Waaree Energies Share Price Turns Volatile Despite Robust Second Quarter Results
Waaree Energies Ltd.’s share price declined 1.32% on Friday, despite the company reporting its best-ever quarterly performance. The company posted a strong performance in the September quarter, with revenue rising 69.7% year-on-year to Rs 6,066 crore from Rs 3,574 crore.
Key Highlights of Q2 Results
- Revenue rose 69.7% year-on-year to Rs 6,066 crore
- Ebitda more than doubled to Rs 1,406 crore compared to Rs 525 crore
- Operating margins improved sharply to 23.2% from 14.7%
- Net profit saw a significant jump, coming in at Rs 843 crore versus Rs 362 crore in the same period last year
Management Guidance and Dividend Announcement
The management reaffirmed its FY26 Ebitda guidance of Rs 5,500-6,000 crore. Additionally, Waaree Energies announced its first dividend of Rs 2 per equity share for the fiscal 2026, which will result in a payout of nearly Rs 57.53 crore to shareholders. The board has fixed Oct. 24 as the record date to determine the eligibility of shareholders, and the interim dividend will be paid on Nov. 6.
Stock Price Movement and Market Reaction
The scrip fell as much as 2.38% to Rs 3,541 apiece, before paring losses to trade 1.97% lower at Rs 3,627 apiece. This compares to a muted advance/decline in the NSE Nifty 50 Index. Despite the decline, the stock has risen 51.53% in the last 12 months. Total traded volume so far in the day stood at 0.98 times its 30-day average, with the relative strength index at 37.45.
Uncertainty and Potential Impact on Financials
The outcome of a US Customs probe into alleged evasion of anti-dumping and countervailing duties on solar cells from China and other Southeast Asian nations is uncertain, and the impact on financials has not yet been accounted for, the company said. This uncertainty may have contributed to the stock price volatility, despite the strong Q2 results.
What Does This Mean for Indian Investors?
For Indian investors, the volatility in Waaree Energies’ stock price despite strong Q2 results may be a cause for concern. However, the company’s reaffirmed guidance and dividend announcement suggest a positive outlook for the future. Investors should consider the potential risks and opportunities in the renewable energy sector and the impact of global trade policies on Indian companies. To stay informed, investors can follow the latest stock market news and analysis, and consider consulting with a financial advisor before making investment decisions.
Conclusion
In conclusion, Waaree Energies’ Q2 results were strong, but the stock price volatility may be a cause for concern for Indian investors. However, the company’s guidance and dividend announcement suggest a positive outlook, and investors should consider the potential opportunities and risks in the renewable energy sector. By staying informed and consulting with a financial advisor, investors can make informed decisions and navigate the complexities of the Indian stock market.
