Waaree Energies Ltd (WAAREEENER) Q1 FY27 Earnings Call: Record Rs. 61,500 Cr Order Book, Cell Integration Targets 35-40% Margins

Waaree Energies Ltd held its Q1 FY27 earnings call on July 29, 2026. Here's a quick read of what management said — performance, strategy, and the outlook ahead.

Revenue Surges 79%; EBITDA Guidance Reaffirmed Despite Margin Headwinds

• Revenue of Rs.7,932 crore — up 79.2% YoY in Q1 FY 2026-2027, driven by module shipments of 3.6 GW (+89% YoY) and retail revenue of Rs.2,289 crore (+130% YoY).
• Operating EBITDA of Rs.1,440 crore — up 44.4% YoY in Q1 FY 2026-2027, with margin of 18.2% compressed by global raw material cost increases, softer export mix, and lower IRA realization from US OEM manufacturing.
• Net profit of Rs.892 crore — up 15.4% YoY in Q1 FY 2026-2027, with margin of 11%, reflecting headwinds from delayed non-DCR offtake and softer export dispatches.
• Management reaffirmed FY 2026-2027 EBITDA guidance of Rs.7,000-7,700 crore, with cell capacity barely contributing in Q1 and key margin levers expected from Q2-Q4 of FY 2026-2027.
• Retail revenue more than doubled in Q1 FY 2026-2027; management guided full-year retail to reach Rs.9,000-10,000 crore in FY 2026-2027.

Record Rs.61,500 Cr Order Book; Five-Market Vision Targets Rs.1 Lakh Cr

• Order book reached Rs.61,500 crore (highest ever) — up from Rs.50,000 crore in the prior quarter, with Rs.16,000 crore of new orders won in Q1 FY 2026-2027. Module capacity stands at 25.2 GW, with India domestic 40%, US domestic 36%, and India export 24%.
• Won 1.5 GW of BESS EPC orders in Q1 FY 2026-2027 and signed an early contractor involvement (ECI) agreement for a utility-scale solar + BESS project in Australia/New Zealand.
• US subsidiary WSA secured a 125 MW order for HJT modules to be supplied from the Arizona plant in Q1 FY 2026-2027.
• WRTL acquired ~55% stake in Associated Power Structures for ~Rs.1,225 crore, expanding EPC infrastructure capabilities.
• Management targets five major markets — Make in India (utilities, C&I, retail), exports, and make-in-US-sell-in-US — with retail business guided to Rs.9,000-10,000 crore (period unspecified).
• Data center demand expected to add 15-20 GW of additional solar demand, with management citing industry consolidation tailwinds from ALMM, ALCM, and DCR from FY 2028-2029 (FY29) onwards.
• Management cited "TAM doubling to ~$2 trillion by 2030" as a structural tailwind for the sector, from ~$1 trillion today.

Cell Integration to Drive 35-40% Integrated Margins from Q3 FY27

• Cell capacity ramping from 5.4 GW to 15.4 GW — the existing facility (G12R conversion completed) is producing ~400 MW monthly, targeting 1.3-1.4 GW quarterly output; the new 10 GW PLI-2 facility is expected to begin contributing from Q3 FY 2026-2027.
• Cell-to-module integration to rise from ~20% to ~65% within 2-3 quarters (by Q3-Q4 FY 2026-2027), which management believes will support both higher module utilization and structural margin expansion.
• CFO Abhishek Parikh stated integrated supply margins of 35% to 40% — the margin profile for module-plus-cell integrated supply typically ranges between 35% and 40%, compared to module-only supplies (period unspecified).
• DCR cell production ramping — from 800 MW in Q1 FY 2026-2027 to 1.1-1.2 GW in Q2 and 1.5 GW quarterly run-rate thereafter, providing a key margin lever for the domestic market.
• Import vs domestic cell pricing gap — as of Q1 FY 2026-2027, imported cell prices at ~4 to 4.5 cents/watt vs. local manufacturing costs of 7 to 8 cents/watt; DCR market prices for local cells are 12 to 13 cents/watt, reflecting a significant premium.
• Wafer capacity expected in FY 2027-2028 — management expects 10 GW ingot and wafer capacity in Nagpur to go live, with wafer policy from June 2028 (FY28) driving full backward integration across the industry.

