Waaree Renewable Technologies Q2 FY27 Profit Falls 29.98% as Expenses Surge 54%

Waaree Renewable Technologies Reports Sharp Profit Decline Despite Higher Revenue

Waaree Renewable Technologies Limited reported a 29.98% year-on-year decline in consolidated net profit to ₹81.48 crore for the second quarter of FY27, even as revenue from operations increased 36.53% to ₹1,057.84 crore.

The renewable energy engineering, procurement and construction (EPC) company announced its financial results on October 19, 2026, for the quarter ended September 30, 2026.

Consolidated net profit declined from ₹116.36 crore in the corresponding quarter of FY26 to ₹81.48 crore in Q2 FY27.

Revenue from operations increased from ₹774.78 crore to ₹1,057.84 crore, supported by project execution and the expansion of the company's business into transmission and distribution infrastructure.

However, total expenses increased substantially to ₹961.66 crore from ₹622.63 crore a year earlier.

The 54.45% increase in expenses significantly exceeded revenue growth, placing pressure on operating margins and overall profitability.

The company also faced acquisition-related financing costs following its purchase of a controlling stake in Associated Power Structures Private Limited (APSPL).

The acquisition has expanded Waaree Renewable Technologies' presence in transmission and distribution EPC, creating a broader business portfolio but changing its consolidated cost and margin structure.

Despite the quarterly profit decline, the company reported an unexecuted order book exceeding ₹5,500 crore and a substantial bidding pipeline across solar power, battery energy storage and transmission infrastructure.

The results highlight the financial implications of Waaree Renewable Technologies' transition from a predominantly solar EPC business toward a more diversified energy infrastructure company.

Waaree Renewable Technologies Q2 FY27 Financial Results: Key Highlights

The financial results demonstrate that the company generated substantially higher revenue but experienced a contraction in profitability as expenses increased and the business mix changed.

Revenue From Operations Rises 36.53% to ₹1,057.84 Crore

Waaree Renewable Technologies reported consolidated revenue from operations of ₹1,057.84 crore during the July–September 2026 quarter.

This compared with ₹774.78 crore in the corresponding period of the previous financial year.

The increase of ₹283.06 crore represented year-on-year growth of 36.53%.

The company's expansion into transmission and distribution infrastructure contributed significantly to the higher consolidated revenue.

The acquisition of APSPL added a new business segment that was not included in the comparable year-earlier consolidated results.

Consequently, the reported revenue growth should not be interpreted entirely as organic expansion of the company's existing solar EPC operations.

The broader business portfolio provides Waaree Renewable Technologies with exposure to additional areas of India's electricity infrastructure market.

However, the profitability of these activities differs from the company's traditional solar EPC business.

Consolidated Net Profit Declines to ₹81.48 Crore

Waaree Renewable Technologies reported consolidated net profit of ₹81.48 crore in Q2 FY27.

The company had recorded ₹116.36 crore in the corresponding quarter of FY26.

This represents a decline of ₹34.88 crore, or approximately 29.98%.

The decrease occurred despite higher consolidated revenue.

The divergence reflects increased operating expenditure, acquisition-related financing costs and the inclusion of a business with a different margin profile.

Profitability was also weaker on a sequential basis.

Net profit declined 31.51% from ₹118.96 crore in Q1 FY27.

The results indicate that the company's rapid expansion has increased revenue scale but has not yet translated into corresponding growth in quarterly net earnings.

Management has indicated that operational efficiencies and business integration remain priorities.

Total Expenses Surge 54.45% Year-on-Year

Total expenses increased to ₹961.66 crore during the September quarter.

This compared with ₹622.63 crore in Q2 FY26.

The increase of ₹339.03 crore represented growth of approximately 54.45%.

Expense growth significantly exceeded the increase in operating revenue.

This placed pressure on the company's profitability.

The acquisition of APSPL contributed to the expansion of the consolidated cost base.

Transmission and distribution EPC projects have different operating requirements from solar EPC projects.

