Waaree Energies Q2 FY27 Results: Revenue Rises 24%, Net Profit Falls 14% as Margins Decline

Waaree Energies reported a 23.9% year-on-year (YoY) increase in consolidated revenue to Rs 7,517.7 crore in Q2 FY27, while net profit declined 14.2% to Rs 753.6 crore. Operating EBITDA fell 5.1% to Rs 1,335.2 crore, with the EBITDA margin contracting by 540 basis points to 17.8%.

Despite weaker quarterly profitability, Waaree Energies maintained a substantial order book of approximately Rs 59,200 crore, reported strong operating cash flow and continued expanding its solar manufacturing capacity in India and the US. The company also reaffirmed its FY27 operating EBITDA guidance of Rs 7,000-7,700 crore.

This Waaree Energies Q2 FY27 Results Analysis examines the company's financial performance, margin pressure, order book, capacity expansion, management guidance, share price reaction and the key factors investors should monitor.

Table of Contents

1. Waaree Energies Q2 FY27 Results Highlights
2. Waaree Energies Q2 FY27 Financial Performance
3. Why Waaree Energies' Net Profit Declined
4. Waaree Energies H1 FY27 Results and Cash Flow
5. Waaree Energies Order Book and Demand Outlook
6. Solar Manufacturing Capacity and Expansion Plans
7. Retail Business and US Manufacturing Growth
8. Expansion into BESS, Inverters and Transformers
9. Indosolar Merger Update
10. Waaree Energies FY27 EBITDA Guidance
11. Waaree Energies Share Price Reaction
12. Key Risks for Waaree Energies Investors
13. What Investors Should Track Next
14. Waaree Energies Q2 FY27 Results Review

Waaree Energies Q2 FY27 Results Highlights

The Waaree Energies Q2 FY27 results showed strong revenue growth and higher production volumes, but profitability declined due to significant margin compression.

Key highlights of the quarter ended 30 September 2026 include:

• Revenue growth: Consolidated revenue increased 23.9% YoY to Rs 7,517.7 crore.

• Net profit: Consolidated PAT declined 14.2% YoY to Rs 753.6 crore.

• Operating EBITDA: Fell 5.1% to Rs 1,335.2 crore.

• EBITDA margin: Contracted by 540 basis points to 17.8%.

• Solar module production: Reached 3.0 GW during Q2 FY27.

• Order book: Approximately Rs 59,200 crore as of 26 October 2026.

• Module order book: Increased sequentially to 25.6 GW.

• Retail contribution: Accounted for 46.1% of Q2 revenue.

• Manufacturing capacity: Stood at 25.8 GW for solar modules and 5.4 GW for solar cells.

• FY27 guidance: Operating EBITDA guidance remained at Rs 7,000-7,700 crore.

The central concern in the Waaree Energies Q2 earnings was that revenue growth did not translate into higher operating profit. Investors will therefore be watching whether higher production volumes and capacity utilisation can improve margins during the second half of FY27.

To assess Waaree Energies' stock performance after its Q2 FY27 results, check the Waaree Energies share price, historical charts and key valuation ratios.

Waaree Energies Q2 FY27 Financial Performance

Waaree Energies recorded higher revenue in Q2 FY27, supported by its expanding solar manufacturing operations and growing retail business. However, operating expenses and weaker profitability per unit of revenue weighed on earnings.

Waaree Energies Q2 FY27 Results: Revenue, EBITDA and PAT

Financial metric	Q2 FY27	Q2 FY26
Revenue from operations	Rs 7,517.7 Cr	Rs 6,065.6 Cr
Operating EBITDA	Rs 1,335.2 Cr	Rs 1,406.4 Cr
EBITDA margin	17.8%	23.2%
Net profit (PAT)	Rs 753.6 Cr	Rs 878.2 Cr
Reported PAT margin	9.8%	14.1%

Source: Financial data supplied for the Waaree Energies Q2 FY27 report. The PAT margin figures are retained as provided; they do not directly reconcile with PAT divided by revenue from operations.

