Sterling and Wilson Renewable Energy has reached a full and final settlement with the Kenya Revenue Authority (KRA), reducing a tax demand of about ₹26.50 crore to ₹2.66 crore, the company said in a regulatory filing on Wednesday.
The settlement reduces the amount payable by nearly 90%, with the company required to pay only the principal tax amount rather than the original demand, which included interest and penalties. The payment must be made by December 25, 2026, subject to other applicable legal compliances.
The original demand was issued through an order dated December 12, 2025, and relates to the assessment period from January 1, 2020, to December 31, 2023. According to the company, the reduction is mainly due to a lower attribution of profits to its Kenya branch.
Sterling and Wilson received the settlement agreement on October 21 and said it would make the payment in line with the agreed terms.
The company also said the authority had identified no aberrations or non-compliances and had imposed no penalty, restriction or sanction in connection with the communication.
September-quarter results
Sterling and Wilson Renewable Energy returned to profit in the September quarter, reporting a net profit of ₹19.2 crore against a loss of ₹473.2 crore in the same period a year earlier. The results were announced on October 15.
Revenue, however, fell 12.6% year-on-year to ₹1,527.5 crore from ₹1,748.6 crore.
Operating profitability improved during the quarter. Earnings before interest, tax, depreciation and amortisation (EBITDA) rose to ₹56 crore from ₹4 crore a year earlier, while the EBITDA margin increased to 3.7% from 0.2%.
Sterling and Wilson recently secured domestic and international orders worth more than ₹985 crore. These include a 534.3 megawatt-peak (MWp) solar project in Rajasthan, two battery energy storage system (BESS) projects in South Africa with a combined capacity of 616 megawatt-hours (MWh), and the West Minya Solar Power Project in Egypt.
The Egyptian project was secured through the company’s joint venture with Hassan Allam Construction.
Sterling and Wilson Renewable Energy shares closed 4.67% lower at ₹152.73 on October 21, down ₹7.48 from the previous close.
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