Waaree Renewable Technologies Limited — Q2 FY26 earnings call

Call held 13 Oct 2025

Management summary

Waaree Renewable Technologies reported its highest-ever quarterly revenue and PAT in Q2 FY26, with revenue growing 47.73% YoY to Rs. 774.78 crores and PAT increasing 117.40% YoY to Rs. 116.34 crores. EBITDA margin expanded significantly to 20.39%. The unexecuted order book stands at 3.48 GWp, providing strong revenue visibility for the next 12-15 months. The company is also expanding into IPP projects and actively exploring EPC opportunities in the BESS and data center segments, while maintaining a focus on operational efficiency.

Highlights

  • Revenue from operations in Q2 FY26 grew 47.73% YoY to Rs. 774.78 crores, marking the highest-ever quarterly revenue.

  • EBITDA in Q2 FY26 increased 120.69% YoY to Rs. 157.94 crores, with EBITDA margin expanding to 20.39% from 13.65% in the prior year.

  • PAT in Q2 FY26 reached Rs. 116.34 crores, a 117.40% increase YoY, representing the highest-ever quarterly PAT.

  • H1 FY26 revenue from operations grew 81.12% YoY to Rs. 1,377.97 crores, and PAT increased 148.21% YoY to Rs. 202.73 crores.

  • The unexecuted order book stands at a robust 3.48 GWp, providing solid revenue visibility for the next 12 to 15 months, primarily from domestic ground-mounted EPC projects.

Concerns

  • Cash flow from operating activities remained flat at Rs. 84 crores in H1 FY26.

Key financials

2 periods

Q2 FY26

  • Revenue from Operations
    ₹774.78 Cr
    YoY +47.7%
  • EBITDA
    ₹157.94 Cr
    YoY +120.7%
  • EBITDA Margin
    20.4%
  • PAT
    ₹116.34 Cr
    YoY +117.4%

H1 FY26

  • Revenue from Operations
    ₹1,377.97 Cr
    YoY +81.1%
  • PAT
    ₹202.73 Cr
    YoY +148.2%
  • Cash Flow from Operating Activities
    ₹84 Cr

What they filed

Q1 FY27: revenue up 34.5%, net profit up 31.0% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue524 360 477 603 775 +48%851 +136%1,102 +131%811 +34%
EBITDA72 72 126 118 158 +119%159 +121%207 +64%159 +35%
Net profit54 54 94 87 117 +117%122 +126%157 +67%114 +31%
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.

Order book

high confidence

Total value

3.48 GWp

as of 2025-09-30 quantified

Execution

likely to be executed over next 12 to 15 months

Composition

  • Domestic (geography) 3.48 GWp 100%
  • Ground Mounted EPC (project type)

Pipeline

deal pipeline tcv

Total pipeline including government tenders, private C&I and IPP customers

The unexecuted order book of 3.48 GWp provides solid visibility for the upcoming quarters, with H1 FY26 execution of 1,621 MWp exceeding full-year FY25 execution.

Source: Prepared remarks

Capital allocation

medium confidence
  • Capex Capex disclosed
    • IPP projects in Maharashtra and Rajasthan 51 MWp
    board has approved additional 14 MWp in Maharashtra plus 37 MWp in Rajasthan.
  • Debt Gross ₹20 Cr
    We have Rs. 20 crores of term loan, which is for the IPP business.
  • M&A Cooling business company Acquisition · Closed

    Find synergy with solar installation opportunities

    this cooling business, the Company which we have identified and acquired around 3% stake, so this Company provides cooling as a solution.

Guidance & targets

Margin

  • EBITDA Margin Margin · FY26 · High confidence around 15%
    The margin where we are comfortable is around 15%. But with the operational efficiency, tight budgeting control, monitoring all projects in real-time basis, we are able to get this kind of margin. So, with the available order book, whatever we have, we expect that margin will remain in the range of more than 15%.

