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    Waaree Energies Q2 FY26 earnings call

    WAAREEENER
    Capital Goods·17 Oct 2025
    Management Summary

    Waaree Energies delivered a record-breaking Q2 FY26, with significant year-on-year growth across revenue, EBITDA, and PAT. The company's module and cell capacities are expanding, and the order book remains strong. Strategic acquisitions and a substantial capex plan are underway to diversify and integrate the energy portfolio, with a focus on battery energy storage systems and other adjacencies. Management reiterated its FY26 EBITDA guidance of ₹5,500-6,000 crores.

    Highlights

    5

    • Record-breaking quarterly performance with 70% YoY revenue growth to ₹6,227 crores.

    • EBITDA grew 155% YoY to ₹1,567 crores, expanding margin to 25.17% from 17% in the prior year.

    • PAT increased 134% YoY to ₹878 crores.

    • Order book remains robust at ~₹47,000 crores, equivalent to ~24 gigawatts.

    • Successful commencement of additional 2.75 GW module manufacturing capacity at Chikhli, bringing total module capacity to ~18.7 GW.

    Concerns

    2

    • Increase in other expenses (SG&A) due to export-related duties and phasing issues, though expected to normalize.

    • Cash flow impact from inventory build-up due to export orders shipped but not yet recognized as sales.

    What Changed1

    vs Q3 FY26

    Guidance items7 → 12 (+5)

    Key financials

    Single quarter

    07 metrics
    1. 01Revenue₹6,227 Cr+70%YoY
    2. 02EBITDA₹1,567 Cr+1.6%YoY
    3. 03EBITDA Margin25.2%
    4. 04PAT₹878 Cr+134%YoY
    5. 05H1 Revenue₹10,823 Cr+51.2%YoY

    Segment breakdown

    Domestic Market (Q2 Sales Mix)
    53% Revenue Contribution
    Overseas Market (Q2 Sales Mix)
    47% Revenue Contribution
    Domestic Sales Mix (Typical)
    19% Retail81% Institutional
    List

    Order Book

    high confidence

    Total Value

    ₹ 47,000 crores

    as of 2025-09-30

    quantified

    Composition

    Mix2 geographys
    • Overseas (Gigawatts)60.0%
    • Domestic (Gigawatts)40.0%

    Share of order book by geography

    Pipeline

    other

    Order pipeline healthy at 100+ gigawatts

    "Order book is strong at ~₹47,000 crores, equivalent to ~24 gigawatts, with a typical 60% overseas and 40% domestic split."

    Source:
    Prepared remarks

    Capital allocation

    7
    high confidence
    CategoryHeadline
    Capex

    ₹25,000 crores

    new plan — additional capacities for BESS, inverters, electrolyser manufacturing · Internal accruals and existing borrowings; undrawn credit lines available.

    Debt

    Debt disclosed

    Dividend

    ₹2/share (interim)

    M&A

    Racemosa Energy India

    acquisition · announced

    M&A

    Kotsons Private Limited

    acquisition · announced

    Guidance & targets

    12
    CategoryTargetPriority
    Profitability
    EBITDA
    INR 5,500 crores - INR 6,000 crores
    		High
    Profitability
    Backward Integration Margin
    24-25%
    		Medium
    Capacity
    Module Capacity
    26.7 gigawatts
    		High
    Capacity
    Cell Capacity
    15.4 gigawatts
    		High
    Capacity
    Ingots and Wafer Facility
    10 gigawatts
    		High
    Capacity
    Battery Energy Storage System (BESS)
    20 gigawatts hour
    		High
    Capacity
    Inverter Manufacturing
    4 gigawatts per annum
    		High
    Capacity
    Green Hydrogen Capacity
    1 gigawatt
    		High
    Market Share
    Domestic DCR Market Share
    25-30%
    		Medium
    Capacity Utilization
    Module Capacity Utilization
    80-85%
    		Medium
    Capacity Utilization
    Cell Capacity Utilization
    85-90%
    		Medium
    Capacity Utilization
    Chikhli Cell Facility Utilization
    80-85%
    		High

    What to watch in Q3 FY26

    5

    Cash flow conversion from export orders

    next quarter
    CurrentInventory build-up due to shipped but unrecognized export sales
    TargetConversion of inventory to revenue and improved cash flow

    Why it matters

    To confirm that the current cash flow impact is indeed a temporary phasing📎 issue and not a structural problem.

    So, the main reason for the cash that you see, you will see the CFS statement that my inventory has gone up and this is typically because part of my export orders, which I have actually shipped out, okay, it has not reached the customer. So, I don't recognize that sale and that's showing up as an inventory in my books. So, what's going to happen is that it's going to translate into revenues in the coming quarter and you will then see that bump down eventually.

