Waaree Energies Q2 FY27 Results (NSE: WAAREEENER)
Signal: Margin pressure
The read
The key inflection is negative: Q2FY27 is the third consecutive quarter of margin contraction after the 23% OPM in Q4FY26 and Q1FY27, with EBITDA margin now 17.8% versus 23.2% a year ago; revenue still grew 23.9% YoY, but raw-material intensity rose 998bps and PAT fell 14.2%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹7,517.74 Cr | +23.9% | -5.2% |
| EBIT | ₹987.94 Cr | -15.3% | |
| Net profit | ₹753.64 Cr | -14.2% | |
| EPS | ₹24.98 | -14.8% | |
| EBIT margin | 17.8% |
P&L walk
Revenue increased 23.9% YoY to ₹7,517.74 crore, but higher raw-material intensity compressed gross margin and EBITDA margin to 17.8%; finance costs rose 9.6% YoY and PAT fell 14.2% to ₹753.64 crore.
Key positives
- Revenue from operations reached ₹7,517.74 crore, up 23.9% YoY despite a 5.2% sequential decline, maintaining double-digit growth.
- Operating cash flow improved to ₹3,477.06 crore in H1FY27 from ₹574.73 crore in H1FY26, exceeding H1 net profit of ₹1,645.51 crore.
- PPE increased to ₹6,624.35 crore and CWIP to ₹7,578.33 crore, supporting the company’s capacity-expansion trajectory.
- Depreciation rose 44.8% YoY to ₹347.26 crore alongside a rising asset base, indicating that the higher depreciation charge is supported by expanding capital deployment.
Key concerns
- Gross margin compressed 880bps YoY to 79.2% as disclosed production and project costs rose to 74.0% of revenue from 65.2%; the filing does not disclose the cause.
- EBITDA margin fell 543bps YoY to 17.8% even as revenue grew 23.9%, indicating that cost absorption has not kept pace with growth.
- PAT declined 14.2% YoY to ₹753.64 crore and EPS declined 14.8% to ₹24.98, reversing the earlier earnings momentum despite higher revenue.
- Finance costs rose 49.6% sequentially to ₹105.26 crore, while H1 borrowings increased to ₹4,504.51 crore from ₹2,491.53 crore at March 31, 2026.
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