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

Shares of Waaree Renewable, the EPC arm of the Waaree Group, fell 7% on Thursday despite reporting healthy year-on-year earnings growth, with net profit rising 34% to nearly Rs 116 crore in Q1 FY27.

The stock dropped to Rs 951 during the session, its lowest level since June 12. While the company posted strong annual growth, net profit declined about 26% sequentially from Rs 157 crore in Q4 FY26, indicating investors were focused on the quarter-on-quarter slowdown.

Revenue from operations rose 53% year-on-year to Rs 924 crore in Q1 FY27 from Rs 603 crore in the year-ago quarter. However, it declined more than 16% sequentially from Rs 1,102 crore reported in Q4 FY26.


“We believe the true measure of business strength lies in sustained YoY growth,” the company said.

Waaree Renewable's EBITDA increased nearly 48% year-on-year to Rs 173 crore in Q1 FY27, while the EBITDA margin narrowed to 18.77% from 19.49% a year earlier.

The company said it is expanding capabilities beyond its core renewable EPC business into adjacent segments. Waaree Renewable added that the recent acquisition of Associated Power Structures (APSPL) strengthens its presence in the transmission and distribution (T&D) segment.

What Waaree Renewable’s management said

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.

Also read:Up to 451% return in 6 months! 11 smallcap stocks turn multibaggers as FIIs raise stakes for 2 straight quarters

The stock has delivered multibagger returns of over 2,870% in the past five years, though it remains down more than 14% over the last one year. It has gained over 9% in the past six months but slipped 3% in the last month and 5% over the past five trading sessions. The company currently commands a market capitalisation of Rs 10,015 crore.

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