, employee engagement, and leadership development, which will enhance employee wellbeing and support for the overall success of the organisation.

• Recruitment: The Company invests in hiring and grooming candidates from various colleges through a campus recruitment process strategically designed to select the best candidates to develop as future leaders. The campus screening process considers various aspects, including technical, behavioural, competencies, and values. With adequate training and development, such carefully selected, talented employees are groomed to take up bigger responsibilities.

• The 360-degree feedback initiative: Constructive feedback forms the base of human resource development. SWREL has devised a unique 360-degree feedback system, which considers input from various internal and external stakeholders. The feedback system thus acts as an important tool aiding in employee development. To promote an open culture with employees feeling empowered, adequate training is provided to managers to enhance their skills, knowledge, and self-confidence. •

• Leadership Development Programs: While SWREL gives due importance to external hiring for cross-pollination in leadership roles, it aims to create an in-house pool of senior leaders by nurturing the intrinsic leadership qualities of employees with leadership potential. Shikar program, Inspirational Leadership program, Empowered Leadership program, Udaan program etc., are among the many leadership development programs regularly conducted to groom future leaders for larger roles and responsibilities.

The Company strives to provide equal opportunities to all its employees, irrespective of gender, religion, etc., through its non-discrimination policy. SWREL has earned recognition as a best place to work owing to its employees unwavering commitment, zeal, and dedication. Different corporate policies, including the Environment, Health & Safety (EHS) Policy, Whistle-Blower Policy, Ethics Helpline, and Meri Aawaz Suno, reflect the employee-centric approach ingrained in the Companys DNA.

Information Technology

In FY 2024-25, SWREL continued to accelerate its digital transformation journey by embracing Cloud technologies and Artificial Intelligence to enhance efficiency, transparency, and agility across the organisation. Key enhancements were introduced in the SAP-HANA ecosystem, enabling deeper, real-time insights into project performance, cost controls, and inventory management. The cloud-based Human Resource Management System (HRMS) was also upgraded, significantly improving visibility into workforce planning and deployment. To support SWRELs expanding global footprint, a fully customised, cloud-enabled expense management system was rolled out across key international geographies - ensuring consistency, compliance, and ease of operations worldwide.

To strengthen procurement efficiency and supplier engagement, SWREL developed a vendor collaboration platform designed to enable seamless, real-time information exchange across the procurement lifecycle. This initiative has significantly reduced information gaps and delays in communication. Additionally, the company digitised the vendor supply quality planning, inspection, and certification process by integrating all stakeholders - including vendors, certification agencies, and the customer quality team - onto a single collaborative platform. This has enhanced transparency, traceability, and overall quality assurance across the value chain.

The Company strives to provide equal opportunities to all its employees, irrespective of gender, religion, etc., through its nondiscrimination policy. SWREL has earned recognition as a best place to work owing to its employees unwavering commitment, zeal, and dedication.

The loT-based real-time solar plant performance monitoring application was further enhanced to support early detection, prevention, and alert mechanisms. The upgraded system now captures a broader range of plant generation and performance parameters, while introducing new Operations & Maintenance (O&M) monitoring features to drive proactive asset management and operational efficiency.

With the rapid pace of technological advancement comes an increased exposure to cyber threats. To strengthen our cybersecurity posture, SWREL established a state-of-the-art Security Operations Centre (SOC) to proactively monitor key digital assets, user activity, and network behaviour, enabling early detection and swift mitigation of potential threats. The Company remains fully committed to maintaining robust systems, policies, and processes to ensure the integrity of financial data and full compliance with applicable regulations. Notably, SWREL is ISO 27001 certified - an internationally recognised standard that affirms the strength and maturity of our information security framework.

An ambitious initiative to upgrade the existing SAP HANA ERP system to the more advanced, AI-enabled SAP S/4HANA platform is currently underway. This transformation is expected to go live in the second quarter of FY 2025-26 and is aimed at enhancing process automation, real-time decision-making, and overall operational agility across the organisation.

During FY 2025-26, the IT team delivered a range of digital solutions to integrate key business processes and enable seamless online access across the organisation. With the growing importance of technologies such as IoT, Artificial Intelligence (AI), and Machine Learning (ML), SWREL continued to invest in digital capabilities while strengthening its cybersecurity framework. The establishment of a Security Operations Centre (SOC) enabled proactive monitoring and rapid response to potential threats. Several strategic initiatives were undertaken to digitise functions such as engineering design, project management, supply chain, and project scheduling, enhancing both efficiency and access to critical information. Other key developments included IoT-based remote monitoring of solar plants, maintenance management systems, deployment of the SuccessFactors HRMS platform, automated travel and expense management, and advanced tools for solar generation forecasting and design simulation. These efforts were supported by a robust Business Continuity Planning policy and a cloud-based infrastructure, ensuring uninterrupted productivity and real-time visibility across the value chain.

Internal Controls System

In keeping with the size and nature of its business and the complexity of its operations, the Company has in place a well-designed, strong internal control system. Well-strategised internal controls ensure strict adherence to rules and regulations, asset safeguarding, timely preparation of reliable financial statements, accurate and complete account keeping, and prevention and detection of fraud and errors. The Company is committed to ensuring continuous assessment of the efficacy of various policies.

The Corporate Audit Services team conducts independent internal audits covering key business operations, corporate divisions, and support functions. The Boards Audit Committee is apprised of the key findings from the audit, together with an update on the managements adoption of the proposed remedial measures and agreed-upon actions. The Audit Committee is also responsible for examining the internal audit plan of the Corporate Audit Services department annually.

During the year, the internal controls were evaluated by the Statutory Auditors and the Corporate Audit Services team. No reportable substantial deficiencies in their design or operation were discovered. The evaluation included document review, enquiries, testing, and any other methods deemed appropriate under the circumstances.

Cautionary Statement

In the Management Discussion and Analysis, certain forward-looking statements describing the Companys objectives, projections, estimates, and expectations are subject to several risks and uncertainties. These statements are made within applicable laws and regulations and based on informed judgements and estimates. Actual results could materially differ from those in such forward-looking statements. The risks and uncertainties relating to these statements include but are not limited to, risks and uncertainties regarding fluctuations in earnings, ability to manage growth, changing competitive landscape in both domestic and international markets, ability to attract and retain highly skilled professionals, time and cost overruns on contracts, government policies and regulations, interest and other fiscal costs generally prevailing in the economy. The Company does not undertake to make any announcement in case any of these forward-looking statements become materially incorrect in the future or update any forward-looking statements made from time to time by or on behalf of the Company.