These activities can involve significant expenditure on materials, manufacturing, engineering and project execution.

However, the aggregate expense figures do not establish the precise contribution of each individual cost category.

A complete assessment requires examination of the detailed consolidated financial statements.

The company's ability to manage its expanded cost structure will be important for future profitability.

EBITDA Margin Contracts to 15.12%

Waaree Renewable Technologies reported EBITDA of ₹159.98 crore during Q2 FY27.

This represented a marginal year-on-year increase of 1.29%.

However, EBITDA margin declined to 15.12% from 20.39% in the corresponding quarter of FY26.

The reduction of 5.27 percentage points indicates that a smaller proportion of revenue was converted into operating earnings.

This reflects the impact of the company's changing business mix.

The transmission and distribution segment operates with a different margin structure from solar EPC.

As the new segment contributes a larger share of consolidated revenue, the company's overall margin profile may change.

However, lower percentage margins do not necessarily imply lower absolute operating earnings over the long term.

A larger revenue base can potentially support higher total earnings if project execution and cost management remain effective.

The immediate challenge is to improve profitability while integrating the acquired business.

Profit Before Tax Falls 32.71%

The company's consolidated profit before tax declined to ₹105.36 crore during Q2 FY27.

This compared with ₹156.58 crore in the year-earlier quarter.

The reduction represented a decline of approximately 32.71%.

Profit before tax provides an indication of earnings after operating and financing costs but before taxation.

The decline reflects the financial pressure experienced during the quarter.

Acquisition-related financing costs contributed to the company's near-term profitability challenges.

These costs are relevant because the company completed a substantial acquisition during the first half of FY27.

The financial benefits of the transaction will depend on the acquired business's future performance and the company's ability to generate returns from its expanded operations.

Earnings Per Share Decline to ₹7.07

Waaree Renewable Technologies reported basic earnings per share of ₹7.07 during Q2 FY27.

This compared with ₹11.16 in Q2 FY26.

The reduction represented a decline of approximately 36.65%.

On a sequential basis, basic EPS declined from ₹11.11 in Q1 FY27.

Earnings per share measures profit attributable to shareholders relative to the weighted average number of shares.

Changes in EPS may reflect movements in earnings and the share base.

Investors therefore evaluate EPS alongside consolidated profit, operating performance and capital structure.

The latest figures indicate that earnings attributable per share declined more sharply than consolidated net profit.

APSPL Acquisition Changes Waaree Renewable's Business Structure

A major development influencing the quarterly results was Waaree Renewable Technologies' acquisition of a 55% stake in Associated Power Structures Private Limited.

The acquisition was completed on June 18, 2026.

The transaction involved an investment of approximately ₹1,225 crore.

APSPL operates in the transmission and distribution infrastructure segment.

Its activities include transmission towers and associated power infrastructure.

The acquisition allows Waaree Renewable Technologies to expand beyond solar power EPC into a broader range of electricity infrastructure projects.

However, the transaction also introduced additional financing costs and a business with a different margin profile.

The acquired company's financial results have been consolidated from the acquisition date.

Consequently, the Q2 FY27 and H1 FY27 consolidated results are not directly comparable with the corresponding periods of the previous financial year on a like-for-like basis.

Transmission and Distribution EPC Generates ₹606.13 Crore Revenue

The transmission and distribution EPC segment contributed ₹606.13 crore to consolidated revenue during Q2 FY27.

The segment had no corresponding contribution in the previous-year quarter.

Its inclusion reflects the impact of the APSPL acquisition.

Transmission and distribution infrastructure is essential for transporting electricity from generation facilities to consumers.

The sector includes transmission lines, substations and supporting electrical infrastructure.

India's expansion of renewable power generation is increasing the importance of grid connectivity.

Solar and wind projects require transmission infrastructure to deliver electricity to demand centres.

The acquisition positions Waaree Renewable Technologies to participate in this broader market.