    — Manmohan Sharma

Capacity

  • India's Non-Fossil Fuel Capacity Capacity · by 2030 · High confidence 500 GW
    India's renewable energy momentum continues to accelerate with non-fossil fuel capacity now exceeding 250 GW, a significant milestone that puts the country more than halfway to target its 2030 target of 500 GW.

    — Manmohan Sharma

  • Annual Renewable Energy Addition Capacity · every year · High confidence 40 GW to 50 GW
    So, every year 40 GW to 50 GW is to be added in terms of renewable energy. Solar is going to play a major role.

    — Manmohan Sharma

  • PM Surya Ghar Muft Bijli Yojana and PM Kusum Yojana Target Capacity · by March 2026 · High confidence 34.8 GW
    PM Surya Ghar Muft Bijli Yojana and PM Kusum Yojana, which target 34.8 GW by March 2026.

    — Manmohan Sharma

What to watch in Q3 FY26

Improvement in Cash Flow from Operating Activities

H2 FY26
Current Rs. 84 crores (flat in H1 FY26)
Target Improvement in H2 FY26

Why it matters

Essential for funding operations and growth, especially with increasing order execution and working capital needs.

Definitely, with the more and more orders which are going to execute in the next H2, this position is going to improve going forward.

Risks & concerns

  • Potential delays in module procurement due to ALMM List 2 implementation

    low

    Management stated that for their pure EPC orders, module procurement is typically the developer's responsibility, and they execute once clearances are in place, thus minimizing direct impact.

    Analyst downplayed

  • Competition leading to pricing pressure and lower margins

    low

    Management acknowledged competition but emphasized their selective approach to order booking, only taking projects that meet their budgetary and risk-reward metrics to ensure profitability.

    Analyst acknowledged

  • Evacuation and connectivity issues affecting project execution

    low

    Management stated that for their current orders, they have not encountered such issues, and if they arise, they are typically within the customer's scope.

    Analyst downplayed

Q&A highlights

6 direct
Sustainability of current high margins and FY26 margin outlook Direct
The margin where we are comfortable is around 15%. But with the operational efficiency, tight budgeting control, monitoring all projects in real-time basis, we are able to get this kind of margin. So, with the available order book, whatever we have, we expect that margin will remain in the range of more than 15%.

Clarifies management's long-term margin expectations versus current elevated levels and the drivers behind them.

Asked by Aritra Banerjee

Impact of ALMM List 2 extension on order booking and project delays Direct
if you look at ALM 2, the list which has recently come out and government reaffirmed the timelines with some window being allowed to the developer community from December last year to September this year. But in our case, since most of the contracts are signed off and majority of cases PPAs were already in place, so we are not affected due to the change given the fact this window has come up.

Addresses a key regulatory concern and its minimal impact on the company's current operations due to proactive contract management.

Asked by Aritra Banerjee

Order book split between domestic and overseas projects Direct
as of now, we have the domestic EPC, all the orders which are executed as of now 3.48 GWp which are there in our hand is all domestic orders.

Provides clarity on the geographical concentration of the current order book, indicating a focus on the domestic market.

Asked by Aritra Banerjee

Flat cash flow from operating activities in H1 FY26 despite strong execution Direct
Definitely, with the more and more orders which are going to execute in the next H2, this position is going to improve going forward.

Highlights a potential working capital concern and management's expectation for improvement in the upcoming half-year.

Asked by Ishita Lodha

Company's qualification and strategy for transmission substation EPC projects Direct
as a part of creation of overall solar generating facility, now also we are doing, connecting this power, whatever is generated from the solar generating unit to the nearest substation or maybe to the grid? So, as a part of this process, we have expertise of doing so as of now also. We are looking more and more orders if we can get this kind of building of a transmission line or substations.

Indicates the company's capability and intent to expand its EPC scope beyond solar generation to include grid connectivity infrastructure.

Asked by Ishita Lodha

CAPEX outline and incremental revenue from newly approved IPP projects Partial
we have approved three projects, two of them are 14 MW and one of them is 38 MW, so what is the CAPEX outline for these? And how much incremental revenue can we get from these three combined projects?

