Newsletter
Waaree Energies just posted its Q1 FY26 results and the stock responded with a 5% jump. Investors cheered the company’s record-breaking module production and nearly 90% profit growth, signaling confidence in its execution and expansion roadmap.
Founded in 1990, Waaree started as a modest instrumentation company before pivoting into renewables. Over the years, it scaled rapidly to become a vertically integrated solar PV player, with a presence across modules, EPC, inverters, and now storage and green hydrogen. After a successful IPO in late 2024, it has emerged as a bellwether in India’s clean tech ambitions.
Right now, Waaree is not just selling solar panels, it’s building an ecosystem. The company is investing in upstream manufacturing (ingots, wafers, cells), downstream solutions (storage, hydrogen), and pushing into the US and Middle East markets. It has also bagged multiple SECI projects and aims to expand its cell and module capacity significantly over the next 18 months.
So, what does this June quarter tell us about how well that vision is playing out?
Let’s decode!
By the numbers (Consolidated):
After a record-breaking March, Waaree carried the momentum into Q1. Volumes were higher, margins expanded, and both topline and bottom line saw healthy growth.
*FY25 ROE adjusted for IPO proceeds | Data taken from Waree Energies Q1FY26 result and investors PPT
This quarter: business got a glow-up
The big number was 2.3 GW; that’s the record quarterly solar PV module output that powered Waaree’s growth. Revenues rose 31.5% year-on-year, thanks to a 22% jump in module sales to ₹3,872 crore and a 160% rise in EPC revenues to ₹589 crore.
Cell production also ramped up steadily, though its full impact will show in coming quarters. Domestic demand contributed nearly 68% of sales, while exports to the US and Middle East picked up pace. The company’s Texas plant (1.6 GW) and Gujarat expansion (3.2 GW) are progressing on schedule.
A big piece of the growth came from better execution; inventory levels dropped, input costs were managed tightly, and employee and admin costs stayed in check. Profitability got a further push from deferred tax benefits and higher other income.
Let’s talk money & moves
This was Waaree’s most profitable quarter ever, with PAT rising 92.7% YoY. The jump wasn’t just optical, it came from higher volumes, better margins, and lower financing costs.
EBITDA margin improved to 25.4% from 18.3% last year.
ROE for FY25 stood at 28.2%, even after adjusting for the ₹3,600 crore IPO proceeds still partly unutilised. The company remains net-debt free, with a debt-to-equity ratio of -0.72. Cash conversion also improved over FY24–25 as large orders started billing.
Waaree’s strong balance sheet is enabling faster capacity deployment. It raised zero new capital this quarter, relying instead on internal accruals and low-cost debt.
The next big bets
Waaree’s capex engine is running full throttle. In June, the board approved an additional ₹2,754 crore investment to set up 4 GW of new solar cell capacity in Gujarat and 4 GW of ingot-wafer capacity in Maharashtra. These are over and above the earlier 6 GW capacity already under execution.
The company is also expanding in energy storage and green hydrogen. Three major facilities; one each for lithium-ion cells, inverters, and electrolyzers are under construction in Gujarat and expected to be operational by FY27. A 170 MW green power PPA has already been signed, and SECI awarded Waaree a 90,000 MTPA green hydrogen plant.
In the US, the 1.6 GW Texas plant is expected to become a key revenue contributor starting FY27. Waaree’s strategy of global manufacturing presence helps derisk policy shifts like US anti-dumping investigations.
Challenges that could shape the next few quarters
- Delay in commissioning of new capacity could impact volumes and capex efficiency
- The US anti-dumping probe may slow exports if resolved unfavourably
- Module pricing pressure amid global overcapacity, especially from China
- Execution complexity as Waaree juggles multiple new facilities
- Possible delays in hydrogen and storage monetisation
What to track before the next earnings call
Watch out for progress on factory commissioning in Gujarat, Maharashtra, and Texas; that’s where the next leg of volume and margin growth will come from. The market is also watching for updates on the SECI hydrogen plant, the ongoing US trade probe, and any new large EPC or export orders.
Waaree has guided for ₹5,500–6,000 crore EBITDA for FY26, so Q2 performance will be key to see if it’s pacing towards that goal. Also worth tracking is the conversion rate of its ₹49,000 crore order book and whether its 100+ GW pipeline sees new wins in the US or Middle East.
The takeaway
This was a clean, confident quarter. Waaree showed it can deliver volume growth with profitability, and is putting its IPO capital to work on the ground. The operating metrics point to discipline, while expansion bets indicate long-term confidence.
India’s solar sector is entering a high-demand, high-competition phase with energy storage and hydrogen adding to the mix. Waaree seems to be preparing for a more integrated role in the energy transition story, not just as a module seller but as a full-stack provider.
It’s not just riding the sun anymore; it’s building the grid that holds it all together.
FAQs
What is driving Waaree Energies’ profit growth in Q1 FY26?
Waaree Energies posted a 92.7% year-on-year jump in net profit for Q1 FY26. The growth came from record solar module production, better operating margins, cost efficiencies, and improved execution across EPC and module businesses.
How much revenue did Waaree Energies generate in Q1 FY26?
Waaree Energies reported ₹4,597.18 crore in revenue from operations during Q1 FY26, marking a 14.8% sequential increase and 31.5% rise year-on-year, driven largely by module sales and EPC order execution.
What was Waaree Energies’ EBITDA margin in Q1 FY26?
The company achieved an EBITDA margin of 25.4% in Q1 FY26, up from 18.3% in the same quarter last year. This margin expansion reflects better operating leverage, cost control, and improved inventory management.
What are Waaree Energies' key capacity expansion plans?
Waaree is investing over ₹2,700 crore to set up 4 GW each of solar cell and ingot-wafer capacity in Gujarat and Maharashtra. These are in addition to the 6 GW capacity already under execution, with completion expected in FY27.
What is the status of Waaree’s Texas plant?
Waaree’s 1.6 GW solar module manufacturing plant in Texas is on track and expected to become a key export hub and revenue contributor from FY27, helping the company tap into the US solar market.
How is Waaree Energies expanding into energy storage and green hydrogen?
The company is setting up new facilities for lithium-ion cells, inverters, and electrolyzers in Gujarat. It has also secured a 90,000 MTPA green hydrogen project from SECI and signed a 170 MW green power purchase agreement.
Is Waaree Energies impacted by the US anti-dumping investigation?
Yes, Waaree faces some exposure to ongoing US anti-dumping investigations, which could potentially delay or reduce export volumes. However, its diversified global strategy helps mitigate this risk.
What is Waaree Energies’ order book and future pipeline?
As of Q1 FY26, Waaree’s order book stands at ₹49,000 crore. It also has a 100+ GW sales pipeline, with active bids in the US and Middle East that could support long-term growth.
Is Waaree Energies using its IPO proceeds effectively?
Yes, the company is deploying capital efficiently post-IPO. Despite raising ₹3,600 crore in its 2024 IPO, it did not issue fresh capital in Q1 FY26 and remains net-debt free with strong cash flow and RoE of 28.2%.
What are the key risks to Waaree Energies’ growth?
Major risks include delays in new capacity commissioning, export impact from US trade policies, module pricing pressure due to global oversupply, and execution challenges from running multiple large projects at once.
