• Record project execution of 2,727 MW in FY26, the highest in any year for the company
• Unexecutable order book stands at 2.83 GW providing strong revenue visibility, though down from 3.2 GW YoY
• O&M portfolio reached 1.18 GW, strengthening recurring revenue base
• Order pipeline of 36 GW being tracked (23 GW domestic, 12 GW international) for future conversions
• IPP capacity expansion with 54 MW operational and 227 MW under construction, generating INR 26 crores annual revenue
• India's solar market added 44 GW capacity in FY26 versus 23.83 GW in FY25, representing 82% of total renewable installations
• Expanding into BESS segment with one project under execution, opening new revenue stream
• Company operates across 7-8 states with majority presence in Rajasthan, Gujarat, MP, Andhra Pradesh, and Maharashtra

Waaree Renewables delivered strong FY26 results with 108.5% revenue growth to INR 3,331.4 crores and executed a record 2,727 MW of projects. The company maintains a healthy order book of 2.83 GW and is expanding into battery energy storage systems (BESS), positioning itself well in India's accelerating solar market which added 44 GW in FY26. While execution capability remains strong, concerns exist around declining quarterly execution rates, modest order inflows despite industry growth, and margin sustainability questions.

FY26 financial performance was exceptionally strong with revenue from operations of INR 3,331.42 crores, representing 108.51% YoY growth from FY25. EBITDA reached INR 641.1 crores (up 106.21% YoY) with margin of 19.24%, while PAT stood at INR 478.65 crores (up 109.09% YoY). Q4FY26 specifically showed revenue of INR 1,102.4 crores (131.31% YoY growth), EBITDA of INR 206.82 crores with 18.76% margin, and PAT of INR 155.72 crores (66.08% YoY growth). The quarter's higher realization of approximately INR 2 crores per MW was attributed to 50% of revenue coming from orders including module supply. Most receivables are less than 6 months with many secured by letters of credit. The company is funding its IPP expansion (currently under CWIP) through internal accruals without debt, maintaining its asset-light model for the core EPC business.

Management displayed confidence about the company's execution capabilities and market positioning, emphasizing their disciplined approach to order selection based on suitable margins and project requirements. They consistently highlighted maintaining EBITDA margins above 19% for two consecutive years while setting a conservative threshold of 15% for bidding purposes, suggesting operational efficiency gains above baseline expectations. The team emphasized their diversified revenue model across EPC, O&M, and IPP segments, with strategic focus on building smaller IPP assets for steady recurring revenue rather than aggressive asset ownership. Management showed cautious optimism about the order pipeline, acknowledging 36 GW of opportunities in bilateral discussions but careful not to over-commit on conversion timelines. They positioned the company as selective in tender participation, only bidding when projects meet their margin and execution requirements, indicating pricing discipline over market share aggression.

Several challenges emerged during the call. The order book declined from 3.2 GW to 2.83 GW YoY despite strong industry growth of 44 GW installations, raising questions about market share and competitive positioning. Quarterly execution rates showed weakness, declining from 700-900 MW in H1 to under 500 MW in Q4, attributed to project mix but concerning for momentum. Land acquisition for ground-mounted projects remains a sector-wide challenge, with approximately 60 GW of RE projects in Rajasthan awaiting clarity on evacuation infrastructure and substation coordinates according to CTYL representation. The company faces margin sustainability questions with Q4 EBITDA margin at 18.76% versus higher historical levels, though management maintains this is project-mix dependent. Competition appears to be intensifying with new entrants potentially bidding aggressively. The company's IPP expansion represents a strategic shift from their asset-light model, requiring capital deployment of approximately INR 700-800 crores (227 MW at INR 3-3.5 crores/MW) which could strain capital allocation. Module pricing volatility due to ALMM regulations (expected increase from INR 14/watt to INR 23/watt) creates uncertainty, though management claims pass-through ability. Working capital increased significantly with receivables and inventory doubling, reflecting project scaling but requiring monitoring.

Revenue Outlook: Management did not provide specific revenue guidance but indicated the 2.83 GW order book would be executed over 12-15 months, with additional orders expected during FY27 to maintain growth trajectory

Margin Outlook: Management maintains 15% EBITDA margin as internal threshold for bidding, but has consistently delivered above 19% through operational efficiency. Expects to maintain margins in the 15%+ range with efforts toward sustained 19%+ levels through discipline and operational improvements

Key Targets:

• Execute 2.83 GW existing order book over next 12-15 months
• Commission 227 MW IPP projects during FY27
• Convert portion of 36 GW order pipeline into firm orders through bilateral discussions
• Expand BESS segment with multiple projects under discussion
• Maintain asset-light core model while building recurring IPP revenue stream

The Q&A session revealed analyst concerns focused on three main areas: order inflow weakness relative to industry growth, margin sustainability, and strategic direction with IPP expansion. Multiple analysts questioned why order book declined YoY despite 44 GW of industry installations, with management consistently pointing to their 36 GW pipeline and selective bidding approach. Margin questions dominated with analysts noting Q4's 18.76% versus historical 25%+ levels in prior Q4s - management emphasized project mix variability but maintained confidence in 15%+ sustainable margins through operational efficiency, though they've delivered 19%+ for two years. The IPP expansion drew questions about departure from asset-light strategy, with management positioning it as a complementary recurring revenue stream funded without debt. Analysts also probed execution rate declines, working capital increases, and impact of evacuation infrastructure issues in Rajasthan. Management remained confident throughout but provided limited specific forward guidance, focusing instead on execution capability and disciplined approach. The defensive tone on order inflows and the lack of strong visibility into conversion timelines for the 36 GW pipeline suggested some near-term uncertainty, though long-term sector tailwinds remain intact. Overall, management successfully defended the quarter's performance but failed to fully alleviate concerns about competitive positioning and growth acceleration in FY27.