Waaree Energies Limited — Q4 FY26 earnings call

Call held 30 Apr 2026

Management summary

Waaree Energies delivered a record FY26, with revenue, EBITDA, and PAT showing significant YoY growth, surpassing guidance. The company is aggressively pursuing its Waaree 2.0 vision through substantial capex and strategic acquisitions for deep integration across the energy value chain. However, Q4 FY26 saw margin compression and increased working capital due to external factors and order deferrals, which management expects to normalize.

Highlights

  • Revenue from operations grew ~84% YoY to ₹26,537 crores in FY26, demonstrating strong top-line performance.

  • Operating EBITDA surged 117% YoY to ₹5,909 crores with a margin of 22.27% in FY26, surpassing guidance.

  • PAT more than doubled, growing over 101% to ₹3,884 crores in FY26.

  • Order book remains robust at ~₹53,000 crores, providing strong revenue visibility for the next 3-4 years.

  • Strategic acquisitions (United Polysilicon, APSL) and significant capex (₹30,000 crores planned) are driving vertical and horizontal integration for Waaree 2.0 vision.

Concerns

  • Q4 FY26 operating EBITDA margins were impacted by the Middle East conflict, commodity price volatility (silver, copper), and increased logistics costs.

  • Sequential order book decline in Q4 FY26 was noted due to deferrals of overseas orders and delays in domestic decisions related to ALMM II clarity.

  • Working capital days increased in Q4 FY26 due to inventory build-up caused by logistics issues, which affected cash conversion.

Key financials

  1. Revenue from Operations ₹26,537 Cr +84%YoY
  2. Operating EBITDA ₹5,909 Cr +117%YoY
  3. Operating EBITDA Margin 22.3%
  4. PAT ₹3,884 Cr +101%YoY
  5. ROCE 32.4%
  6. ROE 29%

What they filed

Q1 FY27: revenue up 79.2%, net profit up 15.4% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue3,574 3,457 4,004 4,426 6,066 +70%7,565 +119%8,480 +112%7,932 +79%
EBITDA525 722 923 997 1,406 +168%1,928 +167%1,577 +71%1,440 +44%
Net profit376 507 644 773 878 +134%1,107 +118%1,126 +75%892 +15%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

  • Revenue Mix (FY26)
    34.7% Utility, IPP, C&I33% Overseas20.8% Retail11.6% EPC

Order book

high confidence

Total value

₹53,000 Cr

as of 2026-03-31 quantified

12.8% YoY

Execution

65-70% of order book executable over next three to four years

Composition

Mix 2 client types
  • Overseas Long Range 67.5%
  • Retail 20%

Share of order book by client type· partial disclosure (87.5% of the book)

Pipeline

qualified rfp

Robust pipeline of 100+ gigawatts

Cancellations & deferrals

  • deferred: New orders from overseas market deferred due to Middle East disruption.
  • deferred: Domestic C&I sector decisions deferred due to ALMM II extension speculations.
Order book is robust, with significant overseas long-range orders, but Q4 saw sequential decline due to external factors and regulatory uncertainty causing deferrals.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex ₹30,000 Cr
    • Overall capex across verticals to fuel next phase of growth ₹30,000 Cr
    • PV glass manufacturing capacity (2,500 TPD) ₹3,900 Cr
    • 10-gigawatt ingot wafer facility at Nagpur ₹6,200 Cr
    • Battery Energy Storage System (BESS) capacity (20 gigawatt hours) ₹10,000 Cr
    • Inverter capacity (4GW) ₹180 Cr
    • Green hydrogen electrolyzer (1 gigawatt) ₹676 Cr
    We have planned a capex of approximately INR30,000 crores across verticals to fuel the next phase of our growth.
  • Debt Debt disclosed
    Our financial discipline is well-established. We have maintained a debt-to-equity ratio of less than one, despite heavy capex cycles for nearly a decade.
  • M&A United Polysilicon Acquisition · Closed

    Securing long-term fully traceable non-Chinese supply of polysilicon, de-risking supply chain.

    we completed the acquisition of a strategic stake in United Polysilicon Oman-based company, securing a long-term fully traceable non-Chinese supply of polysilicon.
  • M&A Associated Power Structures Limited (APSL) Acquisition · Announced · Consideration ₹[object Object] (undisclosed)

    Entry into the transmission and distribution segment, a natural adjacency.

