Summary
Waaree Renewable Technologies Limited - Q3 FY2026 Earnings Call Summary Friday, January 16, 2026 12:00 p.m.
Event Participants
Executives 5 Abhishek Pareek, Hitesh Mehta, Manmohan Sharma, Neeraj Vinayak, Rohit Wade
Analysts 12 Anushka Vora, Deepak Krishnan, Deepak Poddar, Hardik Sharda, Jigar (Individual Investor), Naman Maheshwari, Namril Shah, Paras Kulkarni, Pawan Kumar, Raman KV, Sahil Sheth, Saurabh Banik, Shrenik Mehta, Surya Narayan Nayak, Udit Sehgal, Utsav Adani, Yash Jhurani
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Order Book | 2.92 GWp | Unexecuted order book as of Dec 2025; provides visibility for the next 12-15 months. |
| O&M Portfolio | 1,180 MWp | Growth driven by rising solar base and technology-led service demand. |
| Project Execution | 610 MWp | Execution for Q3 FY26; cumulative 9M FY26 execution reached 2,230 MWp. |
| Revenue from Operations | ₹851.06 crores | +136.18% YoY; driven by strong execution pace and inclusion of turnkey module supply in certain projects. |
| EBITDA | ₹158.80 crores | +120.79% YoY; reflects strong operating leverage and execution efficiency. |
| EBITDA Margin | 18.66% | -5.82% QoQ but +300 bps YoY for 9M FY26 (19.48%); management targets a sustainable 15%+ margin. |
| PAT | ₹120.19 crores | +124.74% YoY; 9M FY26 PAT stood at ₹322.93 crores (+138.92% YoY). |
| Net Worth/Capital | Fund-based debt free | Company operates without fund-based working capital limits, utilizing internal accruals and non-fund-based limits. |
Geographic & Segment Commentary
- EPC Utility Scale: This segment remains the primary revenue driver, contributing approximately 97-98% of total revenue. Management executed 2.23 GWp in 9M FY26 across various geographies, maintaining a leadership position in India’s solar EPC space despite rising competition.
- Operations & Maintenance (O&M): The portfolio reached 1.18 GWp as of December 2025. It serves as a growing, dependable revenue stream derived from the company’s completed EPC projects and third-party assets.
- Independent Power Producer (IPP): Current generation capacity is supported by ₹3.5 crore per MW capex. New capacity of 120 MW is planned for FY27 to build long-term, 20-25 year annuity-style revenue streams.
Company-Specific & Strategic Commentary
- BESS Integration: The company is transitioning into Battery Energy Storage Systems (BESS) EPC, currently executing a 45 MWh project to meet new grid stability requirements.
- Turnkey Capabilities: While primarily a BOS (Balance of System) player, the company increasingly offers turnkey solutions including module supply based on customer preference.
- Asset-Light to Managed Growth: Management is utilizing conserved cash to build IPP assets, shifting slightly from a pure service model to a hybrid model with recurring generation income.
- Risk Management: For turnkey projects, the company hedges against module price volatility by placing firm orders immediately upon contract signing to lock in margins.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Execution Timeline | 12 - 15 months | Timeframe to execute the current 2.92 GWp unexecuted order book. |
| Order Pipeline | 29 GW | Includes 5-6 GW of live tenders; seeking to capture domestic and international growth. |
| EBITDA Margin | 15% + | Management aims to maintain this threshold by being selective in bidding for high-margin, low-risk projects. |
| IPP Capacity | 120 MW (FY27) | Expansion targeted for the next financial year to reach deeper into the generation segment. |
Risks & Constraints
| Risk | Context |
|---|---|
| Pricing Competition | Entry of new players in the EPC space exerts downward pressure on bid prices; company mitigates this by focusing on timely delivery and execution excellence. |
| Module Price Volatility | Fluctuations in cell/module prices (e.g., China’s rebate policies) can impact turnkey contract profitability; mitigated by immediate procurement upon order award. |
| Grid & Transmission | Potential slowdown in tendering due to transmission capacity constraints in specific regions; however, management currently sees a robust 29 GW pipeline. |
Q&A Highlights
Revenue Mix and Execution Realization
- Question: Why did realization per MW increase to ₹1.3-1.4 crores this quarter? (Deepak Krishnan)
- Answer: The mix included turnkey orders where modules were in the scope of supply, which carries a higher realization compared to pure BOS work (Manmohan Sharma).
BESS and New Segments
- Question: Is the company at a disadvantage in hybrid or BESS projects compared to peers? (Jigar)
- Answer: We are actively bidding for BESS EPC as a standalone and integrated offering; we have the team and capability to compete as these become industry norms (Manmohan Sharma).
IPP Financing and Strategy
- Question: How will the 120 MW IPP expansion be funded? (Namril Shah)
- Answer: Projects typically cost ₹3.5 crores/MW; we will use available cash flows and potentially raise term loans as required (Manmohan Sharma).
Profitability and Margins
- Question: How does the company achieve 19% margins when the industry average for EPC is lower? (Raman KV)
- Answer: High margins are driven by executing large-scale projects across geographies with strict financial discipline, monitoring control, and timely delivery (Manmohan Sharma).
Key Takeaway
Waaree Renewable Technologies delivered a robust Q3 FY26, with revenue growing 136% YoY to ₹851.06 crores and PAT increasing 125% to ₹120.19 crores. The company successfully executed 610 MW during the quarter, bringing the 9-month total to 2.23 GW. While EBITDA margins saw a slight sequential dip, the 9-month margin of 19.48% remains well above the management’s 15% baseline. Strategically, the firm is diversifying its revenue by expanding its O&M portfolio to 1.18 GWp and scaling its IPP segment with 120 MW planned for FY27. Despite increasing competition and potential module price volatility, a healthy unexecuted order book of 2.92 GWp and a massive 29 GW bid pipeline provide strong visibility. The company remains focused on BESS integration and execution excellence to maintain its leadership in the accelerating Indian solar transition.
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