Waaree Energies Achieves 17% Growth in Q2 FY25 Net Profit, Reaching ₹375.6 Crore

Waaree Energies Achieves 17% Growth in Q2 FY25 Net Profit, Reaching ₹375.6 Crore

Company Overview

Waaree Energies Ltd. is a prominent player in the renewable energy sector and one of India’s largest manufacturers of solar PV modules. Established in 1989, Waaree Energies has built a strong presence in the solar energy value chain, encompassing manufacturing, project development, and EPC (Engineering, Procurement, and Construction) services. Waaree operates state-of-the-art solar PV module manufacturing facilities with a total installed capacity of 12 GW, making it one of the largest in India. Waaree has developed and commissioned over 600 MW of solar power projects and has a pipeline of projects across multiple geographies. In FY23, Waaree Energies achieved a revenue of approximately ₹4,000 crores, demonstrating consistent growth driven by its diversified business segments.

Industry Outlook

The Indian solar sector is projected to grow at a CAGR of 15-20% between 2023 and 2030. The solar energy industry in India is at a transformative stage, driven by the government’s ambitious renewable energy targets, favourable policies, and increasing private sector participation. As of 2024, India has achieved over 80 GW of installed solar capacity, making it one of the largest solar markets globally. The country aims to achieve 280 GW of solar capacity by 2030, as part of its broader target of 500 GW from non-fossil fuel sources. The PLI (Production Linked Incentive) Scheme for solar module manufacturing provides financial incentives to enhance domestic production and reduce import dependency, particularly on China. Initiatives like Green Hydrogen Mission and solar-based hybrid projects are creating new opportunities in the solar sector. India is targeting 40 GW of domestic manufacturing capacityby 2026 under the PLI scheme.

Financial Summary

INR Cr.	Q1 FY25	Q2 FY25	FY23	FY24
Revenue	3409	3574	6751	11398
EBITDA	552	525	836	1575
OPM	16%	15%	12%	14%
PBT	531	499	677	1734
Net Profit	401	376	500	1274
NPM	11.7%	10.5%	7.41%	11.2%
EPS	19.99	13.73	24.49	62.72
C&CE	3698	3813	1736	3779

Business Segments:

• Solar PV Modules: Waaree Energies is the largest solar module manufacturer in India, with a 12 GW annual production capacity spread across multiple manufacturing facilities. It produces high-efficiency photovoltaic (PV) modules, including monocrystalline, polycrystalline, bifacial, and PERC (Passivized Emitter and Rear Cell) technologies.
• Power Generation: In Power Generation business segment focuses on producing electricity from diverse sources, including renewable and conventional energy.
• EPC Contracts: Provides turnkey solar solutions for utility-scale and rooftop projects. Waaree has successfully executed over 1 GW of EPC projects, including utility-scale solar farms and rooftop installations. End-to-end project management, from design and procurement to construction and commissioning.

Subsidiary Information:

• Waaree Clean Energy Solutions Private Limited: WCESPL is currently engaged in the business of generating, trading, purchasing, marketing, selling, importing, exporting, producing, manufacturing, transmitting, distributing, supplying, exchanging, or otherwise dealing in all aspects of thermal, hydro, nuclear, solar, wind power and power generated through non-conventional / renewable energy sources.
• Waaree Power Pvt Ltd: WPPL is currently engaged in the business of carrying out the business of generating, trading, purchasing, marketing, selling, importing, exporting, producing, manufacturing, transmitting, distributing, supplying, exchanging or otherwise dealing in all aspects of thermal, hydro, nuclear, solar, wind power and power generated through non-conventional / renewable energy sources.
• Waaneep Power Pvt Ltd: WSPL One is currently engaged in the business of generating, trading, purchasing, marketing, selling, importing, exporting, producing, manufacturing, transmitting, distributing, supplying, exchanging, or otherwise dealing in all aspects of thermal, hydro, nuclear, solar, wind power and power generated through non-conventional / renewable energy sources.
• Sangam Solar One Power Pvt Ltd: SSPL One is currently engaged in the business of generating, trading, purchasing, marketing, selling, importing, exporting, producing, manufacturing, transmitting, distributing, supplying, exchanging, or otherwise dealing in all aspects of thermal, hydro, nuclear, solar, wind power and power generated through non-conventional / renewable energy sources.
• Waaree Renewables Technologies Ltd: WRTL is currently engaged in the business of generating, trading, purchasing, marketing, selling, importing, exporting, producing, transmitting, distributing, supplying, exchanging or otherwise dealing in all aspects of thermal, hydro, nuclear, solar, wind power and power generated through non-conventional / renewal energy sources.

Q2 FY25 & Business Highlights

• Revenue of ₹3574 crore in Q2 FY25 down by 1.05% YoY from ₹3105 crore in Q2 FY24.
• EBITDA of ₹525 crore in this quarter at a margin of 15% compared to 14% in Q2 FY24.
• Profit of ₹376 crore in this quarter compared to a ₹321 crore profit in Q2 FY24.
• Capex of 5.4GW Cell Mfg. expected to be operational by FY25, 1.6GW Module Mfg. in USA expected to be operational by FY25.
• The current order book for the Company stands at approx. 20GW, and presently has 13.3 GW capacities. It has 5.4 GW Cell Manufacturing Facility at Chikli, 6 GW integrated facility at Odisha. And it has production volume of 3.3GW.
• The Solar and Batteries cost has been declined by almost 80% from 2012 till now.
• The order book as per geography is 27.5% domestic and 72.5% overseas. And till now, Pan India it has total 372 franchisees.

SWOT Analysis

Strengths:

1. Market Leadership: A dominant position in the industry ensures competitive advantage and strong market share.
2. Technological Edge: Advanced technologies provide an edge over competitors and drive innovation.
3. Strong Brand Presence: A well-established brand fosters customer trust and loyalty.
4. Policy Support: Favorable government policies and incentives promote growth and stability.

Weaknesses:

1. High Dependency on Imports: Reliance on imported components increases vulnerability to supply chain disruptions.
2. Limited Product Diversification: A narrow product portfolio limits the ability to tap into diverse customer needs.
3. Capital-Intensive Operations: High operational costs can strain resources and profitability.
4. Intense Competition: Fierce market competition pressures pricing and margins.

Opportunities:

1. Rising Solar Demand: Increasing adoption of renewable energy drives growth potential.
2. Energy Storage Solutions: Expanding into storage technology complements solar offerings.
3. Global Expansion: Entering international markets opens new revenue streams.
4. Backward Integration: Controlling supply chains enhances efficiency and cost management.

Threats:

1. Regulatory and Policy Risks: Changes in regulations or government policies can impact operations.
2. Price Volatility: Fluctuations in raw material costs affect pricing and profitability.
3. Global Trade Wars: Tariffs and trade restrictions disrupt supply chains and market access.
4. Economic Uncertainty: Economic slowdowns or instability could hinder growth prospects.