However, transmission EPC projects can have different cost structures, execution timelines and profitability characteristics from solar EPC contracts.

Solar EPC Revenue Stands at ₹444.98 Crore

Waaree Renewable Technologies reported solar power plant EPC revenue of ₹444.98 crore during Q2 FY27.

This compared with approximately ₹769.19 crore in the corresponding period of FY26.

The decline in solar EPC revenue contrasts with the increase in consolidated revenue.

It demonstrates the significant effect of the newly acquired transmission and distribution business on reported growth.

Solar EPC revenue can vary depending on project execution schedules.

Large infrastructure contracts often generate revenue according to construction progress and contractual milestones.

Quarterly performance may therefore fluctuate based on the timing of work completed.

The company continues to maintain a substantial solar EPC order book.

However, the latest results indicate that consolidated growth was driven primarily by business diversification rather than an increase in solar EPC revenue during the quarter.

Power Sale Business Contributes ₹6.73 Crore

The company's power sale segment generated revenue of ₹6.73 crore during Q2 FY27.

For the first half of FY27, the segment contributed ₹14.78 crore.

The business involves electricity generation and sale from the company's independent power producer portfolio.

Unlike EPC operations, which generate revenue through project development and construction, power generation assets can provide recurring income over their operating lives.

However, revenue depends on electricity generation, power purchase arrangements and asset availability.

The segment currently represents a relatively small proportion of consolidated revenue.

Nevertheless, the company's continued investment in independent power producer assets could increase its importance over time.

H1 FY27 Revenue Rises 43.84% to ₹1,982.09 Crore

For the six months ended September 30, 2026, Waaree Renewable Technologies reported consolidated revenue from operations of ₹1,982.09 crore.

This compared with ₹1,377.97 crore during the corresponding period of FY26.

The increase represented year-on-year growth of 43.84%.

The performance reflects the company's larger operating scale following the APSPL acquisition.

However, consolidated net profit for the first half declined slightly.

H1 FY27 net profit stood at ₹200.44 crore, compared with ₹202.75 crore in H1 FY26.

This represented a decline of approximately 1.14%.

The figures indicate that revenue growth was substantial, while earnings remained broadly unchanged.

First-Half EBITDA Increases 21.04%

Waaree Renewable Technologies reported EBITDA of ₹333.46 crore during H1 FY27.

This represented year-on-year growth of 21.04%.

The first-half EBITDA margin stood at 16.82%.

The increase in absolute EBITDA indicates that the company generated higher operating earnings over the six-month period.

However, EBITDA growth was slower than revenue growth.

This reflects the impact of the changing business mix.

The company must manage the integration of its transmission and distribution operations while maintaining the profitability of its existing solar EPC activities.

The longer-term impact will depend on project margins, financing costs and operational efficiencies.

Order Book Exceeds ₹5,500 Crore

Waaree Renewable Technologies reported a consolidated unexecuted order book exceeding ₹5,500 crore.

The order book includes approximately ₹3,300 crore in solar EPC and battery energy storage system projects.

Transmission and distribution projects account for approximately ₹2,200 crore.

The order book provides visibility into contracted work that remains to be executed.

However, an order book is not equivalent to recognised revenue.

Revenue depends on project progress, contractual milestones and execution.

The company must also manage procurement, construction schedules and customer requirements.

The conversion of its order book into profitable revenue will be an important performance indicator.

Solar EPC Order Book Stands at 3,226 MWp

The company reported an unexecuted solar EPC order book of approximately 3,226 MWp as of the end of H1 FY27.

It executed approximately 1,345 MWp of solar EPC projects during the first half.

The figures indicate continued activity in large-scale solar project development.

Solar EPC contracts typically involve engineering, equipment procurement and construction.

Project execution requires coordination across multiple stages.

Delays in equipment delivery, land availability or grid connectivity can influence timelines.

The company's ability to complete projects efficiently will affect revenue recognition and profitability.

Its existing order book provides a foundation for future execution activity.

