This article first appeared on GuruFocus .
Release Date: July 23, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Waaree Renewable Technologies Ltd ( BOM:534618 ) reported a strong start for FY 2027 with a revenue growth of 53.23% year-on-year, reaching Rs. 924.25 crores.
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The company successfully completed the acquisition of a 55% equity stake in Associates Power Structure Private Limited, enhancing its capabilities in the transmission and distribution segment.
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EBITDA for the quarter was Rs. 173.48 crores, and profit after tax grew by 37.7% year-on-year, indicating strong financial performance.
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The company's consolidated unexecuted order book stands at Rs. 5,300 crores, providing healthy visibility for future quarters.
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Waaree Renewable Technologies Ltd ( BOM:534618 ) is well-positioned in the growing renewable energy sector in India, with a focus on solar EPC and expanding into transmission and distribution.
Negative Points
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The consolidation of a lower-margin business has led to a slight dip in overall margins on a consolidated level.
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The acquisition of Associates Power Structure Private Limited involved a significant debt component, which may impact financial flexibility.
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The company's order book provides visibility for only beyond a year, raising concerns about long-term order inflow sustainability.
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Increased competition in the solar EPC space may pressure the company to bid more aggressively, potentially impacting margins.
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The transmission and distribution business is capital-intensive, which could affect the company's working capital cycle and cash flow.
Q & A Highlights
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Warning! GuruFocus has detected 4 Warning Signs with BOM:534618.
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Q: Does the order book include the 1,500 megawatt-hour of BESS? A: No, the order book shown is purely from the solar EPC. The 2,400 crore is for solar EPC, and 200 crore is from BESS EPC. - Chief Financial Officer
Q: Why is there a dip in consolidated margins despite improved standalone margins? A: The dip is due to the consolidation of a lower-margin business. Standalone EPC business margins have improved, but the consolidated margins reflect the inclusion of the new business. - Chief Financial Officer
Q: What is the impact of the ALMM2 regulatory extension on order inflows and execution timelines? A: The extension is likely to bring more projects before the deadline, positively impacting order inflows and execution timelines. - Chief Financial Officer
Q: How is the acquisition of Associated Power financed, and what impact does it have on margins? A: The acquisition is financed through 75% debt. The interest cost has impacted margins, but the acquisition is expected to enhance revenue streams by integrating T&D with solar EPC. - Chief Financial Officer
Q: How does the company plan to improve margins in the low-margin T&D business? A: Margin improvement is an ongoing exercise. The company will focus on process improvements and cost reductions to enhance margins over time. - Chief Financial Officer
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
