Waaree Renewable Technologies is no longer only a solar EPC contractor. At Q2 FY27 it reported revenue of ₹1,057.84 crores, up 36.53% year on year, EBITDA of ₹159.98 crores at a 15.12% margin, and PAT of ₹81.48 crores. H1 FY27 revenue was ₹1,982.09 crores, up 43.84%, with EBITDA of ₹333.46 crores at 16.82% and PAT of ₹200.44 crores. The balance sheet now carries a full quarter of Associated Power Structures, a 55%-owned T&D EPC and fabrication business, alongside solar EPC, battery storage EPC, O&M and a small IPP portfolio. The investment question has shifted from whether solar EPC can grow to whether the consolidated platform can hold its margin while the lower-margin T&D business scales.
The business economics remain those of a fixed-price EPC contractor with a margin threshold. Solar EPC is still the core: it produced roughly 97-98% of revenue in the first nine months of FY26 and remains the segment management calls the key growth driver. WRTL prices work at an internal floor of about 15% EBITDA, locks module procurement on turnkey orders, and has historically delivered standalone solar EPC margins in the high teens. That model generated FY26 revenue of ₹3,331.42 crores and FY26 EBITDA margin of 19.24%. The new T&D business changes the consolidated arithmetic: APSPL's margin was 9-10% in Q2 FY27, below solar EPC, and full-quarter consolidation pulled consolidated EBITDA margin to 15.12% from about 18.8% in Q1 FY27. Management says it should maintain more than 15% and expects T&D improvement, but that is guidance, not a delivered result. The analyst inference is that the consolidated margin will sit closer to the T&D-weighted blend than to the old standalone solar EPC level until APSPL proves otherwise.
The earnings path is visible through the order book but not through a formal revenue target. At 30 September 2026 the consolidated unexecuted order book was more than ₹5,500 crores: more than ₹3,300 crores of solar and BESS EPC and more than ₹2,200 crores of T&D. Management says that book converts over the next three to four quarters. Q2 FY27 added 1.7 GWp of new orders, including new customers, which supports replenishment. The Q1 FY27 book was ₹5,300 crores, so the Q2 increase was modest after H1 revenue of ₹1,982.09 crores; the company needs continued order inflow, not just execution, to keep visibility beyond the current window. The 30-35 GW domestic and international solar pipeline and the ₹20,000 crore T&D pipeline are the raw material for that replenishment, but neither is a firm order.
Execution is the first operational milestone. Q2 FY27 execution fell to 456 MWp from 888.81 MWp in Q1, taking H1 FY27 to 1,345 MWp. Management attributed the decline to developer-side land handover delays and declined to quantify the delayed orders. That matters because land and connectivity sit in the developer's scope: WRTL can hold the order book but cannot recognize revenue until the customer is ready. The order book conversion guide of three to four quarters therefore carries a timing dependency, not just a volume dependency.
The second milestone is T&D margin. APSPL brought 108,000 MTPA of fabrication and galvanization capacity, more than 10,461 circuit kilometers of transmission-line experience, and an order book above ₹2,200 crores inside the consolidated book. Q2 FY27 disclosed T&D margin of 9-10%, lower than solar EPC, with improvement expected. If that margin moves up, the consolidated mix drag eases and the more-than-15% guide becomes easier to hold. If it stays at 9-10%, the consolidated margin remains near the floor and acquisition interest cost takes a larger share of operating profit.
Capital allocation is the third test. The APSPL acquisition was funded roughly 75% with debt. Q2 FY27 confirmed the debt was mainly for the acquisition and management intends to reduce it, but gave no timetable. The IPP build is funded from internal accruals at about INR3-3.5 crores per MWp; operating capacity reached 82.82 MWp at Q2 FY27, with a 198.6 MWp pipeline identified at Q1. O&M reached 1.5 GWp, giving a recurring service tail. Working capital uses non-fund-based bank limits, and management flags no bank guarantee constraint, but APSPL uses more of those limits than solar EPC, so the asset-light profile is already changing.
Management delivery is mixed but not broken. The old 14-16% FY26 margin guide was beaten, the 12-15 month order-book framework broadly held through FY26, and O&M and IPP operating capacity have grown. The weak spots are Q2 execution timing, T&D margin moving from the Q1 reference of about 11% to 9-10% in Q2, and data centre EPC still having no order after multiple calls. The BESS order book was about INR200 crores at Q1 FY27 but was not split in Q2, so its progress cannot be measured from the latest disclosure.
The falsifiers are specific. A consolidated EBITDA margin below 15% for FY27, with T&D still at 9-10%, would show the mix drag is structural rather than transitional. An order book that fails to convert within three to four quarters would show developer land readiness is a recurring constraint, not a one-quarter delay. A group-entity order share that remains at 30-40% without clarification would keep related-party dependence in the revenue base. Flat or rising acquisition debt with no reduction path would keep interest cost ahead of T&D profit. No BESS split and no data centre order would leave the new lines as narrative rather than earnings. Conversely, evidence that T&D margin is moving above 9-10%, that the more-than-₹5,500 crore book is converting on schedule, and that 1.7 GWp of Q2 order inflow is turning into a larger book would validate the platform thesis without requiring a solar EPC margin upgrade.
companyname: Waaree Renewable Technologies Limited ticker: WAAREERTL sector: Renewable Energy – Solar EPC & Transmission/Distribution Infrastructure WRTL is the engineering, procurement and construction arm of the Waaree group, a subsidiary of Waaree Energies Limited, the listed solar module maker. The company builds solar power plants for other people, maintains a growing portfolio of plants it has already built, and runs a small collection of its own solar assets. In Q1 FY27 it added transmis...
Read the full report →Management explicitly said it should maintain more than 15% EBITDA margin. It described current T&D margin at 9-10% and expected improvement in coming quarters. It also said the more-than-₹5,500 crore unexecuted order book would convert over the next three to four quarters. No revenue or execution-volume target was given.
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