Year-on-Year Financial Performance

Metric	YoY change
Revenue	+23.9%
Operating EBITDA	-5.1%
EBITDA margin	-540 bps
Net profit	-14.2%
Reported PAT margin	-430 bps

Revenue Growth: Sales Rise Nearly 24%

Waaree Energies' consolidated revenue increased by approximately Rs 1,452.1 crore compared with Q2 FY26.

The increase came alongside higher solar module production and growing contributions from the retail business.

However, the company generated lower operating EBITDA despite the additional revenue. This indicates that the incremental sales carried weaker operating profitability than in the corresponding quarter last year.

For investors, revenue growth alone is therefore insufficient to assess the quarter. The company's ability to protect operating margins while expanding volumes will be equally important.

Waaree Energies Q2 FY27 Net Profit Declines 14.2%

Waaree Energies' Q2 FY27 net profit declined to Rs 753.6 crore from Rs 878.2 crore in Q2 FY26, a reduction of Rs 124.6 crore.

Operating EBITDA also declined by Rs 71.2 crore, indicating that the earnings weakness was visible at the operating level.

The decline in profit, despite higher revenue, reflects the pressure on profitability during the quarter. The supplied figures do not provide a complete expense-level reconciliation of the PAT decline, so the precise contribution of individual costs cannot be quantified.

Why Waaree Energies' Net Profit Declined

The main concern in Waaree Energies' Q2 FY27 results was the sharp decline in operating profitability.

The EBITDA margin fell from 23.2% in Q2 FY26 to 17.8% in Q2 FY27. This represents a contraction of 5.4 percentage points, or 540 basis points.

Several operating and industry-related factors are relevant to understanding this pressure.

1. Solar Module Pricing Pressure

Lower solar module prices and increasing competitive intensity remain important risks for manufacturers.

Even when production volumes increase, lower selling prices can reduce revenue earned per unit and compress operating margins.

For Waaree Energies, the combination of higher revenue and lower EBITDA suggests that the profitability of its sales mix weakened during the quarter.

The extent to which pricing alone caused the decline cannot be established from the supplied financial figures.

2. Changing Revenue Mix

Waaree Energies' retail business contributed 46.1% of Q2 FY27 revenue, compared with 18.8% of revenue in H1 FY26.

This indicates a significant shift in the company's business composition.

Retail expansion can support wider distribution, customer diversification and volume growth. However, its impact on margins depends on product pricing, distribution costs and working-capital requirements.

Investors should monitor whether the growing retail contribution supports profitability or creates additional pressure on operating margins.

3. US Trade and Policy Uncertainty

Waaree Energies is expanding its US manufacturing operations, making American trade policies increasingly important to its financial performance.

Potential changes in tariffs, trade restrictions, domestic manufacturing incentives and local-content requirements could affect production economics and order profitability.

Although the US business provides an additional growth opportunity, policy uncertainty remains a material risk.

4. Manufacturing Capacity Ramp-Up

Waaree Energies is investing in several businesses simultaneously, including solar modules, solar cells, battery energy storage systems, inverters and transformers.

New manufacturing facilities can face initial utilisation challenges, operating inefficiencies and higher fixed-cost absorption requirements.

Depreciation from commissioned assets may also affect reported profit, although depreciation is excluded from EBITDA.

The actual contribution of these factors to Q2 FY27 earnings has not been separately quantified in the supplied data.

Importantly, production volumes continued to increase. Solar module production reached 3.0 GW in Q2 FY27, while H1 FY27 production rose to 6.3 GW from 4.9 GW a year earlier.

This suggests that the quarter's weaker profitability should be assessed alongside continued manufacturing growth rather than interpreted as evidence of a broad demand collapse.

Waaree Energies H1 FY27 Results and Cash Flow

While Q2 FY27 profitability declined, Waaree Energies' performance for the first six months of FY27 showed stronger revenue and EBITDA growth.

The company also reported a substantial improvement in cash generated from operating activities.

Waaree Energies H1 FY27 Financial Results

The following tables highlight Waaree Energies' financial performance for H1 FY27 and H1 FY26.