US Margins "Far Superior" as IRA Incentives Ramp; Export Recovery Expected

• US domestic margins "far superior" in Q1 FY 2026-2027 — local IR incentives of 7 cents/watt (net: 5.5-6 cents) drove EBITDA margins of 7-8 cents/watt for US local manufacturing, inclusive of ~5.5-6 cents from the IRA tax benefit.
• $12-13 million of IRA incentives accumulated on ~230 MW of US production in Q1 FY 2026-2027; US production expected to rise to 400-500 MW from Q3 FY 2026-2027, providing "big headroom" for further incentive accumulation.
• Export revenues from India fell to ~one-third of prior-year quarter in Q1 FY 2026-2027 due to clearance delays and a lull in US installations; management expects recovery from Q2 FY 2026-2027 as new supply chains serve American demand from US soil.
• Export margins from India were 4-5 cents/watt in Q1 FY 2026-2027 on realizations of ~25 cents/watt; larger dispatches expected from August/September 2026 with new contracts for European markets.
• Module realizations in Q1 FY 2026-2027 — export at 25-26 cents/watt, DCR at 24-25 cents/watt, non-DCR at 13-14 cents/watt. Order book realizations for the next couple of quarters are 24-25 cents; longer-term tier orders at 21-22 cents.
• Management expects quarterly IRA incentives starting Q3-Q4 FY 2026-2027 — CFO Abhishek Parikh noted the company is already monetizing through discussions with large US players to sell the incentives, creating an ongoing cash flow stream.

5.15 GWh BESS Line Live; Global Orders Building with FOC Premium

• 5.15 GWh BESS line operational — automated battery container production commenced in Q1 FY 2026-2027, vs originally planned 3.5 GWh, with commercial supplies beginning in the quarter.
• 3.5 GWh BESS cell manufacturing facility — Phase 1 capex of Rs.1,400 crore, 90-95% site construction completed, all equipment arrived; commercial production targeted within FY 2026-2027. Container line is live; back line expected within 60 days.
• Meaningful BESS output expected in FY 2027-2028 — management expects the 5.15 GWh line to deliver meaningful revenue in FY 2027-2028, supported by 3.5 GWh of cell and 5.15 GWh of pack/container capacity being added in FY 2026-2027.
• Two revenue streams for BESS cells — (1) FOC-compliant cell supply for global markets (US/EU) with realizations 25-30% higher than Chinese cells (Chinese at $50-55/kWh vs non-FOC at $75-80/kWh); (2) BESS solutions for Indian utility, rooftop, and export markets.
• Waaree Renewable Technologies secured 1,500 MWh EPC contract for BESS supply, which management cited as evidence that a single order could cover the year's production (period unspecified).
• No government incentives for BESS in India yet — management indicated that "indications that a Make-in-India policy for BESS is expected soon" (period unspecified).

Rs.31,500 Cr Capex Plan Underway; Rs.10,000 Cr QIP Approved as Precaution

• Total capex plan of Rs.31,500 crore — 30% in FY 2026-2027 (Rs.9,450 crore already deployed as of June 30, 2026), 40% in FY 2027-2028, and 30% in FY 2028-2029. Remaining capex of Rs.22,000 crore spans the three fiscal years.
• QIP of up to Rs.10,000 crore approved by board and shareholders to strengthen the balance sheet; management is awaiting the right market timing. Cash balance stood at Rs.7,000 crore as of June 30, Q1 FY 2026-2027.
• FY 2026-2027 EBITDA guidance sufficient to fund capex — management stated the QIP approval is a "precautionary measure to strengthen the balance sheet rather than a current necessity."
• Solar glass capacity expansion approved — board approved exploring a greenfield expansion for Rs.2,500 crore (total investment Rs.3,900 crore including equity) for fully captive use; management expects an update within Q2 FY 2026-2027.
• Rs.1,920 crore PLI secured for integrated wafer-cell-module capacity; wafer capacity expected to go live in FY 2027-2028, eligible for additional ~Rs.2,000 crore PLI incentive over 4-5 years from FY 2026-2027.
• Management's aspiration of "near Rs.1 lakh crore vision" within less than 4-5 years — stated on the call, with FY 2026-2027 guidance reaffirmed and no specific FY target disclosed.