Event Participants
Executives
2 Nikunj Jain (IR - MUFG Intime India Private Limited), Manmohan Sharma (CFO)
Analysts
13 Animesh Jain (Dalal & Broacha), Aryan Vijan (RV Investments), Ashray Sheth (Ventura Securities), Deeya Jain (Sapphire Capital), Manish Murarka (M. Murarka & Co.), Ninad Sarpotdar (InCred Capital), Paras Kulkarni (Ignite Capital), Rajesh (Individual Investor), Sahil Sheth (Anand Rathi), Shivam Gupta (Trinetra Asset Managers - partial), Shubham Jain (Centricity), Sidharth S (NAFA), Umang Adatia (Individual Investor), Venkatesha R.J. (Individual Investor), Shivam Patel (PL Capital - connection issues)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Revenue from Operations | ₹924.25 crores | +53.23% YoY; driven by project execution strength and quality order book |
| EBITDA | ₹173.48 crores | Consolidated; margin diluted slightly by APSPL consolidation (12 days) |
| PAT | ₹118.97 crores | +37.7% YoY; impacted by acquisition-related interest costs |
| Projects Executed | 888.81 MWp | Q1 FY27 execution; consistent with guidance of executing order book over 12-15 months |
| Unexecuted Order Book (consolidated) | ₹5,300 crores | Includes CMD; split ~₹2,400 crores pure solar EPC + ₹200 crores BESS EPC + T&D balance |
| O&M Portfolio | 1.15 GWp | Slight reduction from 1.18 GWp due to contract expiries/renewals; strengthens recurring revenue |
| Standalone EBITDA Margin | ~19% | Maintained/improved YoY; standalone EPC margins intact (improved ~20 bps QoQ) |
| Consolidated EBITDA Margin | ~15% (target trajectory) | Slight drop purely due to T&D business consolidation; 12 days of APSPL in Q1 |
| Prior Year Revenue (FY26) | ₹3,300 crores | Execution capability benchmark for current year |
| IPP Assets (current) | 82 MWp | Small plants (20-25 MW each); adds recurring revenue stream |
| IPP Pipeline | 198.6 MWp | Under development across multiple locations with land and connectivity |
| APSPL Manufacturing Capacity | 1,08,000 MT/annum | Fabrication/ galvanization for transmission towers, wind turbine, telecom towers, solar structures |
| APSPL Track Record | 10,461+ ckm | Transmission lines executed across India and international markets |
| Order Pipeline - Solar (domestic) | ~27 GW | Being chased; conversions expected in upcoming quarters |
| Order Pipeline - Solar (international) | ~10-11 GW | Additional international pipeline in discussion |
| Order Pipeline - T&D | ~₹20,000 crores | Actively negotiating; some in advanced discussions |
| Working Capital Cycle | 60-90 days | Progressive billing basis; advances received as % of order value |
Geographic & Segment Commentary
Solar EPC (Standalone): Executed 888.81 MWp in Q1; order book of ~₹2,400 crores pure solar EPC plus ~₹200 crores BESS. Management maintaining ~19% EBITDA margin trajectory, improved 20 bps QoQ. Chasing 27 GW domestic and 10-11 GW international pipeline; ALMM extension expected to accelerate order inflows ahead of deadlines.
BESS EPC: Order book of ~₹200 crores (combination of orders, ~1,520 MWh total). Margins expected in line with overall company threshold (15%+). Actively bidding on grid-stability-driven BESS opportunities; demand supported by India's 208 GWh storage requirement by 2030.
T&D (APSPL - 55% acquired): Integrated EPC for substations and transmission lines with 1,08,000 MT/annum in-house manufacturing. Executed 10,461+ ckm historically. Margins currently ~11% (up from 9.7% in FY25), below company threshold; management sees scope for improvement via synergies. Execution timelines 18-24 months typical (9-12 months for shorter lines). NEP plan of ₹4,90,920 crores investment (2027-32) in transmission provides structural tailwind.
O&M: Portfolio at 1.15 GWp; small reduction due to contract expiries. Management aims to capture O&M contracts at award stage for new projects, growing recurring revenue base.
Company-Specific & Strategic Commentary
APSPL Acquisition: Completed 55% equity acquisition in Associated Power Structures (Vadodara) during Q1. Financed ~75% debt, balance self-funded. Strategic rationale: grid/power evacuation integration with renewable EPC; creates complete transmission value chain; cross-selling opportunities between solar EPC and T&D businesses.
