1. At a Glance
Waaree Renewable Tech is one of India’s fastest-growing solar powerhouses. With 3-digit ROE, ROCE at a thermonuclear 85%, and 274% profit CAGR over 5 years—this isn’t just a green energy company. It’s a profit-generating solar panel strapped to a rocket.
2. Introduction with Hook
If Adani Green is the Ambani of solar, Waaree might just be the Narayana Murthy meets Elon Musk of India’s renewable dream. Starting from literally ₹0 revenue a decade ago, it now does ₹1,964 Cr in TTM sales and ₹288 Cr PAT—with barely any debt.
- FY25 EPS: ₹22.01
- TTM ROE: 65%
- Market Cap: ₹12,336 Cr
- CMP: ₹1,184 (down from ₹2,075 high)
The stock may have cooled off recently, but the engine’s still hot.
3. Business Model (WTF Do They Even Do?)
Waaree is not just another EPC vendor.
- Primary Biz: Power generation via solar assets
- Also: Solar EPC projects, solar rooftop, and consulting
- Parent Group: Waaree Energies (12GW+ solar panel mfg capacity)
- USP: Vertically integrated with access to panels, design, execution, and maintenance
- Customers: Government, industrial, commercial
Think solar power plant with built-in Amazon Prime delivery. One-stop shop.
4. Financials Overview
| Metric (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 342 | 867 | 1,597 |
| Net Profit | 59 | 149 | 229 |
| EPS (₹) | 5.71 | 14.3 | 22.01 |
| ROE | 45% | 107% | 65% |
| OPM | 22% | 23% | 20% |
From being a rounding error in the renewable sector to becoming a clean-energy cash cow, this one’s built different.
5. Valuation
It’s not cheap—but what growth stock ever is?
Method 1: P/E Based
- EPS FY25: ₹22
- Fair P/E Range: 35x – 50x (High ROE + solar tailwind)
- FV Range = ₹770 – ₹1,100
Method 2: EV/Sales
- TTM Sales = ₹1,964 Cr
- EV/Sales Range = 5x – 6.5x (for high-growth renewables)
- FV Range = ₹1,200 – ₹1,500
EduInvesting FV Range: ₹1,000 – ₹1,400
At CMP ₹1,184, it’s within fair territory. Not cheap, not outrageous.
6. What’s Cooking – News, Triggers, Drama
- Q1FY26: ₹603 Cr revenue (+155%), ₹87 Cr PAT (+207%)
- Order Book: 3.15 GWp pipeline
- Invested ₹7.98 Cr in Smart Joules Pvt Ltd (a cooling energy tech co.)
- Pros:
- India’s solar adoption target: 500 GW by 2030
- Strong parent support (Waaree Group = 12 GW panel capacity)
- Almost debt-free
- Risks:
- P/E > 40x
- Heavily retail-held now
7. Balance Sheet
| Item (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Equity Capital | 21 | 21 | 21 |
| Reserves | 91 | 239 | 436 |
| Borrowings | 0 | 10 | 27 |
| Total Liabilities | 254 | 696 | 1,121 |
| Fixed Assets | 9 | 94 | 195 |
Key Takeaways:
- Almost debt-free until FY24
- Reserve base growing at 2x annually
- Asset-light, cash-rich, and a margin ninja
8. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net Cash Flow |
|---|---|---|---|---|
| FY23 | 58 | -66 | -2 | -10 |
| FY24 | 118 | -115 | 4 | 6 |
| FY25 | 302 | -237 | -49 | 17 |
Analysis:
- Operational cash machine
- Investing heavily (new solar projects likely)
- Capex funded via internal accruals—not debt. Respect.
9. Ratios – Sexy or Stressy?
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROCE | 99% | 107% | 85% |
| ROE | 45% | 107% | 65% |
| OPM | 22% | 23% | 20% |
| Debtor Days | 65 | 156 | 114 |
| Working Capital Days | 11 | 22 | 3 |
Verdict:
Elite level profitability, world-class capital efficiency. Debtor days creeping up a bit—but not a major red flag (yet).
10. P&L Breakdown – Show Me the Money
| Metric (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Sales | 342 | 867 | 1,597 |
| Operating Profit | 76 | 199 | 311 |
| Net Profit | 59 | 149 | 229 |
| OPM % | 22% | 23% | 20% |
| EPS | 5.71 | 14.3 | 22.01 |
Sales 5x in 3 years. PAT 4x. EPS 4x. This isn’t just growth. This is solar steroids.
11. Peer Comparison
| Company | CMP | P/E | ROE | ROCE | Sales (₹ Cr) | PAT (₹ Cr) |
|---|---|---|---|---|---|---|
| Waaree Energies | 3,206 | 49.2 | 27.6% | 35.1% | 14,445 | 1,870 |
| Premier Energies | 1,080 | 52.0 | 54.0% | 41.5% | 6,519 | 937 |
| Apar Industries | 8,859 | 43.3 | 19.6% | 32.1% | 18,581 | 821 |
| Waaree Renewables | 1,184 | 42.4 | 64.9% | 84.9% | 1,964 | 288 |
Conclusion:
You’re looking at the highest efficiency player with one of the lowest market caps. That’s like having Dhoni as a wicketkeeper in gully cricket.
12. Miscellaneous – Shareholding, Promoters
| Holder | Jun 2023 | Mar 2024 | Jun 2025 |
|---|---|---|---|
| Promoters | 74.51% | 74.46% | 74.39% |
| FIIs | 0.00% | 0.20% | 1.13% |
| DIIs | 0.00% | 0.01% | 0.24% |
| Public | 25.49% | 25.33% | 24.25% |
Public shareholding exploded from 14K to 3.2 lakh+ shareholders. Mass retail entry = high volatility. Don’t say we didn’t warn you.
13. EduInvesting Verdict™
Waaree Renewable Technologies is what happens when a clean tech company builds like a SaaS company and profits like a FMCG.
You’ve got:
- Almost zero debt
- 100%+ CAGR in EPS
- Sky-high ROE & ROCE
- And a promoter who hasn’t diluted his soul… yet
But this isn’t a fairytale. The stock ran from ₹20 to ₹2,000 in 3 years and is now cooling. At 42x P/E, you’re paying a premium for predictability in a very unpredictable sector.
As long as they keep executing and don’t get “too corporate”, Waaree is worth watching with solar goggles on.
Metadata
– Written by EduInvesting Analyst | 18 July 2025
– Tags: Waaree Renewable, Solar Stocks, Clean Energy, Green Revolution, ROE, ROCE, Multibagger, Q1FY26
