Waaree targets Rs 10,000-11,000 crore retail sales in FY '27

Waaree Energies Limited is targeting Rs 10,000-11,000 crore of retail revenue in FY '27 after reporting Rs 5,753 crore in H1 FY '27, nearly twice its year-earlier level and above the Rs 5,515 crore generated in the entire previous financial year. Management linked the target to a network of more than 775 retail partners built since 2016-17.

How fast is Waaree's retail revenue growing?

Waaree's retail revenue reached Rs 5,753 crore in H1 FY '27, representing 37% of total revenue and exceeding the Rs 5,515 crore earned from retail in the entire previous financial year. Total company revenue was Rs 15,449.5 crore in H1 FY '27, up 47.3% year on year, while management said retail revenue was almost twice the year-earlier first-half level.

The quarterly mix showed retail's growing role in sales. Retail revenue was Rs 3,464 crore in Q2 FY '27, up 252% year on year and equal to 46.1% of quarterly revenue. Utility, independent power producer, commercial and industrial customers together contributed 22.9% of Q2 revenue, while overseas markets contributed 18.5%.

Management's Rs 10,000-11,000 crore FY '27 target would require Rs 4,247-5,247 crore of retail revenue in H2 after the Rs 5,753 crore reported in H1. This is management's target rather than reported revenue. Waaree also said its cash-and-carry business was increasing its share of total revenue, while total module production was 6.2 gigawatts in H1 FY '27.

How is Waaree's retail network structured?

Waaree has more than 775 exclusive retail channels across India, with more than 3,000 additional distribution points attached to them and over 5,000 people supporting distribution, execution, design and service. Management calls the structure a retail or cash-and-carry model, in which channels distribute products and support customer installations rather than simply acting as product dealers.

The retail operation began in 2016-17 with three partners and about Rs 10 crore of revenue, management said. It took more than a decade to reach the current network and H1 FY '27 revenue level. Management added that some partners have grown from annual revenue of Rs 1-2 crore to more than Rs 50-75 crore, although it did not disclose how many partners fall within those ranges.

Waaree supplies products, technology and skills support to retail partners, and assists with installation and performance monitoring. Partners also undertake operations and maintenance locally and receive annuity income from that activity. Management said this model supports partner retention because rooftop-system customers may use their equipment for 10-15 years or longer.

Why does management see operating leverage in retail?

Management said an established franchise network can create operating leverage because incremental partner onboarding can generate revenue without a proportionate increase in costs. Waaree did not disclose retailer commissions, channel operating expenses or a standalone retail profit margin, so the financial outcome of the stated operating leverage cannot be separately measured from the call.

At the group level, operating earnings before interest, tax, depreciation and amortisation, or EBITDA, were Rs 2,775.1 crore in H1 FY '27, up 15.5% year on year, on an 18.0% margin. Revenue rose 47.3%, whereas profit after tax was Rs 1,645.5 crore, compared with Rs 1,651.1 crore in H1 of the prior year. These consolidated figures include businesses beyond retail and do not establish a retail-specific EBITDA margin.

Management retained FY '27 operating EBITDA guidance of Rs 7,000-7,700 crore and said H2 could supply 55%-60% of that range. It identified higher utilisation of existing cell capacity, new United States module capacity and planned Indian cell commissioning as drivers. Waaree expects around 5 gigawatts of new cell capacity to start in Q3 FY '27 and another 5 gigawatts in Q4 FY '27.

What additional products can Waaree sell through retail?

Waaree plans to use the retail network for products beyond modules, including inverters, kits, small rooftop batteries and small transformers. Management said it introduced more than three new product models at the recent REI event, including inverters, kits and modules, and expects these products to be supplied through retail channels.

The kit business started in April 2025 and had reached 1 lakh kits sold by the day before the earnings call. That milestone provides a disclosed measure of product expansion outside modules, although Waaree did not state the revenue contribution from kits or identify how many of the 1 lakh kits were sold through its retail network.

The wider assortment is linked to Waaree's manufacturing plans. By FY '28, management expects to have 4 gigawatts of inverter capacity, 20,000 megavolt-amperes of transformer capacity, 5 gigawatt-hours of battery energy storage system pack and container capacity, and 3.5 gigawatt-hours of battery-cell manufacturing capacity. The 5 gigawatt-hour battery energy storage system containerisation facility is planned for commissioning in Q3 FY '27.

Management gave no retail-specific revenue target for batteries, inverters or transformers. For the overall business, it said newer verticals, including battery energy storage, engineering, procurement and construction, transmission and distribution, transformers, inverters and electrolyzers, could rise from 15%-20% of revenue to 30%-35% over the next two to three years. That is management's longer-term directional view, not a forecast for retail sales.

Conclusion

Waaree's retail business has become a major revenue contributor, reaching Rs 5,753 crore in H1 FY '27 and surpassing the Rs 5,515 crore delivered in the preceding full financial year. The 775-plus partner network, additional distribution points and local service model are the mechanisms management cites for pursuing its Rs 10,000-11,000 crore FY '27 retail target and extending sales beyond modules.

The next disclosures to watch are H2 retail revenue against management's FY '27 target, the planned start of about 5 gigawatts of cell capacity in each of Q3 and Q4 FY '27, and the planned Q3 FY '27 commissioning of the 5 gigawatt-hour battery energy storage system containerisation facility. Waaree has not disclosed retail margins or separate sales targets for batteries, inverters and transformers, leaving those outcomes unresolved.