Waaree Energies, a leader in India’s fast-evolving solar ecosystem, has announced its first-quarter results, exceeding bullish street expectations. Waaree Energies Q1 FY26 performance underscores not just the company’s operational strength, but also the sector-wide momentum and Waaree’s pivotal role at the heart of India’s clean energy ambitions.
Financial Highlights: Outpacing Industry Growth
Waaree Energies Q1 FY26 numbers signal a new high-water mark for the company:
| Key Metric | Q1 FY26 | Q1 FY25 | YoY Change | Q4 FY25 | QoQ Change |
|---|---|---|---|---|---|
| Revenue | 4,597 | 3,496 | +31% | 4,141 | +11% |
| EBITDA | 1,169 | 640 | +83% | 1,060 | +10% |
| EBITDA Margin (%) | 25.4 | 18.3 | +710 bps | 25.6 | -20 bps |
| Profit After Tax | 773 | 401 | +93% | 644 | +20% |
| PAT Margin (%) | 16.8 | 11.5 | +530 bps | 15.6 | +120 bps |
| ROE | 28.2 | 18.0 | – | – | – |
| ROCE | 34.1 | 26.0 | – | – | – |
| Net Debt/Equity | -0.7x | -0.8x | – | – | – |
Key Takeaways from Waaree Energies Q1 FY26 Results:
- Revenue, EBITDA, and PAT growth far outpace both industry averages and most Indian peers.
- Margins are expanding, reflecting robust cost control and economies of scale.
- Return ratios remain exceptional, indicating high capital efficiency.
Operational Performance: Production Scaling, Order Book at Lifetime High
Manufacturing & Production
- Solar module production reached an all-time high of 2.3 GW this quarter (vs. 1.4 GW in Q1 FY25), demonstrating Waaree’s rapidly ramping capacity.
- Current operational capacity includes approximately 15 GW modules and 5.4 GW solar cells, with plans to nearly double module capacity to 25.7 GW and triple cell capacity to 15.4 GW by FY27.
- Strategic US expansion includes 1.6 GW of module manufacturing already operational.
Order Book and Pipeline
- Waaree Energies Q1 FY26 results highlight an extraordinary order book estimated at INR 49,000 crore (~25 GW), with a nearly 60:40 split favouring international (mainly US) orders.
- The order pipeline exceeds 100 GW, indicative of the company’s rising global competitiveness and strong long-term demand visibility.
- By geography, 68% of revenue is domestic (retail, EPC, enterprise), and 32% is overseas.
- The US market is a major source of order growth, even amid trade policy headwinds, reinforcing Waaree’s position in global solar supply chains.
Industry & Policy Context
India:
- 116 GW of cumulative solar capacity, 10.6 GW added in Q1 FY26.
- PM Surya Ghar, PM KUSUM, ALMM, DCR, and PLI are supportive of domestic manufacturing and installations.
United States:
- US solar capacity to reach 500 GW by 2030 (SEIA estimates).
- Tax credits (up to 45x) for manufacturing and installation.
- Despite anti-dumping investigations and a 10% tariff on Indian exports, Waaree Energies’ US footprint is expanding, as seen in the Waaree Energies Q1 FY26 orders.
Capex, Diversification, and Vertical Integration
Aggressive Capex and Capacity Expansion
- Waaree is shifting a 6 GW manufacturing facility from Odisha to Gujarat (cells & modules) and Maharashtra (ingot-wafer) for operational efficiency and regulatory benefits.
- INR 2,754 crore capex to add 4 GW each in Gujarat (cells) and Maharashtra (ingot-wafer) by FY27.
- 4.8 GW module capacity to be delivered in FY26.
Diversification Beyond Modules
- As part of India’s hydrogen mission, Waaree is commissioning a 300 MW green hydrogen electrolyser facility under the PLI scheme by FY27.
- Building battery energy storage system plants with 3.5 GWh lithium-ion cell capacity to offer full-stack solutions with solar projects.
- Investments in renewable power generation assets, 170 MW already contracted under PPAs and working towards 5 GW grid connectivity.
Financial Discipline and Guidance
- Despite large capex, Waaree has net cash (negative net debt/equity of -0.7x) with internal accruals and prudent use of IPO proceeds.
- FY26 EBITDA guidance of INR 5,500-6,000 crore with capacity ramp-up, order book execution and entry into new business verticals.
- High cash conversion ratios (>100%) are a comfort.
Waaree Energies Post-IPO Performance
Waaree Energies launched its IPO on 21 October 2024 with an issue size of INR 4321.44 crore. The IPO was a mix of fresh issue (INR 3600 crore) and an OFS (INR 721.44 crore). The IPO was subscribed 76.34X and delivered a 55.62% return on the listing day. The Post-IPO performance was also stellar, and shares of Waaree Energies made an all-time high of INR 3,636.60 per share, reflecting a ~141% return on investment. Currently, it is trading around INR 3,173 per share (a correction of ~13%).
Peer Comparison: Why Waaree is Different
- With better margin expansion, vertical integration and an aggressive yet disciplined growth strategy, Waaree outperforms Adani Solar and Vikram Solar.
- Exports, especially to the US market, make Waaree one of the most competitive solar manufacturers in India.
- Foray into upstream manufacturing (ingots, wafers), battery storage, and green hydrogen puts Waaree in a good position for future industry disruptions.
Outlook
Waaree Energies Q1 FY26 results show the company’s operational strength and strategic thinking in a booming renewable energy space. As India moves ahead with its clean energy targets and global demand grows, Waaree’s integrated business model, expanding manufacturing presence and diversification into hydrogen and energy storage make it a growth story.
Strong leadership, robust order book and healthy balance sheet give Waaree Energies the ability to capitalise on opportunities in India and globally. As the world transitions to clean energy, Waaree’s position as a solar module manufacturer and clean-tech leader is unbeatable.
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