IPP Development: Building small-scale IPP plants (20-25 MW each) totaling 198.6 MWp pipeline; current operating capacity 82 MWp. Provides steady revenue stream alongside EPC; assets added opportunistically where land and grid connectivity available.
BESS Capability Building: BESS EPC orders in book (~₹200 crores); active bidding on grid-stability opportunities. Combination of orders (not single contract) including ~1,520 MWh. Margins in line with company thresholds.
Data Center Expansion: Actively pursuing EPC opportunities in data center space; in discussions with potential customers. Building capability and hiring personnel; no orders received yet.
Group Entity Dependence: 30-40% of order book from group entities; inter-company orders eliminated at consolidated level. Management directed detailed queries to IR for clarification.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Revenue | FY27 implied strong growth | Order book of ₹5,300 crores executable over 12-15 months; Q1 already delivered ₹924.25 crores; no formal guidance issued |
| EBITDA Margin (consolidated) | ~15% for FY27 | Management targeting ~15% including APSPL impact; standalone EPC maintained ~19% historically; T&D margin improvement ongoing |
| Order Inflows | No quantitative guidance | Pipeline of 27 GW domestic + 10-11 GW international solar and ~₹20,000 crores T&D; expectations of conversions in upcoming quarters |
| Order Book Execution | 12-15 months | Current ₹5,300 crores to be executed plus new orders expected during FY27 |
| T&D Margins | Improvement expected | Current ~11% in APSPL; management working on cost rationalization and process improvements; no committed timeline |
| O&M Portfolio | Growth expected | New project awards to add O&M contracts at award stage |
Risks & Constraints
| Risk | Context |
|---|---|
| Consolidated Margin Dilution | APSPL's ~11% EBITDA margin vs standalone ~19% dilutes consolidated margins. Management acknowledges and targets ~15% consolidated, but no confirmed margin improvement timeline was provided; interest costs on 75% debt-financed acquisition further pressure PAT margins |
| Group Entity Order Concentration | 30-40% of order book from group entities. Management has not clarified the proportion of third-party vs inter-company orders, though inter-company revenue is eliminated at consolidated level; analyst raised concern on revenue quality |
| T&D Working Capital Intensity | T&D business is capital intensive with 60-90 day working capital cycle (progressive billing). Higher debt from acquisition (75% debt-funded) could pressure cash conversion; management asserts asset-light cash-generating model remains intact but acknowledged OCF monitoring required |
| Competitive Intensity in Solar EPC | Increasing competition noted by analysts; management states it only takes projects meeting risk-reward thresholds, but margin pressure remains a watch item |
| Regulatory (ALMM) Extension | Timeline extension for ALMM regulations expected to bring more projects to market; management sees this as positive for order inflows, not a risk to execution |
| Execution Capacity Constraints | Management claims ability to execute any size project (citing 2 GW and 1 GW projects in hand), but no formal capacity ceilings were quantified; execution dependent on customer clearances |
Q&A Highlights
Order Book Composition and Visibility
- Question: Does the ₹5,300 crore order book include BESS? What's the standalone order book? (Ninad Sarpotdar, InCred Capital)
- Answer: Order book split is ₹2,400 crores pure solar EPC + ₹200 crores BESS EPC; remaining is T&D (APSPL). Execution period is 12-15 months, with new orders expected during the year supplementing. (Manmohan Sharma, CFO)
Margin Dilution from APSPL
- Question: Is consolidated margin dip purely due to lower-margin T&D consolidation? (Ninad Sarpotdar, InCred; Paras Kulkarni, Ignite)
- Answer: Yes - standalone EPC margins improved ~20 bps QoQ and are in line with last two years. Consolidated dip is entirely from 12-day APSPL consolidation. (Manmohan Sharma, CFO)
Order Pipeline and ALMM Extension
- Question: Will ALMM extension accelerate order inflows? Any firm conversion guidance? (Paras Kulkarni, Ignite Capital)
- Answer: Pipeline being chased is 27 GW domestic + 10 GW international solar; no conversion guidance given but "maximum" conversions expected from existing customer negotiations in upcoming quarters. Management sees ALMM deadlines bringing more projects before closure. (Manmohan Sharma, CFO)
APSPL Acquisition Financing and Margins
- Question: Debt-equity mix on acquisition and margin improvement plans for low-ROCE T&D business? Any HVDC exposure? (Paras Kulkarni, Ignite Capital)
