Waa Solar returns to profit as revenue nearly doubles year on year

Waa Solar Limited reported consolidated profit of Rs 68.12 lakh for the half year ended September 30, 2026, after a Rs 1.17 crore loss in the preceding half-year. Waa Solar's revenue from operations rose to Rs 17.09 crore from Rs 8.81 crore a year earlier, while a Rs 35.57 lakh share of associate profit also supported the result.

How did Waa Solar's consolidated earnings change?

Waa Solar returned to consolidated profit of Rs 68.12 lakh in the half year ended September 30, 2026, compared with a consolidated loss of Rs 1.17 crore in the half year ended March 31, 2026. Basic and diluted earnings per share were Rs 0.51, against a loss per share of Rs 0.88 in the immediately preceding half-year.

The latest result was below the Rs 1.82 crore consolidated profit reported in the half year ended September 30, 2025. The comparison shows a recovery from the sequential loss, but a lower profit than in the corresponding prior-year half-year.

Profit before tax was Rs 38.56 lakh in the latest period, compared with Rs 10.56 lakh in the preceding half-year and Rs 9.35 lakh a year earlier. Net profit before the share of associates and joint ventures was Rs 32.55 lakh, versus a Rs 45.84 lakh loss at March 31, 2026 and Rs 7.68 lakh profit at September 30, 2025.

A Rs 35.57 lakh share of profit from associates and joint ventures raised reported consolidated profit to Rs 68.12 lakh. This contribution contrasted with a Rs 70.89 lakh share of loss in the prior half-year and a Rs 1.74 crore share of profit in the year-earlier half, making associate performance a material factor in the period comparisons.

What drove Waa Solar's revenue increase?

Waa Solar's revenue from operations increased 94% year on year to Rs 17.09 crore in the half year ended September 30, 2026 from Rs 8.81 crore in the corresponding 2025 period. Other income fell to Rs 1.22 crore from Rs 1.58 crore, but total income nevertheless rose to Rs 18.32 crore from Rs 10.40 crore.

Revenue remained below the Rs 18.96 crore reported in the half year ended March 31, 2026. Segment reporting shows that solar power generation revenue rose to Rs 14.96 crore from Rs 12.72 crore in the preceding half-year, while contract receipt declined to Rs 2.14 crore from Rs 6.23 crore.

Solar power generation supplied most of the Rs 17.09 crore of consolidated operating revenue in the latest half-year, with contract receipt supplying Rs 2.14 crore. The segment disclosure did not show toll collection revenue for the period, although toll collection is separately identified as a business activity in the company's notes.

Which costs affected Waa Solar's half-year result?

Waa Solar's total expenses increased to Rs 17.93 crore in the half year ended September 30, 2026 from Rs 10.27 crore a year earlier. Finance costs rose to Rs 7.36 crore from Rs 4.81 crore, while depreciation and amortisation increased to Rs 4.80 crore from Rs 3.00 crore.

Employee-benefit expense was Rs 87.50 lakh, compared with Rs 89.49 lakh in the year-earlier half, while construction expenses rose to Rs 95.13 lakh from Rs 76.19 lakh. Other expenses increased to Rs 3.05 crore from Rs 1.90 crore, and cost of materials consumed was Rs 68.07 lakh after a negative Rs 1.10 crore figure in the prior-year period.

The consolidated segment report recorded solar power generation revenue of Rs 14.96 crore and contract receipt of Rs 2.14 crore in the latest half-year. In the preceding half-year, solar power generation revenue was Rs 12.72 crore and contract receipt was Rs 6.23 crore, indicating that the revenue mix shifted towards generation.

The filing reports Rs 1.22 crore of other income in the latest half-year, compared with Rs 1.13 crore in the preceding half-year. Its reported profit before tax of Rs 38.56 lakh was reached after finance costs of Rs 7.36 crore and before the Rs 6.01 lakh minimum alternate tax expense recorded for the period.

What do Waa Solar's balance sheet and cash flow show?

Waa Solar's consolidated assets stood at Rs 384.81 crore at September 30, 2026, down from Rs 412.00 crore at March 31, 2026. Consolidated shareholders' funds were Rs 184.27 crore, compared with Rs 184.62 crore at the March year-end.

Long-term borrowings were Rs 167.72 crore at September 30, 2026, compared with Rs 157.59 crore at March 31, 2026. The reported consolidated debt-equity ratio was 1.03, up from 0.96, while the interest service coverage ratio was 1.75 compared with 1.52 in the immediately preceding half-year.

The group reported net cash used in operating activities of Rs 19.78 crore for the six months ended September 30, 2026 and cash used in investing activities of Rs 3.50 crore. Financing activities generated Rs 5.17 crore, resulting in a Rs 18.12 crore decrease in cash and cash equivalents.

Cash and cash equivalents were Rs 24.83 crore at September 30, 2026, down from Rs 42.95 crore at March 31, 2026. Total current assets declined to Rs 76.75 crore from Rs 114.12 crore, while current liabilities decreased to Rs 33.77 crore from Rs 70.74 crore over the same dates.

How were Waa Solar's results reviewed and reported?

Waa Solar's board reviewed and took on record the unaudited standalone and consolidated results on October 30, 2026. The company said its statutory auditors carried out a limited review under Regulation 33 of the Securities and Exchange Board of India listing regulations.

The independent review report included with the announcement covers the unaudited standalone financial results for the half year ended September 30, 2026. J C H & Associates LLP stated that nothing had come to its attention to indicate that the standalone statement had not disclosed required information or contained a material misstatement.

The company identifies solar power generation, console and toll collection as its standalone business activities. Its consolidated segment report presents solar power generation assets of Rs 207.99 crore, EPC contract assets of Rs 154.75 crore and toll collection assets of Rs 45.02 lakh at September 30, 2026.

Consolidated segment liabilities were Rs 156.84 crore for solar power generation and Rs 18.83 crore for EPC contract at September 30, 2026. Unallocated liabilities were Rs 21.86 crore, taking consolidated segment liabilities to Rs 200.54 crore.

Conclusion

Waa Solar's half-year filing shows a return to consolidated profit after the March 2026 half-year loss, supported by a 94% year-on-year rise in operating revenue and a positive associate contribution. However, consolidated profit of Rs 68.12 lakh remained below the Rs 1.82 crore reported a year earlier, while finance costs reached Rs 7.36 crore.

The next year-end results will show the effect of the company's stated plan to provide for deferred tax liabilities or assets at the end of the year. They will also show whether solar power generation revenue of Rs 14.96 crore can continue to offset the decline in contract receipt to Rs 2.14 crore and whether cash can recover from Rs 24.83 crore at September 30, 2026.