Why Did Waaree Renewable’s Q1 Profit Drop Over 8.5% to Rs 86 Crore?
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Synopsis
Discover the latest financial results from Waaree Renewable Technologies. Despite a decline in profit, the company's revenue from operations surged significantly, showcasing growth in the solar EPC sector. This article dives into the numbers, trends, and future outlook.
Key Takeaways
- Net profit fell by 8.51% to Rs 86.3 crore
- Revenue increased by 26.54% to Rs 603 crore
- Expenses rose to Rs 491.44 crore, a 145.96% increase
- EBITDA grew to Rs 120.3 crore
- Strong performance from the solar EPC segment
Mumbai, July 17 (NationPress) Waaree Renewable Technologies announced a sequential net profit reduction of 8.51%, amounting to Rs 86.3 crore for the June quarter (Q1 FY26), a drop from Rs 94 crore in the previous quarter (Q4 FY25).
In contrast, revenue from operations soared to Rs 603 crore in this quarter, marking a 26.54% increase from Rs 476.5 crore in Q4 FY25, as indicated in its stock exchange disclosure.
On a year-on-year (YoY) basis, the solar EPC division of the Waaree Group reported a net profit of Rs 86 crore, which reflects an impressive 207% rise from Rs 28 crore in the same quarter the previous year (Q1 FY25).
Revenue from operations also saw a remarkable 155% growth from Rs 236.35 crore in Q1 FY25, according to the company's filing.
However, the company's expenses significantly increased, reaching Rs 491.44 crore in Q1 FY26. This represents a 145.96% increase compared to Rs 199.84 crore in the same quarter last year and a 37.94% rise from Rs 356.25 crore in Q4 FY25.
Waaree Renewable primarily focuses on solar power solutions, with a substantial portion of its revenue derived from EPC (engineering, procurement, and construction) contracts.
Revenue from the EPC segment alone surged to Rs 594.3 crore in Q1, compared to Rs 228 crore a year earlier.
Additionally, its power sales business expanded, generating Rs 9 crore in the quarter, up from Rs 2.3 crore in Q1 FY25.
Operationally, the company showcased strong performance, with EBITDA increasing to Rs 120.3 crore, up from Rs 41.2 crore during the same period last year.
The EBITDA margin also improved to 19.9% from 17.6%, as per the stock exchange filing.
Waaree's shares closed at Rs 1,176.90, down by Rs 25.60 or 2.13% on the National Stock Exchange (NSE) on Thursday.
Engaged in renewable energy solutions, the company emphasizes solar power, playing a vital role in developing, financing, and operating solar energy projects nationwide.
Point of View
I believe it's crucial to remain informed about the latest developments in the renewable energy sector. Waaree Renewable's report reflects both challenges and opportunities. While the profit drop raises concerns, the substantial revenue growth offers a glimpse of resilience in the solar energy market.
NationPress
17/07/2025
Frequently Asked Questions
What caused the decline in Waaree Renewable's profit?
The decline in profit can be attributed to increased expenses, which rose significantly compared to previous quarters.
How did Waaree's revenue perform in Q1 FY26?
Waaree Renewable Technologies reported a revenue increase of 26.54%, reaching Rs 603 crore in Q1 FY26.
What is the primary focus of Waaree Renewable?
Waaree Renewable primarily focuses on solar power solutions, providing engineering, procurement, and construction services.
What was the EBITDA margin for the company?
The EBITDA margin improved to 19.9%, up from 17.6% in the previous year.
How did the company's shares perform recently?
Waaree's shares closed at Rs 1,176.90, reflecting a decline of 2.13% on the National Stock Exchange.