- Answer: 75% debt-funded. Margin improvement is ongoing exercise for entire group; no specifics shared. APSPL executes all T&D project types per opening remarks (transmission lines, substations, grid infrastructure). No dedicated HVDC confirmation. (Manmohan Sharma, CFO)
Competitive Intensity in Solar EPC
- Question: Is rising competition forcing aggressive bidding? (Shivam Gupta, Trinetra / Sidharth S, NAFA)
- Answer: Competition is "good for the industry"; company only takes projects meeting its risk-reward metrics. Diversification into T&D addresses competitive pressure and extends growth runway. (Manmohan Sharma, CFO)
Cash Flow and Asset-Light Model
- Question: Will APSPL acquisition structurally decline OCF conversion? (Umang Adatia, Individual Investor)
- Answer: No material structural decline expected; APSPL is a mature business (3 decades) with strong revenue stream. Interest costs from acquisition will normalize as business expands. Working capital 60-90 days on consolidated basis. (Manmohan Sharma, CFO)
BESS Order Details
- Question: Value, timeline, and margins for 1.5 GWh BESS order? (Sahil Sheth, Anand Rathi; Ninad Sarpotdar, InCred)
- Answer: This is a combination of orders (~₹200 crores) rather than a single award. Margins in line with company thresholds (15%+). BESS sizing varies with duration (2-4 hours), so per-MW revenue benchmarks aren't disclosed. (Manmohan Sharma, CFO)
FY27 Execution and Guidance
- Question: How much can be executed this year? Any margin guidance? (Deeya Jain, Sapphire Capital)
- Answer: FY26 revenue was ₹3,300 crores; capability can be enhanced further. Order book of ₹5,300 crores plus new orders over next 9 months to drive FY27 execution. No formal margin guidance, but "around 15%" consolidated EBITDA margin indicated. (Manmohan Sharma, CFO)
T&D Pipeline and Working Capital
- Question: What's T&D order pipeline and typical margins/timelines? (Ashray Sheth, Ventura Securities)
- Answer: ~₹20,000 crores T&D pipeline being pursued; execution timelines 18-24 months (9-12 months for shorter lines). Working capital 60-90 days tied to progressive billing milestones. (Manmohan Sharma, CFO)
Group Entity Orders
- Question: What % of orders are from sister concerns? Are these independent contracts? (Manish Murarka, M. Murarka & Co.)
- Answer: ~30-40% of order book is from group entities. Inter-company orders get eliminated at consolidated level; external group orders appear as revenue. Detailed breakdown referred to IR for formal response. (Manmohan Sharma, CFO)
IPP Assets and O&M
- Question: IPP pipeline size and O&M portfolio movement? (Animesh Jain, Dalal & Broacha; Ninad Sarpotdar, InCred)
- Answer: Current IPP 82 MWp operating, 198.6 MWp pipeline in 20-25 MW blocks. O&M at 1.15 GWp (down from 1.18 GWp) due to contract expiries awaiting renewals. O&M contracts are captured at award stage for new projects. (Manmohan Sharma, CFO)
Data Center EPC
- Question: Data center strategy and capability? (Rajesh, Individual Investor; Manish Murarka, M. Murarka & Co.)
- Answer: Actively pursuing data center EPC opportunities; in discussions with customers. Building team and capability; no orders yet. Not directly related to Indosolar tolling business (Waaree Energy call separate). (Manmohan Sharma, CFO)
Key Takeaway
Waaree Renewable Technologies delivered a strong Q1 FY27 with revenue of ₹924.25 crores (+53.2% YoY), PAT of ₹118.97 crores (+37.7% YoY), and 888.81 MWp executed. The quarter was defined by the completion of the 55% acquisition of Associated Power Structures, a 75% debt-funded ₹200+ crore deal that diversifies the company into T&D EPC (1,08,000 MT/annum manufacturing, 10,461+ ckm track record) and addresses grid evacuation demand alongside the National Electricity Plan's ₹4,90,920 crore transmission investment (2027-32). Consolidated order book stands at ₹5,300 crores (₹2,400 crores solar EPC + ₹200 crores BESS + T&D), executable over 12-15 months, supported by a deep pipeline of 27 GW domestic and 10-11 GW international solar plus ~₹20,000 crores of T&D opportunities. Management maintains standalone EPC margins ~19% with consolidated margins targeted at ~15% for FY27, though T&D margin dilution (11% APSPL level) and acquisition interest costs remain watch items. The company is also building 198.6 MWp of IPP capacity and pursuing data center EPC entry. With ALMM-driven order inflows expected ahead of December deadlines and BESS demand supported by India's 208 GWh storage requirement, growth visibility remains robust, though clarity on group entity order mix (30-40% of order book) and T&D margin trajectory will be key monitorables in coming quarters.