Waaree Energies H1 FY27 Financial Performance

Financial Metric	H1 FY27 and YoY Growth
Revenue	Rs 15,449.5 Cr (+47.3% YoY)
Operating EBITDA	Rs 2,775.1 Cr (+15.5% YoY)
EBITDA margin	18.0% (-490 bps YoY)
Net profit	Rs 1,645.5 Cr (-0.3% YoY)
Operating cash flow	Rs 3,483.6 Cr (+506.1% YoY)

Waaree Energies H1 FY26 Financial Performance

Financial Metric	H1 FY26
Revenue	Rs 10,491.5 Cr
Operating EBITDA	Rs 2,403.7 Cr
EBITDA margin	22.9%
Net profit	Rs 1,651.1 Cr
Operating cash flow	Rs 574.7 Cr

Operating Cash Flow Rises More Than Sixfold

One of the strongest aspects of the Waaree Energies Q2 FY27 report was the company's half-year cash flow performance.

Operating cash flow increased from Rs 574.7 crore in H1 FY26 to Rs 3,483.6 crore in H1 FY27.

This represents growth of approximately 506.1%.

The improvement is particularly relevant because Waaree Energies is undertaking substantial manufacturing expansion.

Strong operating cash generation can help the company fund working capital, support capacity expansion and reduce dependence on additional external financing.

However, operating cash flow should not be confused with free cash flow. Investors also need to assess capital expenditure, debt movements and the sustainability of working-capital improvements.

Despite stronger EBITDA and cash flow, H1 net profit remained almost unchanged at Rs 1,645.5 crore. This shows that revenue and operating growth have not yet translated into comparable growth in bottom-line earnings.

Waaree Energies Order Book and Demand Outlook

Waaree Energies maintained substantial order visibility despite uncertainty around solar pricing and international trade policies.

As of 26 October 2026, the company's total order book stood at approximately Rs 59,200 crore.

Waaree Energies Order Book Details

Order book metric	Reported position
Total order book	Approx. Rs 59,200 Cr
Solar module order book	25.6 GW
Q1 FY27 module order book	25.2 GW
US order book	More than 10 GW
US order visibility	Around 2-3 years

The solar module order book increased from 25.2 GW in Q1 FY27 to 25.6 GW in Q2 FY27, indicating continued demand for the company's products.

However, the total order book declined from more than Rs 61,000 crore reported in Q1 FY27.

This difference requires attention.

A reduction in the order book can arise from order execution, changes in contract values, cancellations or other adjustments. The supplied information does not establish the precise reason for Waaree's sequential decline.

Why Order Book Quality Matters

The order book provides visibility into future business activity, but it does not guarantee revenue or profit.

Investors should assess:

• The pricing and expected profitability of outstanding orders.

• Delivery schedules and execution timelines.

• The geographical distribution of contracts.

• Customer concentration and counterparty exposure.

• The possibility of cancellations or renegotiations.

• The impact of US trade policies on export-related orders.

Waaree's US order book of more than 10 GW is particularly significant because it supports demand visibility for the company's expanding American manufacturing operations.

However, actual earnings will depend on execution, selling prices, costs and regulatory conditions.

Solar Manufacturing Capacity and Expansion Plans

Capacity expansion remains central to Waaree Energies' long-term growth strategy.

The company is increasing its manufacturing presence across solar modules and cells while investing in other energy-related products.

Current Solar Manufacturing Capacity

Manufacturing segment	Current capacity
Solar PV modules	25.8 GW
Solar cells	5.4 GW
India module capacity	24.2 GW
US module capacity	1.6 GW

Waaree's module manufacturing capacity is primarily concentrated in India, although the US is becoming an increasingly important part of its expansion strategy.

US Manufacturing Expansion

Waaree Energies' board approved an investment of approximately $37 million to expand its Meyer Burger facility in Arizona by 0.6 GW.

The company is targeting total US module manufacturing capacity of 4.8 GW by March 2027.

Compared with the current reported capacity of 1.6 GW, the target represents a threefold increase.

The 0.6 GW Arizona expansion is one component of this broader capacity target.

