Waaree Energies Ltd Q2 FY26 — The Solar Detective Files: Gujarat → Houston → 24 GW Dreams, 27% ROE, and the CBP Probe That Brought the Heat
1️ At a Glance
If the sun had a favourite listed company, it’d probably buy options on Waaree Energies Ltd. At ₹ 3,535 a share and a blinding ₹ 1.02 lakh crore market cap, this stock now glows brighter than your neighbour’s rooftop panel. Q2 FY26 delivered revenue ₹ 6,066 cr (+70 % YoY) and PAT ₹ 878 cr (+133 %), proof that photons and profits can coexist.
ROE = 27 %, ROCE = 35 %, OPM ≈ 23 %. Installed capacity? 12 GW (growing to 21 GW by 2027). One problem: every analyst now treats it as if it personally invented the sun.
So yes — Waaree is hot. Literally, financially, and regulatorily (hello CBP probe).
2️ Introduction
Picture a detective walking through acres of gleaming panels in Gujarat. Each module whispers, “₹ 3,535 PE 37× — we earned it.”
Founded in 1990, Waaree began as a small instrumentation firm and now ships modules from Surat to Silicon Valley. In just three years its capacity jumped from 2 GW → 13 GW, and management wants 20 GW by 2027. That’s not expansion, that’s industrial puberty.
But behind the sustainability slogans lies a full-blown corporate thriller: IPO ₹ 4,321 cr (Oct 2024), US factory in Texas, CBP duty investigation, 16.6 GW order book, and a Li-ion detour.
If Sherlock Holmes had a Bloomberg terminal, this would be his case of the year.
3️ Business Model — WTF Do They Even Do?
Main Crime Scene: Solar PV Modules (≈ 78 % revenue) They make mono-, multi-, and TOPCon modules using machines that sound like IIT final projects.
Side Hustles:
EPC Services (15 %) – They not only sell the panels but also bolt them to the earth for you.
Energy Storage & Trading (7 %) – Inverters, batteries, pumps — because someone has to sell the extras after you buy the dream.
Geography: 57 % exports (U.S. dominant), 30 % utility sales in India, 10 % retail.
Factories: Five in India (Gujarat × 4 + Noida) = 12 GW capacity. One coming in Houston (1.6 GW → 5 GW by FY27). Another being forged in Odisha — a 6 GW fully integrated ingot-to-module facility.
Verdict: a vertically integrated solar empire in progress. Think Reliance Energy meets Tesla, minus the tweets.
4️ Financials Overview
Source table
Metric
Q2 FY26
Q2 FY25
Q1 FY26
YoY %
QoQ %
Revenue
6,066
3,574
4,426
+70 %
+37 %
EBITDA
1,406
525
997
+168 %
+41 %
PAT
878
376
773
+133 %
+14 %
EPS (₹)
29.3
13.7
25.9
+114 %
+13 %
EBITDA margin steady at 23 %, proof that scale beats Chinese imports for now. Annualised EPS ≈ ₹ 117 → P/E ~ 30× forward.
Detective note: numbers so clean they trigger auditors’ trust issues.
5️ Valuation Discussion – Fair Value Range
EPS (TTM) = ₹ 93.9 Industry P/E ≈ 35–40×
a) P/E Method → ₹ 93.9 × (30–40) = ₹ 2,800 – ₹ 3,750 b) EV/EBITDA (₹ 4,048 cr × 18–22) → Equity ₹ 65 k – ₹ 85 k cr ≈ ₹ 2,250 – ₹ 3,600/share c) DCF (20 % 5-yr CAGR, WACC 10 %, term 5 %) → ₹ 3,100 – ₹ 4,000
📏 Fair Value Range (educational) = ₹ 2,800 – ₹ 3,900 CMP ₹ 3,535 → market priced for sunny skies with occasional cloud cover. (Educational only; not investment advice.)
One Response
Good read but seems the regulatory overhang is overemphasized here. Anti dumping claims are not very uncommon.