Waaree Energies Q4FY26: Profit up 75%, stock down 11%

What drove the sell-off on Thursday

Shares of Waaree Energies Ltd fell sharply on Thursday even after the company reported a steep year-on-year rise in March quarter (Q4FY26) profit. The stock dropped as investors reacted to weaker operating profitability than expected. On the BSE, the scrip fell as much as 11.12 percent to ₹3,112.25 during the session. Another intraday low cited in reports was ₹3,162.05, with the stock down about 9.25 percent around 9:55 AM, while the BSE Sensex was down 1.16 percent at that time. A separate trading update in Hindi reported an intraday low of ₹3,121.50 after the stock opened near ₹3,337. The key issue highlighted by analysts was a sharp contraction in Ebitda margin.

Q4FY26 headline numbers: revenue up, profit up

Waaree Energies reported strong top-line growth for the January to March quarter. One report pegged revenue at ₹8,840.25 crore, up 112 percent year-on-year. Another analyst flash note cited revenue of ₹8,480.3 crore, up 111.8 percent year-on-year and 12.1 percent quarter-on-quarter. Net profit was also reported strongly higher, but the exact figure varied across updates: one report said net profit rose 74.7 percent year-on-year to ₹1,126.26 crore. Another live update cited consolidated profit after tax of ₹1,061.1 crore for the quarter ended March 2026, up 71.44 percent from the year-ago quarter. Despite this profit growth, the market reaction focused on margins and the extent of the miss versus broker estimates.

Margin compression: the central trigger

Operating profitability disappointed versus expectations. Ebitda for the quarter was reported at about ₹1,576.8 crore (up 48.8 percent year-on-year and down 18.2 percent quarter-on-quarter in one note). Another report put Ebitda at about ₹1,577 crore, stating it increased around 80 percent year-on-year, but still came in below estimates. The Ebitda margin was reported around 18.6 percent (18.59 percent in one update), down from about 23 percent year-on-year. Motilal Oswal Financial Services (MOFSL) highlighted an Ebitda margin of 19 percent for the March quarter, which was 700 basis points below its estimate of 25 percent. The margin miss, rather than volume or revenue, appeared to be the key reason for the sharp sell-off.

What brokerages expected versus what came through

Kotak Institutional Equities (KIE) had expected revenue of ₹8,999.2 crore and net profit of ₹1,310.3 crore for the quarter, according to the report. KIE also estimated Ebitda at ₹1,974.4 crore, above the reported ~₹1,577 crore. MOFSL, in a separate comparison, noted that while revenue was better than its expectation of ₹6,744.3 crore, the company missed its Ebitda estimate of ₹1,688.6 crore and net profit estimate of ₹1,134.1 crore. MOFSL also said adjusted PAT missed its estimate by 6 percent. The difference between strong revenue growth and softer margins is what shaped the near-term narrative for the stock.

Possible reason: transition to G12R cells

MOFSL flagged that the weaker Ebitda margin “might be attributable to the company’s transition to G12R cells in Q4,” while it awaited clarity. Investors and analysts were also looking to the company’s scheduled conference call at 3 pm for more detail. With margins moving lower even as revenue scaled up, the conference call was seen as an important near-term input for understanding product mix, costs, and the effect of technology changes.

Capacity ramp-up: 3 GW added in Gujarat

Operational updates were also part of the quarter’s discussion. During the quarter, Waaree Energies operationalised 3 GW of additional module capacity at Samakhiali in Gujarat. ICICI Securities said the company reported a strong year-on-year scale-up in Q4FY26, with operating revenue rising sharply versus ₹4,004 crore in Q4FY25, driven by robust module volumes and execution. ICICI Securities added that operating Ebitda (ex-other income) stood at ~₹1,577 crore, up ~72 percent year-on-year from ~₹919 crore. At the same time, it noted the Ebitda margin contraction to ~18.6 percent from ~22.9 percent in Q4FY25, attributing the move to mix and margin normalisation and higher costs.

Stock context: valuations, YTD move, and liquidity

After Thursday’s decline, Waaree Energies’ year-to-date gains reduced to about 6 percent, according to the report. SBI Securities said the stock traded at FY27 and FY28 price multiples of 21.3 times and 19.8 times, respectively, based on Bloomberg consensus earnings. Trading activity was also watched: volumes were reported at 0.18 million shares versus a two-week average of 0.15 million. These metrics suggested the sell-off was accompanied by moderately higher activity, consistent with a results-driven reset.

Dividend and ownership snapshot mentioned in updates

One report said Waaree Energies announced a dividend of ₹2 per share alongside its quarterly results, noting that the company had also paid ₹2 per share as dividend in 2025. The same update mentioned a 52-week high of ₹3,864.40 and a 52-week low of ₹2,402. Market capitalisation was cited at around ₹90,226 crore in one update and ₹90,567.02 crore in another. As per a September 2025 shareholding snapshot in the text, promoters held 64.22 percent and the public held 35.78 percent.

Key numbers at a glance

What to watch next: conference call and margin explanation

Brokerages stayed focused on the drivers of margin compression, particularly the transition to G12R cells and the cost and mix implications of scaling new capacity. MOFSL, in its flash note, retained a ‘Buy’ rating while awaiting management commentary on the 3 pm conference call. Any additional detail on pricing, input costs, ramp-up efficiency, and product mix will likely shape how analysts refine forecasts after the quarter’s miss on operating margins.

Conclusion

Waaree Energies delivered strong Q4FY26 growth in revenue and profit, but the market punished the stock as operating margins fell well short of expectations. The next immediate trigger is the company’s scheduled 3 pm conference call, where investors will look for clarity on the margin decline and the impact of technology and capacity changes.