For investors, the important factors will be the commissioning schedule, actual production ramp-up, capacity utilisation and profitability of the US operations.

Waaree Energies FY28 Capacity Targets

Waaree Energies has outlined a broader manufacturing expansion strategy extending into FY28.

Business segment	FY28 readiness target
Solar PV modules	Approx. 29 GW
Solar cells	15.4 GW
BESS pack and container capacity	Approx. 5 GWh
Battery cell manufacturing	Approx. 3.5 GWh
Inverters	4 GW
Transformers	20,000 MVA

The company also intends to expand its EPC and transmission and distribution capabilities.

These investments could strengthen its position across the renewable energy value chain.

However, higher capacity does not automatically guarantee higher profitability.

The financial outcome will depend on demand, plant utilisation, manufacturing efficiency, pricing conditions and returns on invested capital.

Retail Business and US Manufacturing Growth

Retail and US manufacturing were important contributors to Waaree Energies' business expansion during H1 FY27.

Both businesses are strategically relevant because they can diversify the company's revenue base beyond its existing operations.

Retail Revenue Grows 191%

Waaree Energies reported retail revenue of Rs 5,753 crore in H1 FY27, compared with Rs 1,976.8 crore in H1 FY26.

This represents growth of approximately 191%.

Retail metric	Reported figure
H1 FY27 retail revenue	Rs 5,753.0 Cr
H1 FY26 retail revenue	Rs 1,976.8 Cr
Retail revenue growth	191.0%
H1 FY27 revenue contribution	37.2%
Q2 FY27 revenue contribution	46.1%

The retail business accounted for more than one-third of H1 FY27 revenue and nearly half of Q2 FY27 revenue.

This shift indicates that retail is becoming a major component of Waaree's business model.

A wider retail presence may improve market access and reduce dependence on large individual project orders.

However, investors need to assess retail margins, inventory requirements and receivable collection periods to determine whether this growth improves overall profitability.

US Manufacturing Revenue Increases 113%

Waaree Energies' US manufacturing revenue increased 113% during H1 FY27, according to the management commentary included in the supplied results data.

The growth supports the company's strategy of developing a larger manufacturing presence in the American market.

Its US order book of more than 10 GW also provides potential revenue visibility.

However, expanding overseas introduces additional risks involving tariffs, regulatory requirements, labour costs, logistics and changes in government incentives.

The US business could become an important earnings contributor, but its long-term profitability will depend on how effectively Waaree manages these risks.

Expansion into BESS, Inverters and Transformers

Waaree Energies is expanding beyond conventional solar module manufacturing into other segments of the clean-energy value chain.

During Q2 FY27, the company commenced advanced automated battery energy storage system (BESS) container manufacturing capacity of 5.15 GWh at Rola, Gujarat.

The development forms part of its broader diversification strategy.

Key New Business Segments

• Battery Energy Storage Systems: Expansion into BESS containers, packs and battery cells to participate in energy storage demand.

• Inverters: Development of manufacturing capacity for equipment used in solar power systems.

• Transformers: Expansion into electrical equipment supporting power infrastructure.

• EPC and T&D: Broader participation in engineering, procurement, construction, transmission and distribution projects.

• Green hydrogen: Development of opportunities in an emerging energy segment.

These businesses could help Waaree generate revenue from a wider range of products and services.

However, they remain execution-dependent opportunities.

The supplied data does not establish their individual revenue contributions, operating margins or returns on capital.

Investors should therefore distinguish between announced capacity, operational readiness and actual commercial profitability.

Indosolar Merger Update

Waaree Energies' board approved a scheme of amalgamation involving its subsidiary Indosolar during the quarter.

Under the proposed arrangement, shareholders of Indosolar would receive one Waaree Energies share for every 11 Indosolar shares.

The transaction remains subject to applicable regulatory approvals.

Key Details of the Proposed Merger

Particular	Details
Companies involved	Waaree Energies and Indosolar
Proposed share exchange ratio	1 Waaree share for 11 Indosolar shares
Transaction structure	Scheme of amalgamation
Status	Subject to regulatory approvals

The proposed merger could simplify Waaree's corporate structure and improve operational integration.