    Our subsidiary, WRTL, has announced the acquisition of approximately 55% stake in Associated Power Structures Limited for approximately INR1,225 crores.
  • M&A Waaree Semicon Acquisition · Incorporated

    Wholly owned subsidiary for electronic manufacturing, to build out diodes and localize components for inverter manufacturing.

    this company is wholly owned subsidy of Waaree Power Private Limited, which is the electronic manufacturing arm of Waaree Energies.

Guidance & targets

Profitability

  • Operating EBITDA Profitability · FY27 · High confidence INR 7,000 crores to INR 7,700 crores
    We continue to remain upbeat on our growth prospects and guiding for operating EBITDA of INR7,000 crores to INR7,700 crores for financial year '27.

    — Jignesh Rathod

Margin

  • EBITDA Margin Margin · decade long · High confidence 19-20%
    if you really wish to see what is there in for the next 5 to 10 odd years, the safest assumption there will be is your 19%-20% margin consistent for a decade long at least.

    — Abhishek Pareek

Capacity

  • US Module Manufacturing Capacity Capacity · next six months · High confidence 4.2 gigawatts

    From 1.6 gigawatts today

    We are also on track to expand our US manufacturing capacity to 4.2 gigawatt over the next six months, ensuring local supplies in the US.

    — Jignesh Rathod

  • Inverter Capacity (Phase 1) Capacity · current financial year · High confidence 3GW commissioned, 1GW operational
    Phase 1 of 3GW has already commissioned. Remaining 1GW shall be operational in current financial year.

    — Abhishek Pareek

  • Transformer Capacity Capacity · current financial year · High confidence 20,000 MVA

    From 4,000 MVA today

    we are adding up another 16,000 MVA of capacity, taking a total of 20,000 MVA in the current financial year

    — Abhishek Pareek

  • BESS Capacity (Phase 1) Capacity · current financial year · High confidence 3.5 gigawatt hour
    Out of that, phase one, 3.5 gigawatt hour is expected in the current financial year

    — Abhishek Pareek

  • Green Hydrogen Electrolyzer Capacity Capacity · current financial year · High confidence 1 gigawatt
    At Waaree, we are targeting a capacity of a gigawatt, at Dungri facilitate in Gujarat in the current financial year

    — Abhishek Pareek

  • PV Glass Manufacturing Production Capacity · next 24 months · High confidence 2,500 TPD
    So, we have mentioned in our disclosure also that we are expecting the glass production over the next 24 months of time.

    — Abhishek Pareek

  • Cell Manufacturing Capacity (total) Capacity · H2 FY27 · High confidence 15.5 gigawatts

    From 5.4 gigawatts today

    Additionally, in H2, our 10-gigawatt cell is also going live, which means in second half of this year our capacity which will be giving in cell for our own module production is not 5.4 gigawatts anymore. It is 15.5 gigawatts

    — Abhishek Pareek

Volume

  • Cell Capacity Utilization Volume · FY28 · High confidence 80-85%
    The safe assumption could be to assume 80%-85%utilization on the full year scale for FY'28 on the cell capacity.

    — Abhishek Pareek

Revenue

  • Non-US/Non-India Market Revenue Contribution Revenue · next 3 years · Medium confidence 15-20%
    So, we can expect, say, some 15%-20% revenue three years down the line from non-US and non-Indian market?

    — Jignesh Rathod

What to watch in Q1 FY27

Q1 FY27 Operating EBITDA Margin

next quarter
Current 22.27% (FY26), 18.58% (Q4 FY26)
Target Recovery towards 19-20% long-term target

Why it matters

To assess if the Q4 margin compression was temporary due to external factors or indicates a more structural shift.

So, on the question about the margins this quarter compared to last quarter. Over the last quarter, we have seen two things which no one envisaged. The war in the Middle East and the crisis of commodity prices. Over the last quarter, the biggest impact which has taken up was the impact of silver pricing and copper pricing.

Risks & concerns

  • Q4 Margin Compression

    medium

    Operating EBITDA margins in Q4 FY26 were impacted by geopolitical events (Middle East war), commodity price increases (silver, copper), and higher logistics costs.

    Management acknowledged

  • Order Book Deferrals

    medium

    Overseas orders were deferred due to Middle East disruption, and domestic C&I decisions were delayed due to uncertainty surrounding ALMM II implementation.

