Waaree RTL Q2 FY27: PAT falls 30% YoY to ₹81 Cr as solar EPC shrinks, T&D dilutes margin

Waaree Renewable Technologies' consolidated (primary) results for Q2 FY27 show profitability declining even as the topline grew: revenue rose 36.5% YoY to ₹1,057.84 Cr, but consolidated PBT fell 32.7% YoY to ₹105.36 Cr and net profit for the period fell 30.0% YoY to ₹81.48 Cr (owners' share ₹73.89 Cr after ₹7.59 Cr minority interest); EPS came in at ₹7.07 against ₹11.16 a year ago. Both PBT and PAT also fell sequentially (-35.5% and -31.5% QoQ) off a strong Q1. Against the pre-result Street preview, revenue landed just above the ₹950–1,050 Cr expected range, but EBITDA margin (~15.1%) came in well below the 18–20% range flagged, and PAT missed the ₹110–130 Cr band by a wide margin — a clear miss on profitability despite a topline beat. The revenue growth itself is not organic: the core EPC-Solar Power Plants segment — the business that has driven Waaree RTL's scale-up — saw revenue fall 42.1% YoY and 44.6% QoQ to ₹444.98 Cr. Every rupee of the quarter's growth came from the EPC-Transmission & Distribution segment (₹606.13 Cr this quarter vs nil a year ago), consolidated following the 18-June-2026 acquisition of a 55% stake in Associated Power Structures (APSPL) for ₹1,225 Cr. That segment carries a thinner ~4.8% result margin versus ~22.9% for legacy Solar-EPC, and the blended mix shift — combined with finance costs that jumped more than 10x YoY to ₹36.83 Cr (from ₹3.62 Cr) on acquisition-related borrowings, and depreciation that rose to ₹26.97 Cr (from ₹2.18 Cr) as ₹464.02 Cr of goodwill and new PP&E were added — is what compressed EBITDA margin to ~15.1% (from 20.4% YoY, 18.8% QoQ) and net margin to 7.6% (from 14.9% YoY). Standalone (parent-only) figures confirm the underlying weakness: standalone revenue fell 41.7% YoY to ₹451.64 Cr and standalone PAT fell 43.5% YoY to ₹68.13 Cr. Against management's own framing, the ~15.1% EBITDA margin is essentially in line with the ~15% FY27 margin target flagged on the prior concall (down from 19%+ historically) — so this quarter effectively confirms, rather than contradicts, that guided step-down, even as it undercuts the bulls' hope (per the pre-result Street read) that Q1's 20%+ margin was the new normal. No management press release accompanied this filing, so there is no fresh quarter-specific commentary to weigh against the numbers. Alongside the results, the Board approved capex for a 35 MWp/25 MWac IPP solar plant at Wardha, Maharashtra, and the quarter saw incremental EPC order additions (a ₹22 Cr scope enhancement on 15 October, a 5 MWp solar EPC win on 8 October, and a ₹14.79 Cr revised-scope order on 28 September) — none large enough to offset the core segment's revenue decline. Consolidated borrowings rose to ₹1,412.99 Cr from ₹81.67 Cr at FY26-end, funding the APSPL and newly incorporated data-centre subsidiaries (Sunstar and Aurovault, consolidated from September 2026), setting up finance-cost drag as a recurring theme to track into H2.