However, the final financial implications will depend on the approved scheme and its implementation.

Investors should monitor the approval timeline, potential equity dilution, accounting treatment and tax implications.

Waaree Energies FY27 EBITDA Guidance

Despite the weaker Q2 profitability, Waaree Energies reaffirmed its FY27 operating EBITDA guidance of Rs 7,000-7,700 crore.

This guidance is one of the most important forward-looking indicators in the company's Q2 FY27 results.

FY27 EBITDA Guidance Versus H1 Performance

Metric	Amount
FY27 EBITDA guidance	Rs 7,000-7,700 Cr
H1 FY27 EBITDA achieved	Rs 2,775.1 Cr
H2 EBITDA needed for lower target	Rs 4,224.9 Cr
H2 EBITDA needed for upper target	Rs 4,924.9 Cr

To achieve the lower end of its FY27 guidance, Waaree needs to generate Rs 4,224.9 crore of operating EBITDA during H2 FY27.

This is approximately 52.2% higher than the EBITDA generated during H1 FY27.

Reaching the upper end would require Rs 4,924.9 crore of H2 EBITDA, approximately 77.5% higher than H1.

The guidance therefore implies a substantial improvement in operating earnings during the second half.

What Could Support the H2 FY27 Earnings Recovery

Several factors could influence the company's ability to meet its guidance:

• Higher production volumes and capacity utilisation.
• Better solar module pricing and product mix.
• Increased contribution from US manufacturing.
• Continued execution of the existing order book.
• Improved operating efficiency at manufacturing facilities.
• Greater profitability from expanding business segments.

However, these are potential drivers rather than confirmed outcomes.

If pricing pressure persists or new facilities take longer to reach efficient utilisation, achieving the guidance could become more challenging.

For investors, the gap between H1 performance and full-year guidance is a key metric to monitor in Q3 and Q4 FY27.

Waaree Energies Share Price Reaction

Waaree Energies' share price came under pressure following the announcement of its Q2 FY27 results.

According to the supplied market reaction data, the stock declined approximately 5% on 28 October 2026 and touched a new 52-week low.

The decline came as investors assessed weaker profitability despite strong revenue growth.

The key financial concerns included:

• A 14.2% YoY decline in consolidated net profit.

• A 5.1% reduction in operating EBITDA.

• A 540-basis-point contraction in EBITDA margin.

• Uncertainty surrounding US trade policies and solar module pricing.

• The substantial improvement required in H2 earnings to meet FY27 guidance.

Although Waaree continued reporting higher revenue and production volumes, the share price reaction suggests that profitability and future earnings visibility were important market concerns.

A weaker share price does not, by itself, establish whether the stock is undervalued or overvalued. That assessment would also require current valuation multiples, earnings expectations and the sustainability of future cash flows.

Key Risks for Waaree Energies Investors

Waaree Energies has substantial manufacturing capacity, a large order book and expanding business operations. However, several risks could influence its future financial performance.

1. Solar Module Pricing Pressure

Continued reductions in module selling prices could affect revenue realisations and operating margins, particularly if manufacturing costs do not decline proportionately.

2. US Trade and Regulatory Risk

Changes in US tariffs, trade restrictions, domestic manufacturing incentives or local-content requirements could affect order economics and the profitability of American operations.

3. Aggressive Capacity Expansion

Waaree is expanding across several capital-intensive businesses simultaneously. Delays in commissioning, low utilisation or cost overruns could affect returns on capital.

4. Margin Volatility

The Q2 FY27 EBITDA margin declined to 17.8% from 23.2% a year earlier. Further deterioration could weaken earnings even if revenue continues growing.

5. Order Book Execution

The Rs 59,200 crore order book provides visibility, but profitability depends on contract pricing, delivery schedules and successful execution.

6. Working Capital and Cash Flow

Although H1 operating cash flow improved significantly, rapid retail expansion and manufacturing investments could increase future funding requirements.

7. Diversification and Execution Complexity

The expansion into BESS, inverters, transformers, EPC and green hydrogen requires additional capital and management resources.

