Waaree Renewable's Blockbuster Q2 Results: Is This Solar EPC Giant Unstoppable?
Waaree Renewable Technologies Ltd. (WAAREERTL) has just rolled out its Q2 FY26 numbers, and to put it mildly, they’ve hit it out of the park. 🚀 In a market that’s been choppy and favoring domestic-focused stories, this solar EPC powerhouse is shining bright. While many companies are grappling with global headwinds, Waaree seems to be plugged directly into India’s massive renewable energy push.
The headline numbers are impressive, with revenue and profits surging both year-on-year (YoY) and quarter-on-quarter (QoQ). But as analysts, we know the real story lies beneath the surface. Let’s dissect these results to understand if this growth is sustainable and what it signals for the future.
Business at a Glance: The Solar EPC Powerhouse
Before we dive into the numbers, let’s quickly recap Waaree RTL’s business. It’s the Engineering, Procurement, and Construction (EPC) arm of the well-established Waaree Group, India’s largest solar module manufacturer. This lineage provides significant advantages in sourcing and credibility.
- Core Business: Providing turnkey solutions for setting up large-scale solar power projects.
- Segments: They operate across utility-scale ground-mounted projects, rooftop solar, floating solar, and are now venturing into Battery Energy Storage Systems (BESS).
- Key Drivers: The company’s fortunes are directly tied to India’s ambitious renewable energy targets (~280 GW of solar by 2030), supportive government policies (like Solar Parks and PLI schemes), and the increasing demand for clean energy from the corporate sector.
Given the current economic context, where domestic infra and capital goods are the market darlings, Waaree RTL is perfectly positioned.
Order Book: The Engine of Future Growth 🚂
For an EPC company, the order book is the single most important indicator of future revenue. And Waaree’s order book is not just growing; it’s exploding.
The company’s unexecuted order book stands at a massive 3,481 MWp as of September 30, 2025.
| Period | Unexecuted Order Book (MWp) |
|---|---|
| FY23 | 817 |
| FY24 | 2,365 |
| FY25 | 3,263 |
| Q1 FY26 | 3,155 |
| Q2 FY26 | 3,481 |
Here’s what this tells us:
- Strong Momentum: The order book has more than quadrupled in just over two years, showcasing immense demand and the company’s ability to win large contracts.
- New Order Inflow: In Q2 alone, the company bagged net new orders of approximately 1,248 MWp, including a single massive 1,218 MWp order. This demonstrates their capability to secure gigawatt-scale projects.
- Revenue Visibility: The company executed 1,621 MWp in the first half of FY26. At this run-rate, the current order book provides strong revenue visibility for at least the next 12-15 months. This is a very comfortable position to be in.
The move into BESS, with a 40 MWh order already in the bag, aligns perfectly with the future of renewable energy, which requires storage solutions for round-the-clock power. This opens up a whole new, high-growth avenue.
Execution & Sales Performance: Firing on All Cylinders
A large order book is great, but it’s worthless without execution. Waaree is proving its mettle here as well.
| Particulars | Q2 FY26 | Q2 FY25 | YoY Growth | Q1 FY26 | QoQ Growth |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 774.78 | 524.47 | 47.73% | 603.19 | 28.45% |
- The company executed approximately 922 MWp in Q2 FY26, a significant ramp-up from the 699 MWp executed in Q1.
- The half-yearly revenue for H1 FY26 stands at ₹1,377.97 Cr, a staggering 81.12% jump from H1 FY25. This isn’t just growth; it’s hyper-growth.
- This performance is well ahead of the sluggishness seen in export-oriented sectors, reinforcing the strength of the domestic capex theme.
Earnings & Margin Expansion: The Real Surprise Package 🎁
This is where Waaree RTL truly surprised the street. While strong revenue growth was expected given the order book, the profitability has been exceptional.
| Particulars | Q2 FY26 | Q2 FY25 | YoY Growth | Q1 FY26 | QoQ Growth |
|---|---|---|---|---|---|
| EBITDA (₹ Cr) | 157.94 | 71.57 | 120.69% | 117.54 | 34.37% |
| EBITDA Margin (%) | 20.39% | 13.65% | +674 bps | 19.49% | +90 bps |
| PAT (₹ Cr) | 116.34 | 53.52 | 117.40% | 86.39 | 34.67% |
| PAT Margin (%) | 15.02% | 10.20% | +482 bps | 14.32% | +70 bps |
Key Insights:
- Beating Guidance: In the Q1 FY26 earnings call, the management had guided for sustainable operating margins in the 14-16% range for the full year. They have delivered 19.5% and 20.4% in the first two quarters. This is a massive outperformance, indicating either conservative guidance or superior execution and cost control.
- Operating Leverage: The EBITDA growing much faster than revenue is a classic sign of operating leverage kicking in. As the company executes larger projects, fixed costs are spread over a wider revenue base, boosting profitability.
- Profit Classification: With revenue and earnings growing at this blistering pace, Waaree Renewable Technologies comfortably fits the profile of a “Super Grower.”
Financial Health: A Solid Foundation
A quick look at the balance sheet shows that the growth is being managed prudently.
- Cash Flow: The company generated a healthy ₹83.73 Cr in cash from operations in H1 FY26. This is crucial as it suggests the company isn’t funding its growth by stretching its working capital too thin.
- Asset-Light Model: The business model is inherently asset-light, which leads to fantastic return ratios. The Return on Equity (ROE) for FY25 stood at an impressive 65.29%, signifying highly efficient use of shareholder funds.
Analyst’s View & Forward Outlook
Waaree Renewable Technologies is in a sweet spot. The tailwinds from the government’s push for renewable energy are immense, and the company has established itself as a leading player with proven execution capabilities.
Positives:
- Strong Revenue Visibility: The robust order book de-risks future growth for the next year.
- Margin Outperformance: Consistently delivering margins well above their own guidance is a huge confidence booster.
- Domestic Focus: The business is shielded from global uncertainties like US tariffs and a potential slowdown in the IT sector, making it an attractive domestic growth story.
- New Growth Levers: The foray into BESS and potential entry into green hydrogen EPC provide exciting future growth avenues.
Key Monitorables:
- Margin Sustainability: Can the company maintain 20%+ EBITDA margins, or will they revert to the guided 14-16% range as competition intensifies? This remains the key question for future earnings.
- Order Inflow Momentum: While the current order book is strong, the market will be keenly watching for continued order wins to sustain the high growth trajectory beyond FY27.
- Working Capital Management: As the scale of operations increases, keeping a tight grip on receivables and inventory will be critical to maintaining a healthy cash flow.
In conclusion, Waaree Renewable Technologies has delivered a stellar quarter that validates its position as a high-growth leader in a priority sector. The management has not only talked the talk but has walked the walk by delivering on—and exceeding—expectations. For investors looking for a pure-play on India’s energy transition, WAAREERTL is clearly a stock that can’t be ignored.
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