Waaree Renewable shares slide 7% despite 34% YoY surge in Q1 profit. What’s spooking investors?

The shares of the company dropped to Rs 951 apiece on Thursday, the lowest level seen since June 12. While consolidated net profit grew 34% from Rs 86 crore reported in Q1 of the previous financial year, it fell around 26% sequentially from the Rs 157 crore reported in Q4 of FY26.

Revenue from operations also increased over 53% YoY to Rs 924 crore in Q1 FY27 from Rs 603 crore reported in the corresponding quarter of FY26, but fell more than 16% quarter on quarter (QoQ) from Rs 1,102 crore reported in the previous quarter (Q4 FY26). “We believe the true measure of business strength lies in sustained YoY growth,” the company said.

Waaree Renewable’s EBITDA grew nearly 48% YoY to Rs 173 crore, while EBITDA margin declined to 18.77% in Q1 FY27 from 19.49% in Q1 FY26. The company said it has been expanding its capabilities across adjacent segments beyond its core renewable EPC business, adding that its recent acquisition of Associated Power Structures (APSPL) strengthens its presence in the transmission and distribution (T&D) space.

What Waaree Renewable’s management said

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The global business environment continues to face multiple challenges, including geopolitical tensions, tariff uncertainties, supply chain adjustments and regional conflicts, said Waaree Renewable CFO Manmohan Sharma. “Despite these headwinds, we are pleased to begin FY27 on a strong note, with consolidated revenue for Q1 FY27 at Rs 924.25 crores compared to Rs 603.19 crore in Q1 FY26, reflecting a robust growth of 53.23%. This performance was driven by steady execution across our EPC portfolio, efficient resource deployment, and a sustained focus on disciplined project delivery,” he added.

The executive said that the company’s acquisition of 55% stake in Associated Power Structures strengthens its capabilities in transmission and distribution (T&D), enabling it to offer integrated solutions while continuing to expand renewable EPC business in a disciplined and scalable manner.

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“Backed by a healthy unexecuted order book of Rs. 5,300+ crores, Waaree Renewable remains well positioned for sustained growth, supported by expanding O&M capabilities. Supported by a strong execution track record and expanding capabilities, we remain confident in our long-term growth strategy. We will continue to focus on disciplined execution, operational excellence, and delivering sustainable value to our stakeholders,” Manmohan Sharma further said.

Waaree Renewable share price
Waaree Renewable shares debuted on the BSE SME index in August 2012 with an issue size of Rs 5 crore. In 2019, the stock migrated to the main exchange after the company grew both in market capitalisation as well as sales.

The stock has delivered massive returns of more than 2,870% in the past five years, but have fallen over 14% in one year. While the stock has gained more than 9% in six months, it is down 3% in one month and 5% in the past five days. The company currently has a market capitalisation of Rs 10,015 crore.

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