Waaree Renewab. Q2 FY27 Results (NSE: WAAREERTL)
Signal: Margin pressure
The read
The trajectory has shifted from Q1FY27's 19% operating margin to a 15.12% Q2FY27 EBITDA margin, while revenue still grew 36.53% to ₹1,057.84 Cr; the key thesis variable is whether integration of APSPL and the expanded T&D portfolio can restore margins toward the company's stated 16-18% FY27 EBITDA-margin context.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,057.84 Cr | 36.53% | N/A |
| Net profit | ₹81.48 Cr | -29.98% | |
| EBIT margin | 15.12% |
P&L walk
Revenue rose 36.53% to ₹1,057.84 Cr, but EBITDA increased only 1.29% to ₹159.98 Cr as margin compressed to 15.12% from 20.39%; PAT fell 29.98% to ₹81.48 Cr, with management attributing near-term profitability pressure to acquisition-related financing costs and the addition of a different-margin business.
Key positives
- Revenue reached ₹1,057.84 Cr, up 36.53% YoY, supported by steady project execution and timely progress across the portfolio.
- The unexecuted order book remains ₹5,500+ Cr, providing revenue visibility; the company also cites a 34.6 GWp+ solar, 12.5 GWh+ BESS and ₹21.9k Cr+ T&D bidding pipeline.
- H1 FY27 revenue grew 43.84% to ₹1,982.09 Cr and H1 EBITDA grew 21.04% to ₹333.46 Cr, indicating that first-half operating momentum remains positive despite Q2 margin pressure.
Key concerns
- EBITDA rose only 1.29% to ₹159.98 Cr against 36.53% revenue growth, with EBITDA margin falling 527bps YoY to 15.12%.
- PAT declined 29.98% to ₹81.48 Cr and PAT margin fell to 7.70% from 15.02%, showing that scale has not yet translated into bottom-line growth.
- Management explicitly said acquisition-related financing costs and the addition of a business with a different margin profile affected near-term profitability; APSPL integration is therefore a material execution and margin-recovery variable.
Research and educational content only. Not investment advice.