Waaree Energies Limited

Technology — Solar · NSE

₹2,565.40+₹71.40 (+2.86%)

DalalBaazaar Score

72 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by negative free cash flow.

In simple words: Strong business and financial position, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:09 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

The 60-second version of Waaree Energies Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Waaree Energies Limited manufactures and trades in solar photovoltaic modules in India and internationally. It operates through Solar Photovoltaic Modules; Generation of Power; and Engineering, Procurement and Construction Contract segments.

IndustrySolar

SectorTechnology

Employees2,110

Annual revenue₹25,955 Cr

How does it make money?

Turns over ₹25,955 Cr a year. Of every ₹100 of sales, about ₹14 reaches shareholders as profit, with ₹25 left at the operating level before interest, tax and depreciation. Each of its 2,110 employees supports ₹12.30 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin24.9%

Net margin14.3%

Revenue / employee₹12.30 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA CONSULTANCY SERV LT, INFOSYS LIMITED, HCL TECHNOLOGIES LTD, WIPRO LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

TATA CONSULTANCY SERV LTP/E 17.3x · ROE 45.6%

INFOSYS LIMITEDP/E 15.8x · ROE 32.0%

HCL TECHNOLOGIES LTDP/E 20.4x · ROE 24.6%

WIPRO LTDP/E 14.5x · ROE 15.9%

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 30.1%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 25.7% against a peer median of 32.0% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

ROCE30.1%

ROE25.7%

Peer median ROE32.0%

What is the outlook?

13 analysts covering the stock expect revenue to grow about 19.5% and earnings to grow about 8.2% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+19.5%

Est. earnings growth+8.2%

Analysts13

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +293% while net margin moved +96% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+293%

Margin effect+96%

DalalBaazaar Score

72/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

79/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

69/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

19.4x

2Y Median

49.0x

26 monthly readings · mean 47.9x · range 18.4x–72.9x

Sector Median

16.5x

median of 4 sector peers

🟢Current valuation is approximately 60% below its 2y median of 49.0x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

⚠️Against its sector it trades 17% above the peer median of 16.5x.

vs. its own history

Cheap

49.0x median over 26 months · -60%

vs. sector peers

Fair

16.5x median of 4 peers · +17%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

19.4x

P/B

5.11x

EV/EBITDA

11.9x

PEG

0.20

Dividend Yield

0.16%

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 14.0% to 24.9% over 3 years.
High return on capital employed
ROCE of 30.1% is the mark of a business that converts capital into profit efficiently.
Valuation below its historical average
At 19.4x the stock trades 60% below its own median of 49.0x.
Very low debt
Debt/Equity of 0.21x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention3

Debt is rising
Total debt is up 307% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Receivables growing faster than sales
Receivables are up 697% against revenue growth of 293% — customers are taking longer to pay.

Red Flags

4 items require attention · 3 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 307% over 3 years, from ₹906 Cr to ₹3,692 Cr.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🔴Receivables growing faster than salesFinancial
Receivables up 697% against revenue up 293% — sales are being booked faster than they are collected.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹3,255 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 30.1% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 14.0% to 24.9%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 60% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 697% against revenue up 293%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Several serious flags at once
3 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 43% a year✓ 57.8% CAGR
Latest reported year was 79.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 23%✓ 24.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹3,255 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.6x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 27%✓ 30.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

10 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 3 neutral · 2 weak

Market Cap

₹73,794 Cr

Mid Cap

Mid-sized — more growth headroom, but sharper swings than large caps

P/E (Trailing)

19.4x

Fair

Fairly valued against the generic band

P/B Ratio

5.11x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹132.5

Profitable

Profitable on a per-share basis

ROE

25.7%

Strong

Strong capital efficiency

ROCE

30.1%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.21x

Low

Conservative leverage

Revenue Growth (YoY)

79.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

14.2%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.16%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹3,255 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹2,565.4

P/E (Forward)