Bidding Pipeline Includes 34.6 GWp of Solar Projects

Waaree Renewable Technologies reported a substantial project bidding pipeline across multiple energy infrastructure categories.

The pipeline indicates the scale of potential opportunities being pursued.

However, bidding opportunities should not be confused with confirmed contracts.

The company must compete for projects and meet commercial and technical requirements.

The eventual conversion of bids into orders will depend on customer decisions and market conditions.

Nevertheless, the pipeline demonstrates the company's participation in several areas of India's expanding energy infrastructure market.

Battery Energy Storage Becomes an Important Growth Area

Battery energy storage systems are becoming increasingly important as renewable electricity generation expands.

Solar and wind power output varies according to weather conditions.

Battery systems can store electricity and release it when required.

This can support grid stability and improve the integration of renewable energy.

Waaree Renewable Technologies is pursuing opportunities in battery energy storage EPC.

Its reported bidding pipeline exceeds 12.5 GWh.

The company has also secured battery storage contracts as part of its broader project portfolio.

However, the commercial success of storage EPC projects depends on technology costs, project execution and contractual terms.

The segment offers growth opportunities but also introduces new technical and operational requirements.

Major Solar and Storage Orders Support Future Execution

Waaree Renewable Technologies reported several project wins during Q2 FY27.

These included ground-mounted solar projects with capacities of approximately 1,082 MWp, 210 MWp and 291 MWp.

The company also secured a 280 MWh battery energy storage system EPC project.

During Q1 FY27, it reported a 450 MWp ground-mounted solar project and a 1,520 MWh battery storage EPC order.

These projects contribute to the company's development pipeline.

However, order announcements do not necessarily translate into immediate revenue.

The financial contribution depends on execution schedules and contractual milestones.

The company must manage multiple large projects while maintaining cost discipline.

APSPL Adds Transmission Tower Manufacturing Capabilities

Associated Power Structures has manufacturing capacity of approximately 108,000 metric tonnes per annum for lattice transmission towers.

An additional 100,000 metric tonnes per annum of capacity is under construction.

The company has executed more than 10,461 circuit kilometres of transmission lines across over 16 countries.

These capabilities expand Waaree Renewable Technologies' participation in transmission infrastructure.

Lattice towers are important components of overhead electricity transmission networks.

Manufacturing and EPC capabilities can support integrated project delivery.

However, transmission infrastructure projects require substantial material procurement and project management.

Their financial performance depends on contract pricing, execution efficiency and working capital management.

Acquisition Expands Addressable Energy Infrastructure Market

The APSPL acquisition provides Waaree Renewable Technologies with access to additional business areas.

These include transmission line EPC, substations, lattice towers and galvanisation.

The expanded portfolio allows the company to participate in different stages of electricity infrastructure development.

Renewable energy generation projects require transmission networks to connect new capacity to the grid.

Battery storage systems also require integration with power infrastructure.

The combination of solar EPC, storage and transmission capabilities could support broader project offerings.

However, business diversification also increases operational complexity.

The company must manage different project types, customer requirements and profitability profiles.

Successful integration will be important for achieving the intended benefits of the acquisition.

Board Approves New Solar Power Plant in Maharashtra

Alongside its quarterly results, Waaree Renewable Technologies announced board approval for capital expenditure to establish a new solar power plant at Wardha, Maharashtra.

The proposed facility will have a capacity of 35 MWp on the DC side and 25 MWac on the AC side.

The project will operate under the independent power producer model.

The approval reflects the company's continued investment in owned electricity generation assets.

However, the company has not disclosed all financial and commercial details necessary to assess the project's expected returns.

The investment will add to its existing renewable power generation portfolio.

Independent Power Producer Portfolio Expands

Waaree Renewable Technologies reported an operational independent power producer portfolio of approximately 82.82 MWp.

The company is also developing additional generation capacity.

This includes a 233.6 MWp IPP plant under development and a further 450 MWp through a subsidiary.

