Waaree Energies Ltd (WAAREEENER) Q2 FY27 Results Analysis: EBITDA Margin Compresses 543 bps, PAT Falls 14.2%
Waaree Energies Ltd's Q2 FY27 numbers came in soft, with revenue of Rs. 7,517.74 Cr (+23.90% YoY) and PAT growth of -14.20% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | October 27, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Revenue (Q2) | Rs. 7,517.74 Cr (+23.90% YoY) |
| PAT (Q2) | Rs. 753.64 Cr (-14.20% YoY) |
| EBITDA margin | 17.76% (-543 bps YoY) |
| EPS (Q2) | Rs. 24.98 (-14.80% YoY) |
| Market cap | Rs. 65,412.47 Cr |
| CMP | Rs. 2,275.00 |
Quarter Snapshot
Waaree delivered 23.9% YoY revenue growth to Rs.7,517.74 Cr, but Operating EBITDA fell 5.1% YoY to Rs.1,335.20 Cr with margin at 17.76% vs 23.19% a year ago, and PAT declined 14.2%. Q2 EBITDA came in below the run-rate implied by management's reaffirmed FY27 guidance of Rs.7,000–7,700 Cr, leaving H2 requiring a 58–84% quarterly step-up; results also include a one-time Rs.360.40 Cr IEEPA duty refund. Cash conversion was strong (CFO/PAT 2.11x) and the balance sheet remains net cash, but the guided margin levers — cell integration from Q3 and the 10 GW cell facility by December — are not yet evidenced in this filing.
Key Investment Insights
Key Positives
- Revenue grew 23.9% YoY to Rs.7,517.74 Cr, driven by Solar PV Modules (Rs.6,571.01 vs Rs.5,369.34) and first-time APSPL T&D consolidation (Rs.606.13 Cr)
- H1 operating cash flow of Rs.3,477.06 Cr was 2.11x PAT, up from Rs.574.73 Cr a year ago
- Effective tax rate improved to 26.81% from 28.69% YoY
- Group remains net cash at Rs.2,435.55 Cr with net worth rising to Rs.17,300.35 Cr from Rs.15,010.89 Cr
- Module segment margin held roughly flat QoQ at 13.87% vs 13.54% in Q1
- No incremental EAPA provision taken; Rs.294.78 Cr provision stands with administrative review filed
Risk Factors
- Operating EBITDA declined 5.1% YoY and 7.3% QoQ to Rs.1,335.20 Cr with margin at 17.76% vs 23.19% a year ago
- Q2 EBITDA of Rs.1,335.20 Cr is below the implied Rs.1,853–2,087 Cr/quarter run-rate needed to track the FY27 guidance of Rs.7,000–7,700 Cr; H2 requires a +58% to +84% quarterly step-up
- Raw-material intensity rose to 68.69% of revenue from 61.41% a year ago
- New T&D segment margin fell to 4.76% from 9.24% in Q1, diluting mix; EPC revenue fell ~41% YoY
- US CBP EAPA notice of evasion determination received; Rs.294.78 Cr provision stands with auditor emphasis-of-matter
- Finance costs rose 49.6% QoQ to Rs.105.26 Cr and D&A rose 44.8% YoY on the capex build
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Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.