Waaree Energies Sees Record FY26 Profit and Plans Major Funding

Waaree Energies Ltd. reported its audited financial results for the fiscal year ending March 31, 2026, after a board meeting on April 29, 2026. The company announced consolidated revenue of ₹26,536.77 crore and a net profit of ₹3,884.15 crore. Auditors provided a clean audit report on the company's financial results for the year ended March 31, 2026.

The board recommended a final dividend of ₹2 per equity share, subject to shareholder approval at the Annual General Meeting (AGM).

The company also approved a significant ₹10,000 crore fundraising plan. In a separate move, it agreed to acquire 100% of Waaree Semicon Private Limited for ₹1.00 lakh, making it a step-down subsidiary.

Key Financials and Strategic Moves

This announcement highlights strong financial performance and growth plans, alongside major ongoing legal and regulatory challenges. While impressive revenue and profit figures, along with fundraising and an acquisition, signal growth ambitions, persistent legal probes and arbitration could introduce financial and reputational risks for investors to consider.

The Backstory

Waaree Energies, founded in 1990, is India's largest solar module manufacturer and a global player. The company has a history of successful fundraising, notably a ₹1000 crore round in August 2023. It recently debuted on the stock market in October 2024. The company is actively expanding its manufacturing capacities and diversifying into areas like battery energy storage. However, its operations have faced scrutiny.

Waaree is under investigation by U.S. Customs and Border Protection (CBP) for potentially evading U.S. tariffs on solar products by mislabeling them as Indian. Simultaneously, the Indian Income Tax Department has conducted investigations at its facilities. Furthermore, a significant past acquisition deal involving Enel Green Power India has led to international arbitration proceedings.

What This Means for Investors

• Shareholders can look forward to a strong financial year with record revenue and profit, alongside a dividend payout.
• The ₹10,000 crore fundraising and acquisition of Waaree Semicon could fuel future expansion and boost the company's market position.
• Ongoing investigations and arbitration proceedings introduce uncertainty and potential financial liabilities requiring close monitoring.
• The company's compliance and operational integrity will face heightened scrutiny.

Key Risks to Monitor

Waaree Energies faces several key legal and regulatory challenges:

• U.S. CBP Investigation: The company is being investigated for allegedly evading U.S. tariffs on Chinese solar products by mislabeling them as Indian. CBP found 'reasonable suspicion' and required upfront cash deposits on imports. Waaree has made a provision of ₹294.78 crore for this and states it is cooperating, not expecting additional duties.
• Indian Income Tax Investigation: The Income Tax Department has conducted searches and investigations at Waaree's offices and facilities. The company is cooperating fully, but outcomes could impact operations and stakeholder confidence.
• Enel Green Power India Arbitration: Enel Green Power Development initiated arbitration in London, alleging breaches of a January 2025 Share Purchase Agreement (SPA) concerning the acquisition of Enel's Indian subsidiary. Enel is seeking damages and lost profits. Waaree disputes these claims and intends to contest them vigorously, though financial implications remain uncertain.

Peer Comparison

Waaree Energies operates in a competitive market. Peers include Sterling and Wilson Renewable Energy, which reported a net loss for FY26 despite revenue growth. Borosil Renewables, a solar glass maker, was profitable in Q3 FY26. Premier Energies, another solar module and cell manufacturer, is a direct domestic competitor. Waaree's FY26 revenue of ₹26,536 crore and profit of ₹3,884 crore significantly outperform peers in these key metrics, demonstrating its scale.

What to Track Next

• Resolution of Investigations: Monitor the progress and outcome of the U.S. CBP investigation and the Indian Income Tax Department probe.
• Arbitration Developments: Track progress and potential financial impact from the ongoing arbitration with Enel Green Power Development.
• Deployment of Raised Funds: Understand specific plans and timelines for utilizing the ₹10,000 crore raised funds.
• Dividend Approval at AGM: Follow the approval of the recommended final dividend at the upcoming AGM.
• Waaree Semicon Integration Progress: Monitor the strategic integration and operational synergies from the Waaree Semicon Private Limited acquisition.