Are Waaree Energies latest results good or bad?

Waaree Energies has reported its financial results for the second quarter of FY26, showcasing significant growth across key metrics. The company achieved consolidated net sales of ₹6,065.64 crores, reflecting a year-on-year increase of 69.70% and a sequential growth of 37.05% from the previous quarter. This robust revenue performance underscores Waaree's ability to capitalize on the increasing domestic demand for solar modules, driven by government initiatives and corporate sustainability commitments.
The company's net profit for the quarter stood at ₹842.55 crores, which represents a remarkable year-on-year growth of 132.97% and a sequential increase of 13.06%. This growth in profitability is indicative of Waaree's effective operational execution and strong order book conversion, despite the challenges posed by rising raw material and employee costs.

Waaree Energies also reported an operating margin of 23.19%, a significant improvement from 14.68% in the same quarter last year. This margin expansion highlights the company's pricing power and operational efficiency in a competitive landscape. The operating profit before depreciation, interest, and tax (excluding other income) reached ₹1,406.40 crores, marking the highest quarterly EBITDA in the company's history.

The company's return on equity (ROE) was reported at 19.73%, demonstrating solid capital efficiency, while its return on capital employed (ROCE) was an impressive 80.93%. These metrics reflect Waaree's ability to generate substantial returns from its deployed capital base.

Despite these positive results, the company has seen an adjustment in its evaluation. The stock price, currently at ₹3,535.75, has experienced a slight retreat of 2.45% following the results announcement, although it remains above all key moving averages, indicating sustained bullish momentum.

Overall, Waaree Energies' financial performance in Q2 FY26 illustrates a continuation of its exceptional growth trajectory, supported by a strong operational framework and favorable market conditions within India's renewable energy sector. Investors should monitor the company's ongoing execution and market dynamics closely to assess future performance.