Waaree Renewables’ YoY Profit Doubles, Slips Sequentially

Waaree Renewables, the engineering, procurement and construction (EPC) arm of the Waaree Group, on Thursday furnished its financial results for the first quarter of the fiscal year. The company reported a sharp year-on-year (YoY) jump in profit and revenue for the first quarter of FY2025-26, even as sequential performance registered a mild decline.

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The company posted a total revenue of ₹60,318.58 lakh for Q1, marking a 155% increase compared to ₹23,695.49 lakh in the same period last year. On a quarter-on-quarter (QoQ) basis, revenue rose 26.5% from ₹47,657.99 lakh in Q4FY25.

Profit Doubles On YoY

Net profit for the quarter stood at ₹8,638.94 lakh, up 206% from the year-ago period. However, profits dipped 7% sequentially, indicating some margin pressure despite robust topline growth.

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Waaree Renewables is a key player in India’s solar EPC segment and a subsidiary of the broader Waaree Group, which is also active in solar module manufacturing and project development.

Manmohan Sharma, CFO, Waaree Renewable Technologies Limited, commented: “This performance reflects the strength of our business model, our disciplined operational approach, and our ability to execute large-scale projects efficiently in a rapidly evolving clean energy landscape. In response to the evolving energy landscape, we have broadened our portfolio to include Battery Energy Storage System (BESS) EPC solutions, reinforcing our position as a full-spectrum clean energy provider."

He also added, "With a strong order book of 3.15 GWp in Solar EPC and 40 MWh in BESS EPC, we are well-equipped to deliver next-generation, large-scale integrated energy projects. We remain resilient, future-ready, and committed to enabling India’s energy transition through high-quality, sustainable solutions. With innovation and sustainability at the heart of our operations, we are confident in our ability to generate long-term value for all stakeholders.”

Rising EPC Contract Cost Burden 

One of the key factors impacting Waaree Renewables' profit margins despite strong revenue growth is the rising cost of EPC contracts. The company's expenditure on executing EPC projects has been steadily climbing with each passing quarter, putting pressure on profitability.

In Q1 of FY25, the cost of EPC contracts stood at ₹18,544.74 lakh. This rose to ₹33,495.73 lakh in the following quarter, and further escalated to ₹47,002.47 lakh in the latest quarter (Q1FY26).

In FY 2022-23 & FY 2023·24, the company was in the process of executing solar power projects at multiple sites for its customers. However, due to the cancellation of the LOA from a customer, it was decided by the company to use these assets tor own IPP asset portfolio. While executing solar projects, the Input Tax Credit (ITC) on the purchase was availed by the company.