Waaree Renewable Technologies Limited reported a mixed performance in the second quarter of FY27. The company recorded strong revenue growth, supported by its expanding transmission and distribution business, but its net profit declined significantly as operating margins weakened and financing and depreciation costs increased.

Consolidated revenue from operations increased 36.53% year-on-year to ₹1,057.84 crore in Q2 FY27, compared with ₹774.78 crore in Q2 FY26. This growth reflects the company’s broader business portfolio following its expansion beyond traditional solar engineering, procurement and construction activities.

However, the increase in revenue did not translate into a comparable rise in operating earnings. Consolidated EBITDA grew only 1.29% year-on-year to ₹159.98 crore, against ₹157.95 crore in the corresponding quarter last year.

The EBITDA margin contracted to 15.12% from 20.39%, a decline of approximately 527 basis points. This significant margin compression was one of the most important developments in the quarterly results.

Consolidated profit after tax fell 29.98% to ₹81.48 crore, compared with ₹116.36 crore in Q2 FY26. The profit decline, despite strong revenue growth, highlights the challenges of integrating businesses with different margin profiles while managing higher financing and depreciation costs.

A major change in the company’s business mix came from the acquisition of a 55% stake in Associated Power Structures Private Limited, or APSPL. The acquisition expanded Waaree Renewable’s presence in the transmission and distribution, or T&D, engineering and infrastructure segment.

The T&D business contributed ₹606.13 crore in revenue during Q2 FY27, compared with no contribution in the year-ago quarter. This new business was a major contributor to the increase in consolidated revenue.

At the same time, revenue from solar power plant EPC contracts declined 42.2% year-on-year to ₹444.98 crore, compared with ₹769.19 crore a year earlier. This decline indicates that the company’s traditional solar EPC business faced a significantly weaker quarter, even as the broader business expanded.

The solar EPC segment’s reported result margin improved to approximately 22.9% from 19.8% a year earlier. Nevertheless, the decline in segment revenue reduced its absolute contribution to earnings. The combination of lower solar EPC revenue and the growing contribution of T&D changed the company’s overall profitability profile.

For investors, this distinction is important. Consolidated revenue growth partly reflects the addition of the acquired T&D business rather than stronger growth in the legacy solar EPC segment alone. Future performance will depend on the company’s ability to execute both businesses efficiently.

Waaree Renewable also reported higher costs following the acquisition. Financing costs and depreciation associated with the expanded business structure contributed to pressure on the bottom line. The company’s ability to manage acquisition-related expenses and improve operating efficiency will be important in the coming quarters.

Despite the weaker quarterly profit, the first-half performance showed stronger revenue growth. Consolidated revenue from operations for H1 FY27 increased 43.84% year-on-year to ₹1,982.09 crore, compared with ₹1,377.97 crore in H1 FY26.

H1 FY27 EBITDA rose 21.04% to ₹333.46 crore, compared with ₹275.49 crore in the previous year. The EBITDA margin was 16.82%, against 19.99% in H1 FY26, indicating that profitability remained under pressure even over the six-month period.

Profit after tax for H1 FY27 stood at ₹200.44 crore, marginally lower than ₹202.75 crore in H1 FY26. The first-half results therefore show that strong revenue expansion has not yet translated into higher net profit.

The company’s order book provides some visibility into future activity. Waaree Renewable reported an unexecuted order book exceeding ₹5,500 crore. Converting these orders into revenue will depend on project execution, customer requirements, delivery schedules and the availability of supporting infrastructure.

Beyond solar EPC and T&D, the company is pursuing opportunities in battery energy storage systems, or BESS, and data-centre-related infrastructure. These adjacent markets could create additional growth opportunities as electricity demand and investment in renewable energy infrastructure increase.

The company has also approved capital expenditure for a 35 MWp solar power project, equivalent to 25 MWac, at Wardha in Maharashtra. The project represents a move toward developing an independent power producer asset alongside the existing EPC business. Such an investment may provide recurring electricity-sale revenue after commissioning, although it also requires upfront capital and carries execution and operating risks.

India’s renewable energy expansion remains a long-term opportunity for companies involved in solar generation, transmission infrastructure and energy storage. However, growth in the sector does not guarantee that every project will deliver the same margins, and competitive bidding can place pressure on project economics.

The key factors to watch for Waaree Renewable are the recovery of solar EPC revenue, profitability in the T&D business, integration of APSPL, financing costs and the execution of its large order book. Investors should also track whether revenue growth begins to translate into stronger EBITDA and net profit in subsequent quarters.

Overall, Q2 FY27 was a quarter of strong topline growth but weaker profitability for Waaree Renewable Technologies. The expansion into T&D has increased the scale of the business, but the sharp margin contraction and decline in net profit make execution quality, cost control and the future earnings contribution of the acquired business particularly important.

This video is for educational and informational purposes only. It is not investment advice or a recommendation to buy or sell any security. Investors should review official company disclosures and consider their own financial objectives and risk tolerance before making investment decisions.

Highlights in Short

• Q2 FY27 revenue from operations: ₹1,057.84 crore, up 36.53% YoY.
• Q2 EBITDA: ₹159.98 crore, up 1.29% YoY.
• Q2 EBITDA margin: 15.12%, versus 20.39% last year.
• Q2 profit after tax: ₹81.48 crore, down 29.98% YoY.
• Solar EPC revenue: ₹444.98 crore, down 42.2% YoY.
• T&D business revenue: ₹606.13 crore, following the APSPL acquisition.
• Solar EPC segment result margin: approximately 22.9%, compared with 19.8% last year.
• H1 FY27 revenue: ₹1,982.09 crore, up 43.84%.
• H1 FY27 EBITDA: ₹333.46 crore, up 21.04%.
• H1 FY27 profit after tax: ₹200.44 crore, down 1.14%.
• Unexecuted order book: more than ₹5,500 crore.
• New investment approved: 35 MWp solar project at Wardha, Maharashtra.
• Expansion opportunities: battery storage systems and data-centre infrastructure.
• Key challenges: margin compression, higher financing and depreciation costs, and weaker solar EPC revenue.
• Key focus ahead: APSPL integration, T&D profitability, order execution and recovery in net profit.