WAAREE ENERGIES Q2 FY27 results: net profit down 14.2% to ₹753.64 crore, revenue up 23.9%

How did WAAREE ENERGIES perform in Q2 FY27?

Waaree Energies reported consolidated revenue from operations of ₹7,518 crore for Q2 FY27, the July–September 2026 quarter, against ₹6,066 crore in Q2 FY26 and ₹7,932 crore in Q1 FY27. Total income was ₹7,664.81 crore, up 23.1% year on year and down 5.4% sequentially. EBITDA stood at ₹1,335 crore, with an operating margin of 17.8%, against 23.2% a year earlier and 18.2% in the previous quarter.

Profit before tax was ₹1,030 crore, down 16.4% from ₹1,231 crore in Q2 FY26 and down 14.9% from ₹1,210 crore in Q1 FY27. After tax of ₹276.11 crore, the company reported a net profit of ₹753.64 crore, against ₹878.21 crore a year earlier and ₹891.87 crore in the previous quarter. Profit attributable to owners was ₹718.68 crore, and basic EPS was ₹24.98 against ₹29.33 a year earlier.

The board approved both standalone and consolidated unaudited results for the quarter and half year ended 30 September 2026, along with the limited review report of S R B C & Co. LLP. On the standalone basis, revenue was ₹4,577.55 crore, down 0.1%, and profit after tax was ₹670.88 crore against ₹1,159.53 crore in the year-ago period.

What changed in WAAREE ENERGIES's costs and profit?

Total expenses rose to ₹6,635 crore in Q2 FY27 from ₹4,995 crore in Q2 FY26, an increase of ₹1,640 crore or 32.8%, which was higher than the rise in revenue. Cost of materials was the largest increase, up ₹1,516 crore or 47.4% to ₹4,715 crore, while depreciation rose ₹107.50 crore or 44.8% to ₹347.26 crore and employee cost rose ₹31.57 crore or 20.7% to ₹184.08 crore.

Finance costs increased by ₹9.18 crore or 9.6% to ₹105.26 crore, and other expenses rose ₹52.48 crore or 6.7% to ₹834.41 crore. Other income fell ₹13.83 crore or 8.6% to ₹147.07 crore. There was no exceptional item in the quarter, and tax expense fell ₹77.14 crore or 21.8% to ₹276.11 crore.

Against the previous quarter, total expenses were lower by ₹257.16 crore or 3.7%, with cost of materials down ₹128.64 crore and other expenses down ₹20.80 crore, while finance costs rose ₹34.89 crore and depreciation rose ₹17.28 crore. Other income fell ₹23.74 crore to ₹147.07 crore, and tax expense fell ₹42.40 crore to ₹276.11 crore.

How did the first half of FY27 go?

In the first half of FY27, revenue was ₹15,449.53 crore against ₹10,491.47 crore in H1 FY26, an increase of ₹4,958.06 crore or 47.3%. Total income was ₹15,767.41 crore, up ₹4,943.69 crore or 45.7%, and profit before tax was ₹2,240.13 crore, up ₹65.31 crore or 3.0%.

Profit after tax for the half year was ₹1,645.51 crore against ₹1,651.1 crore in H1 FY26, a decline of ₹5.59 crore or 0.3%. Basic EPS was ₹54.54, down from ₹55.27. The auditor noted that nothing had come to its attention that made the unaudited consolidated results, prepared under Ind AS 34, not disclose the information required under Regulation 33 of the Listing Regulations.

What do the balance sheet and cash flow show?

Total assets stood at ₹37,830.18 crore as of 30 September 2026, against ₹30,115.37 crore at 31 March 2026. Total equity was ₹17,300.35 crore compared with ₹15,010.89 crore, and borrowings rose to ₹4,504.51 crore from ₹2,491.53 crore. Cash and cash equivalents were ₹1,086.43 crore against ₹774.16 crore.

Inventories increased to ₹6,259.54 crore from ₹5,855.64 crore, trade receivables were ₹2,455.44 crore against ₹2,492.32 crore, and trade payables fell to ₹2,637.97 crore from ₹3,107.81 crore. In the company's presentation, net debt was shown at ₹-3,224 crore against net worth of ₹16,020 crore as of 30 September 2026.

Operating cash flow in H1 FY27 was ₹3,477.06 crore, against ₹1,005.06 crore in H1 FY26. Investing cash flow was negative ₹4,456.77 crore against negative ₹2,807.95 crore, and financing cash flow was ₹1,282.26 crore against ₹1,856.83 crore. Capital expenditure was ₹4,327.3 crore compared with ₹2,576.28 crore.

How has WAAREE ENERGIES done over the last 8 quarters?

Revenue rose year on year in each of the last five quarters. It peaked at ₹8,480.25 crore in Q4 FY26 before easing to ₹7,931.79 crore in Q1 FY27 and ₹7,517.74 crore in Q2 FY27, the lowest of the last three quarters. Profit after tax peaked at ₹1,126.26 crore in Q4 FY26 and fell to ₹891.87 crore and then ₹753.64 crore.

The EBITDA margin peaked at 25.5% in Q3 FY26 and fell to 18.6% in Q4 FY26, 18.2% in Q1 FY27 and 17.8% in Q2 FY27, the lowest of the last four quarters. The company's presentation showed operating EBITDA of ₹1,928 crore in Q3 FY26, ₹1,577 crore in Q4 FY26, ₹1,440 crore in Q1 FY27 and ₹1,335 crore in Q2 FY27, after ₹1,406 crore in Q2 FY26.

Which businesses drove the quarter?

Solar Photovoltaic Modules remained the main business, with revenue of ₹6,571.01 crore and EBIT of ₹911.53 crore, an EBIT margin of 13.9%. The filing did not give the year-ago revenue or EBIT for this segment, so no growth rate is available. The company's presentation listed module sold of 3.0 GW in Q2 FY27 against 2.4 GW in Q2 FY26.

