Waaree Renewable FY26 Profit Steady at ₹229 Cr; Income Edges Up, Auditors Reappointed

FY26 Financial Snapshot

Waaree Renewable Technologies Ltd (WRTL) reported its audited financial results for the fiscal year ending March 31, 2026. The company reported Consolidated Total Income of ₹1,612.55 crore, a modest increase from ₹1,597.75 crore in FY25. Consolidated Net Profit for FY26 came in at ₹228.92 crore, a slight dip from ₹229.16 crore in the previous fiscal year. This indicates flat profitability despite the marginal revenue growth. The board also approved M/s KC Mehta & Co. LLP as its Internal Auditor for FY 2026-27 and re-appointed M/s KKC & Associates LLP as Statutory Auditors for a five-year term, pending shareholder approval. The auditors issued an unmodified opinion on the financial results.

Why Profitability Stagnated

The flat profit growth, even with increased income, suggests potential pressure on profit margins or rising operational costs. While the re-appointment of statutory auditors for a five-year term, coupled with an unmodified opinion, provides a degree of confidence in financial oversight, the stagnant profit is a key point for investors. This stability in the audit function is important, particularly given the company's operations in the dynamic renewable energy sector and existing external scrutiny.

Background Concerns

The company and its parent group, Waaree Energies, have faced significant external attention. US Customs and Border Protection (CBP) is investigating allegations of tariff evasion related to Chinese solar cells, with interim measures already in place. Separately, the Income Tax Department conducted investigations at Waaree Energies' facilities in November 2025. In earlier periods, WRTL had secured substantial EPC contracts and built a strong order book. However, reports from early 2026 indicated a decrease in its order book size and a slowdown in execution rates.

Key Changes and Continuity

WRTL will benefit from the continuity of its statutory audit function for the next five years, subject to shareholder approval. A new internal audit team for FY27 is expected to strengthen financial controls. The unmodified audit opinion from the statutory auditors suggests no major accounting discrepancies were flagged.

Ongoing Risks

• The re-appointment of statutory auditors is contingent on shareholder approval.
• The ongoing US investigation into alleged tariff evasion by Waaree Energies could lead to significant penalties or trade restrictions.
• Lingering implications from the prior Income Tax investigation are still a possibility.
• Concerns regarding a potential slowdown in order book execution, as suggested by early 2026 reports, warrant attention.

Peer Performance Comparison

Waaree Renewable Technologies reported flat net profit growth for FY26 on slightly increased income. In contrast, peer Sterling and Wilson Renewable Energy (SWSOLAR) reported strong revenue growth (48% YoY in 9MFY26) and doubled EBITDA, indicating robust operational expansion. However, SWSOLAR's profitability has been more volatile, with its Q3 FY26 profit before tax declining significantly year-on-year, whereas WRTL's profit remained stable by comparison.

Future Focus Areas

Investors will be tracking the outcome of the shareholder meeting regarding the statutory auditor's re-appointment. Developments in the US Customs and Border Protection investigation into tariff evasion allegations are crucial. Management commentary on profit margins and cost management strategies will be important. Future order inflows and the pace of execution against the order book will also be closely watched, as will any updates regarding the Income Tax investigations.