For Waaree Energies, FY26 was a breakout year on almost every metric—except one that caught investor attention: margins. Addressing concerns around a sequential dip in EBITDA margins, CFO Abhishek Pareek pushed back on the idea of structural compression, calling the volatility largely cyclical.
Waaree Energies Ltd.'s net profit had soared 71% to Rs 1,061 crore in the fourth quarter of fiscal 2025-26, compared to Rs 619 crore in the year-ago period, company said in an exchange filing.The company's revenue was at Rs 8,480 crore YoY, compared to Rs 4,004 crore in the previous fiscal. Waaree Energies EBITDA (earnings before interest, taxes, depreciation and amortisation) rose 80% to Rs 1,577 crore during the quarter under review from Rs 923 crore in the same period previous year. The company's Ebitda margin contracted to 18.6% from 23%.
"FY26 margins at over 22% are higher than FY25 levels of around 18%," Pareek said, adding that quarterly fluctuations — such as the dip to 19% in Q4 — were driven by external shocks rather than a shift in business mix. A sharp rise in commodity prices, coupled with unprecedented logistics disruptions amid geopolitical tensions, weighed on profitability in the final quarter.
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FY26: Scale-up Delivers, Guidance Beaten
The company's performance, however, underscored strong execution. Waaree reported over 12 GW of production in FY26, with Q4 alone contributing more than 4.2 GW. Revenues nearly doubled, while EBITDA more than doubled, surpassing guidance of Rs 5,500 - 6,000 crore to come in above Rs 6,500 crore.
Pareek described the year as a 'Waaree 2.0 integration phase,' marked by rapid capacity expansion and organisational scale-up. The gains, he argued, were not just cyclical but reflective of deeper structural changes underway within the company.
FY27 Outlook: Growth Continues, But Moderates
Looking ahead, Waaree has guided for EBITDA of Rs 7,000-7,700 crore in FY27, implying roughly 30% growth year-on-year. While that marks a slowdown from the outsized gains seen in FY26, Pareek attributed it to a higher base effect rather than weakening momentum.
"Last year's growth reflected capacities going live. This year too, we have expansions underway — 3 GW in the US, 10 GW of cell capacity in India — but the scale now is much larger," he said. Importantly, the company is shifting focus away from topline metrics to EBITDA per watt, given the inherent volatility in solar module pricing. "Prices are never in control. What we can control is resilience in EBITDA per watt," Pareek noted.
Backward Integration To Cushion Margins
A key lever to stabilise margins will be deeper backward integration. Waaree is ramping up cell manufacturing and has already initiated work on additional capacities, which are expected to reduce dependence on external supply chains and improve cost efficiency over time. This comes at a time when input costs and logistics disruptions have exposed vulnerabilities across the global solar value chain.
Waaree no longer sees itself as just a solar module manufacturer. The company is expanding into energy storage, electrolyzers, power electronics, and transmission infrastructure — positioning itself as a broader energy transition player.
With a reported 25 GW capacity, Waaree is already among the largest non-Chinese solar manufacturers globally. The next phase, Pareek said, will focus on scale plus integration — what the company calls its '2.0 journey.'
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