Generation of power reported revenue of ₹16.03 crore, up 116.0% from ₹7.42 crore, with EBIT of ₹6.52 crore against ₹4.42 crore and an EBIT margin of 40.7%. Engineering, procurement and construction contracts reported revenue of ₹447.19 crore, down 41.4% from ₹763.72 crore, and EBIT of ₹62.9 crore against ₹115.05 crore.

EPC contracts for Transmission and Distribution reported revenue of ₹606.13 crore and EBIT of ₹28.86 crore, an EBIT margin of 4.8%. The filing did not provide the year-ago revenue or EBIT for this segment. The order book was approximately ₹59,200 crore as of 26 October 2026, with module orders of 25.6 GW.

What else did the company announce?

On 27 October 2026, the board approved the acquisition of 100% shareholding of Waaree Green Data Centers Private Limited and its two wholly-owned subsidiaries, Aurovault Data Centers Private Limited and Sunstar Data Centers Private Limited, from Waaree Renewable Technologies Limited. The filing said the transaction was a related party transaction done at arm's length and in the ordinary course of business, with cash consideration and 100% of the shares acquired.

The company said it was evaluating entry into developing, owning and operating data centres, including hyperscale and edge data centres, if the business was ready and outside the main line of business of the listed entity. The indicative time period for completion was FY2026-27, the cost was ₹1,00,000 at a face value of ₹10 per share divided into 10,000 equity shares, and the filing stated that all the companies were yet to commence operations.

The Nomination and Remuneration Committee approved a grant of 5,800 stock options to an eligible employee under the Waaree Employee Stock Option Plan 2021, covering 5,800 equity shares of ₹10 each, at an exercise price of ₹10 per option. The options vest from the end of the first year to the end of the sixth year, and vested options are exercisable within four years from the date of vesting.

The company also reported an insider trading violation by a designated person, General Manager - Sales, who bought 599 shares on 3 August 2026 and 400 shares on 4 August 2026 without prior clearance. The company issued a written warning and directed the disgorgement of ₹4,33,566 to the SEBI Investor Protection and Education Fund, stating the transactions were carried out inadvertently without any intention to violate the regulations.

What did WAAREE ENERGIES's management say?

Management maintained FY27 operating EBITDA guidance of ₹7,000-7,700 crore, with H2 expected to contribute 55%-60% of the full-year guidance. Chief Executive Officer Jignesh Rathod said, "We affirm our operating EBITDA guidance of Rs. 7,000 to Rs. 7,700 crores in FY '27." He also said, "We sit at the inflection of becoming vertically and horizontally integrated with high operating leverage potential ahead driven by increased utilization of major capacities near completion."

Management said the order book was held at ₹59,200 crore after 3 GW of US export orders were removed from reporting, with Section 232 causing export orders to be removed amid cancellation risk. Some US contracts must be converted to MIP-compliant terms before revenue recognition, and domestic module prices are expected to correct as industry cell capacity scales toward 60 GW. New cell, module, ingot-wafer and BESS capacities require commissioning and utilisation ramp-up.

Retail revenue reached ₹5,753 crore in H1 FY27, and management set an FY27 target of ₹10,000-11,000 crore. On the ₹30,000 crore capex plan, management said 35% was deployed, 28% was under execution and 37% remained in planning, with 10 GW of new cell capacity expected to come online in two 5 GW steps during Q3 and Q4 FY27.

For FY28, management expects 29 GW of module capacity, 15.4 GW of cell capacity including 10 GW of new Unn capacity, 5 GWh of BESS pack and container capacity plus 3.5 GWh of battery-cell capacity, 4 GW of inverter capacity and 20,000 MVA of transformer capacity. Management also said ingot-wafer commercial production is expected around September 2027, and that newer businesses are expected to rise from 15%-20% to 30%-35% of revenue over two to three years.

On data centres, President, Growth and Strategy Varun Goenka said, "We are not looking to build it as hold-to-maturity annuity assets. We are looking to have minority equity at most in this, but it feeds into our other manufacturing and services." Management said non-solar businesses could reach 40%-45% of revenue over the next two to three years, and that BESS phase-2 investment awaits clearer policy support or larger overseas orders.

How did WAAREE ENERGIES shares react?

The results were released after market hours, with the pre-results close at ₹2,275.0. The stock fell 0.6% within five minutes and 15 minutes of the filing appearing, and was down 0.4% after 30 minutes. On the reaction day, it closed 1.3% lower from the previous close, against a 0.2% fall for the median move of the industry's other stocks, leaving the stock 1.0 percentage point behind the sector.

By the next day's close, the stock was up 1.9% from its pre-results close, while the sector's other stocks had a median move of 0.3% and the Nifty Midcap 150 was up 1.2%. By the fifth session, the stock was up 5.3% cumulatively from the pre-results close, against a 2.3% sector median and a 3.0% excess move over the sector.

Earlier reaction-day moves were mixed. The stock fell 3.3% on 29 July 2026 and 11.2% on 29 April 2026, rose 8.9% on 21 January 2026 and 13.5% on 22 April 2025, and fell 2.7% on 16 October 2025, 7.2% on 18 November 2024, while adding 0.6% on 30 January 2025.

How did other Other Electrical Equipment companies do?

Eighteen other companies in the Other Electrical Equipment industry had filed for this quarter by 4 November 2026. Their median revenue growth was 44.5%, above Waaree Energies' 23.9% growth in the quarter. Four peers grew slower than the company and 14 grew faster than the company.

Of the 16 peers for which profit was compared, 11 reported higher profit. The peer set covered the industry group of 51 stocks tracked in the reaction data.