Waaree Energies Q2 FY26 Results And What It Means For Investors
The company Waaree Energies Ltd, a leading Indian solar-module and cell manufacturer, reported a standout quarter in Q2 FY26. Driven by strong demand, production expansion and strategic diversification, the business is scaling up rapidly. We break down the figures, compare with peers, explain financial jargon, assess risks and potential, and offer a clear verdict for investors.
Company & sector snapshot
Waaree Energies operates in the solar-photovoltaic (PV) manufacturing sector (modules, cells, inverters, battery-storage). It is one of India’s largest solar-module makers, exporting globally and increasingly integrating upstream (cells, wafers) and downstream (BESS, transformers) segments. 1
Financial Highlights for Q2 FY26
| Metric | Value | YoY / Notes |
|---|---|---|
| Revenue | ₹6,227 crore | ↑ 70 % approx. 2 |
| EBITDA | ₹1,567 crore | ↑ 155 % YoY (margin ~25.2 %) 3 |
| PAT (Profit After Tax) | ₹878 crore | ↑ 134 % YoY 4 |
| H1 FY26 Revenue | ₹10,823 crore | ↑ 51 % vs ₹7,160 crore in H1 FY25 5 |
| Interim Dividend | ₹2/share | Declared for Q2 6 |
Explanation of Key Financial Terms
To help understand what these figures mean:
- Revenue: the total income from operations — here, the company earned ~₹6,227 crore in the quarter, which means it sold large volumes of modules, cells and related equipment.
- EBITDA (Earnings Before Interest, Taxes, Depreciation, Amortisation): this shows operating profit before cost of capital and non-cash items. A jump of 155 % means much stronger operating efficiency and volume growth.
- EBITDA margin: EBITDA divided by Revenue (~25.2 % in this quarter) – higher margin means better profitability per rupee of sale.
- PAT: Profit after all costs including interest, tax, depreciation – this is the “bottom-line” profit of the company.
- YoY (Year-on-Year): comparison versus the same quarter a year ago — shows how fast the business is growing.
- H1: the first half of the financial year – helps see how the first six months are shaping up.
Operational & Strategic Highlights
Alongside the financials, the company reported several operational moves:
- Record module production of ~2.6 GW and cell production of ~0.6 GW in the quarter. 7
- Order-book is around ₹47,000 crore (~24 GW), with ~60 % overseas share. A pipeline of 100+ GW is cited. 8
- Significant capital expenditure approved: ~₹8,175 crore for expansion including BESS (Battery Energy Storage System) capacity from 3.5 GWh to 20 GWh, electrolyser capacity to 1 GW, module facility expansion, inverter facility expansion. 9
- Strategic acquisitions: 76 % in a smart-meter company, 64 % in a transformer maker, and acquisition of solar-asset/machinery from a US manufacturer. 10
- Sustainability goals: Net-zero Scope 1 & 2 by 2030, Scope 3 by 2040; first Indian module maker with EPD certification; Gold medal in EcoVadis sustainability rating. 11
Peer Comparison
It is helpful to see how Waaree stacks up against selected peers in the solar/modular manufacturing space:
| Company | Installed Capacity / Scale | Order Book / Market Share | EBITDA Margin / PAT Margin (approx.) |
|---|---|---|---|
| Waaree Energies | ~18.7 GW modules + 5.4 GW cells 12 | ~24 GW order-book (~₹47,000 cr) 13 | EBITDA ~25 %; PAT ~14 % 14 |
| Premier Energies | ~5.1 GW installed 15 | ~5.3 GW order-book 16 | Higher margins vs Waaree in niche segment 17 |
| Vikram Solar | ~4.5 GW installed 18 | ~10.3 GW order-book 19 | EBITDA margin ~14 % 20 |
From this comparison we see that Waaree leads in scale and order pipeline, while some peers may have higher margins but smaller footprints. 21
SWOT Analysis
| Strengths | Weaknesses | Opportunities | Threats |
|---|---|---|---|
| Large scale manufacturing and export capability Robust order-book (~24 GW) Strong integration plan (cells, modules, BESS, electrolysers) Margin improvement visible |
High capex-intensity → large investments upfront Working-capital and project execution risk Export exposure: currency + logistic risk |
India’s push for solar + domestic manufacturing incentives Green hydrogen, battery storage and transformer segments open new markets Export growth potential (especially US) around 500 GW target globally by 2030 |
Trade/anti-dumping investigations in US/other markets 22 Raw-material cost volatility (polysilicon, wafers) Competitive intensity and rapid tech change (e.g., larger cell sizes, new module tech) |
Key Risk Factors
Some risks to keep in mind:
- The company is exposed to global export risk: For example, the U.S. Customs and Border Protection is investigating whether tariffs were evaded by mislabelling Chinese-cells as Indian-made, which could lead to duties or disruptions. 24
- Large ongoing capex means execution risk – delays, cost overruns may affect returns.
- Raw material price swings (e.g., polysilicon, wafers) could compress margins if cost pass-through is weak.
- Government policy or incentive change risk: Domestic manufacturing incentives (PLI) or export tariffs could shift dynamics.
Outlook & Investor Verdict
The company has reiterated its full-year FY26 EBITDA guidance of ~₹5,500-6,000 crore. Having already achieved ~₹1,567 crore in Q2, with H1 revenue growth strong, the second half performance will be critical for whether it can hit the upper band of guidance. 25
Given the strong growth, scale leadership, and diversified strategy (modules, cells, storage, hydrogen), the stock presents compelling opportunity. However, the valuation is higher than some peers: its P/E is around ~38x while peer average is ~31x. 26
Verdict (in simple terms): The company is on a strong growth trajectory and is well placed in India’s renewable-manufacturing push. If the company executes well and keeps margins intact, it can deliver substantial returns. But the risks (especially export trade investigation and capex burden) are non-trivial. Therefore:
- If you are investing for the long term (5-10 years) and comfortable with execution risk and sector volatility → the stock appears worth considering.
- If you prefer lower risk or are more conservative, then you may wait for a correction or better entry price and monitor how the export/trade issues evolve.
Final takeaway: Strong quarter, leading scale and strategy. The value proposition is promising for long-term growth, provided execution stays on track and global trade risks don’t derail the story.
Related Queries on Solar Manufacturing Stocks
- How does Waaree Energies compare with other solar module manufacturers in India?
- What are the major risks for Indian companies exporting solar modules to the US?
- Why are battery-storage and electrolyser manufacturing becoming important for solar-module businesses?
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
