Waaree Energies Ltd Q1 FY26 Earnings Analysis

- Robust demand outlook with a pipeline exceeding 100 gigawatts for 2026 and 2027. - Order book valued at INR47,000 crores, fully booked through March 2026 with visibility into Q1-Q4 2026. - Expansion of module manufacturing capacity, including 1.6 GW facility in the U.S. and 3.2 GW additional lines at Chikhli plant. - Expected growth driven by strong domestic demand under government schemes like PM Surya Ghar Yojana, Kusum, and Make in India. - Anticipated increase in DCR market from 3-4 GW to approximately 10-15 GW in the current year. - Incremental growth expected from battery and green hydrogen businesses starting FY27. - Projected EBITDA-driven growth with scale and efficiency improvements aiding volume and revenue increase. - Stable export volume contribution expected in the range of 17% to 22% going forward.

- Waaree Energies projects a substantial EBITDA growth to INR5,500 - 6,000 crores in FY26, up from INR3,123 crores in FY25. - FY26 is expected to be a year of consolidation and acceleration, focusing on EBITDA as the key control variable over volume or top-line. - The robust INR47,000 crores order book provides strong revenue visibility through at least March 2026. - Scale efficiencies, improved capacity utilization (e.g., 90%+ in new cell lines), and cost management are key levers to achieve EBITDA guidance. - Future years (FY27 onwards) anticipate contributions from new businesses like batteries, green hydrogen, power infrastructure, and IPP segments. - The company aims for sustained profit growth driven by integrated value chain expansion and technology advancements, including cell manufacturing cost reduction (from 11.5-14 cents to 7-8 cents). - Overall, Waaree is on track for strong earnings and EBITDA growth supported by large-scale domestic and international demand.

- Board approved establishment of an additional 1.6 GW module manufacturing line in the U.S. - Setting up an additional 3.2 GW module manufacturing line at Chikhli plant, targeted for commissioning in next 3-4 months. - Integrated 6 GW ingots, wafers, cells, and modules factory (PLI project) on track for commissioning by FY27 with a capex of around INR 9,000 crores. - Additional capex planned for FY26 and FY27 focused on expanding manufacturing and integrated facilities. - Battery storage facility (3.5 GW) and green hydrogen electrolyzer plant (300 MW) targeted to be operational by 2027. - Capex spend to support continued backward and forward integration strategy, including power infrastructure expansion and EPC business growth.

- Waaree Energies is currently executing a major capex project worth around INR 9,000 crores for the 6 gigawatt integrated wafer, cell, and module factory planned to be commissioned by 2027. - The company has INR 15,550 crores of funds available for capital deployment as of March 31, 2025, reflecting strong financial health. - For the IPP business acquisition (ENEL), typical structuring involves around 65-70% debt and 25-30% equity, indicating future debt raising aligned with equity infusion for power infrastructure expansion. - No specific new fundraising through debt or equity was disclosed during the call for FY26, but capital deployment plans suggest potential structured financing. - The company is closely monitoring market conditions, especially in the US, before deploying resources for the 1.6 gigawatt US module facility, which may involve future funding decisions.

- Current order book: INR 47,000 crores, feeding all factories and fully booked till March 31, 2026, and beyond. - Orders include a consolidated book covering manufacturing and EPC businesses. - Large pipeline: Over 100 gigawatts for the module business and around 30 gigawatts for EPC contracts. - Robust pipeline supported by domestic initiatives like Make in India, PM Surya Ghar Yojana, PM Kusum, and export orders primarily to the US (about 55% overseas). - Confidence in stable order inflow through FY26 and FY27 with no expected major wild swings in order mix. - DCR (Domestic Content Requirement) order book growing rapidly, expected to reach 1.5 GW demand soon. - ENEL acquisition (IPP business) is in progress; contribution to FY26 is minimal but expected to grow later. - Strong order visibility improves execution confidence and supports the EBITDA guidance of INR 5,500-6,000 crores for FY26.