Synopsis:
A leading solar energy player reported record quarterly results, strong order book growth, and unveiled a Rs. 25,000 crore capex plan.
A leading solar energy stock was in focus today after delivering its best-ever quarterly performance, with both revenue and profit scaling new highs in Q2FY26. Investor sentiment turned upbeat as the company announced a fresh round of capacity expansion, strategic acquisitions, and a significant capex plan to strengthen its clean energy portfolio.
Waaree Energies Ltd, with a market capitalisation of Rs. 1,03,090.50 crore, opened at Rs. 3,651 and surged to an intraday high of Rs. 3,720, marking a gain of 2.63 percent from the previous close of Rs. 3,624.70.
What’s the News?
Waaree Energies Ltd announced its Q2FY26 results, reporting its strongest quarterly performance to date.
Quarter-on-Quarter (Q1FY26 to Q2FY26): Revenue rose 36.9 percent to Rs. 6,066 crore from Rs. 4,426 crore, driven by strong operational momentum and robust execution. Operating profit increased 41.0 percent to Rs. 1,406 crore from Rs. 997 crore, while profit before tax grew 30.6 percent to Rs. 1,231 crore from Rs. 943 crore.
Net profit advanced 13.6 percent to Rs. 878 crore from Rs. 773 crore. Operating margin remained steady at 23 percent, while EBITDA margin was marginally lower at 25.17 percent compared to 25.42 percent in the previous quarter. Earnings per share improved to Rs. 29.29 from Rs. 25.94, although PAT margin moderated to 14.10 percent from 16.81 percent.
Year-on-Year (Q2FY25 to Q2FY26): Revenue surged 69.8 percent from Rs. 3,574 crore to Rs. 6,066 crore, highlighting accelerated business growth. Operating profit jumped 167.7 percent to Rs. 1,406 crore from Rs. 525 crore, while profit before tax rose 146.7 percent to Rs. 1,231 crore from Rs. 499 crore.
Net profit more than doubled, increasing 133.5 percent to Rs. 878 crore from Rs. 376 crore. The company’s operating margin expanded from 15 percent to 23 percent, and EBITDA margin improved sharply from 16.76 percent to 25.17 percent. Earnings per share more than doubled to Rs. 29.29 from Rs. 13.73, with PAT margin rising to 14.10 percent from 10.25 percent.
Comments from the Management
Commenting on the results, Mr. Amit Paithankar, Whole Time Director & CEO, Waaree Energies Ltd said:
“Waaree Energies Limited continues to deliver robust operational performance in Q2 FY26, building on the momentum of the previous quarter. This quarter is a best ever quarter in terms of revenue and profitability.
Our EBITDA margin expanded by over 800bps backed by favourable revenue mix. Our order book stands strong, and we expect the operational momentum to be stronger in the second half as well.
The company continue to expand its operations capacity both In India and US. The Indian module capacity has expanded by ~3 GW during Q2 to reach 16.1 GW and US capacity now stands at 2.6 GW with acquisition of Meyer Berger assets outlining our strong commitment towards US market.
The demand outlook for US market remains robust and our ramp-up is progressing as per schedule. We continue to take strong strides towards building an integrated energy solution platform, the recent additional commitment of ~ ₹8,175 crores towards BESS, Inverter and Green Hydrogen Electrolysers along with recent strategic acquisitions in transformer and smart meter, are steps towards that direction.
I am pleased to inform that the Board has approved a dividend of ₹ 2.00 per share marking an affirmation of our exemplary financial performance and robust cashflow generation.
Moving forward, Waaree reaffirms its FY26 EBITDA guidance of ₹5,500 to ₹6,000 crores. This outlook is supported by strong orderbook, focused margin management, prudent capital investments and strategic acquisitions.”
Operational Highlights
Waaree Energies achieved a production output of 2.64 GW in Q2FY26, supported by strong manufacturing efficiencies. The company successfully commissioned an additional ~3 GW solar module manufacturing facility at Chikhli, Gujarat. On October 16, 2025, the Board approved an interim dividend of Rs. 2 per share.
The Board had earlier approved an additional capex outlay of Rs. 8,175 crore on October 1, 2025, aimed at expanding multiple verticals, storage cell and battery energy storage system (BESS) capacity from 3.5 GWh to 20 GWh (Rs. 8,000 crore), electrolyser manufacturing from 0.3 GW to 1 GW (Rs. 125 crore), and inverter capacity from 3 GW to 4 GW (Rs. 50 crore).
The company also completed key strategic acquisitions, including a 64 percent stake in Kotsons Private Limited to strengthen its transformer business, the acquisition of Meyer Burger’s assets in the US for USD 18.5 million, and an ongoing transaction to acquire 76 percent in Racemosa Energy (India) Private Limited to enhance its smart metering portfolio. Waaree’s total module capacity now stands at 18.7 GW, while cell capacity is at 5.4 GW.
Also Read: Financially strong stock skyrockets 14% after announcing its Q2 FY26 results
Order Book and Revenue Mix
Module production grew 37 percent year-on-year, with the company’s order book as on date, for WEL solar manufacturing and WRTL; India and Overseas split of orderbook (of amount) standing at 24 GW, valued at approximately Rs. 47,000 crore, of which 40.5 percent comes from India and 59.5 percent from overseas markets. The overall order pipeline exceeds 100 GW. In terms of revenue distribution, the domestic segment (retail, EPC, and enterprise) contributed 52.8 percent, while overseas business accounted for 47.2 percent.
Planned Expansion
Waaree Energies has outlined a total capex plan of approximately Rs. 25,000 crore across its energy ventures. Waaree Energies’ current installed capacity includes 16.1 GW of module capacity in India and 2.6 GW in the US, alongside 5.4 GW of cell capacity in India. The company has no ingot-wafer capacity at present.
Looking ahead, the company plans to add 6 GW of module, 6 GW of cell, and 6 GW of ingot-wafer capacity under the PLI scheme, along with additional 2.05 GW (including 1.6 GW in the US) for modules, 4 GW for cells, and 4 GW for ingot-wafer in India. By FY2026, total module capacity is targeted at 26.7 GW, and by FY2027, cell and ingot-wafer capacities are projected to reach 15.4 GW and 10 GW, respectively..
Strategic Investments
For its Battery Energy Storage System, the company plans to invest up to Rs. 10,000 crore to establish a 20 GWh lithium-ion cell and storage facility at Rola (Valsad), Gujarat, with Phase-I (3.5 GWh) expected by FY27. In inverters, it aims to invest Rs. 180 crore with annual capacity to 4 GW, with Phase-I of 3 GW to be completed by FY26 at Sarodhi (Valsad).
For green hydrogen electrolysers, Waaree has been awarded a PLI for a 300 MW facility, involving an investment of up to Rs. 676 crore to build a 1 GW plant at Dungri (Valsad) by FY27. In renewable power infrastructure, the company has committed Rs. 2,250 crore and secured connectivity for 6.1 GW of renewable power projects, including PPAs and bids won for 413 MW.
Guidance
Waaree Energies reaffirmed that execution of ingot-wafer, cell, and module facilities remains on track, with cell production expected to ramp up sharply in the second half of FY26. The company plans to operationalise a large part of the remaining module expansion by early 2026. Inverter, BESS, and green hydrogen projects are progressing as scheduled.
The company maintained its FY26 EBITDA guidance in the range of Rs. 5,500 crore to Rs. 6,000 crore, supported by its strong order book, disciplined margin management, and ongoing strategic investments.
Written By Manan Gangwar
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.