These businesses may take time to become meaningful profit contributors.

What Investors Should Track Next

The next two quarters will be important for assessing whether Waaree Energies can translate its manufacturing growth and order book into stronger profitability.

Key metric	What investors should monitor
EBITDA margin	Recovery from Q2 FY27's 17.8%
FY27 EBITDA guidance	Progress towards Rs 7,000-7,700 Cr
US manufacturing	Execution of the 4.8 GW capacity target
Order book	Conversion of Rs 59,200 Cr into profitable revenue
Retail business	Revenue growth, margins and working capital
Operating cash flow	Sustainability of H1's strong cash generation
Capital expenditure	Funding needs, debt and returns on capital
New businesses	Commercial contribution from BESS and adjacent segments

Among these indicators, EBITDA margin recovery and delivery against FY27 guidance deserve particular attention.

Waaree's ability to achieve higher earnings during H2 FY27 will help determine whether the Q2 profitability decline was temporary or reflects more persistent pricing and cost pressures.

Waaree Energies Q2 FY27 Results Review

Waaree Energies delivered mixed results in Q2 FY27.

Revenue increased 23.9% to Rs 7,517.7 crore, but operating EBITDA declined 5.1% and net profit fell 14.2%. The EBITDA margin contracted sharply to 17.8%, highlighting the pressure on profitability despite higher sales.

At the same time, the company's H1 FY27 performance showed 47.3% revenue growth, stronger operating cash flow and continued manufacturing expansion. Its Rs 59,200 crore order book and growing US and retail operations provide substantial business visibility.

The major challenge is converting this growth into sustainable earnings.

Waaree has reaffirmed its FY27 operating EBITDA guidance of Rs 7,000-7,700 crore, but meeting that target requires a significant improvement during H2 FY27.

For long-term investors, the company's performance will increasingly depend on manufacturing utilisation, solar pricing, US expansion, capital allocation and returns from its new businesses.

The key takeaway from Waaree Energies' Q2 FY27 results is that demand and revenue growth remain strong, but margin recovery and execution of its expansion strategy will be critical to future profitability.

Want to understand how Waaree Energies' profitability changed between the June and September quarters? Read the Waaree Energies Q1 FY27 Results Analysis to review its earlier revenue growth, margin trends and market reaction.

Frequently Asked Questions

1. What are Waaree Energies Q2 FY27 results?

Waaree Energies reported consolidated revenue of Rs 7,517.7 crore in Q2 FY27, up 23.9% YoY. Operating EBITDA declined 5.1% to Rs 1,335.2 crore, while net profit fell 14.2% to Rs 753.6 crore. The EBITDA margin contracted to 17.8% from 23.2% in Q2 FY26.

2. Why did Waaree Energies' net profit decline in Q2 FY27?

Waaree Energies' net profit declined 14.2% YoY despite higher revenue. Operating profitability weakened, with the EBITDA margin falling by 540 basis points. Solar module pricing pressure, changes in business mix and manufacturing expansion risks are important factors to assess, although their individual impact has not been quantified in the supplied results data.

3. What is Waaree Energies' order book in Q2 FY27?

Waaree Energies reported a total order book of approximately Rs 59,200 crore as of 26 October 2026. Its solar module order book stood at 25.6 GW, compared with 25.2 GW in Q1 FY27. The company also indicated a US order book exceeding 10 GW.

4. What is Waaree Energies' FY27 EBITDA guidance?

Waaree Energies reaffirmed its FY27 operating EBITDA guidance of Rs 7,000-7,700 crore. The company generated Rs 2,775.1 crore of operating EBITDA during H1 FY27, meaning it needs Rs 4,224.9-4,924.9 crore during H2 FY27 to achieve the guidance range.

5. What should investors watch after Waaree Energies Q2 FY27 results?

Investors should monitor EBITDA margin recovery, progress towards FY27 earnings guidance, US manufacturing expansion, order book execution, retail profitability and operating cash flow. Capital expenditure, debt levels and commercial contributions from BESS and other new businesses will also be important.