Waaree Renewable Technologies Limited

Industrials — Engineering & Construction · NSE

₹839.00+₹32.60 (+4.04%)

DalalBaazaar Score

66 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by small-cap size, which brings sharper price swings.

In simple words: Strong business and financial position, with both sales and profits growing well. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:02 pm

Understanding the Business

Company site ↗

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

What does this company do?

Waaree Renewable Technologies Limited primarily engages in the engineering, procurement, and construction (EPC) contracts business in India.

IndustryEngineering & Construction

SectorIndustrials

Employees399

Annual revenue₹3,330 Cr

How does it make money?

Turns over ₹3,330 Cr a year. Of every ₹100 of sales, about ₹14 reaches shareholders as profit, with ₹19 left at the operating level before interest, tax and depreciation. Each of its 399 employees supports ₹8.35 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹8.35 Cr

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., ADANI PORT & SEZ LTD, SIEMENS LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

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

ROCE has stayed above 15% in every year available and stands at 61.6%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 51.2% against a peer median of 14.1% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE14.1%

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 +849% while net margin moved -9% 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+849%

Margin effect-9%

DalalBaazaar Score

66/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.46 — historically steadier than the index
✗ Small Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

70/ 100

Good

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

Valuation

75/ 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

17.2x

2Y Median

46.4x

20 monthly readings · mean 45.1x · range 17.9x–75.7x

Sector Median

30.1x

median of 3 sector peers

🟢Current valuation is approximately 63% below its 2y median of 46.4x. 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 43% below the peer median of 30.1x.

vs. its own history

Cheap

46.4x median over 20 months · -63%

vs. sector peers

Cheap

30.1x median of 3 peers · -43%

vs. generic bands

Fair

15x–35x

EV/EBITDA

13.6x

PEG

0.16

What's Good / What's Bad

🟢 What's Going Well4

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
High return on capital employed
ROCE of 61.6% is the mark of a business that converts capital into profit efficiently.
Very low debt
Debt/Equity of 0.16x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on equity is falling
ROE has dropped from 65.1% to 51.2% — each rupee of shareholder capital earns less than it did.

Red Flags

3 items require attention · 2 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 274% over 3 years, from ₹39 Cr to ₹146 Cr.
🔴Receivables growing faster than salesFinancial
Receivables up 1812% against revenue up 849% — sales are being booked faster than they are collected.
🟡Margins are compressingFinancial
EBITDA margin is down 4.8 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 61.6% 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.
Priced below its own history
The stock trades 63% 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.
Cheaper than its peers
It trades 43% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹164 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
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?

Margins are being competed away
EBITDA margin has fallen from 24.3% to 19.5%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Sales are being booked faster than collected
Receivables are up 1812% against revenue up 849%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 65.1% to 51.2%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
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.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

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

1Revenue growth stays above 84% a year✓ 111.7% CAGR
Latest reported year was 53.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 17%✓ 19.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹164 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 59%✓ 61.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

10 / 11 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
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

7 good · 3 neutral · 1 weak

Market Cap

₹8,757 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

17.2x

Fair

Fairly valued against the generic band

P/B Ratio

9.35x

Rich

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

EPS (TTM)

₹48.66

Profitable

Profitable on a per-share basis

ROE

51.2%

Strong

Strong capital efficiency

ROCE

61.6%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.16x

Low

Conservative leverage

Revenue Growth (YoY)

53.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

34.1%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹164 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

18.1%

Good

Healthy core-business profitability

Net Margin

13.9%

Good

Strong bottom-line conversion

Current Ratio

1.35

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.46

Defensive

Steadier than the market

52W Range Position

10%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

817.5 / 847.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

51.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹351 Cr	₹876 Cr	₹1,598 Cr	₹3,330 Cr	+111.7%
EBITDA	₹85 Cr	₹210 Cr	₹313 Cr	₹648 Cr	+96.8%
EBITDA Margin	24.3%	24.0%	19.6%	19.5%	—
PAT (Net Profit)	₹55 Cr	₹145 Cr	₹229 Cr	₹479 Cr	+105.2%
EPS	₹5.31	₹13.94	₹21.95	₹45.86	+105.2%
ROE	65.1%	58.9%	50.3%	51.2%	—
ROCE	62.7%	69.2%	60.3%	61.6%	—
Total Debt	₹39 Cr	₹40 Cr	₹27 Cr	₹146 Cr	+55.2%
Free Cash Flow	-₹18 Cr	₹117 Cr	₹201 Cr	₹164 Cr	—

🟢 Revenue has grown at 111.7% a year over 3 years.

🟢 EBITDA has grown at 96.8% a year over 3 years.

🔴 EBITDA Margin has fallen from 24.3% to 19.5% over 3 years (-4.8 pts).

🟢 PAT (Net Profit) has grown at 105.2% a year over 3 years.

🟢 EPS has grown at 105.2% a year over 3 years.

🔴 ROE has fallen from 65.1% to 51.2% over 3 years (-13.9 pts).

🔴 ROCE has fallen from 62.7% to 61.6% over 3 years (-1.0 pts).

🔴 Total Debt has grown at 55.2% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹18 Cr to ₹164 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,374 Cr

Total Liabilities

₹1,440 Cr

Cash & Equivalents

₹72 Cr

Operating Cash Flow

₹287 Cr

Capex

-₹122 Cr

Shareholding (proxy)

Institutional Holding

1.1%

Insider Holding

75.3%

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
ADANI PORT & SEZ LTD	29.9x	14.1%
SIEMENS LTD	88.8x	10.5%

Recent News

4 mixed2 general

Waaree Renewable Technologies Reports Q4FY26 Results and Earnings Call Highlights

scanx.trade, 15 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Suzlon Energy, Waaree Renewables, Satvik To IEX | 5 Mid, Small-Cap Stocks Below Industry Average P/E

Goodreturns, 17 Oct

Safety Controls & Devices Ltd Share Price

Business Today, 16 Oct

We Think That There Are Some Issues For Waaree Renewable Technologies (NSE:WAAREERTL) Beyond Its Promising Earnings

Simply Wall Street, 24 AprResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Waaree Renewable Technologies share price slips nearly 5% despite healthy Q1 earnings

Moneycontrol.com, 23 JulResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Waaree Renewable Technologies (WAAREERTL) Share Price near 52-week low as stock falls 2.41%

Univest, 08 OctPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Watch Items

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

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Profitability

MiddlingGrowth · Valuation · Risk

Points for each in the Score ↑

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. 2 high-severity red flags sit above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