Waaree Energies Q1 FY27 earnings call

Waaree Energies reported robust financial performance in Q1 FY27, with revenue from operations growing 79.2% year-on-year to INR7,932 crores. Operating EBITDA increased by 44.4% year-on-year to INR1,440 crores, achieving an 18.2% margin. Profit after tax (PAT) also saw a 15.4% year-on-year increase, reaching INR892 crores with an 11% margin. Module volumes sold during the quarter grew 89% over the prior period, from 1.9 gigawatts to 3.6 gigawatts.

The company's order book reached an all-time high of INR61,500 crores as of July 28, 2026, a significant increase from INR50,000 crores just a quarter ago. New orders won in Q1 FY27 alone amounted to INR16,000 crores, comfortably outpacing the INR7,300 crores of orders executed during the same period. The order book, totaling 25.2 gigawatts in module terms, is geographically diversified with approximately 40% from domestic India, 36% from domestic US, and 24% from exports.

Waaree is aggressively expanding its manufacturing capabilities, commissioning an additional 3 gigawatts of module capacity at its Samakhiali plant in April 2026. The company's total module capacity is expected to reach 28 gigawatts and cell capacity 15.4 gigawatts by the end of FY27. Furthermore, the 10 gigawatt cell facility is expected to start contributing from Q3 FY27, with cell production projected to ramp up from 800 megawatts in Q1 to 1.5 gigawatts quarterly by Q3/Q4.

Despite facing global raw material cost increases that compressed industry margins, Waaree is implementing structural measures to improve profitability. The company's captive cell lines are expected to nearly double output, replacing purchased cells and contributing to a module + cell integrated supply margin profile of 35-41%. The cell-to-module integration ratio is targeted to rise from approximately 20% currently to 65% in the next two to three quarters, further enhancing cost competitiveness.

The US market remains a strategic focus, with the company's 1.6 gigawatt US module capacity expected to achieve 75-80% utilization in upcoming quarters. This ramp-up is crucial for realizing IRA incentives, which are expected to contribute an additional $0.07-0.08 per watt peak to margins. Waaree anticipates starting to receive these incentives from Q3/Q4 FY27, providing an ongoing cash flow benefit.

Waaree Energy Storage Solutions commenced automated BESS container production at 5.15 gigawatt hours, with the entire 3.5 gigawatt hour BESS cell facility expected to start commercial operations within FY27. The company is targeting significant volumes from this segment, including a recent 1.5 gigawatt-hour EPC order. The BESS business is expanding into overseas markets, addressing demand for FEOC-compliant supply chains in the US and non-Chinese supply chains in Europe.

The company's total announced capital expenditure programs amount to INR31,500 crores, with INR9,450 crores already deployed as of June 30, 2026. The remaining INR22,000 crores will be spent over the next three years, with approximately 40% in FY28 and 30% in FY29. This capex is aimed at further backward integration, including ingots and wafers, and expanding into new areas like transformers, inverters, and electrolyzers.