Waaree Renewable Technologies Concall Summary: Key Highlights and Q3 FY26 Results

Guidance & Outlook

• Margin Guidance: Management reiterated that EBITDA margin should remain above 15% on a sustained basis, and said Q3 margin movement was in line with internal budgets and estimates.
• Execution Visibility: The current 2.92 GWp unexecuted order book provides strong near-term visibility, with execution expected over the next 12–15 months.
• Order Replenishment: Management indicated there is no structural slowdown in order inflows, stating that order additions over 9M were broadly in line with the ~2.23 GWp executed during the same period.
• Tender Pipeline: The company highlighted a total pipeline of around 29 GW, including 5–6 GW of live tenders at any point, across domestic and international markets.
• BESS Strategy: Management sees battery storage as a structural opportunity as storage gets embedded into renewable tenders, and intends to pursue BESS EPC only where return thresholds match solar EPC.
• IPP Build-out: Management signaled a gradual increase in IPP capacity using retained cash, while remaining open to debt funding if required.
• Demand Outlook: Management remains constructive on the renewable market, citing strong industry momentum and suggesting India could potentially reach its clean-energy targets ahead of schedule.

Capex & New Projects

• BESS Execution: The company confirmed it is executing a battery storage project this year, sized at around 45 MWh, though this remains small relative to the core solar EPC business.
• IPP Addition: Management referenced an announced 120 MW IPP project planned for addition in the next financial year.
• IPP Capex: Indicative IPP capex was guided at around INR 3.5 crore per MW, depending on project location.
• Execution Timeline: New IPP projects are expected to take 12–15 months to execute, with some capacity addition planned in March and the balance in the next financial year.
• Module Sourcing: For turnkey projects, module sourcing depends on approved customer vendor lists; modules can be sourced from Waaree or third parties as required.
• Procurement Discipline: Management said it locks in key raw material procurement immediately after order finalization to reduce commodity cost risk.

Financial Performance

• Q3 Revenue: Revenue from operations rose to INR 851.06 crore, up 136.18% YoY.
• Q3 EBITDA: EBITDA increased to INR 158.80 crore, up 120.79% YoY, with EBITDA margin at 18.66%.
• Q3 PAT: PAT rose to INR 120.19 crore, up 124.74% YoY.
• 9M Revenue: Revenue from operations for 9M FY26 reached INR 2,229.03 crore, up 98.81% YoY.
• 9M EBITDA: 9M EBITDA stood at INR 434.28 crore, up 135.29% YoY, with margin at 19.48%.
• 9M PAT: 9M PAT increased to INR 322.93 crore, up 138.92% YoY.
• Margin Expansion: Management highlighted that 9M EBITDA margin improved by roughly 300 bps YoY, from around 16.48% to 19.48%.

Operational Highlights

• Execution Scale: The company executed 2,230 MWp of EPC projects in 9M FY26, reinforcing its scale and delivery capability.
• Order Book: Unexecuted order book stood at 2.92 GWp, underpinning strong revenue visibility.
• O&M Base: O&M portfolio increased to around 1,180 MWp as of December 2025, building a growing annuity-style revenue stream.
• Project Mix: Quarterly realizations continue to fluctuate based on the mix between pure EPC and turnkey projects that include modules.
• Government Exposure: Government/PSU exposure remains limited at less than 10% of order book in MW terms and around 20–22% in value terms, reflecting selective participation.
• Competitive Positioning: Management acknowledged rising competition and pricing pressure, but emphasized execution capability and on-time delivery as its key edge.
• Working Capital Discipline: Management stated that it has not used any fund-based working capital limits so far, operating instead with non-fund-based limits and disciplined collections.

Business & Strategy Updates

• Business Mix: EPC remains the dominant business, contributing about 97–98% of 9M revenue, with IPP and O&M contributing 2–3%.
• Capital Allocation: Management framed IPP as a strategic use of retained earnings to create a recurring revenue stream over time.
• BESS Margin Discipline: Management stated that BESS projects will be pursued only if they meet the same risk-reward and margin criteria as core solar EPC.
• Hybrid Positioning: On hybrid tenders, management responded with confidence in its execution team and project capability, though without offering market-share data.
• Cost Controls: The quarter-on-quarter decline in other expenses was largely attributed to the timing of CSR-related expenses booked in the prior quarter.
• Industry Tailwinds: Management cited India’s non-fossil capacity crossing 265 GW and solar installed base exceeding 135 GW, with 30 GW+ added in the current financial year, as strong structural support for long-term demand.
• No Major Update Areas: Management provided no meaningful update on the historical 5B Maverick tie-up, no new rooftop subsidiary formation, and no confirmed data-center EPC wins yet.