    Risks & concerns

    4
    RiskSeverity

    Cybersecurity threats

    Cybersecurity is a very important discussion internally to ensure it is taken care of. — Management acknowledged

    medium

    ESG compliance and related elements

    ESG and its various elements are tracked as a key risk. — Management acknowledged

    medium

    Regulatory environment changes

    Regulatory changes can happen and have a direct impact on the business, requiring close monitoring. — Management acknowledged

    medium

    ADD/CVD investigation in the US

    Probe has just begun; outcomes are uncertain, but internal review suggests limited liabilities. Company is ensuring compliance with US laws. — Analyst acknowledged

    medium

    Q&A highlights

    7

    “So, the main reason for the cash that you see, you will see the CFS statement that my inventory has gone up and this is typically because part of my export orders, which I have actually shipped out, okay, it has not reached the customer. So, I don't recognize that sale and that's showing up as an inventory in my books. So, what's going to happen is that it's going to translate into revenues in the coming quarter and you will then see that bump down eventually. So, it's a little bump up and which will come down. It's not structural, number one.”

    Clarified that the increase in inventory and related cash flow impact is a phasing issue for export orders, expected to normalize in the next quarter, not a structural problem.

    asked by Amit Mahawar

    3 min read6 chapters

    Detailed Narrative

    01

    Record-Breaking Q2 FY26 Performance

    Waaree Energies delivered a stellar Q2 FY26, reporting a revenue of ₹6,227 crores, marking a 70% year-on-year growth. EBITDA for the quarter surged by 155% year-on-year to ₹1,567 crores, with the EBITDA margin expanding significantly to 25.17% from 17% in the prior year. Profit After Tax (PAT) also saw a substantial increase of 134% year-on-year, reaching ₹878 crores. For the first half of FY26, revenue stood at ₹10,823 crores, with EBITDA at ₹2,736 crores (up 118% YoY) and PAT at ₹1,651 crores.

    02

    Robust Order Book and Capacity Expansion

    The company maintains a strong order book of approximately ₹47,000 crores as of September 30, 2025, equivalent to about 24 gigawatts. This includes a typical split of 60% overseas and 40% domestic orders. Waaree's total module capacity has reached ~18.7 gigawatts, with the cell capacity now fully functional and operational at 5.4 gigawatts, making it the largest cell manufacturing facility in India. Module production for the quarter was 2.6 gigawatts, and cell production was 0.6 gigawatts, with expectations for further improvement in H2 FY26.

    03

    Strategic Diversification and Capex Plans

    Waaree is actively diversifying its energy portfolio with significant investments in new verticals. The Board has approved an additional capex of ~₹8,175 crores, part of a larger ₹25,000+ crores greenfield capex plan over the next 24 months. This includes augmenting Battery Energy Storage System (BESS) capacity to 20 gigawatt-hours (with an investment of ~₹8,000 crores), electrolyser manufacturing to 1 gigawatt, and inverter manufacturing from 3 gigawatts to 4 gigawatts. The company also made strategic acquisitions, including a 76% stake in Racemosa Energy India (smart meters) and a 64% stake in Kotsons Private Limited (transformers), and solar manufacturing assets of Meyer Burger in the US.

    04

    Market Outlook and Regulatory Tailwinds

    Management expressed strong confidence in demand, citing India's solar capacity projected to double to ~280 gigawatts by 2030. The recent GST cut from 12% to 5% is expected to reduce module prices and boost demand. Regulatory initiatives like the extension of ALMM for cells (June 2026) and ingots/wafers (June 2028) are expected to strengthen the domestic value chain. Internationally, the US market shows strong traction, with solar capacity expected to reach 500 gigawatts by 2030, supported by 45x tax credits and surging demand from data centers.

    05

    Profitability Drivers and Margin Management

    The company's gross margins have remained stable and are increasing, with a focus on managing input costs and maintaining a diversified segment mix (retail, export, domestic, EPC). DCR segments are noted to have higher margins, with a typical spread of 300-350 basis points over normal segments. Management expects backward integration to contribute to a sustained margin of 24-25%. The increase in other expenses this quarter was attributed to export-related duties and phasing📎 issues, which are expected to normalize📎.

    06

    Commitment to Shareholders and Sustainability

    The Board approved an interim dividend of INR 2 per share, demonstrating a commitment to rewarding shareholders. Waaree is also focused on sustainability, aiming for net-zero Scope 1 and 2 emissions by 2030 and Scope 3 by 2040. The company is the first Indian module manufacturer to receive EPD certifications and has been recognized with a Gold Medal for EcoVadis sustainability rating. CSR initiatives include educational support, tree plantation, and cyclone relief efforts, with a partnership with IIT Bombay for advanced solar cell technologies.

    This is an AI-generated summary of a publicly available earnings call transcript.