Waaree Q2: Consolidated PAT falls 14% YoY, margins compress despite tariff refund

Waaree Energies' consolidated PAT for Q2 FY27 (quarter ended September 30, 2026) fell 14.2% YoY to ₹753.6 Cr from ₹878.2 Cr a year ago, and was down 15.5% sequentially from ₹891.9 Cr in Q1 FY27 — even as consolidated revenue from operations grew 23.9% YoY to ₹7,517.7 Cr (down 5.2% QoQ). The headline growth is flattered by a one-off: following a US Supreme Court ruling that reciprocal IEEPA tariffs on exporters were unlawful, the Group recognised ₹360.4 Cr as "other operating revenue" plus a ₹25.1 Cr reduction in cost of materials/inventory (Note 6). Stripped of this ₹385.5 Cr pre-tax tailwind, adjusted revenue growth was 18.0% YoY and adjusted PAT fell roughly 46% YoY to an estimated ₹471 Cr — a materially weaker underlying print than the reported numbers suggest. Our pre-result preview flagged a PAT margin range of 11-13% and EBITDA margin of 18-20%; actual NPM came in at 10.0% reported (6.6% adjusted), below that band, while revenue (within ₹7,500-8,200 Cr) and reported EBITDA margin (~19.7%) were met only on an unadjusted basis. Consolidated NPM compressed to 10.0% (6.6% adjusted) from 14.5% a year ago and 11.2% last quarter, and EBITDA margin fell to roughly 19.7% (15.3% adjusted) from about 25.8% in Q2 FY26 — continuing, not arresting, the slide our preview ("Margins in Focus") flagged after Q1's contraction. By segment, Solar PV Modules (87% of revenue) grew 22.4% YoY but fell 11.2% QoQ to ₹6,571.0 Cr; EPC contract revenue dropped 41.4% YoY to ₹447.2 Cr; and the newer Transmission & Distribution segment surged to ₹606.1 Cr from ₹112.8 Cr a year ago, partly offsetting the EPC decline. Finance costs rose to ₹105.3 Cr from ₹96.1 Cr YoY as capex scaled (capital work-in-progress up to ₹7,578.3 Cr from ₹3,476.2 Cr at FY26-end) ahead of revenue. The standalone (parent-only) numbers diverge sharply from the consolidated picture — standalone revenue was effectively flat YoY at ₹4,577.6 Cr (-0.1%, or -6.3% stripping its own ₹282.3 Cr tariff-refund credit) and standalone PAT fell 42.1% YoY to ₹670.9 Cr, versus the group's milder 14.2% decline — meaning nearly all of this quarter's consolidated growth is coming from subsidiaries, not the parent. Management's FY27 operating EBITDA guidance of ₹7,000-7,700 Cr, reaffirmed last quarter, looks stretched: H1 FY27 adjusted EBITDA of roughly ₹2,707 Cr annualises well below the guided band, leaving H2 to carry a steep ramp as cell capacity scales toward the stated 15.4 GW year-end target and module utilisation moves to the guided 70-75% in Q3-Q4 — neither disclosed in this filing to verify progress. No management press-release commentary was provided alongside this filing to compare against the numbers. The same board meeting also approved the 100% acquisition of Waaree Green Data Centers Private Limited (with its two subsidiaries) from fellow subsidiary Waaree Renewable Technologies for a nominal ₹1 lakh, formalising a move into data-centre infrastructure; separately, the Indosolar amalgamation (approved September 23) and entry into specialty gases (announced September 24) continue the diversification push, though neither moved this quarter's P&L. On the US Customs matter (Note 5), the company said CBP has affirmed its position of not using Chinese cells in US-bound exports but flagged certain entries for further review under AD/CVD orders, for which the company has sought administrative review — no incremental provision was booked this quarter beyond the ₹294.78 Cr already recognised in FY26.