Waaree Energies Limited

Waaree Energies delivered a stellar Q3 FY26, with revenue from operations growing 118.81% year-on-year to ₹7,565.05 crores. Operating EBITDA surged 167.16% year-on-year to ₹1,928.15 crores, with margins expanding beyond 25%. Net profit after tax for the quarter was ₹1,106.79 crores, an increase of 118.4% year-on-year. For the nine months ended December 31, 2025, revenue crossed ₹18,000 crores, and operating EBITDA reached approximately ₹4,332 crores, with margins expanding to almost 24% from 17% in the prior year.

The company reported a solid order book of approximately ₹60,000 crores, providing strong visibility for upcoming quarters, complemented by a healthy order pipeline exceeding 100 gigawatts. Waaree achieved a significant manufacturing milestone by becoming the first Indian solar manufacturer to produce over 1 gigawatt of modules in a single month, producing nearly 52 modules per minute. Module production increased 94% year-on-year, and cell production saw a 35% quarter-on-quarter increase.

Waaree is actively investing in the full solar value chain, from polysilicon to modules, as part of its 'Waaree 2.0' strategy. A strategic investment in United Solar Holdings in Oman has secured a non-Chinese, fully traceable polysilicon supply chain, with production expected to commence in the current quarter. The company's modules, cells, ingots, and wafers plants are all targeted to be operational by FY27, enhancing vertical integration and control over the manufacturing process.

Beyond core solar manufacturing, Waaree is expanding into the broader energy transition ecosystem. This includes building a 20-gigawatt-hour advanced lithium-ion battery and pack manufacturing facility, expected to be ready by FY28, for which ₹1,000 crores of equity was raised. The company has also commissioned phase one of its 3-gigawatt inverter facility in Gujarat, with an additional 1 gigawatt planned for FY27, and is setting up a 1-gigawatt electrolyser facility with a planned CAPEx of ~₹676 crores, supported by a PLI of ₹444 crores.

The US remains an important market, with Waaree manufacturing there and expanding investments, including the acquisition of Meyer Burger assets. The company reported approximately 275 megawatts of local US production and booked roughly ₹80 crores in IRA tax credits this quarter, though the potential incentive was higher at ~₹160 crores due to partial application. Management expressed a strong desire to actively consider cell manufacturing in the US at the right time to leverage the 'country of origin' rule for tariffs.

Cell utilization, which was 56% for the December quarter, has significantly improved to 80-81% currently and is projected to reach well above 85-90% within the next 3-4 months following upgrades to G12R cells. Management emphasized a proactive approach to managing gross margins, utilizing back-to-back cell tying to avoid commodity risks. While cell prices have increased, improved realizations in the US market (up to ¢28-30 per watt) and operational leverage are helping to maintain profitability.

Waaree has provisioned approximately ₹294 crores for a US investigation, acting transparently based on legal advice. Domestically, 42 gigawatts of PPAs are currently stalled due to technical and geographical limitations, including issues with transmission capacity, transformers, and land availability. Despite these challenges, management maintains a buoyant outlook for the solar industry, expecting strong demand growth in India, particularly from the retail and Commercial & Industrial (C&I) segments, and anticipates surpassing its FY26 EBITDA guidance of ₹5,500-6,000 crores.