Waaree Energies Shares Crash Over 6% After Q1 Results; Margin Pressure and Rising Input Costs Rattle Investors

Waaree Energies shares came under heavy selling pressure on Thursday, July 30, falling more than 6% after the company announced its Q1 FY27 earnings. While the solar energy major reported a sharp rise in revenue and profit, investors remained concerned about shrinking operating margins and rising input costs, triggering a sharp decline in the stock price.

The stock fell 6.4% to an intraday low of ₹2,561 on the NSE, compared to its previous close of ₹2,736.20. During early trading, it continued to trade over 5% lower, reflecting weak market sentiment despite the company's healthy financial performance.

Why Did Waaree Energies Shares Fall?

The primary reason behind the sharp decline was the contraction in EBITDA margins, driven by a significant increase in raw material expenses.

Although the company delivered impressive growth in revenue and net profit, investors focused on the pressure on profitability caused by higher manufacturing costs.

The June-quarter results, announced after market hours on July 29, highlighted that rising expenses continued to weigh on operating performance.

Input Costs Surge More Than 63%

Waaree Energies reported a steep rise in raw material costs during the quarter.

Cost of materials consumed: ₹4,843.93 crore

Previous year: ₹2,962.43 crore

Year-on-year increase: 63.5%

The sharp increase in input costs reduced operating margins despite robust sales growth.

Waaree Energies Q1 FY27 Financial Highlights

Revenue from operations: ₹7,932 crore (up 79% YoY)

Net Profit: ₹850 crore (up 14% YoY)

Solar PV revenue growth: 91%

EPC business revenue growth: 55%

Power generation revenue: Down 9%

The company benefited from strong demand in its Solar PV manufacturing and Engineering, Procurement & Construction (EPC) businesses.

US Tariff Ruling Boosted Profit

Waaree Energies also received a boost from a US Supreme Court ruling declaring the Trump-era reciprocal tariffs illegal.

The company recognized income related to the refund of duties collected under the International Emergency Economic Powers Act (IEEPA), supporting its quarterly profit growth.

Why Investors Remain Cautious

Despite strong top-line growth, analysts believe investors are closely watching:

Rising raw material prices

Pressure on EBITDA margins

Higher manufacturing costs

Sustainability of future profitability

As a result, margin concerns outweighed the positive earnings numbers, leading to a sharp correction in the stock.