The planned Wardha project represents another addition to this strategy.

IPP assets can generate recurring revenue through electricity sales.

However, they also require upfront capital investment.

Their financial performance depends on generation output, tariffs, financing and operating costs.

The expansion of the IPP portfolio therefore creates opportunities for recurring income while increasing capital requirements.

Solar EPC Portfolio Reaches 6.35 GWp

Waaree Renewable Technologies reported cumulative commissioned solar EPC projects of approximately 6.35 GWp.

This includes 59.26 MWp of rooftop solar projects and 2.29 MWp of floating solar projects.

The company's portfolio demonstrates experience across different solar installation formats.

Ground-mounted projects account for a substantial part of utility-scale solar development.

Rooftop systems serve commercial, industrial and other electricity consumers.

Floating solar projects involve installation on suitable water bodies.

Each format has different engineering and operational requirements.

The company's accumulated execution experience supports its participation in future solar infrastructure opportunities.

Operations and Maintenance Portfolio Reaches 1.5 GWp

Waaree Renewable Technologies reported an operations and maintenance portfolio of approximately 1.5 GWp.

Operations and maintenance services support the performance of solar power assets after construction.

Activities may include equipment inspection, monitoring, cleaning and maintenance.

Reliable maintenance is important for sustaining electricity generation over the operating life of a project.

The segment can provide recurring service revenue.

However, profitability depends on contract terms, operating costs and service requirements.

The expansion of this portfolio complements the company's EPC activities.

It also provides an opportunity to maintain long-term relationships with project owners.

Acquisition Financing Costs Influence Earnings

The APSPL transaction involved a substantial financial commitment.

Acquisition-related financing costs have contributed to pressure on Waaree Renewable Technologies' near-term profitability.

Financing expenses can affect net earnings even when operating revenue increases.

The company's future performance will depend partly on the cost of funding and the cash generation of the acquired business.

Management has indicated that the acquisition is intended to create long-term value through diversification and scale.

However, the benefits must be demonstrated through sustained operating performance.

Investors will assess whether additional revenue and earnings from transmission infrastructure justify the associated investment and financing costs.

Management Emphasises Long-Term Value Creation

Chief Financial Officer Manmohan Sharma attributed the company's revenue growth to project execution and the expansion of its capabilities.

He highlighted the contribution of the APSPL acquisition to Waaree Renewable Technologies' position in transmission and distribution infrastructure.

Management acknowledged that acquisition-related financing costs and the addition of a business with a different margin profile have influenced near-term profitability.

The company intends to focus on operational efficiencies, integration and growth across its expanded portfolio.

These priorities are important because the company's future earnings will depend on how effectively it manages the larger business.

However, management expectations do not guarantee future financial performance.

The benefits of diversification will need to be reflected in subsequent results.

India's Renewable Energy Expansion Supports Demand

India continues to expand renewable electricity generation capacity.

Solar power represents an important component of the country's energy transition.

The development of new projects creates demand for engineering, procurement and construction services.

However, generation capacity alone is insufficient.

Electricity transmission networks must also expand to connect renewable energy projects to consumers.

Battery storage can help manage variability in renewable generation.

Waaree Renewable Technologies' broader portfolio aligns with these infrastructure requirements.

Nevertheless, demand for EPC services remains influenced by project economics, financing availability and regulatory conditions.

Transmission Infrastructure Becomes a Strategic Opportunity

The growth of renewable energy increases the importance of electricity transmission infrastructure.

Large solar and wind projects are often located away from major electricity consumption centres.

Transmission networks are required to deliver power across regions.

The development of new corridors can create opportunities for EPC contractors and equipment manufacturers.

Through APSPL, Waaree Renewable Technologies has expanded into this market.

However, transmission projects can involve lengthy execution periods and complex procurement requirements.

The company's ability to manage these projects profitably will influence the success of its diversification strategy.

Working Capital Management Remains Important

Infrastructure EPC businesses often require substantial working capital.

