28-Oct-2026 17:09:02
WAAREE ENERGIES Q2 CONCALL: REVENUE UP 24% YOY, ₹59,200 CR ORDER BOOK, RETAIL SALES SURGE 252%, FY27 EBITDA GUIDANCE OF ₹7,000–7,700 CR MAINTAINED & US CAPACITY EXPANSION ACCELERATES
• MANAGEMENT MAINTAINS FY27 OPERATING EBITDA GUIDANCE OF ₹7,000–7,700 CR, SUPPORTED BY HIGHER SOLAR CELL UTILISATION, US MANUFACTURING EXPANSION, STRONG RETAIL DEMAND & BACKWARD INTEGRATION • MANAGEMENT EXPECTS H2 FY27 TO CONTRIBUTE APPROXIMATELY 55–60% OF FULL-YEAR OPERATING EBITDA TARGET, IMPLYING SIGNIFICANT EARNINGS ACCELERATION FROM NEW CAPACITY & IMPROVED OPERATING EFFICIENCIES • MANAGEMENT TARGETS FY27 RETAIL REVENUE OF ₹10,000–11,000 CR, SUPPORTED BY RAPID DISTRIBUTION EXPANSION, ROOFTOP SOLAR DEMAND, INVERTERS, BATTERIES & INTEGRATED SOLAR SOLUTIONS • MANAGEMENT TARGETS US SOLAR MODULE MANUFACTURING CAPACITY OF 4.8 GW BY MARCH 2027 VS CURRENT 1.6 GW, WITH SIGNIFICANT REVENUE & PROFIT CONTRIBUTION EXPECTED FROM FY28 • MANAGEMENT PLANS TO EXPAND INDIA SOLAR CELL CAPACITY FROM 5.4 GW TO 15.4 GW BY FY27-END, INCLUDING ADDITIONAL 5 GW IN Q3 & 5 GW IN Q4, SUPPORTING BACKWARD INTEGRATION & MARGIN IMPROVEMENT • MANAGEMENT TARGETS 10 GW INGOT & WAFER CAPACITY BY SEPTEMBER 2027, REDUCING DEPENDENCE ON EXTERNAL SUPPLIERS & STRENGTHENING THE INTEGRATED SOLAR MANUFACTURING VALUE CHAIN • MANAGEMENT HAS A LONG-TERM REVENUE ASPIRATION OF ₹90,000 CR–₹1 LAKH CR OVER THE NEXT 4–5 YEARS, WITH NON-MODULE BUSINESSES POTENTIALLY CONTRIBUTING APPROXIMATELY 50% OF REVENUE • Q2 REVENUE GREW 23.9% YOY TO ₹7,517.7 CR, DRIVEN BY STRONG DOMESTIC RETAIL DEMAND, SOLAR MANUFACTURING & US OPERATIONS • Q2 OPERATING EBITDA STOOD AT ₹1,335.2 CR WITH MARGIN OF 17.8%, WHILE NET PROFIT REACHED ₹753.6 CR • H1 REVENUE SURGED 47.3% YOY TO ₹15,449.5 CR, WHILE OPERATING EBITDA GREW 15.5% TO ₹2,775.1 CR WITH MARGIN OF 18% • H1 NET PROFIT REACHED ₹1,645.5 CR, REFLECTING STRONG EARNINGS CONTRIBUTION FROM SOLAR MANUFACTURING, RETAIL EXPANSION & INTERNATIONAL OPERATIONS • TOTAL ORDER BOOK STOOD AT APPROXIMATELY ₹59,200 CR AS OF OCTOBER 26, 2026, INCLUDING 25.6 GW OF SOLAR MODULE ORDERS, PROVIDING STRONG MULTI-YEAR REVENUE VISIBILITY • ORDER BOOK COMPRISES 48.4% INDIA DOMESTIC ORDERS, 43.8% US DOMESTIC ORDERS & 7.8% INDIA EXPORT ORDERS, WITH OVER 92% NOW LINKED TO DOMESTIC INDIA OR LOCALLY MANUFACTURED US MODULES • MANAGEMENT EXCLUDED OVER 3 GW OF HIGHER-RISK EXPORT ORDERS FROM THE REPORTED ORDER BOOK DUE TO US SECTION 232 TRADE-POLICY UNCERTAINTY, ALTHOUGH THESE CONTRACTS WERE NOT NECESSARILY FORMALLY CANCELLED • Q2 RETAIL REVENUE SURGED APPROXIMATELY 252% YOY TO ₹3,464 CR, CONTRIBUTING AROUND 46.1% OF TOTAL QUARTERLY REVENUE • H1 RETAIL REVENUE REACHED ₹5,753 CR, ALREADY EXCEEDING THE ENTIRE FY26 RETAIL REVENUE OF ₹5,515 CR, REFLECTING RAPID DOMESTIC CHANNEL GROWTH • RETAIL NETWORK INCLUDES OVER 775 EXCLUSIVE RETAIL CENTRES, 3,000 DISTRIBUTION POINTS & MORE