Waaree Energies Q2 FY27 Earnings Call — Analysis (NSE: WAAREEENER)
Waaree Energies posted 24% YoY revenue growth to ₹7,518 Cr with 17.8% EBITDA margin in Q2FY27, reiterating FY27 operating EBITDA guidance of ₹7,000–₹7,700 Cr backed by US manufacturing expansion and backward integration into solar cells.
Result quality: watch — Margin pressure. Management sentiment: optimistic.
The take
Q2FY27 Revenue from Operations ₹7,517.7 Cr ( +23.9% YoY ) . New guidance — FY27 retail segment revenue ₹10,000 to ₹11,000 Cr . New story: Vertical and Horizontal Integration .
Results
Revenue stood at ₹7,518 Cr (+23.9% YoY), operating EBITDA reached ₹1,335 Cr with a 17.8% margin, and PAT was ₹754 Cr.
Financial highlights
| Metric | Value | Change | Basis |
|---|---|---|---|
| Revenue from Operations | ₹7,517.7 Cr | +23.9% | yoy · Q2FY27 · Q2FY26 |
| Operating EBITDA | ₹1,335.2 Cr | none · Q2FY27 | |
| Operating EBITDA Margin | 17.8% | -40bps | sequential · Q2FY27 · vs 18.2% in Q1FY27 |
| Profit After Tax | ₹753.6 Cr | none · Q2FY27 | |
| Order Book | ₹59,200 Cr | point_in_time · Q2FY27 · 26-Oct-26 | |
| Retail Revenue | ₹3,464 Cr | +252% | yoy · Q2FY27 · Q2FY26 |
| Net Cash Balance | ₹3,224 Cr | point_in_time · Q2FY27 · 30-Sep-26 |
Guidance
Reiterated FY27 operating EBITDA guidance of ₹7,000 to ₹7,700 Cr, implying substantial H2 weighting (~55-60%).
What management committed to
- Waaree Energies affirms operating EBITDA guidance of [₹7,000 to ₹7,700 crores] in [FY27]. — Rs. 7,000 to Rs. 7,700 crores, FY27
- Waaree Energies targets [₹10,000 to ₹11,000 crore] revenue from the [retail distribution stream] in [FY27]. — Rs. 10,000 to Rs. 11,000 crore, FY27
- 10 gigawatt cell facility at [Unn] to commission [5 gigawatt in Q3FY27] and [5 gigawatt in Q4FY27]. — 10 gigawatt, Q4FY27
- Waaree Solar Americas adding [3.2 gigawatt] module capacity in Brookshire, of which [1.6 gigawatt operational in Q3FY27] and [1.6 gigawatt in Q4FY27]. — 3.2 gigawatt, Q4FY27
- 10 gigawatt [Ingot and Wafer facility at Nagpur] to commence commercial production by [September 2027]. — 10 gigawatts, Q2FY28
- BESS business to commission [5.1 GWh pack facility in Q3FY27] and start [3.5 GWh battery cell pilot production in Q4FY27]. — 5.1 gigawatt-hour pack and 3.5 gigawatt-hour cell, Q4FY27
Key themes
Backward integration and US expansion ramp
How the narrative shifted
- Vertical and Horizontal Integration: Waaree is integrating vertically into cells (15.4 GW) and wafers (10 GW) and horizontally into BESS, inverters, and transformers to capture multi-product wallet share.
- US Market Strategy under Section 232: US Section 232 clarity eliminates ambiguity; shift from export model to 4.8 GW domestic US manufacturing delivers superior 8-9 cents/Wp EBITDA margins.
- Retail Ecosystem Scale: Distribution network of 775+ exclusive retail centers and 3,000+ points provides pricing power, high cash-and-carry mix, and insulation from pure-play utility price erosion.
- Non-Solar Product Diversification: Expanding share of non-solar revenue from 15-20% currently to 40-45% over 3-4 years across BESS, inverters, transformers, and RE infrastructure.
Operational commentary
- Installed solar module capacity reached 25.8 GW (including 1.6 GW in USA running at 71% utilization); adding 3.2 GW in Brookshire, Texas to reach 4.8 GW total US capacity.
- Expanding domestic solar cell capacity from 5.4 GW to 15.4 GW with the 10 GW Unn facility (5 GW commissioning in Q3FY27, 5 GW in Q4FY27).
- Prudently rationalized ~3 GW of US export contracts from order book post-Section 232 minimum import price tariff imposition, shifting focus to US domestic manufacturing.
- Progressing 10 GW Ingot and Wafer facility at Nagpur (estimated capex ₹5,500 Cr) targeting commercial production by September 2027.
- BESS rollout progressing with 5.1 GWh pack facility commissioning in Q3FY27 and 3.5 GWh battery cell line pilot starting in Q4FY27.
Analyst Q&A
Q. Reason for sequential EBITDA margin decline from 18.2% to 17.8% and outlook for H2 EBITDA ramp-up.
Q1FY27 included ~₹349 Cr tariff refund whereas Q2FY27 had only ~₹11 Cr; core underlying margins expanded due to higher cell utilization (1.1 GW vs 800 MW) and US factory ramp. H2 will see 55-60% of FY27 EBITDA as new cell and US module capacities come online.
Q. Details on US Section 232 impact, deemed cancellations (~3 GW), and future export margin dynamics.
Deemed cancellations were proactively removed from order book without liabilities; US domestic manufacturing realization (30-35 cents) and ~7 cent IRA benefit provide EBITDA margins of 8-9 cents/Wp (more than double export margins).
Q. Status of solar glass capex and commercialization timeline.
Land acquired in Navsari, Gujarat (₹360 Cr deployed); in discussions with technology partners and expecting commercialization in FY29.
Research and educational content only. Not investment advice.