Waaree Energies

Waaree Energies delivered a robust FY26, with revenue from operations growing by approximately 84% YoY to ₹26,537 crores. Operating EBITDA increased by 117% to ₹5,909 crores, achieving a margin of 22.27%, surpassing the initial guidance. PAT more than doubled to ₹3,884 crores, reflecting strong profitability. The company is executing its 'Waaree 2.0' vision to become a fully integrated energy transition player, backed by a committed capex of approximately $3.5 billion to expand capabilities across the entire energy value chain, from polysilicon to EPC and T&D.

The company's total module manufacturing capacity now stands at approximately 26 gigawatts, making it the largest non-Chinese module manufacturer globally. Cell manufacturing capacity is 5.4 gigawatts, the largest in India. Waaree is investing significantly in backward integration, with a 10-gigawatt ingot wafer facility under construction at Nagpur (₹6,200 crores capex) and a 2,500 TPD PV glass manufacturing unit approved (₹3,900 crores capex). The company has also commissioned an additional 3-gigawatt module manufacturing capacity and is transitioning to G12 and G12R Topcon technology, expecting a 10-12% upside in efficiency and realization.

Q4 FY26 saw a moderation in operating EBITDA margins, primarily due to external factors. The Middle East conflict, increased commodity prices (silver and copper), and higher logistics costs impacted profitability. Additionally, a shift in sales mix, with lower overseas export revenue compared to Q3, contributed to margin dilution. The company's cash conversion cycle also lengthened, with working capital days increasing from ~45 days in FY25 to ~90 days in Q4 FY26, mainly due to inventory build-up from logistics delays preventing timely shipments.

The order book remains strong at approximately ₹53,000 crores, up from ₹47,000 crores at the end of Q4 FY25, with 65-70% comprising overseas long-range orders executable over the next 3-4 years. The retail segment, contributing ~20% of revenue, is not fully reflected in this order book. Despite a sequential decline in order intake in Q4 due to deferred overseas orders (Middle East disruption) and domestic delays (ALMM II clarity), the overall pipeline remains robust at 100+ gigawatts. Management anticipates continued strong demand, with India's solar additions projected to reach 100 gigawatts annually by 2035.

Waaree made strategic moves to enhance integration and enter new growth areas. It acquired a stake in United Polysilicon (Oman) for a secure, non-Chinese polysilicon supply. The acquisition of a 55% stake in Associated Power Structures Limited (APSL) for ₹1,225 crores marks its entry into the transmission and distribution (T&D) segment. The company is also aggressively building out new verticals, including a 20 gigawatt-hour Battery Energy Storage System (BESS) capacity (₹10,000 crores capex), 4 gigawatts of inverter capacity (₹180 crores capex), and 1 gigawatt of green hydrogen electrolyzer capacity (₹676 crores capex), with significant PLI benefits secured for the latter.

The regulatory landscape, particularly the ALMM II framework, is significantly shaping the domestic market by redefining supply requirements to include ALMM II approved solar cells integrated with modules. While there was some uncertainty and deferral of domestic orders in Q4, management expects clarity soon, with ALMM II for cell manufacturing becoming effective from June 1. For the US market, the FEOC (Foreign Entity of Concern) clause, effective April 2026, mandates non-FEOC sources for components like glass and junction boxes, which Waaree's backward integration and US manufacturing capacity are designed to address, ensuring market access and competitive advantage.