THAN 5,000 CHANNEL PERSONNEL, WITH MANAGEMENT ESTIMATING APPROXIMATELY 30% SHARE IN ITS RELEVANT RETAIL MARKET • Q2 US DOMESTIC MANUFACTURING REVENUE INCREASED TO APPROXIMATELY ₹1,300 CR VS ₹732 CR LAST YEAR, SUPPORTED BY HIGHER LOCAL MODULE PRODUCTION & CUSTOMER DEMAND • US FACILITY PRODUCED APPROXIMATELY 300 MW OF MODULES DURING Q2, WHILE TOTAL SUPPLIES REACHED AROUND 400 MW INCLUDING PURCHASED MODULES • US LOCAL MANUFACTURING BENEFITS FROM PRODUCTION TAX INCENTIVES OF APPROXIMATELY 7 US CENTS/WATT, SUPPORTING POTENTIALLY HIGHER EBITDA PER WATT THAN INDIA-MANUFACTURED EXPORT MODULES • TOTAL INSTALLED SOLAR MODULE CAPACITY REACHED 25.8 GW INCLUDING US OPERATIONS, WHILE EXISTING SOLAR CELL CAPACITY UTILISATION INCREASED BEYOND 90% AFTER Q2 • MANAGEMENT EXPECTS UNDERLYING MARGIN IMPROVEMENT FROM HIGHER CELL UTILISATION, GREATER US MANUFACTURING CONTRIBUTION & RETAIL SCALE, DESPITE Q2 EBITDA MARGIN DECLINING SLIGHTLY FROM Q1'S 18.2% • Q1 PROFITABILITY BENEFITED FROM A SIGNIFICANT US TARIFF REFUND, WHILE Q2 INCLUDED ONLY APPROXIMATELY ₹11 CR OF INCREMENTAL REFUND RECOGNITION, MAKING SEQUENTIAL MARGIN COMPARISONS LESS REPRESENTATIVE • COMPANY PLANS 5 GWH BATTERY ENERGY STORAGE PACK & CONTAINERISATION CAPACITY IN Q3 FY27, ALONG WITH 3.5 GWH BATTERY CELL MANUFACTURING WITH INITIAL PRODUCTION TARGETED FOR Q4 • MANAGEMENT EXPECTS BESS COMMERCIAL CONTRIBUTION TO INCREASE DURING FY28, SUPPORTED BY DOMESTIC & INTERNATIONAL CUSTOMER DISCUSSIONS AND GROWING ENERGY STORAGE DEMAND • INVERTER MANUFACTURING HAS COMMENCED WITH 4 GW CAPACITY, WHILE TRANSFORMER CAPACITY EXPANSION OF 20,000 MVA & A NEW SOLAR GLASS FACILITY TARGETED FOR FY29 SUPPORT BUSINESS DIVERSIFICATION • MANAGEMENT INDICATED POTENTIAL COMBINED REVENUE OF ₹7,000–8,000 CR FROM INVERTERS, TRANSFORMERS & ELECTROLYZERS, WITHOUT PROVIDING A SPECIFIC ACHIEVEMENT TIMELINE • RENEWABLE POWER INFRASTRUCTURE BUSINESS INVOLVES APPROXIMATELY ₹3,250 CR CAPITAL COMMITMENT, OVER 10 GW GRID CONNECTIVITY & AROUND 2 GW OF PPAS, WITH POTENTIAL ASSET MONETISATION AFTER DEVELOPMENT • COMPANY IS EXECUTING AN APPROXIMATELY ₹30,000 CR CAPEX PROGRAMME, WITH 35% ALREADY DEPLOYED, 28% UNDER EXECUTION & 37% IN PLANNING, WHILE MOST NEW CAPACITY IS EXPECTED TO CONTRIBUTE FROM FY28 • BALANCE SHEET REMAINS STRONG WITH APPROXIMATELY ₹3,224 CR NET CASH, ROCE OF 28.7% & ROE OF 24.2%, PROVIDING FINANCIAL FLEXIBILITY FOR ONGOING EXPANSION • MANAGEMENT EXPECTS SOME DOMESTIC SOLAR MODULE PRICING PRESSURE IN FY28 AS INDUSTRY CAPACITY INCREASES, MAKING BACKWARD INTEGRATION, COST EFFICIENCY & PRODUCT DIVERSIFICATION IMPORTANT • MANAGEMENT REMAINS POSITIVE ON THE ₹59,200 CR ORDER BOOK, STRONG RETAIL GROWTH, US LOCAL MANUFACTURING, SOLAR CELL EXPANSION & BESS OPPORTUNITIES, BUT US TRADE-POLICY UNCERTAINTY, FY28 PRICING PRESSURE, LARGE CAPEX EXECUTION & H2 EBITDA DELIVERY REMAIN KEY RISKS
WAAREE ENERGIES LIMITED