Revenue surged 79.22% YoY, but margin fell 4.38 percentage points
Expenses grew faster than sales, while a higher tax rate and interest cost limited profit growth to 15.39%.
Filed 29 Jul 2026, 17:34 IST · after market close · Waaree Energies Ltd (WAAREEENER)
Key takeaways
- Consolidated revenue rose +79.22% YoY, but expenses rose faster at +89.35%, cutting operating margin by 4.38 percentage points.
- Net profit increased only +15.39% YoY as the tax rate rose 8.24 percentage points and interest expense climbed +62.71%.
- Operating margin was 18.15%, still 3.51 percentage points above the 14.64% median for 27 reported Industrials peers.
Price around the results
Large revenue growth did not translate into similar profit growth
Waaree Energies reported consolidated revenue growth of +79.22% YoY, but operating profit grew only +44.38% because expenses increased +89.35%. Net profit rose +15.39% to Rs 891.87 cr, with the 8.24-percentage-point rise in the tax rate further reducing earnings conversion.
Sequential margin pressure came with higher financing costs
Revenue fell -6.47% QoQ while expenses declined only -5.96%, narrowing operating margin by 0.44 percentage points to 18.15%. Interest expense rose +46.94% QoQ, and the tax rate increased 6.30 percentage points to 26.31%, contributing to the -20.81% decline in net profit. Other income contributed 14.11% of pre-tax profit, making it a meaningful part of reported earnings.
Margin has fallen for two consecutive quarters
Operating margin declined from 25.49% in Q3FY26 to 18.59% in Q4FY26 and 18.15% in Q1FY27, marking a second straight quarter of contraction. Despite that direction, the quarter's margin was 3.51 percentage points above the 14.64% median among 27 Industrials peers that had reported.
No post-results price reaction yet
The consolidated results were filed after market close, so there is no post-results stock reaction to assess yet. Across seven prior results reactions, the stock rose three times and fell four times, with a median absolute move of 6.22%.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹7,932 cr | ₹8,480 cr | -6.47% | +79.22% |
| Other income | ₹171 cr | ₹180 cr | -4.96% | -0.32% |
| Expenses | ₹6,492 cr | ₹6,904 cr | -5.96% | +89.35% |
| Operating profit | ₹1,440 cr | ₹1,577 cr | -8.68% | +44.38% |
| Operating margin (%) | 18.15% | 18.59% | — | — |
| Interest | ₹70 cr | ₹48 cr | +46.94% | +62.71% |
| Depreciation | ₹330 cr | ₹301 cr | +9.76% | +81.25% |
| Profit before tax | ₹1,210 cr | ₹1,408 cr | -14.03% | +28.31% |
| Tax | ₹319 cr | ₹282 cr | +13.07% | +86.84% |
| Net profit | ₹892 cr | ₹1,126 cr | -20.81% | +15.39% |
| EPS (₹) | ₹29.56 | ₹36.91 | -19.91% | +13.96% |
Operating margin of 18.15% compares with a Industrials sector median of 14.64% across 27 peers that have reported Q1FY27.
What to watch
- Whether operating margin holds above 18.15% after two consecutive quarterly declines.
- Whether the gap between expense growth and revenue growth narrows from +89.35% versus +79.22% YoY.
- Whether interest-cost growth moderates from +46.94% QoQ and the tax rate moves below 26.31%.