    Management acknowledged

  • Increased Working Capital Days

    medium

    Working capital days increased in Q4 FY26 primarily due to inventory build-up caused by logistics issues, which temporarily affected cash conversion.

    Management acknowledged

  • Supply Chain Dependence

    low

    The company is actively de-risking its supply chain through strategic acquisitions (e.g., United Polysilicon) and backward integration to reduce reliance on external sources, especially for FEOC-compliant materials.

    Management addressed

Q&A highlights

7 direct
Q4 Margin Compression Direct
Over the last quarter, the biggest impact which has taken up was the impact of silver pricing and copper pricing. Which has in a way taken some weight off our margins. Also, more important to note here, because last quarter, there was also some impact on logistics cost.

Management provided clear reasons for the Q4 margin decline, attributing it to external factors like commodity prices, logistics, and sales mix.

Asked by Arun Kailasan

US Anti-dumping Duties Impact Direct
So, thankfully, ahead of time, you know, we were able to start our production in the US itself. The 1.6-gigawatt facility started last year has already ramped up and another 2.6-gigawatt worth of new facilities are going to go live over the next six months of time. So, we will have approx. 4.2 gigawatt of US local capacity for distributing in the local US markets. So, that insulates us from the impact of import duties on tariffs.

Management clarified that the company is insulated from US anti-dumping duties due to its growing local manufacturing capacity in the US and diversified supply chains.

Asked by Arun Kailasan

Purpose of Fundraise (₹10,000 crores) Direct
this fundraise is to deepen our entire platform journey, both horizontal and vertical, and also to embark on the entire materials backward integration. This will lengthen our growth curve, protect our margins and ROCs over a much longer period.

Management detailed the strategic rationale behind the large fundraise, linking it to the Waaree 2.0 vision of deep integration and long-term value creation.

Asked by Ravi Dharamshi

Gap between EBITDA and CFO Direct
because the inventory build-out has happened in Q4, largely because a lot of material has kept on the shores, could not be shipped out because of the logistics issue. Had that been the case, we would have realized the cash into our balance sheet.

Management explained the temporary nature of the CFO deterioration, attributing it to logistics-induced inventory build-up rather than a structural issue.

Asked by Deep Sanghavi

Order Book Decline in Q4 Direct
last quarter, largely because of the disruption in the Middle East. The new order from the overseas market have deferred from maybe a quarter to a quarter's time. Similarly, there's a lot of dispatches which are happening in the local market. And in the local market, if you see there is an ALMM II which is coming up... many decisions in the C&I sector largely are held up because of the few people are citing that maybe there could be some extension, etc. So, decisions are getting deferred.

Management provided specific reasons for the sequential order book decline, citing both international geopolitical issues and domestic regulatory uncertainty.

Asked by Praveen Sahay

ALMM II Ground Reality and Impact Partial
Very difficult to answer with government also not able to answer so far. Speculations are going on, but I think within a week we will have a clarity from government. ... ALMM II is just about almost formalization. First June, it comes into effect.

Management acknowledged the ongoing uncertainty around ALMM II but provided a timeline for its formalization, which is crucial for domestic market clarity.

Asked by Rahul Rohit

ROC/ROE from New Verticals Direct
historically, we have seen the projects of ROCE and ROE to the tune of 20% to 25% have been approved. Same is the case with current projects also. So, you reasonably expect to get delivery of similar set of return on capital from the investment that we are making.

Management reassured that new capex investments are aligned with historical ROCE/ROE targets, indicating a disciplined approach to capital allocation despite large-scale expansion.

Asked by Harshit Jain

Green Hydrogen Commercial Viability Direct
I think there will be a gold rush towards getting hydrogen and green ammonia in-house in the country.

Management expressed strong confidence in the future commercial viability and growth potential of green hydrogen, driven by energy security concerns and anticipated regulatory support.

Asked by Akash Shirvat

3 min read 6 chapters

Detailed narrative

Record FY26 Performance and Waaree 2.0 Vision

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.

Capacity Expansion and Technology Upgrades

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 Margin Compression and Working Capital Dynamics

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.

Robust Order Book and Diversified Demand Outlook

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.

Strategic Acquisitions and New Growth Verticals

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.

Regulatory Environment and FEOC Compliance

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.

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