Waaree Renewab. Q1 FY27 Earnings Call — Analysis (NSE: WAAREERTL)
Waaree Renewable Technologies reported Q1FY27 profit growth of 98.6% YoY, driven by robust EPC execution and margin expansion.
The take
Q1FY27 Revenue ₹811.34 Cr ( +77.5% YoY ) . New guidance — FY27 fy27 consolidated revenue ₹4,500 Cr . New story: Execution-led margin expansion .
Results
Q1FY27 revenue ₹811.34 Cr up 77.5% YoY; PAT ₹114.49 Cr up 98.6% YoY; OPM expanded to 19.29%.
Financial highlights
| Metric | Value | Change | Basis |
|---|---|---|---|
| Revenue | ₹811.34 Cr | +77.5% | yoy · Q1FY27 |
| PAT | ₹114.49 Cr | +98.6% | yoy · Q1FY27 |
| EBITDA | ₹164 Cr | point_in_time · Q1FY27 | |
| EBITDA Margin | 20.2% | +230bps | yoy · Q1FY27 |
| EPC Revenue | ₹808 Cr | point_in_time · Q1FY27 | |
| IPP Revenue | ₹3.5 Cr | point_in_time · Q1FY27 | |
| Unexecuted Order Book | ₹6,000 Cr | point_in_time · as of Jun-26 |
Guidance
Management guided to full-year FY27 revenue of ₹4,500 Cr with an EBITDA margin range of 16-18%, ahead of the earlier 15%+ target.
What management committed to
- FY27 consolidated revenue will be ₹4,500 Cr. — ₹4,500 Cr, FY27
- FY27 EBITDA margin will be in the range of 16-18%. — 16-18%, FY27
- FY27 order inflow will be in the range of ₹7,000-8,000 Cr. — ₹7,000-8,000 Cr, FY27
- The current unexecuted order book of ~₹6,000 Cr will be executed over the next 4 to 5 quarters. — ₹6,000 Cr, Q1FY28
- [Waaree Renewable Technologies] has a long-term target of reaching ₹10,000 Cr in revenue by FY29. — ₹10,000 Cr, FY29
Key themes
Execution scaling and margin-led guidance upgrade
How the narrative shifted
- Execution-led margin expansion: Management attributes the structural improvement in margins to scaling in-house EPC capabilities, reducing subcontractor dependency.
- Guidance upgrade cycle: A strong Q1 print and high visibility from the order book have allowed management to formally raise both revenue and margin guidance for FY27.
- Robust IPP demand environment: The project pipeline remains strong, driven by government renewable energy targets and aggressive bidding by independent power producers (IPPs).
- Working capital discipline: Management asserts that rapid top-line growth is being managed without a corresponding deterioration in debtor days or the receivables cycle.
- Order book visibility and conversion: A ₹6,000 Cr unexecuted order book provides strong near-term revenue visibility and supports the raised annual guidance.
Operational commentary
- Executed ~1.1 GW of EPC projects in Q1FY27.
- Unexecuted order book stands at ~₹6,000 Cr as of Q1 end, providing ~4-5 quarters of revenue visibility.
- Added ~₹1,500 Cr of new orders during Q1FY27, largely from repeat IPP and C&I customers.
- Expanded in-house EPC execution capabilities to control quality, cost, and timelines, reducing reliance on subcontractors.
Analyst Q&A
Q. What is driving the margin expansion and is 20%+ OPM sustainable?
Margins improved due to scale, in-house execution, and better procurement. We are guiding to 16-18% for FY27, with Q1 margin being a function of project mix; we prefer to stay conservative on full-year guidance.
Q. Can you break down the order book between IPP and C&I customers?
The majority of the order book is from IPP customers. We don't disclose the exact split, but IPP remains the dominant driver.
Q. What is the timeline for billing the ₹6,000 Cr order book?
Most of the current order book will be executed over the next 4 to 5 quarters.
Q. Are there any concerns on the receivables cycle given the rapid growth?
Receivables are under control, our debtor days have remained consistent and we see no stress in collections from our IPP clients.
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