Waaree Energies shares plunge 11% as EBITDA margin drops despite strong profit and revenue growth
Q4 profit rises 71% and revenue more than doubles, but margin miss weighs on sentiment
₹10,000 crore fundraise and semiconductor foray signal long-term growth
Waaree Energies Shares Sink 11% After Q4, Weak Margins Spook Investors
Profit jumps 71% and revenue doubles, but EBITDA margin falls sharply; ₹10,000 crore fundraise, semiconductor foray in focus
Summary
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Shares of Waaree Energies plunged nearly 11% on Thursday after the company reported a sharper-than-expected contraction in margins for the March quarter (Q4 FY26), overshadowing strong growth in profit and revenue.
The stock fell over 11% intraday to ₹3,112.10 and was trading around ₹3,145, down 10.23% in afternoon trade, underperforming the broader BSE Sensex, which was down about 1.5%.
Waaree Energies reported a 71.44% year-on-year rise in consolidated net profit to ₹1,061.1 crore for Q4 FY26, compared with ₹618.91 crore in the same quarter last year. Revenue from operations surged 111.79% to ₹8,480.25 crore, reflecting strong demand and scale-up in operations.
Operating EBITDA rose 70.91% to ₹1,576.76 crore, but EBITDA margin declined sharply to 18.59% from 23.04% a year ago, weighing on investor sentiment.
Margins Miss Expectations
The company's performance fell short of analyst expectations on profitability. Estimates by Kotak Institutional Equities had pegged revenue at ₹8,999.2 crore and net profit at ₹1,310.3 crore, indicating a miss on both counts.
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The margin pressure was attributed to higher input costs and a sharp contraction in gross margins, despite strong volume growth.
Nomura maintained a 'Buy' rating with a target price of ₹3,750, noting that while revenue beat expectations, EBITDA missed estimates due to margin compression. It added that the stock is currently trading at 16x and 13x FY27 and FY28 EBITDA estimates, respectively.
Alongside the results, the company announced a final dividend of ₹2 per share for FY26, subject to shareholder approval.
The board also approved raising ₹10,000 crore through a qualified institutional placement (QIP) to support expansion and diversification plans. Waaree Energies also indicated a strategic entry into the semiconductor space as part of its long-term growth strategy.
Management said FY26 was marked by strong execution, scale expansion and improved operational efficiency. It has guided for EBITDA in the range of ₹7,000–7,700 crore for FY27, with a focus on deepening value chain integration and expanding into adjacent segments.
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Despite robust growth in topline and profit, the sharp margin contraction and earnings miss weighed on investor sentiment, leading to a steep decline in the stock.