Waaree Renewable's ₹1,225 Cr Acquisition of ASPL in 2026

A Strategic Move into Power Transmission

Waaree Renewable Technologies Ltd (WRTL) has announced a significant strategic move to diversify its operations, approving the acquisition of a 55% majority stake in Associated Power Structures Ltd (ASPL). The deal, valued at approximately ₹1,225 crore, marks WRTL's entry into the power transmission and distribution (T&D) infrastructure segment. This acquisition aligns with the company's long-term vision to build an integrated clean energy solutions ecosystem, leveraging its strong financial performance to expand its capabilities beyond its core solar EPC business.

The board of directors approved the binding term sheet for the transaction on January 26, 2026. This decision comes on the heels of a robust financial quarter for Waaree Renewable, underscoring its capacity for such a large-scale investment. By integrating ASPL's expertise in T&D, Waaree aims to create a more comprehensive service offering that covers a wider spectrum of the energy value chain, from generation to distribution.

Key Details of the Acquisition

The transaction is structured as a combination of primary capital infusion into ASPL and a secondary purchase of shares. This approach will not only provide WRTL with a controlling stake but also inject fresh capital into ASPL to fuel its growth. Upon completion, ASPL will be formally designated as a subsidiary of Waaree Renewable Technologies Ltd. The deal is currently subject to the completion of due diligence and other standard closing conditions.

Profile of the Target: Associated Power Structures Ltd.

Established in 1996, Associated Power Structures Ltd has a long-standing presence in the power transmission and distribution infrastructure sector. The company has built a strong reputation and a solid financial base over its nearly three decades of operation. ASPL has also undertaken projects in several international markets, which presents an opportunity for Waaree to expand its global footprint.

ASPL has demonstrated remarkable growth in recent years, nearly tripling its turnover between FY23 and FY25. This strong performance indicates robust business momentum and market demand for its services. For the financial year ending March 31, 2025, ASPL reported a net worth of ₹339.53 crore and total assets of ₹834.15 crore.

Financial Strength Fueling Expansion

Waaree Renewable's decision to acquire ASPL is backed by its exceptional financial results. The company reported a nearly 125% year-on-year increase in its profit after tax (PAT) for the third quarter of FY26, which stood at ₹120.19 crore. Revenue from operations for the same quarter surged by 136% to a record ₹851.06 crore. The company's EBITDA also saw a significant rise of almost 121% to ₹158.80 crore, with a healthy margin of 18.66%.

For the nine months ending in December 2025, the company's revenue had already surpassed its full-year performance for FY25, climbing nearly 99% to ₹2,229.03 crore. This sustained growth has provided the financial leverage necessary for strategic acquisitions like the one involving ASPL.

Market Reaction and Stock Performance

Despite the announcement of the strategic acquisition, the market's immediate reaction was subdued. Shares of Waaree Renewable Technologies Ltd closed nearly 3% lower on the NSE on Friday, January 23, 2026, at ₹875 per share. On a year-to-date basis, the stock has seen a correction of 9.6%. This market behavior may reflect broader market trends or investors taking a cautious approach while awaiting the completion of the deal and its subsequent integration.

The Path Forward

The acquisition is a non-related party transaction, simplifying the process as it does not involve promoter or group company interests in the target entity. With no specific governmental or regulatory approvals required, the path to completion appears relatively straightforward. The transaction is targeted for completion by April 30, 2026. This strategic purchase is set to transform Waaree Renewable from a pure-play solar EPC company into a more diversified player in India's expanding energy sector, positioning it to compete with established T&D entities.