Waaree Energies Reports Strong Growth and Order Book

Q2 FY27 Revenue: Rs 7,517.7 crore
Total Order Book: Rs 59,200 crore

Reader Takeaway: Strong retail growth and debt-free status drive optimism, though regulatory hurdles in the US remain a monitoring point.

What just happened

Waaree Energies reported a 23.9% year-on-year increase in Q2 FY27 revenue, reaching Rs 7,517.7 crore. Profit after tax for the quarter stood at Rs 753.6 crore. The company maintains a strong financial position, reporting a net debt-free status with Rs 3,224 crore in cash.

Why this matters

The company's retail segment is expanding rapidly, contributing 46.1% of Q2 revenues with a 252% year-on-year growth rate. This shift towards retail, alongside a massive Rs 59,200 crore order book, suggests sustained demand. Furthermore, the company is executing a Rs 30,000 crore capex program to boost cell and battery manufacturing, which is critical for future margin expansion.

The US Market Transition

Waaree Energies is pivoting its US strategy from export-heavy sales to local manufacturing to navigate Section 232 regulations. While this led to an order book rationalization, management maintains that local production will significantly enhance margins compared to pure export models.

Risks to watch

Investors should closely track the stabilization of new solar cell and BESS manufacturing capacities. The volatility in US trade regulations remains a primary risk factor, as evidenced by the recent removal of export orders to prevent cancellation risks.

Context metrics

• H1 FY27 Revenue: Rs 15,449.5 crore (up 47.3% YoY)
• H1 FY27 EBITDA: Rs 2,775.1 crore (18% margin)
• Manufacturing Capacity: 25.8 GW (modules), 5.4 GW (cells)
• Net Debt-to-Equity: -0.2x