Waaree Energies' margin drops 8.81 points as costs outrun sales
Standalone revenue doubled YoY, but net profit slipped QoQ and other income contributed 19.06% of pre-tax profit.
Filed 30 May 2026, 17:03 IST · after market close · Waaree Energies Ltd (WAAREEENER)
Key takeaways
- Standalone operating margin narrowed 8.81 percentage points QoQ to 17.91% as expenses grew +20.15% against revenue growth of +7.26%.
- Revenue rose +103.07% YoY, but expenses grew faster at +116.32%, limiting operating-profit growth to +58.56%.
- Net profit fell -7.52% QoQ to Rs 933.56 cr, with other income equal to 19.06% of pre-tax profit.
Price around the results
Q4 scale-up came with a margin reset
Waaree Energies reported standalone revenue growth of +103.07% YoY and +7.26% QoQ, but operating profit grew only +58.56% YoY and fell -28.09% QoQ. Expenses rose +116.32% YoY and +20.15% QoQ, outpacing revenue in both comparisons. That cost gap pulled operating margin down 5.03 percentage points YoY and 8.81 percentage points QoQ to 17.91%.
Lower tax and interest softened the profit impact
The tax rate fell 2.44 percentage points YoY and 1.86 percentage points QoQ, while interest expense declined -35.25% YoY and -59.04% QoQ. These benefits partly offset the operating-margin compression. Other income contributed 19.06% of pre-tax profit, so reported earnings were not driven by operations alone.
Margin is above peers after reversing from a Q3 peak
Waaree's 17.91% operating margin was 2.25 percentage points above the 15.66% median for 71 Industrials peers that had reported the quarter. The margin had risen from 20.77% in Q3FY25 to 26.72% in Q3FY26 before the Q4 decline. This was a sharp reversal rather than a third consecutive quarterly fall.
Management is adding storage and electrolyser capacity
Management said it plans 20 GWh of BESS capacity by FY28, with Phase-I of 3.5 GWh by FY27 and Phase-II of 16.5 GWh by FY28. The company also said it is targeting 1 GW of electrolyser capacity by FY2027, supported by planned capex of Rs 676 cr, and has an Indian electrolyser order book of approximately Rs 152 cr. The presentation said a large part of module capacity has moved to G12/G12R formats.
The market reaction was unusually negative for this stock
The stock fell -10.97% on the reaction day after a -5.79% gap, with volume at 4.46 times the reference level. It remained down -7.79% after five sessions and -14.43% after 15 sessions. The reaction was larger than the stock's median absolute post-results move of 6.22%; its previous six reactions were split evenly between three rises and three falls.
Q4FY26 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹6,748 cr | ₹6,291 cr | +7.26% | +103.07% |
| Other income | ₹230 cr | ₹-70 cr | — | +44.46% |
| Expenses | ₹5,539 cr | ₹4,610 cr | +20.15% | +116.32% |
| Operating profit | ₹1,209 cr | ₹1,681 cr | -28.09% | +58.56% |
| Operating margin (%) | 17.91% | 26.72% | — | — |
| Interest | ₹31 cr | ₹76 cr | -59.04% | -35.25% |
| Depreciation | ₹199 cr | ₹195 cr | +1.83% | +104.27% |
| Profit before tax | ₹1,209 cr | ₹1,340 cr | -9.74% | +55.75% |
| Tax | ₹276 cr | ₹330 cr | -16.53% | +40.73% |
| Net profit | ₹934 cr | ₹1,009 cr | -7.52% | +60.81% |
| EPS (₹) | ₹32.45 | ₹35.10 | -7.55% | +60.41% |
Operating margin of 17.91% compares with a Industrials sector median of 15.66% across 71 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -10.97% | -10.22% |
| Next session | -10.47% | — |
| 5 sessions | -7.79% | -7.78% |
| 15 sessions | -14.43% | — |
| 30 sessions | -12.90% | — |
Volume on the results session was 4.46× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- A large part of Waaree’s module capacity moved to G12/G12R formats.
Expansion
- Waaree plans 20 GWh BESS capacity by FY28, with Phase-I of 3.5 GWh by FY27 and Phase-II of 16.5 GWh by FY28.
- Waaree targets 1 GW electrolyser capacity by FY2027 with planned capex of ₹676 crore.
New orders
- Waaree has an electrolyser order book of approximately ₹152 crore in India.
Competition
- Waaree describes itself as the largest non-Chinese module manufacturer with 25.8 GW capacity.
What to watch
- Whether standalone operating margin recovers from 17.91%.
- Whether expenses continue to grow faster than revenue after the +20.15% QoQ increase.
- Whether other income remains close to 19.06% of pre-tax profit.