Waaree Energies Under Income Tax Investigation Amidst Record Q2 Profit Growth and Expansion

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AuthorAkshat Lakshkar|Published at:
Waaree Energies Under Income Tax Investigation Amidst Record Q2 Profit Growth and Expansion
Overview

Waaree Energies Ltd. announced that Income Tax Department officials visited some of its offices and facilities for an investigation under the Income Tax Act, 1961. The company is cooperating fully. This news accompanies strong financial results, where Waaree reported a 130% year-on-year increase in net profit to ₹871 crore for the second quarter ending September 30, 2025. Total income grew by nearly 70% to ₹6,226.54 crore, with EBITDA surging over 155%.

Waaree Energies Ltd. has informed the stock exchanges that officials from the Income Tax Department conducted an investigation at some of its offices and facilities in India under the Income Tax Act, 1961. The company stated that the proceedings are ongoing and it is extending full cooperation to the officials.

This development comes alongside the company's robust financial performance for the second quarter ended September 30, 2025. Waaree Energies reported a substantial 130% year-on-year jump in net profit, reaching ₹871 crore, compared to ₹375.66 crore in the same period last fiscal. The company's PAT margin for the quarter stood at 14.10%.

Total income saw a significant rise of 69.96% year-on-year, climbing to ₹6,226.54 crore from ₹3,663.47 crore. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) surged by 155.29% year-on-year to ₹1,567.30 crore, with EBITDA margins improving to 25.17% from 16.76%. Production during the quarter reached 2.64 GW. For the first half of FY26, total income grew 51.17% to ₹10,823.72 crore, and EBITDA rose 118.19% to ₹2,735.97 crore.

Waaree Energies also highlighted an order book of approximately 24 GW valued at around ₹47,000 crore. The company had previously approved an interim dividend of ₹2 per share and commissioned a 3 GW solar module manufacturing facility in Chikhli, Gujarat.

Impact
This news presents a dual scenario for investors. The Income Tax investigation introduces an element of uncertainty and potential risk, which could impact short-term stock sentiment and valuation. However, the company's strong financial results, significant growth in profits and revenue, expanding order book, and capacity additions underscore its operational strength and market position. The positive financial performance may help mitigate concerns arising from the investigation, but volatility is expected. Rating: 7/10.

Difficult Terms:
Income Tax Act, 1961: The primary legislation in India governing direct taxation on income.
PAT margin: Profit After Tax margin, representing the percentage of revenue remaining after all expenses and taxes.
EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization, a measure of operating performance.
GW (Gigawatt): A unit of power equivalent to one billion watts, used to measure electricity generation capacity.

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