1. At a Glance
Waaree Renewable Technologies is basically the Elon Musk of Gujarat—minus the Twitter addiction and plus a 12 GW solar panel factory. With 217 MWp executed in Q1 FY25 alone and an order book fatter than a Diwali sweet box (2,191 MWp pending), Waaree is flexing its EPC muscles all over India and 68+ other countries. Revenue jumped 155% YoY, PAT skyrocketed 207%—basically the kind of glow-up you only see in skincare ads. Yet, the stock has lost 34% in the past year. Solar energy is clearly shining, but shareholders are still hunting for sunscreen.
2. Introduction
Imagine running a company where the product is sunlight. Free input, endless supply, and unlike oil—it doesn’t require fighting over pipelines. That’s Waaree Renewable Technologies. Incorporated in 1999, the company spent two decades in relative obscurity, and then India’s solar boom arrived like Shah Rukh Khan’s second innings—suddenly everyone was paying attention.
What makes Waaree stand out is its vertical integration. Most EPC firms are glorified contractors. Waaree, however, builds, owns, operates, and even makes its own solar modules. It’s like running a restaurant where you own the farm, the kitchen, the delivery app, and even the food blogger writing reviews.
But investors, as always, are a cynical bunch. Waaree’s market cap of ₹10,394 crore is impressive, but with a P/E of 35.8 and a Price-to-Book of 22.8, this is not a stock—it’s a luxury handbag. You’re not buying numbers; you’re buying brand. And just like Louis Vuitton, the price tag can feel criminal.
Still, with an ROE of 67.5% and ROCE of 84.5%, Waaree is a machine in execution. It grew sales by 209% in five years, profits by 143%, and managed to stay almost debt-free while expanding. Solar projects of 704 MW executed in FY24 vs 295 MW in FY23 show that this company doesn’t just dream in GW—it builds them.
So, the introduction is simple: Waaree is not asking whether India will go solar. It’s betting that the country doesn’t have a choice.
3. Business Model (WTF Do They Even Do?)
Waaree has two main income streams:
- EPC Business (98% of revenue in Q1 FY25):The company is basically the wedding planner of solar projects. From designing and financing to installing and maintaining solar farms, Waaree does it all. Whether it’s a corporate rooftop or a 1,000-acre ground-mounted farm, Waaree shows up with panels, batteries, and enough optimism to convince you that power bills are optional.
- Power Sale (2%):This is Waaree acting as landlord—leasing out energy instead of apartments. Not a big earner
- yet, but in renewables, power sale often becomes the annuity stream that smooths the volatility of EPC.
Add in the accessories—solar pumps, water heaters, lithium-ion batteries, and off-grid products—and you get a solar IKEA. The only thing missing is a solar-powered Swiggy kitchen.
Globally, Waaree is no slouch either. It exports modules to 68+ countries, has supplied 6 GW of modules globally, and is constantly bidding for international EPC projects. Oh, and it’s also experimenting with battery storage and green hydrogen—because why stop at sunlight when you can own the whole renewable buffet?
4. Financials Overview
Quarterly Results Snapshot
| Metric | Q1 FY26 | Q1 FY25 | Q4 FY25 | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | ₹603 Cr | ₹236 Cr | ₹477 Cr | +155% | +26% |
| EBITDA | ₹118 Cr | ₹41 Cr | ₹126 Cr | +188% | -6% |
| PAT | ₹86.4 Cr | ₹28 Cr | ₹94 Cr | +207% | -8% |
| EPS (₹) | 8.29 | 2.72 | 9.00 | +205% | -8% |
Commentary:Revenue is glowing brighter than a solar farm at noon, but PAT slipped slightly QoQ—likely project timing. Annualised EPS = ₹33.2 → P/E recalculated =30x, still premium territory. EBITDA margin at 19.7% shows discipline, though execution volatility will remain.
5. Valuation (Fair Value RANGE Only)
- P/E Method:EPS annualised ₹33.2 × industry P/E 30–40 → Range: ₹996 – ₹1,328.
- EV/EBITDA:EBITDA (TTM) ₹387 Cr; EV ₹10,228 Cr → EV/EBITDA = 26x. If fair multiple is 18–22x → FV range = ₹710 – ₹870.
- DCF (ballpark):With 25% CAGR growth, discount rate 12%, terminal growth 5% → FV ~ ₹1,100 – ₹1,250.
Overall FV Range:₹710 – ₹1,328This FV range is for educational purposes only and is not
