Waaree Renewables delivered record-breaking Q2 FY26 results, driven by robust EPC execution, margin expansion, and recurring income from new IP projects, reinforcing its leadership in the solar EPC segment.
Why Did Waaree Renewables Report Its Highest-Ever Quarterly Profit in Q2 FY26?
Waaree Renewables posted stellar growth in Q2 FY26 with revenue rising 47.7% YoY to ₹774.8 crore, EBITDA soaring 120.7% YoY to ₹157.9 crore, and PAT surging 117.4% YoY to ₹116.3 crore. EBITDA margin improved sharply to 20.4% from 13.6%, signaling efficient cost control and superior execution. H1 revenue stood at ₹1,377.9 crore, up 81.1% YoY, while H1 PAT jumped 148.2% to ₹222.7 crore — marking the company’s strongest half-yearly performance in history.
What Are the Key Drivers Behind Margin Expansion? The company’s margin consistently stayed above 15%, often crossing 18%, supported by its EPC-led model and supplementary income from operations, maintenance (O&M), and independent power (IP) projects. Two new 14 MW projects in Maharashtra and a 37 MW project in Rajasthan under long-term PPAs are expected to deliver stable recurring revenue for the next 25 years, further enhancing long-term visibility.
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How Are Policy Tailwinds Supporting Growth? India’s renewable capacity has crossed 250 GW, achieving 50% of the 2030 target. The reduction of GST on solar modules from 12% to 5% and schemes like PM Surya and PM Kusum have accelerated solar adoption. Waaree’s focus on efficiency and quality-driven EPC execution allows it to leverage these government incentives better than peers.
The company continues to diversify through new segments such as Battery Energy Storage Systems (BESS) with 40 MWh of orders, data center EPC expansion targeting a 1 GW base over five years, and a 3% strategic investment in a cooling firm to integrate solar-powered HVAC solutions. These ventures reflect a balanced growth trajectory between EPC, IP, and allied businesses.
What Are the Key Operational Highlights? The project pipeline stands at nearly 27 GW — 6–7 GW from government and 20 GW from private or C&I segments. ALMM-related risks remain minimal since most projects are pre-approved. The recent extension of ALMM exemption ensures uninterrupted execution momentum, which supports capacity utilization and revenue continuity for FY26.
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The renewable sector continues to enjoy policy tailwinds, robust demand, and a favorable financing environment. With disciplined execution and healthy cash flows, Waaree Renewables is positioned to scale further as India accelerates toward its green energy targets.
Investor Takeaway: Indian-Share-Tips.com Nifty Expert Gulshan Khera, CFP®, who is also a SEBI Regd Investment Adviser, observes that Waaree Renewables’ exceptional earnings growth, expanding EPC margins, and diversified order book make it one of the most structurally strong plays in India’s solar ecosystem for FY26–FY27.
Related Queries
What Drove Waaree Renewables’ Margin Expansion in Q2 FY26?
How Are Policy Reforms Supporting Solar EPC Companies in India?
Why Is Waaree Renewables’ Order Book Critical for Future Growth?
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 adviser before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
