Waaree Energies' Q2 Results: Revenue Up 24%, Profit Declines 15%

Waaree Energies Ltd has released its financial results for the second quarter of the fiscal year 2027, indicating a growth in revenue coupled with a decline in profitability. The company, a key player in the renewable energy sector, reported a 24% rise in revenue from operations, reaching ₹7,518 crore, up from ₹6,066 crore in the same quarter last year.

Despite this revenue growth, Waaree Energies experienced a consolidated net profit drop of 14.7% year-on-year to ₹718.68 crore, down from ₹842.5 crore a year ago. The decline in profitability has raised concerns about the firm's operating margins, which compressed significantly, with the earnings before interest, taxes, depreciation, and amortisation (EBITDA) decreasing by 5% to ₹1,336 crore. EBITDA margin fell to 18% from 23%, reflecting increased operational pressures even amid rising sales.

This financial performance follows a robust first quarter, where Waaree Energies recorded a notable 14.1% profit increase. Revenue surged by 79% during that period, highlighting a fluctuating trend in the company's earnings capacity.

In a strategic move to broaden its business horizon beyond solar modules, Waaree Energies announced its acquisition of 100% ownership in Waaree Green Data Centers Private Limited. The acquired entity was previously known as Sunsantional Energy Private Limited and includes two wholly-owned subsidiaries, Aurovault Data Centers and Sunstar Data Centers. This acquisition is seen as an entry into the fast-evolving data centre market, which the company plans to leverage for opportunities in artificial intelligence and digital infrastructure.

Chairman and Managing Director Hitesh Doshi has articulated a vision for expanding Waaree’s offerings beyond solar modules to include batteries, transformers, and other essential components of renewable infrastructure. The company aims to secure a competitive edge in the growing energy landscape.

Reflecting on shareholder engagement, Waaree Energies revealed it had received approval for a proposed qualified institutional placement of up to ₹10,000 crore, although it stated that it is currently in a strong financial position and not in immediate need of additional funds.

Looking ahead, the company has secured a substantial 2 GW solar module supply order to be fulfilled over the next four quarters, commencing shipments in December. Waaree Energies anticipates maintaining profit margins on this order within the range of 15-20% despite a highly competitive market.

The financial challenges highlighted in the latest results underscore the complexities of balancing revenue growth with sustainable profitability as Waaree Energies seeks to diversify its business portfolio and fortify its position in the renewable energy sector.