Waaree Energies is transitioning from a pure play solar products company to an energy transition company to diversify it’s business model.
” Waaree 1.0 was more of a solar company which is transitioning towards Waaree 2.0 which is less of a solar but more of an energy transition enabler,” said Abhishek Pareek, group head, finance at Waaree Energies in a post Q3 earnings interaction with this newspaper.
Five years ago, it’s revenues from modules was around 90%. This year, the company’s revenue from pure play utility scale modules would be around 70 % whereas 30% revenue would come from retail, manufacturing, EPC and from other services, Pareek said .
He said in total order book of Rs 60,000 crore, 7 to 8% tilting towards non solar including EPC services, transformers, battery as well as inverters.” So we’re already seeing the lead indicators for new business,” Pareek said.
Future Capacity Targets
Under Waree 2.0, the company is looking at a module capacity of 28 GW by next financial year and cell capacity of 15 GW. It will have 20GW of battery energy storage systems ,(BESS) facility and 4 GW inverter facility, 20000 MVA transformer facility and 1GW electrolyser capacity.
However, he declined to give guidance on the share of non solar business in overall revenues. ” Our other products (non-solar), other businesses are certainly capital guzzling. We are committed to invest capital and we are seeing the other traction also,” he said.
He said their margin profile is made up of three elements such as diversification of customers, meaning majority of its new orders come not from utility and IPP (independent power producers) in India, rather from EPC services from retail distribution, retail market and thirdly manufacturing in US and exporting from India.
The three segments put together accounts for roughly 60% of company’s total revenue,
He said they will cross their EBITDA guidance of Rs 6000 crore for the year by a good margin given that they have already crossed Rs 4300 crore of EBITDA.
Strong Financial Performance
Waaree Energies’ net profit more than doubled to Rs 1,106.79 crore in Q3FY26. It posted total income of Rs 7,761.23 crore in the third quarter, nearly double of Rs 3,545.27 crore in Q3FY25.
With the sharp spurt in module prices in the last couple of weeks and resultant cost and tariff increase in solar energy projects , he said for the projects where they have already taken the orders, either they have a pass-through clause where they pass on the impact of a commodity to the end consumer or if it’s a fixed price contract, they have to absorb the price.
In that case, they will we go back and fix their pricing with the suppliers on day one of taking the order.
“So either of the way we have enough systems and process in place to ensure that our margins remain resilient despite the commodity price spike up.”