Waaree Renewable Technologies Q1 FY27 earnings call

Waaree Renewable Technologies Limited commenced FY27 with a robust performance, reporting revenue from operations of INR 924.25 crores, a significant 53.23% increase year-on-year. The company's EBITDA stood at INR 173.48 crores, and Profit After Tax (PAT) reached INR 118.97 crores, marking a 37.7% growth compared to the previous year. These results underscore the company's strong project execution capabilities and operational discipline, providing a solid foundation for the remainder of the fiscal year.

A key development in Q1 FY27 was the successful acquisition of a 55% equity stake in Associated Power Structures Private Limited (APSPL). This strategic move positions Waaree to address the growing demand for grid and power evacuation infrastructure, complementing its existing solar EPC business. APSPL, with over two decades of experience and a manufacturing capacity of 108,000 metric tons per annum for fabrication and galvanization, brings integrated EPC solutions for substations and transmission lines, completing Waaree's value chain in the renewable energy sector.

The company's consolidated unexecuted order book reached INR 5,300 crores, offering healthy revenue visibility for the next 12 to 15 months. This order book includes INR 2,400 crores from pure solar EPC projects and INR 200 crores from BESS EPC. During the quarter, Waaree executed 888.81 megawatt peak of projects, demonstrating its efficient execution capabilities. The Operations & Maintenance (O&M) portfolio also expanded to 1.15 gigawatt peak, contributing to recurring revenue streams.

Management highlighted the continued strong momentum in India's renewable energy sector, with total installed capacity at 288 gigawatts and cumulative solar capacity exceeding 162 gigawatts as of June 30, 2026. Significant opportunities are identified in battery energy storage systems (BESS), projected to reach 208 GWh by 2030, and the power transmission and distribution segment, which anticipates investments of INR 4,90,920 crores between 2027 and 2032. Waaree aims to capitalize on these trends by leveraging its expanded capabilities.

While standalone EPC margins showed an improvement of 20 basis points, the consolidated PAT margins experienced a slight contraction year-on-year. This was primarily attributed to the consolidation of APSPL, which operates on a lower-margin business model. Management acknowledged the low-margin and low-ROIC nature of the T&D business but stated that continuous efforts would be made to improve overall consolidated margins in the coming quarters^⏳ through operational efficiencies and strategic synergies across the combined entities.

Waaree is actively pursuing a substantial order pipeline, including approximately 27 gigawatts domestically and 10 gigawatts internationally for solar EPC projects, and an estimated INR 20,000 crores for T&D projects. The company also maintains an IPP pipeline of 198 MWp. Management expressed confidence in its execution capacity, stating the ability to execute up to 5 gigawatts annually, provided all necessary clearances are obtained, indicating readiness for significant growth.