Waaree Renewable Technologies in Q1 FY27: Strong execution, and a clear push into grid infrastructure

Waaree Renewable Technologies Limited reported a strong start to FY27, with consolidated revenue from operations of INR 924.25 crore in Q1 FY27, up 53.23% year-on-year. EBITDA rose to INR 173.48 crore and profit after tax reached INR 118.97 crore, a 37.7% year-on-year increase. The quarter also marked a strategic shift for the company: it completed the acquisition of a 55% equity stake in Associated Power Structures Private Limited (APSPL), expanding its scope beyond solar EPC into transmission and distribution.

The combination of higher execution and a larger addressable market defined the quarter’s message. Management highlighted that project execution remained steady, while the company broadened its platform to participate in the infrastructure needed to evacuate renewable power to the grid.

Financial performance: growth stays strong, margins reflect consolidation

On a consolidated basis, revenue from operations increased sharply to INR 924.25 crore in Q1 FY27 from INR 603.19 crore in Q1 FY26. EBITDA increased to INR 173.48 crore from INR 117.55 crore. The EBITDA margin was 18.77% versus 19.49% a year ago. PAT came in at INR 118.97 crore compared to INR 86.40 crore, with PAT margin at 12.87% versus 14.32%.

Management acknowledged the margin movement. It stated that standalone solar EPC margins have remained intact, and that the slight dip at the consolidated level is largely because APSPL is a lower-margin business relative to Waaree Renewable’s solar EPC profile.

Execution and order book: visibility for the next few quarters

Operationally, the company executed 888.81 MWp during Q1 FY27. It reported a consolidated unexecuted order book of around INR 5,300 crore, including transmission and distribution. The investor presentation also reported an unexecuted solar EPC order book of 2,425 MWp as of Q1 FY27.

A key point of clarification in the earnings call was the mix inside the rupee order book. Management said that within the unexecuted EPC order book of about INR 2,600 crore for solar and BESS, roughly INR 2,400 crore relates to solar EPC and around INR 200 crore relates to BESS EPC.

Management also addressed the timeline for execution. It indicated that the consolidated unexecuted order book of about INR 5,300 crore is expected to be executed over roughly 12 to 15 months. This suggests healthy near-term visibility, while also implying that sustained growth will depend on continual replenishment of the order book.

APSPL acquisition: stepping closer to the grid

The most important strategic development in the quarter was the completion of the 55% acquisition in APSPL, an integrated T&D EPC solution provider based in Vadodara, Gujarat. Management described APSPL as having manufacturing capacity of 108,000 metric tons per annum for fabrication and galvanization. It supports infrastructure such as transmission towers, wind turbine lattice towers, telecom towers, and solar panel structures.

Management’s rationale was direct. With renewable capacity addition accelerating, the need for power evacuation and grid readiness rises alongside it. By adding T&D capability, the company aims to participate in a broader portion of the energy transition value chain.

However, the acquisition also changes the financial profile. Management stated the transaction was funded through a mix of self-funding and debt, with around 75% debt for the acquisition. This is visible in the quarter’s finance cost trend and is likely to remain a point of focus as the consolidation continues over a full period.

The management commentary also suggested cross-selling potential. In principle, solar EPC projects need evacuation infrastructure, and T&D opportunities may lead to associated EPC work in renewables. The company presented this as a combined platform spanning solar EPC, BESS EPC, and grid infrastructure.

Storage, O&M, and IPP: building recurring and adjacent streams

Beyond core solar EPC, the company emphasized three adjacent areas.

First, battery energy storage systems. Management said it is actively participating in bids wherever BESS EPC opportunities exist. It also clarified that the reported 1,520 MWh is a combination of orders. On margins, it indicated BESS EPC margins are expected to be broadly in line with company expectations, though it did not provide specific margin guidance.

Second, O&M services. The company reported an O&M portfolio of about 1.15 GWp. Management stated that as projects under execution are completed, it aims to add O&M contracts, extending customer relationships and creating a recurring revenue base.

Third, IPP assets. The investor presentation stated the company has developed 82.82 MWp of solar power generating assets and is additionally setting up 198.6 MWp of IPP capacity. In the call, management explained that the 198.6 MWp pipeline comprises multiple smaller plants and is pursued where it sees land and connectivity opportunities.

What to watch next

Two themes will shape how the market reads the next few quarters.

One is the balance between growth and margin quality. Management acknowledged that consolidated margins dipped due to the T&D mix. It also stated it will try to maintain around 15% EBITDA margin for the year considering the APSPL consolidation, while reiterating that the solar EPC business has historically operated near 19% EBITDA margin. Investors will likely track whether APSPL margins improve and how quickly the consolidated base settles.

The second is order book replenishment. Management acknowledged the current order book offers visibility of roughly 12 to 15 months and said additional orders are expected in upcoming quarters. It also disclosed it is chasing about 27 GW of domestic solar EPC pipeline plus about 10 GW internationally, and about INR 20,000 crore of T&D pipeline. But it did not quantify conversion expectations.

Takeaways

Waaree Renewable Technologies delivered a strong Q1 FY27 on both growth and execution, with revenue rising 53% year-on-year and nearly 889 MWp executed in the quarter. The company also took a meaningful step to broaden its business model by entering transmission and distribution through APSPL, positioning itself closer to the grid infrastructure required for India’s energy transition.

The strategic direction is clear, but the near-term trade-offs are also visible. Higher leverage from the acquisition and the lower-margin nature of T&D can pressure consolidated profitability in the short run. The next few quarters should provide clearer evidence on whether the combined platform can translate scale into stable margins and stronger multi-segment order flows.