Waaree Energies' margin falls for a third straight quarter
Expenses grew faster than revenue year on year, while higher interest and other income equal to 14.28% of pre-tax profit shaped the quarter.
Filed 27 Oct 2026, 20:45 IST · after market close · Waaree Energies Ltd (WAAREEENER)
Key takeaways
- Consolidated revenue grew 23.94% year on year, but expenses grew 32.69%, cutting operating margin by 5.43 percentage points.
- Operating margin fell for a third straight quarter to 17.76%, although it remained 6.82 percentage points above the 10.94% median for 37 Industrials peers.
- Net profit declined 14.18% year on year to Rs 753.64 cr, with a lower 26.81% tax rate partly cushioning the pressure on pre-tax profit.
Price around the results
Revenue growth did not translate into operating profit
Consolidated revenue rose 23.94% year on year to Rs 7,517.74 cr, but operating profit fell 5.06% to Rs 1,335.20 cr. Expenses increased 32.69%, outpacing revenue growth and reducing operating margin by 5.43 percentage points to 17.76%. Sequentially, revenue fell 5.22% and operating profit fell 7.27%, as expenses declined by only 4.76%.
Margin pressure has extended across three quarters
Operating margin has declined from 25.49% in Q3FY26 to 18.59% in Q4FY26, 18.15% in Q1FY27 and 17.76% in Q2FY27. The sequential margin decline was 0.39 percentage points, with interest expense rising 49.58% from the previous quarter. The latest margin was still 6.82 percentage points above the 10.94% median among 37 Industrials peers that have reported.
Lower tax rate softened a weaker profit result
Pre-tax profit declined 16.38% year on year, while net profit fell 14.18% to Rs 753.64 cr. The tax rate fell by 1.88 percentage points to 26.81% year on year, partly limiting the decline in net profit. Other income contributed 14.28% of pre-tax profit, making it a meaningful part of reported earnings quality.
Results were filed after market close
The company filed its consolidated results after market close, so there is no current market reaction to report. After its last eight results, the stock rose three times and fell five times, with a median absolute move of 6.22%, indicating that post-results moves have generally been material and more often negative.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹7,518 cr | ₹7,932 cr | -5.22% | +23.94% |
| Other income | ₹147 cr | ₹171 cr | -13.90% | -8.60% |
| Expenses | ₹6,183 cr | ₹6,492 cr | -4.76% | +32.69% |
| Operating profit | ₹1,335 cr | ₹1,440 cr | -7.27% | -5.06% |
| Operating margin (%) | 17.76% | 18.15% | — | — |
| Interest | ₹105 cr | ₹70 cr | +49.58% | +9.55% |
| Depreciation | ₹347 cr | ₹330 cr | +5.24% | +44.84% |
| Profit before tax | ₹1,030 cr | ₹1,210 cr | -14.92% | -16.38% |
| Tax | ₹276 cr | ₹319 cr | -13.31% | -21.84% |
| Net profit | ₹754 cr | ₹892 cr | -15.50% | -14.18% |
| EPS (₹) | ₹24.98 | ₹29.56 | -15.49% | -14.83% |
Operating margin of 17.76% compares with a Industrials sector median of 10.94% across 37 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 17.76% after its third straight quarterly decline.
- Whether expenses continue to grow faster than revenue after the 32.69% year-on-year expense increase.
- Whether interest expense moderates after rising 49.58% sequentially.