WAAREEENER - Waaree Energies Limited Share Price

Waaree Energies Limited has reported robust performance for the third quarter of FY26, with management highlighting key metrics such as a revenue growth of 118.8% year-on-year, reaching Rs. 7,565.05 crores. EBITDA increased by 167.2%, amounting to Rs. 1,928.15 crores, and profit after tax rose 118.4% to Rs. 1,106.79 crores. For the nine months ending December 31, 2025, revenue exceeded Rs. 18,000 crores, with PAT standing at Rs. 2,757.89 crores, reflecting strong operational execution.

Management delineated a positive outlook supported by a solid order book of approximately Rs. 60,000 crores and a healthy pipeline exceeding 100 gigawatts. They also reported a record module production capacity, achieving 3.5 gigawatts in a single quarter. The company aims to capitalize on the buoyant solar market backed by favorable government policies.

Major forward-looking statements include:

• Continued expansion of production capacity across various stages of the solar value chain, aiming for completion by FY27, which includes modules, cells, ingots, and wafers.
• Investment in green hydrogen and battery storage, with plans for a 20-gigawatt-hour battery facility operational by FY28 and a 1-gigawatt electrolyzer facility by FY27.
• Expectations to surpass EBITDA guidance of Rs. 5,500 to Rs. 6,000 crores for FY26, driven by ongoing operational efficiency and scale.

Management emphasized strategic moves, including investments in local manufacturing and securing project agreements, enhancing Waaree's competitive positioning in both domestic and international markets.

Question from Nitin Arora: "On your cell utilization, you are still at about 56%. Can you tell us what challenges are you facing with respect to moving up this utilization? Are there technical challenges? Are the breakages very high? Can you throw some light?"

Answer: "Currently, our cell facility utilization is around 80% and continues to grow. We plan to upgrade to G12R cells in the next 3 months, expecting utilization to surpass 85-90%. Initial teething troubles like effluent issues and breakages are nearly resolved, so we anticipate strong performance moving forward."

Question from Nitin Arora: "There is a concern about higher commodity prices impacting gross margins for companies. How do you see it affecting your margins going forward?"

Answer: "While commodity prices like silver are relevant, we maintain structural stability in margins through improved production, increasing DCR content, and operational leverage. We believe gross margin pressure can be mitigated through these efficiencies, ensuring stability despite commodity fluctuations."

Question from Mohit Kumar: "Is there anything going on with the anti-dumping duty cases? How are we protecting ourselves?"

Answer: "We are monitoring developments regarding anti-dumping cases closely. We prioritize compliance with local laws in all our markets and ensure our manufacturing presence, especially in key markets like the US, to minimize risks from such regulations. We're also actively seeking organic and acquisition opportunities to bolster capacity."

Question from Mohit Kumar: "What is the status of the polysilicon plant in Oman, and when can we expect production to start?"

Answer: "The plant is at an advanced stage, with production expected to commence this quarter. We have finalized the financial structure and agreements, ensuring that we're on track for initial output shortly."

Question from Dhruv Muchhal: "Regarding the 5.4 gigawatts cell capacity, at what watt peak levels is this capacity quoted, and how does the shift to G12 help productivity?"

Answer: "The capacity is calculated based on the total output from all produced cells. With the G12R cells being larger, the watt peak per cell increases significantly. Currently, we maintain an average efficiency of around 24-24.5%, which will improve with G12's introduction."

Question from Kunal Shah: "Could you provide a split of the Rs. 60,000 crore order book between domestic and overseas?"

Answer: "Our order book is approximately 35% domestic and 65% overseas. Our cell production largely supports our module production requirements, so the split is primarily relevant to modules versus cells."

Question from Dheeraj Kripalani: "Are our contracts with customers fixed or pass-through regarding commodity prices?"

Answer: "We employ a mix of contracts. Some contracts allow us to pass on commodity costs, while with others, we absorb those risks, depending on customer agreements. It varies case-by-case, ensuring we manage our exposure effectively."

Question from Akshay Gattani: "Can you share the broad economics of the upcoming battery manufacturing? What kind of revenue potential do you see?"

Answer: "As we're in early stages, I cannot provide specific revenue numbers yet. However, based on market pricing, the potential revenue could range significantly, with up to $2 billion from our investments. This aligns with our strategy for robust market participation in energy storage."

Question from Amitoj Singh: "Do you plan to manufacture cells in the U.S. given the demand?"

Answer: "We have plans to expand in the U.S., including manufacturing cells. While we currently focus on modules, we are assessing market conditions to inform our decisions on entering cell production in the U.S."

Question from Umesh Raut: "What portion of the Rs. 20,500 crore order inflow is related to solar, and how much pertains to other businesses?"

Answer: "Approximately 80% of this inflow is attributed to our solar business. The remaining comes from our emerging segments like inverters and battery energy storage systems, which are relatively smaller. The orders reflect our strength in solar EPC and module segments."

These questions and answers summarize the most significant points from the Q&A portion of the earnings call transcript while adhering to the character limits specified.