16.0x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

14.0%

Average

Average margins

Net Margin

12.7%

Good

Strong bottom-line conversion

Current Ratio

1.38

Comfortable

Healthy short-term liquidity

52W Range Position

21%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

2437.5 / 2553.4

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

55.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹6,608 Cr	₹11,371 Cr	₹14,376 Cr	₹25,955 Cr	+57.8%
EBITDA	₹925 Cr	₹1,764 Cr	₹3,062 Cr	₹6,470 Cr	+91.2%
EBITDA Margin	14.0%	15.5%	21.3%	24.9%	—
PAT (Net Profit)	₹483 Cr	₹1,237 Cr	₹1,867 Cr	₹3,711 Cr	+97.4%
EPS	₹16.8	₹43.06	₹67.96	₹128.84	+97.2%
ROE	26.3%	30.3%	19.7%	25.7%	—
ROCE	30.0%	31.5%	24.2%	30.1%	—
Total Debt	₹906 Cr	₹1,092 Cr	₹1,492 Cr	₹3,692 Cr	+59.7%
Free Cash Flow	₹695 Cr	₹963 Cr	-₹116 Cr	-₹3,255 Cr	—

🟢 Revenue has grown at 57.8% a year over 3 years.

🟢 EBITDA has grown at 91.2% a year over 3 years.

🟢 EBITDA Margin has risen from 14.0% to 24.9% over 3 years (+10.9 pts).

🟢 PAT (Net Profit) has grown at 97.4% a year over 3 years.

🟢 EPS has grown at 97.2% a year over 3 years.

🟡 ROE has held roughly flat at 25.7% over 3 years.

🟡 ROCE has held roughly flat at 30.1% over 3 years.

🔴 Total Debt has grown at 59.7% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹695 Cr to -₹3,255 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹30,115 Cr

Total Liabilities

₹15,104 Cr

Total Debt

₹3,692 Cr

Cash & Equivalents

₹752 Cr

Operating Cash Flow

₹1,627 Cr

Capex

-₹4,882 Cr

Shareholding (proxy)

Institutional Holding

9.2%

Insider Holding

68.2%

Corporate Actions

Dividend Rate

₹4

Ex-Dividend Date

11 Sept 2026

Analyst Consensus

Recommendations

9 Buy · 2 Hold · 3 Sell

Target Price (Mean)

₹3,245.43

+26.5% vs CMP

Target Range

₹2,430 – ₹4,375

Peer Comparison

Company	P/E	ROE
TATA CONSULTANCY SERV LT	17.3x	45.6%
INFOSYS LIMITED	15.8x	32.0%
HCL TECHNOLOGIES LTD	20.4x	24.6%
WIPRO LTD	14.5x	15.9%

Recent News

1 mixed5 general

Waaree Energies promoter trust acquires 44.14% stake via gift

scanx.trade, 18 Oct

Waaree Energies shares jump 5%; what market participants need to know

Upstox, 13 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Waaree vs Premier vs Vikram Solar: Which Renewable Energy Equipment Stock Will Deliver Better Returns? TP

Goodreturns, 16 Oct

Waaree Energies ramps up BESS, inverter plans; PL Capital sees 22.5% revenue CAGR

ET EnergyWorld, 16 Oct

Waaree Energies share price: Joindre Capital initiates coverage | Check target, rationale, upside, returns

TradingView, 22 Sept

Buy Waaree Energies; target of Rs 3115: Prabhudas Lilladher

Moneycontrol.com, 15 Oct

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟢Business QualityStrong15.4/20

🟡Financial HealthAdequate12/20

🟢GrowthStrong18.5/20

🟢ProfitabilityStrong13.1/15

🟡ValuationFair9.1/15

🔴RiskHigh3.9/10

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 3 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 43% a year57.8% CAGR
✓EBITDA margin holds above 23%24.9%
✗Free cash flow remains positive-₹3,255 Cr
✓Debt / EBITDA stays below 2x0.6x
✓ROCE stays above 27%30.1%