Analyst sought specific financial details on new IPP investments, which management partially addressed by confirming the MW capacity but not the CAPEX amount or revenue.

Asked by Raman KV

Outlook and opportunities for EPC business in Battery Energy Storage Systems (BESS) Direct
going forward, this may be the BESS, it should be the one of the area where we have an opportunity to do the EPC business. Because whatever solar power you are generating during the day time, if you wanted to have it in the night time or maybe next hour, you need to have a storage system.

Reveals a strategic growth area for the company in the evolving renewable energy landscape, focusing on EPC services for BESS.

Asked by Vivek Gupta

Company's strategy and progress in the data center EPC segment Partial
With respect to data center which I mentioned that we are actively looking at data center. We have about six months back we have amended and closed. And we are actively looking any kind of opportunity which is coming in the form of EPC for the data center. ... no formal bidding happening as of now for the data center, it's a bilateral discussion.

Highlights a new potential diversification area, though it's still in the early stages of exploration without formal bids.

Asked by Amit Singh

2 min read 6 chapters

Detailed narrative

Strong Financial Performance in Q2 & H1 FY26

Waaree Renewable Technologies reported its highest-ever quarterly revenue and PAT in Q2 FY26. Revenue from operations grew 47.73% YoY to Rs. 774.78 crores, while PAT surged 117.40% YoY to Rs. 116.34 crores. The EBITDA margin significantly expanded to 20.39% in Q2 FY26, up from 13.65% in the prior year, driven by operational efficiency and tight budgeting. For H1 FY26, total revenue reached Rs. 1,377.97 crores, an 81.12% YoY increase, with PAT growing 148.21% YoY to Rs. 202.73 crores.

Robust Order Book and Execution Visibility

The company maintains a healthy unexecuted order book of 3.48 GWp, providing strong revenue visibility for the next 12 to 15 months. In H1 FY26, Waaree executed 1,621 MWp of EPC projects, which even exceeded its full-year execution for FY25. The entire order book is domestic, predominantly comprising ground-mounted EPC projects, with an estimated realization ranging from Rs. 0.8 crore to Rs. 1.3 crore per MWp depending on the scope of work.

Expanding IPP Portfolio and Strategic Investments

Waaree Renewable Technologies is expanding its Independent Power Producer (IPP) portfolio, with the board approving an additional 14 MWp across two projects in Maharashtra and 37 MWp in Rajasthan. These projects will add to the existing 54 MWp IPP assets and are slated for execution in H2 FY26 or slightly later. The company also acquired a ~3% stake in a cooling business, identifying synergy for solar installation opportunities and potential cross-selling of EPC services.

Diversification into BESS and Data Center EPC

The company is actively pursuing EPC opportunities in Battery Energy Storage Systems (BESS), having already secured a 40 MWh BESS order. Management views BESS as a critical component for grid stability and solar integration, expecting significant future demand for EPC services in this segment. Additionally, Waaree is exploring EPC opportunities in the data center sector, engaging in bilateral discussions to capitalize on the anticipated 1 GW growth in Indian data centers over the next four to five years.

Favorable Policy Environment and Market Outlook

India's renewable energy sector continues its rapid growth, with non-fossil fuel capacity exceeding 250 GW towards the 2030 target of 500 GW. The recent GST reduction on solar modules from 12% to 5% is expected to further boost investment and drive EPC demand. Management anticipates annual renewable energy additions of 40-50 GW, with solar playing a major role, and believes the company is well-positioned to leverage this growth, with a total pipeline of around 27 GWp.

Operational Efficiency and Margin Management

The company's EBITDA margin for Q2 FY26 reached 20.39%, significantly higher than the 13.65% in the prior year, primarily due to operational efficiency and tight budgetary controls. While management is comfortable with a sustainable margin of 'around 15%' for the full FY26, they continuously strive to improve this through timely execution and cost management. The company maintains a strict approach to order selection, only undertaking projects that align with its risk-reward metrics.

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