Waaree Renewables profit falls 30% despite revenue growth

reported mixed Q2 FY27 results for the quarter ended September 2026. Revenue from operations increased 36.53% year on year to ₹1,057.84 crore, compared with ₹774.78 crore in the corresponding quarter last year. However, EBITDA grew just 1.29% to ₹159.98 crore, while net profit declined 29.98% to ₹81.48 crore from ₹116.36 crore. The contrasting performance indicates pressure on quarterly profitability despite strong revenue growth. For H1 FY27, revenue rose 43.84% to ₹1,982.09 crore and EBITDA increased 21.04% to ₹333.46 crore. H1 net profit edged down 1.14% to ₹200.44 crore. The company’s unexecuted order book exceeds ₹5,500 crore, providing future revenue visibility. Its growth pipeline includes solar projects exceeding 34.6 GWp, BESS opportunities exceeding 12.5 GWh and transmission and distribution bids worth over ₹21,900 crore. Management cited acquisition-related financing costs and differing margin profiles in new businesses as factors affecting near-term profitability. My View: Revenue growth and the large order book support the long-term outlook, but the sharp quarterly profit decline is a concern. The key question is whether margins recover as the company expands into energy storage and power infrastructure. Pipeline opportunities are not confirmed orders, so conversion and execution remain important. What to watch: Quarterly profit and EBITDA margin recovery, acquisition-related financing costs, conversion of the bidding pipeline into orders, execution of the ₹5,500 crore order book and BESS business development. Stance: WAAREERTL – NEGATIVE (6/10)