Analyst Concall
Rising costs due to W Asia war sap Waaree Energies' margin
This story was originally published at 18:51 IST on 30 April 2026
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--Waaree Energies: Q4 margin declined YoY on rise in logistics, input costs
--CONTEXT: Waaree Energies mgmt's comments in post-earnings analyst concall
--Waaree Energies:Have already adjusted product prices for higher input costs
--Waaree Energies: Inventory with co in Q4 grew because of logistical issues
--Waaree Energies: Core solar module stack capex to be over in FY27
--Waaree Energies: Logistical issue in Q4 weighed on co's cash conversion
--Waaree Energies: Italy in co's growth plans, look to resume supplies soon
--Waaree Energies: Europe, Africa, West Asia are co's next big markets
By Ashutosh Pati and Anand JC
MUMBAI – A sharp rise in input and logistics costs due to the war in West Asia wore off Waaree Energies' operating margin for the March quarter, the company's management said Thursday in the post-earnings conference call with analysts. The solar equipment manufacturer's inventories rose "through the roof" during the quarter as it faced issues with shipping for the overseas markets amid the conflict.
Waaree Energies' earnings before interest, taxes, depreciation, and amortisation for the March quarter rose nearly 71% on year to INR 15.77 billion. However, its EBITDA margin fell to 18.59% from 23.04% a year ago. The company now expects its EBITDA for the financial year 2026-27 (Apr-Mar) to be in the range of INR 70 billion to INR 77 billion, according to Whole-time Director and Chief Executive Officer Jignesh Rathod.
"...last quarter there was also some impact on logistics cost. There was limited movement of ships inbound as well as outbound. Out of that, the cost of freight has gone to the roofs like never before", the management said. Moreover, Waaree Energies' overseas operations also took a hit during the quarter, which also weighed on margins. "But one thing I would like to add here, since market has normalised already now, we have started attracting...customers have started attracting the increased price and the new commodity levels already," they said. The company has started adjusting the prices of its products in line with the rise in commodity costs. Logistical issues also hurt the company's cash conversion in the March quarter.
The company has halted the production of cells in some of its cell lines as it is transitioning to the G12R technology. Currently, three lines have been converted into G12R while 11 are in the ramp-up phase and five more lines will be converted in a quarter or two, the management said. G12R solar panels use rectangular 210 millimetre G12 wafers. The rectangular format allows the manufacturer to pack more cells per module without increasing the panel size. This leads to higher wattage output per solar panel while maintaining compatibility with standard racking systems and string inverters.
Waaree Energies expects a 10-15% increase in its solar cell production once this transition is completed for all the lines. The company's solar cell output could rise to 15 gigawatts by the second half of financial year 2026-27 (Apr-Mar) from the current 5.4 gigawatts, the management said. Waaree Energies' capital expenditure on its entire core solar module stack, which is the module and cell manufacturing, will be completed in FY27.
US OPERATIONS
Waaree Energies' 1.6 gigawatts plant in the US has already ramped up and another 2.6 gigawatts of new facilities will go live over the next six months. The company will have a 4.2 gigawatt local capacity in the US for distribution in the local markets which "insulates us from the impact of import duties," the management said.
Another factor that insulates the company from the import duties in the US is that it has already established a supply chain for its exports from India, including in African and European markets, the management said. "...that's how we have been able to sail through the entire duty scenario and I think we are in best position today with local 4.2 gigawatt capacity with the next six months of time," a top official said.
More than 90% of the company's overall overseas revenue comes from the US. "However, over the next few months, we see a great amount of opportunity coming in from European market and African market as well," the management said. Moreover, the company is also getting enquiries from West Asian clients, "so, that means, not just US, there are three markets which have US equivalent potential to consume overall renewables, be it Africa together, European markets, or Middle East," they said.
Italy is also in the company's growth plans, and it has built an export team for the country. "We are addressing our supply chain from South Asia and India for Italian market. And we are very much ready to restart the Italian market (exports)," the management said.
Waaree Energies reported a consolidated net profit of INR 10.61 billion for the March quarter, up over 71% on year but down slightly from the previous quarter. The company's revenue from operations more than doubled on year to INR 84.80 billion. Thursday, shares of the company closed nearly 11% lower at INR 3,118.80 apiece on the National Stock Exchange. End
Edited by Deepshikha Bhardwaj
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