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    Waaree Renewable Technologies Q1 FY26 earnings call

    WAAREERTL
    Capital Goods·18 Jul 2025
    Management Summary

    Waaree Renewable Technologies reported a strong start to FY26 with significant year-on-year growth across all key financial metrics, including revenue, EBITDA, and PAT. The company's order book stands at a healthy 3.15 GW, ensuring revenue visibility for the next 12-15 months. While current EBITDA margins are high at 19.49%, management has guided for a more conservative 14-16% range for the financial year, emphasizing sustainable growth and execution capabilities amidst a transforming renewable energy sector in India.

    Highlights

    5

    • Strong Q1 FY26 financial performance with revenue at ₹603.19 crores, marking a 155.20% year-on-year growth.

    • EBITDA increased by 186.14% YoY to ₹117.54 crores, reflecting robust operational discipline.

    • Profit After Tax (PAT) grew significantly by 206.77% YoY to ₹86.39 crores.

    • Current EBITDA margin of 19.49% shows an improvement from 17.38% in the previous quarter.

    • Order book remains robust at 3.15 GW, providing strong revenue visibility for the next 12-15 months.

    Concerns

    1

    • Management guided for a sustainable EBITDA margin range of 14-16%, which is lower than the current 19.49% achieved in Q1 FY26, citing a desire to be 'realistic'.

    What Changed2

    vs Q2 FY26

    Guidance items4 → 2 (-2)Risks discussed3 → 2 (-1)

    Key financials

    Single quarter

    04 metrics
    1. 01Revenue₹603.19 Cr+1.6%YoY
    2. 02EBITDA₹117.54 Cr+1.9%YoY
    3. 03PAT₹86.39 Cr+2.1%YoY
    4. 04EBITDA Margin19.5%+12.1%QoQ

    Order Book

    high confidence

    Total Value

    ₹ 3.15 GW

    as of 2025-06-30

    quantified

    Inflow this qtr

    ₹ 720 crores

    Execution

    Order book of 3.15 GW to be executed over the next 12 to 15 months.

    Pipeline

    other

    25 GW worth of order pipeline for EPC projects.

    "The company maintains a robust order book of 3.15 GW, providing strong revenue visibility, and is actively chasing a 25 GW order pipeline in the EPC segment."

    Source:
    Prepared remarks

    Guidance & targets

    2
    CategoryTargetPriority
    Margin
    EBITDA Margin
    14-16%
    		Medium
    Order Book Execution
    Order Book Execution Timeline
    3.15 GW
    		High

    What to watch in Q2 FY26

    4

    EBITDA Margin adherence to guidance

    next quarter
    Current19.49%
    Target14-16%

    Why it matters

    To assess if the company's 'realistic' guidance of 14-16% EBITDA margin materializes or if the current higher margin is sustainable.

    So just to clarify here, we have been maintaining over the last quarter-on-quarter and over calls also that the range of margin that we expect in this business ranges from 14% to 16% of range... No. Nothing so specific, but we wanted to be realistic.

    Risks & concerns

    2
    RiskSeverity

    BESS price fluctuations

    Management states they hedge against price fluctuations through back-to-back agreements or variable pricing with clients. — Analyst acknowledged

    low

    Project execution delays

    Management denies any significant delays in current projects and maintains alignment with customers. — Analyst downplayed

    low

    Q&A highlights

    8

    “To further clarify your question, we have a BESS manufacturing and BESS cell manufacturing plan in place under the holding company. And the manufacturing is expected to happen in a separate SPV.”

    Clarifies that BESS manufacturing capex is under the holding company, not Waaree RTL, which focuses on EPC for BESS.

    asked by Prathamesh Dhiwar

    2 min read5 chapters

    Detailed Narrative

    01

    Q1 FY26 Performance Overview

    Waaree Renewable Technologies reported a robust Q1 FY26, with revenue reaching ₹603.19 crores, a significant 155.20% increase year-on-year. EBITDA for the quarter stood at ₹117.54 crores, growing by 186.14% YoY, while Profit After Tax (PAT) surged by 206.77% YoY to ₹86.39 crores. The company's EBITDA margin improved to 19.49% from 17.38% in the previous quarter, reflecting strong operational discipline and execution capabilities.

    02

    Order Book and Pipeline Strength

    The company's unexecuted order book remains strong at 3.15 GW, providing clear revenue visibility for the next 12 to 15 months. In Q1 FY26 alone, Waaree Renewable Technologies secured new orders worth ₹720 crores, representing 566 MW. Furthermore, the company is actively chasing a substantial order pipeline of 25 GW, indicating significant future growth potential in the EPC segment.

    03

    Renewable Energy Sector Outlook

    India's renewable energy sector is undergoing a transformation, with total installed renewable capacity reaching 234 GW by June 2025, including 116.25 GW from solar. The country has achieved 50% of its total installed power capacity from non-fossil fuel sources, five years ahead of its 2030 target. Government initiatives like PM Surya Ghar Muft Bijli Yojana and extended PM Kusum Schemes are expected to further accelerate adoption, creating significant opportunities for EPC players like Waaree Renewable Technologies.

    04

    BESS and Green Hydrogen Opportunities

    Waaree Renewable Technologies is actively exploring opportunities in Battery Energy Storage Systems (BESS) and green hydrogen, identified as key growth drivers. The company currently has 40 MWh worth of BESS orders in its book and sees BESS as a critical component for solar projects, with costs decreasing to $80-$120 per MW. A 1 MW green hydrogen pilot project has been announced, and the company is seeking more such opportunities, though execution timelines are still being finalized.

    05

    Execution Capabilities and Margins

    The company emphasizes its integrated capabilities, strong execution track record, and customer-centric approach as key differentiators. It is currently executing a 2 GW project at a single location and another 1 GW project, showcasing its ability to handle large-scale projects. While the Q1 FY26 EBITDA margin was 19.49%, management has guided for a sustainable range of 14-16% for the current financial year, citing realism and a focus on operational efficiency and cost initiatives.

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