Waaree Energies Falls Ahead of Q1 Results

RR Team

4 months ago

Stock Drops 2% Before Earnings Report

Waaree Energies saw its shares dip by 2% on Monday morning, just before the release of its Q1 FY26 results. The stock had climbed nearly 50% since its April lows. So, this minor fall might be a classic case of “buy the rumour, sell the news.”

Despite the dip, investor sentiment remains strong. The market is expecting a sharp rise in both revenue and profitability.

What Analysts Expect

Brokerage firm Nuvama has projected impressive numbers. According to their estimates:

Revenue: ₹1,460 crore, up 31% year-on-year (YoY)
EBITDA: ₹312 crore, up 88% YoY

These expectations are based on improved demand for solar modules and progress on the company’s manufacturing ramp-up.

Focus on Solar Cell Ramp-Up

Waaree’s solar cell production capacity is under close scrutiny. Any update regarding commissioning timelines or production scale-up could significantly affect sentiment.

The ramp-up of its new solar cell manufacturing facility is seen as a long-term revenue driver. It could also boost EBITDA margins, thanks to vertical integration and cost optimization.

Key Performance Drivers

Multiple factors are supporting Waaree Energies’ expected performance:

Strong solar panel demand in both domestic and export markets
Government incentives under PLI scheme for solar module manufacturing
Focus on high-efficiency modules for premium markets
Improved logistics and supply chain conditions post-COVID

All these trends point towards higher realizations and better capacity utilization.

Why the Dip, Then?

The recent 2% fall is likely due to profit booking. With a 50% surge since April, some investors are locking in gains ahead of the results.

Another factor could be concern over valuation. The stock is trading at a premium, and any earnings miss could trigger a short-term correction.

What to Watch in the Earnings Call

Investors and analysts will look for clarity on:

Ramp-up of the solar cell facility
Guidance for FY26 revenue and margin expansion
New export orders and global partnerships
Any government policy impacts on renewable energy sector

Management commentary on operating margin sustainability will be critical.

Inline Image: Waaree Energies expanding its solar panel production capacity

Looking Ahead

Waaree Energies is well-positioned in the fast-growing solar energy market. With India targeting 500 GW of renewable capacity by 2030, the company stands to gain immensely.

While near-term stock movement may remain volatile, the long-term outlook remains robust. Much now depends on the actual Q1 numbers and forward-looking guidance.

Conclusion

Waaree Energies’ Q1 results are expected to be strong, driven by demand and manufacturing expansion. Yet, the stock’s recent dip reminds investors to remain cautious amid high expectations.

The earnings report will be a critical test of Waaree’s ability to maintain its growth momentum and justify its premium valuation.