Waaree Energies Ltd. – FY2026 Board Update (April 29 2026)

Key Highlights

• FY2026 Consolidated Revenue: ₹27,245 cr (↑ 84% YoY)
• Net Profit: ₹3,884 cr (↑ 96% YoY)
• EPS (Basic): ₹129.10 per share
• Final Dividend Recommended: ₹2 per equity share (subject to AGM approval)
• Capital Raising Approval: Up to ₹10,000 cr via Qualified Institutional Placement (QIP) or other permissible modes.
• Strategic Acquisition: 100% of Waaree Semicon Private Ltd for ₹1 lac (cash) to build power‑semiconductor capabilities.
• Regulatory Matters: Provision of ₹295 cr for US Customs investigation; ongoing Income‑Tax probe; no material impact on FY results.

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Financial Performance

Metric	FY2025 (₹ cr)	FY2026 (₹ cr)	YoY Change
Revenue (Total Income)	14,444.50	27,244.92	+88%
Net Profit (Consolidated)	1,928.13	3,884.15	+101%
EPS (Basic)	68.24	129.10	+89%
Total Assets	19,485.35	30,115.37	+55%
Total Equity	9,595.28	15,010.89	+56%
Borrowings (Long‑term + Short‑term)	₹939.46 cr	₹2,491.53 cr	+166%

Cash Flow (FY2026)

• Operating cash inflow: ₹1,626.95 cr
• Investing cash outflow: ₹3,953.18 cr (mainly capex & FD investments)
• Financing cash inflow: ₹2,573.11 cr (borrowings & equity issuance)
• Net cash increase: ₹246.88 cr; cash & cash equivalents at year‑end: ₹774.16 cr.

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Strategic Initiatives

1. Capital Raising (QIP) – Up to ₹10,000 cr

• Provides runway for large‑scale projects (solar PV, ingot‑wafer plants) and potential acquisitions.
• Dilution risk if the full ceiling is tapped; however, the Board has not committed to a specific amount.

2. Semiconductor Acquisition

• Target: Waaree Semicon Private Ltd (non‑operating promoter‑group company).
• Deal Size: Nominal cash consideration of ₹1 lac for 10,000 shares – essentially a related‑party transfer.
• Objective: Build in‑house capability for power‑semiconductor devices (IGBTs, MOSFETs, PV diodes) to complement solar‑energy and EV solutions.
• Impact: Diversifies revenue streams; long‑term margin upside; integration risk is minimal as the entity is currently dormant.

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Regulatory & Compliance Updates

• US Customs & Border Protection Investigation: Ongoing probe on export origin of solar modules; provision of ₹294.78 cr recorded. No further adjustments pending final outcome.
• Income‑Tax Investigation (Nov 2025): Summons issued; provision recorded; matter unresolved.
• New Labour Codes: One‑time employee‑benefit provision of ₹7.14 cr recognized.
• Arbitration with Enel Green Power (SPA): Seller has initiated arbitration; Waaree disputes claims.

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Dividend & Shareholder Returns

• Board recommends final dividend of ₹2 per share (20% of face value).
• Dividend is contingent on AGM approval; aligns with improved profitability and cash generation.

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Risks & Opportunities

Risks

• Ongoing regulatory investigations could lead to additional penalties or operational constraints.
• Substantial increase in debt raises interest‑coverage risk, especially if capital‑raising is delayed.
• Potential dilution from a large QIP.
• Execution risk in semiconductor venture – technology development and market adoption.

Opportunities

• Strong revenue growth driven by solar PV module sales and expanding EPC contracts.
• Semiconductor entry positions Waaree in a high‑growth, high‑margin segment critical for renewable‑energy and EV markets.
• Access to fresh capital (up to ₹10,000 cr) to fund 6 GW manufacturing capacity in Gujarat & Maharashtra.
• Dividend payout enhances shareholder yield.

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Outlook

• Financial Outlook: Continued revenue acceleration expected as new solar capacity comes online and semiconductor products gain market traction.
• Capital Structure: Anticipated incremental borrowings and possible equity issuance; monitoring of leverage ratios will be essential.
• Strategic Outlook: The semiconductor acquisition could become a significant growth engine within 2‑3 years, subject to successful R&D and market entry.
• Overall Sentiment: Moderately positive – strong earnings momentum and strategic diversification offset by regulatory and leverage concerns.

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Prepared on 29‑Apr‑2026 for Waaree Energies Ltd. investors.