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Informist, Wednesday, Oct. 15, 2025

By Akash Mandal

MUMBAI – Waaree Energies Ltd.'s bottom line for the September quarter is expected to surge two-and-a-half-fold on year and top line is seen rising 45%, driven by a ramp up in solar module production, higher utilisation at its cell manufacturing unit, and steady pricing across the cell and module industry.

The sharp rise in net profit will be driven by a five-fold on-year jump in the company's other income from the sale of its stake in subsidiary Indosolar Ltd., Nuvama Wealth Management Ltd. said in its earnings preview report. In September, the company sold nearly 20% of its 95% stake in Indosolar for INR 3 billion through an offer for sale on the exchanges to comply with minimum public shareholding requirement. Higher on-year margins are also likely to lift the battery-maker's bottom line for the quarter.

The company is expected to report a consolidated net profit of INR 9.06 billion for the September quarter, rising 151% on year and 22% sequentially, according to an average of estimates from four brokerages. The highest estimate for the company's bottom line is INR 9.41 billion by Nuvama and the lowest is INR 8.21 billion by Nomura Equity Research.

Waaree's consolidated revenue for the quarter is seen at INR 51.70 billion, according to the average of estimates from four brokerages. This would be a nearly 17% jump in company's revenue from the trailing quarter. The highest revenue estimate for the company is INR 53.10 billion by Anand Rathi Share and Stock Brokers Ltd. and the lowest is INR 50.22 billion by Nomura.

"We expect a (48% yoy/20% qoq) growth in revenue, driven by strong utilisation of domestic 13.4 gigawatt module facility, production scale up from 5.4 GW cell facility and 1.6 GW US module facility, partly impacted by seasonal monsoon driven weakness in the EPC (engineering, procurement, construction) business," Kotak Institutional Equities said. The company's revenue will see a sharp rise during the quarter on strong demand and improved operational efficiencies owing to higher production, Nuvama said.

The company's solar module production will rise 45% on year to 2.7 gigawatts in Jul-Sept as utilisation improves on expanded capacity, Nuvama added. Anand Rathi said the company is expected to report higher module production in the reporting quarter with the commissioning of its 1.8 gigawatt module line at the end of the June quarter.

The battery maker is expected to report earnings before interest, tax, depreciation, and amortisation in the range of INR 10.63 billion-INR 12.66 billion in the reporting quarter, with Kotak Equities having the highest estimate and Nuvama having the lowest. These estimates imply the company's EBITDA will grow 73-106% on year. Three of the four brokerage estimates available with Informist expect its EBITDA margin to rise to 23.5-24.4% during the quarter, with Nuvama estimating the margin will grow to 21%.

The company had reported an EBITDA margin of 14.7% in the corresponding quarter and 22.5% in the trailing quarter. "(Waaree's) EBITDA margin to jump 635 basis points YoY (to 21%) on operational efficiency and cell production ramp up, but dip 150 bps QoQ on a fall in ALMM (approved list of models and manufacturers) module realisation," Nuvama said.

Brokerages are positive on the company's future performance due to plans of increased capital expenditure, start of new production facilities, and end-to-end integration. "Waaree's backward and forward integration shall de-risk earnings concentration," Nuvama said. "The inverters facility shall start by Q4FY26 while GH2 Solar, electrolyser facility, advanced lithium-ion cells, and BESS (battery energy storage system) capacities would start in FY27, enabling it to capture what we believe could be a mammoth multi-decadal growth opportunity," it added.

Brokerages have also cited upcoming ramp up in capital expenditure as a positive for the company. Waaree "enhanced its capex plans for allied non-core segments such as battery energy storage systems, electrolyser manufacturing and solar inverters," Nomura said. The enhanced capex plans, if executed successfully, will augur well for the company's aim of capturing a higher share of clients' wallet through diversified product offerings, the brokerage added.

Waaree Energies will detail its September quarter financial results Thursday. Of the three brokerage reports on the company available with Informist, two have a 'buy' call on the stock for an average target price of INR 4,128, and one has a 'sell' recommendation, with a target price of INR 2,620. At 1446 IST, shares of Waaree Energies traded 1.7% higher at INR 3,543.10 on the National Stock Exchange.

The stock is currently up around 12% from the June quarter earnings announcement date of Jul. 28. In the June quarter, the company had reported a consolidated net profit of INR 7.45 billion, up 89% on year, with revenue rising 30% on year to INR 44.26 billion.

The following are the Jul-Sept earnings estimates for Waaree Energies from four brokerages in descending order of the estimate of net profit in INR million:

End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Subhojit Sarkar

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