Waaree Energies Limited: Q2 Profit Doubles as India's Solar Leader Rides Renewable Energy Wave

Record Q2 Performance and First Dividend

Waaree Energies reported spectacular Q2 FY26 results on October 16, 2025, with consolidated net profit surging 133% YoY to ₹842 crores while revenue jumped 70% to ₹6,066 crores. The solar PV module manufacturer also declared its first-ever interim dividend of ₹2 per share, marking a milestone for the recently-listed company.

The performance represents the highest quarterly profit in the company's history and reinforces its leadership in India's rapidly expanding solar energy sector.

Waaree Energies showcases exponential revenue growth, scaling from Rs 2,854 Cr in FY22 to Rs 6,066 Cr in Q2 FY26 alone, riding India's solar revolution

Business Overview

Founded in 1990 and headquartered in Mumbai, Waaree Energies is India's largest solar PV module manufacturer with aggregate installed capacity of approximately 18.7 GW (including recent acquisitions). The company holds 14% market share in India's solar module market for H1 FY25, maintaining its No. 1 position domestically.

Waaree's integrated business model spans:

• Solar Module Manufacturing: 16.7 GW global capacity (16.1 GW in India, 2.6 GW in US including recent Meyer Burger acquisition)

• Solar Cell Manufacturing: 5.4 GW capacity commissioned in FY26

• EPC Services: Through 74.5%-owned Waaree Renewable Technologies Limited

• Emerging Segments: Green hydrogen (electrolyser manufacturing), battery energy storage systems, and renewable power infrastructure

The company serves a diversified customer base with 60% of orders from exports (primarily US) and 40% from domestic markets.

Financial Analysis

Waaree Energies showcases one of India's most impressive growth stories in the renewable energy sector:

Annual Performance:

• FY22: Revenue of ₹2,854 crores, Net Profit of ₹80 crores

• FY23: Revenue of ₹6,751 crores (137% YoY), Net Profit of ₹500 crores (525% YoY)

• FY24: Revenue of ₹11,398 crores (69% YoY), Net Profit of ₹1,274 crores (155% YoY)

• FY25: Revenue of ₹14,444 crores (27% YoY), Net Profit of ₹1,928 crores (51% YoY)

Q2 FY26 Performance:

• Revenue: ₹6,066 crores, up 70% YoY and 37% QoQ

• Net Profit: ₹842 crores, up 133% YoY and 13% QoQ

• EBITDA: ₹1,567 crores (25.2% margin), up 155% YoY

• Profit Before Tax: ₹1,231 crores vs ₹492 crores in Q2 FY25

Key Financial Metrics:

• Operating Margin: Expanded from 4% in FY22 to 25.2% in Q2 FY26, demonstrating operational leverage and pricing power

• ROE: 34.8% (H1 FY26, adjusted), indicating excellent capital efficiency

• ROCE: 41.8% (H1 FY26, adjusted), reflecting superior return on total capital employed

• Order Book: Massive ₹47,000 crores (~24 GW) with diversified geography

• Cash Conversion: Strong operational cash generation of ₹31,582 crores in FY25

Five-Year CAGR:

• Revenue: 65.4%

• Profit: 155.0%

• Sales per share: Growing from ₹2.12 in FY20 to ₹93.92 (TTM)

IPO and Listing Performance

Waaree Energies completed India's most subscribed IPO of 2024, attracting a record 97.34 lakh applications and subscription of 79.44 times. The ₹4,321 crore IPO (₹3,600 crore fresh issue + ₹721 crore OFS) priced at ₹1,503 per share.

Shares listed on October 28, 2024, at:

• BSE: ₹2,550 (69.7% premium)

• NSE: ₹2,500 (66.3% premium)

The stock has since appreciated significantly, currently trading around ₹3,630, giving the company a market capitalization exceeding ₹1 lakh crores.

Capacity Expansion and Strategic Initiatives

Waaree is executing an aggressive expansion roadmap:

Near-term (FY26):

• 5.4 GW solar cell capacity commissioned (₹2,400-2,500 crore investment)

• 1.6 GW US module manufacturing (Meyer Burger Texas facility, $70-80 million investment)

• Expansion to 3.2 GW from current 1.6 GW in Houston facility

Medium-term (by FY27):

• 11.4 GW integrated solar cell manufacturing

• 6 GW ingot-wafer-cell integrated facility

• Target: Over 20 GW total manufacturing capacity

Diversification:

• Green hydrogen electrolyser manufacturing through wholly-owned subsidiary

• Battery energy storage systems (BESS) development

• Energy transition platform for renewable power projects (₹600 crore investment)

Industry Tailwinds

Waaree benefits from multiple favorable factors:

1. Government Policy: India's 500 GW renewable energy target by 2030 with solar as the backbone; ALMM (Approved List of Models and Manufacturers) framework mandating domestic module use for government projects

2. Domestic Demand: India adding 4.2 GW utility-scale and 1.3 GW rooftop solar capacity per quarter, with 70+ GW pipeline under development

3. Export Opportunities: Strong US demand from data centers, manufacturing sector, and infrastructure despite ongoing customs investigation

4. Competitive Advantages: Vertical integration, established distribution network, brand recognition, and manufacturing scale

Challenges

US Trade Investigation: Customs officials investigating whether Waaree sidestepped tariffs on Chinese-made cells/panels by labeling as made in India. Company denies charges and is cooperating fully.

Competitive Intensity: Domestic and international players vying for market share could pressure margins

Raw Material Costs: Polysilicon and other input price volatility remains a risk factor

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