1. At a Glance
Waaree Energies dropped a fiery Q1 FY26 with revenue ₹4,426 Cr (+30% YoY) and PAT ₹773 Cr (+89% YoY). EBITDA margins rose to 23%, proving their solar panels not only capture sunlight but also investors’ attention. Stock trades at P/E 40, and management just approved ₹2,754 Cr capex for new 4 GW plants.
2. Introduction
Remember when solar was the “future”? Waaree made it the present. With 21% domestic market share and 44% export share, it’s eating competitors for breakfast. But with a 9.4x P/B and aggressive expansion, investors wonder: is this growth sustainable, or just a hot solar flare?
3. Business Model (WTF Do They Even Do?)
They manufacture solar PV modules (capacity: 13.3 GW), supply to domestic/overseas markets, and integrate with large EPC projects. Export focus to the US is rising, while India remains the cash cow. Recurring growth = capacity × capex × US orders.
4. Financials Overview
Q1 FY26 Numbers:
- Revenue: ₹4,426 Cr (+30%)
- EBITDA: ₹997 Cr (+53%)
- OPM: 23% (up from 15% YoY)
- PAT: ₹773 Cr (+89%)
- EPS: ₹25.9
Verdict: Solid growth, killer margins, but watch debt and capex burn.
5. Valuation – What’s This Stock Worth?
With P/E 40 and P/B 9.4, Waaree trades like a growth tech stock. Using EV/EBITDA (20x) and P/E peer benchmarks, fair value sits ₹2,700–₹3,300. At CMP ₹3,112, it’s priced for perfection.
6. What-If Scenarios
- If exports double: PAT may skyrocket, rerating incoming.
- If US tariffs/anti-dumping hit: Exports take a solar eclipse.
- If capex executes well: Market leader status cemented.
- If execution falters: Debt/ROE mismatch burns investors.
7. What’s Cooking (SWOT)
Strengths: Market leader, US order book (500–600 MW+), rising OPM.
Weaknesses: No dividend, high valuation, capex dependency.
Opportunities: US/Europe demand, green hydrogen tie-ins, capacity ramp-up.
Threats: Policy risks, Chinese competition, margin compression.
8. Balance Sheet 💰
| ₹ Cr | FY23 | FY24 | FY25 |
|---|---|---|---|
| Equity | 243 | 263 | 287 |
| Reserves | 1,595 | 3,825 | 9,192 |
| Borrowings | 320 | 553 | 1,199 |
| Total Liabilities | 7,406 | 11,277 | 19,747 |
Reserves ballooning, debt creeping up with capex.
9. Cash Flow (FY23–FY25)
| ₹ Cr | FY23 | FY24 | FY25 |
|---|---|---|---|
| Operating | 1,560 | 2,305 | 3,158 |
| Investing | -2,088 | -3,346 | -6,808 |
| Financing | 642 | 909 | 4,036 |
| Net Cash | 114 | -132 | 386 |
Capex is eating cash faster than solar eats sunlight.
10. Ratios – Sexy or Stressy?
| Metric | FY24 | FY25 |
|---|---|---|
| ROE (%) | 27.6 | 27.5 |
| ROCE (%) | 44 | 35 |
| OPM (%) | 19 | 20 |
| D/E | 0.3 | 0.6 |
Returns hot, leverage still manageable.
11. P&L Breakdown
| ₹ Cr | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 6,751 | 11,398 | 14,444 |
| EBITDA | 836 | 1,575 | 2,722 |
| PAT | 500 | 1,274 | 1,928 |
Revenue tripled in 2 years, profits followed.
12. Peer Comparison
| Company | P/E | ROE% | OPM% | PAT Qtr Cr |
|---|---|---|---|---|
| Waaree Energies | 40 | 27.5 | 20.4 | 773 |
| Premier Energies | 45 | 54 | 29.5 | 308 |
| Websol Energy | 37.5 | 20.9 | 43.9 | 48 |
| Apar Industries | 42 | 19.6 | 8.3 | 250 |
Valuation premium justified by scale, but Premier’s ROE crushes Waaree.
13. EduInvesting Verdict™
Waaree is India’s solar champion with blistering growth and exports shining bright. But at current prices, investors are paying upfront for future gigawatts.
A solar rocket—strap in, but hold a parachute just in case.
Written by EduInvesting Team | 28 July 2025
Tags: Waaree Energies, Solar Modules, Q1 FY26, Renewable Energy, EduInvesting Premium