Contractors must purchase materials, pay suppliers and manage construction expenditure before receiving all customer payments.

Large project portfolios can therefore create cash flow requirements even when reported revenue is increasing.

The addition of transmission and distribution projects may change Waaree Renewable Technologies' working capital profile.

Efficient billing, collections and project management will be important.

However, the headline quarterly results do not establish the company's detailed working capital position.

A complete assessment requires balance-sheet and cash-flow information.

Investors will monitor whether the expanded business can convert project revenue into sustainable cash generation.

Margin Recovery Will Be a Key Investor Focus

The decline in EBITDA margin from 20.39% to 15.12% is a significant feature of the quarterly results.

It indicates that the company's revenue mix and cost structure have changed.

Management has acknowledged that the acquired transmission business carries a different margin profile.

Consequently, a return to the previous consolidated margin level cannot be assumed.

Future profitability will depend on the contribution of each segment and the company's ability to improve efficiency.

Investors will therefore assess both absolute EBITDA growth and percentage margins.

A larger business can create value even with lower margins, provided it generates adequate returns on capital.

Order Execution Will Determine Future Revenue

The company's order book exceeding ₹5,500 crore provides a substantial base of contracted projects.

However, the conversion of orders into revenue depends on execution.

Solar, storage and transmission projects involve different technical requirements.

Project schedules can be influenced by customer approvals, equipment delivery and construction conditions.

The company must coordinate resources across its expanded portfolio.

Execution efficiency will influence both revenue recognition and profitability.

The ability to complete projects within agreed budgets will remain particularly important following the increase in operating expenses.

What Investors Will Monitor Next

Investors will focus on the company's ability to improve profitability after the sharp Q2 decline.

The integration of APSPL will remain a central consideration.

Additional attention will be given to the transmission and distribution segment's revenue contribution and margins.

The conversion of the ₹5,500 crore order book into revenue will also be important.

Investors may assess new order wins across solar EPC, battery storage and transmission infrastructure.

Financing costs, working capital requirements and capital expenditure commitments will influence the financial outlook.

The development of the Wardha solar plant and other IPP assets will provide further indicators of the company's expansion strategy.

Outlook for Waaree Renewable Technologies

Waaree Renewable Technologies enters the second half of FY27 with a larger and more diversified business portfolio.

Consolidated revenue has increased substantially following the APSPL acquisition.

However, profitability has weakened because of higher expenses, financing costs and changes in the business mix.

The company's order book provides visibility into future project execution.

Its bidding pipeline indicates opportunities across solar generation, energy storage and transmission infrastructure.

Nevertheless, converting these opportunities into profitable contracts will be essential.

Management's focus on operational efficiency and business integration will therefore be important.

The company's future performance will depend on whether its expanded revenue base can support stronger earnings and sustainable cash flows.

Conclusion

Waaree Renewable Technologies reported a 29.98% decline in consolidated net profit to ₹81.48 crore for Q2 FY27, despite a 36.53% increase in revenue from operations to ₹1,057.84 crore.

Total expenses increased 54.45% to ₹961.66 crore, while EBITDA margin declined from 20.39% to 15.12%.

The results reflect the impact of higher operating costs, acquisition-related financing expenses and the consolidation of Associated Power Structures.

The acquisition has expanded Waaree Renewable Technologies into transmission and distribution EPC, with the segment contributing ₹606.13 crore in quarterly revenue.

The company reported an unexecuted order book exceeding ₹5,500 crore and a substantial bidding pipeline across solar power, battery energy storage and transmission infrastructure.

It also approved investment in a new 35 MWp solar power project at Wardha, Maharashtra.

The company's expanded business portfolio provides access to a broader range of India's energy infrastructure opportunities.

However, its financial performance demonstrates that revenue growth alone does not guarantee stronger profitability.

The central challenge will be converting business diversification and order book expansion into sustainable earnings, improved operating efficiency and long-term shareholder value.