Waaree Energies Q1FY26 profit nearly doubles YoY on strong operational gains; margins expand sharply Energy Watch
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Waaree Energies Q1FY26 profit nearly doubles YoY on strong operational gains; margins expand sharply

Waaree Q1 FY26 PAT soars 93% YoY to Rs 773 cr; revenue up 31%, record module output lifts margins, strong order book sustains outlook

EW Bureau

Mumbai: Waaree Energies Ltd reported a 92.68 percent year-on-year increase in profit after tax for the first quarter of FY26, driven by strong revenue growth, higher operating margins, and record module output. According to a statement, Q1 marked Waaree’s “highest-ever quarterly module production of 2.3 GW,” as it continues to scale up both domestic and overseas manufacturing. Despite the impressive gains, early signs of margin plateauing suggest the company may be entering a phase of moderated sequential growth.

Financial performance

Waaree Energies reported standalone income of Rs 4,597.18 crore in Q1 FY26, a 31.48 percent increase over the Rs 3,496.41 crore reported in Q1 FY25. Sequentially, income rose 11.02 percent from Rs 4,140.92 crore in Q4 FY25. EBITDA for the quarter rose 82.61 percent year-on-year to Rs 1,168.67 crore, and 10.3 percent over the previous quarter. The EBITDA margin expanded to 25.42 percent from 18.30 percent a year earlier, though it declined slightly from 25.59 percent in Q4.

Profit after tax stood at Rs 772.89 crore, compared to Rs 401.13 crore in Q1 FY25 and Rs 644.47 crore in Q4. This marked a 92.68 percent increase year-on-year and a 19.93 percent rise quarter-on-quarter. PAT margin also rose to 16.81 percent from 11.47 percent in Q1 last year and 15.56 percent in the previous quarter.

Capex and expansion strategy

According to the statement, the Board of Directors has approved an additional capex of Rs 2,754 crore for a 4 GW expansion in solar cell manufacturing in Gujarat and a 4 GW addition in ingot-wafer capacity in Maharashtra. It added that construction is underway for green hydrogen, inverter, and battery energy storage system facilities. Waaree also stated that it is on track to commission 1.6 GW of new module capacity in Texas, USA, and 3.2 GW in Chikhli, Gujarat.

CEO statement and FY26 outlook

Whole Time Director & CEO Dr Amit Paithankar stated, “Waaree Energies Ltd continues to deliver strong operational performance in Q1 FY26, building on the momentum of the previous fiscal. On the demand side we have a robust order book of ~Rs 49,000 crore and a global pipeline of 100+ GW, reflecting positive market sentiments across key geographies.”

He further noted, “This quarter, Waaree achieved its highest-ever production of modules at 2.3 GW, underscoring the success of our efforts to improve production efficiency. Our factory build-out projects in India and the U.S. remain on track. A strong and sharp focus on costs and profitability is reflected in our financials.”

The company reaffirmed its full-year EBITDA guidance, with Dr Paithankar stating, “We maintain our FY26 EBITDA guidance of ₹5,500 to ₹6,000 crore.”

Waaree's financial performance

Waaree’s first-quarter performance confirms its position as one of India’s fastest-growing clean energy manufacturers. Revenue growth of over 31 percent year-on-year is notable given persistent pricing pressure in the global solar market. The company’s ability to convert this topline momentum into a near-doubling of profit reflects gains from scale, vertical integration, and operational discipline.

However, the sequential growth tells a more tempered story. EBITDA grew 10.3 percent quarter-on-quarter — a sharp slowdown compared to 32 percent growth in Q4 FY25. The slight dip in EBITDA margin from 25.59 percent in Q4 to 25.42 percent in Q1 also indicates the start of a plateau in operating leverage.

PAT margin improved quarter-on-quarter, but largely due to better SG&A cost control rather than new efficiency gains at the operational level. With large-scale projects underway and new verticals like green hydrogen and batteries under development, execution risk and working capital pressures could mount in the coming quarters.

Despite these signals, the company’s Rs 49,000 crore order book and global pipeline of over 100 GW provide strong revenue visibility. Whether Waaree can sustain profitability while delivering on its capex-heavy strategy will be a key metric to watch through the remainder of FY26.

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