- Waaree Energies Q2 FY27 Results: Key Numbers
- Why Did Waaree Energies' Profit Fall?
- Retail Revenue Surges 253%, But Exports Decline Sharply
- Order Book and Capacity Expansion
- Can Waaree Achieve Its FY27 EBITDA Guidance?
- Author's Take
Waaree Energies reported a 24% year-on-year increase in revenue to ₹7,518 crore in Q2 FY27. However, net profit declined 14% to ₹754 crore, while operating margins fell sharply. The results highlight rising manufacturing costs, a major shift from exports to domestic retail sales, and the challenge of maintaining profitability during rapid expansion.
Waaree Energies Q2 FY27 Results: Key Numbers
| Particulars | Q2 FY27 | YoY Change |
| Revenue | ₹7,518 crore | +23.9% |
| Operating EBITDA | ₹1,335 crore | -5.1% |
| EBITDA Margin | 17.8% | Down 5.4 percentage points |
| Net Profit | ₹754 crore | -14.2% |
| Solar Modules Sold | 3.0 GW | +27.4% |
The sequential performance was also weak. Compared with Q1 FY27, revenue declined 5.2%, operating EBITDA fell 7.3%, and net profit declined 15.5%. This indicates that profitability came under pressure despite higher solar module sales compared with last year.
Why Did Waaree Energies' Profit Fall?
The main concern was the sharp decline in operating margins, as material costs increased faster than revenue.
Waaree's cost of materials consumed increased 47% year-on-year to ₹4,715 crore, compared with revenue growth of 24%. Operating EBITDA consequently declined 5%, while EBITDA margin fell from 23.2% to 17.8%.
Higher depreciation also affected profitability. Depreciation increased from ₹240 crore to ₹347 crore as the company continued expanding its manufacturing operations.
As a result, net profit margin declined from 14.1% to 9.8%. The challenge for Waaree is to improve manufacturing efficiency and control costs while expanding production.
Retail Revenue Surges 253%, But Exports Decline Sharply
One of the biggest developments in Waaree's Q2 results was the shift in its revenue mix.
Retail revenue increased from ₹982 crore to ₹3,464 crore, growing nearly 253%. Retail now contributes 46% of total revenue, compared with 16% a year earlier.
However, overseas revenue declined nearly 52% to ₹1,389 crore. Exports from India fell from ₹2,142 crore to just ₹89 crore, while revenue from US manufacturing increased from ₹732 crore to ₹1,300 crore.
This reflects Waaree's growing reliance on domestic sales and local US manufacturing instead of direct exports from India.
The company also disclosed that a significant portion of export orders had been treated as cancelled because of uncertainties related to the US Section 232 investigation, which could lead to trade restrictions.
The key question is whether domestic retail growth and US manufacturing can offset weaker exports while protecting profitability.
Although retail revenue is growing rapidly, Waaree has not disclosed sufficient segment-level profitability data to establish how much the changing revenue mix contributed to lower operating margins.
Order Book and Capacity Expansion
Waaree's total order book stood at approximately ₹59,200 crore, compared with more than ₹61,000 crore in the previous quarter. However, its solar module order book increased from 25.2 GW to 25.6 GW.
The geographical mix has also changed. Domestic Indian orders account for nearly 49% of the order book, US domestic orders contribute around 44%, and export orders from India account for only about 8%.
Meanwhile, Waaree is undertaking a ₹31,852 crore capital expenditure programme across solar manufacturing, battery storage and other energy-related businesses. Of this, ₹11,525 crore had been deployed by September 2026.
Capacity utilisation remains an important factor. Indian solar module utilisation declined from 50% in Q1 FY27 to 45% in Q2 FY27, while solar cell utilisation improved from 62% to 81%.
Higher solar cell production could reduce dependence on external suppliers and support future margins. However, lower module utilisation indicates that Waaree still has room to improve production efficiency and benefit from its existing manufacturing capacity.
Can Waaree Achieve Its FY27 EBITDA Guidance?
Despite weaker quarterly profitability, Waaree has maintained its FY27 operating EBITDA guidance of ₹7,000 crore to ₹7,700 crore.
The company generated ₹2,775 crore in operating EBITDA during H1 FY27. This means it needs another ₹4,225 crore to ₹4,925 crore in the second half to achieve its full-year target.
H2 operating EBITDA must therefore be approximately 52% to 77% higher than H1. This is a demanding requirement, especially as quarterly EBITDA has declined sequentially in both Q1 and Q2 FY27.
One positive was operating cash flow, which increased from ₹575 crore in H1 FY26 to ₹3,484 crore in H1 FY27. However, the company's ongoing expansion will continue to require substantial investment.
Achieving the guidance will depend on a significant improvement in operating performance, supported by better capacity utilisation, higher production or stronger margins.
Author's Take
Waaree Energies' Q2 results show that business growth and profitability are moving in different directions. Retail revenue increased 253%, US manufacturing revenue improved, and the company maintained a substantial order book. However, material costs rose faster than revenue, exports from India declined sharply, and EBITDA margins fell significantly.
The biggest near-term test is management's FY27 profitability guidance. Waaree needs a strong recovery in second-half operating earnings while continuing its large expansion programme. For investors, the key indicators will be margin recovery, manufacturing capacity utilisation and whether the company can deliver the sharp improvement in EBITDA required to meet its guidance.