5 years CAGR of 273%: 316x returns in 5 years ₹1 Lakh invested would convert into ₹3.16 Crores

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ABOUT THE COMPANY

WAAREE RENEWABLE TECHNOLOGIES LIMITED is a prominent player in the India’s solar EPC (Engineering, Procurement, and Construction) sector. The company has executed over 10,000 projects with a total operating capacity of 600+ MW. With a 5-year CAGR of 273%, company tops the list of giving the highest CAGR in 5 years. Market cap of the company is ₹ 10,997 Crores and currently trading at a price of ₹ 1,055. The clientele of the company includes Adani, Aditya Birla Group, Bharat Petroleum, Cello, Larsen and Toubro, NTPC, Reliance Industries Limited, etc. Operation of the company is spread across 13 states in India and 1400+ authorized sales point and franchises across the country. The company has a 12 GW Module capacity & it has a plan to expand 5.4 GW Cell capacity by FY25.

Analysis of the Financial Statements

Revenue Growth Trend

Revenue had shown a fast acceleration from 2 crores in 2020 to 1597 crores in 2025 with a CAGR for revenues standing at 827.74%, while its competing company Premier Energies Ltd has a 5-year CAGR of 90.23%. CAGR rate can be a good sign for the retail investors, indicating that the company is ahead of its competitors. Growth has been driven by surging demand for solar EPC projects. Revenue of the company is expected to rise in the future as the client turnover rate is very low and the company has acquired large orders of 255 MWp, 105 MWp, and a 40 MWh battery project.

March
2020		March
2021		March
2022		March
2023		March
2024		March
2025
2 CRORES8 CRORES154 CRORES342 CRORES876 CRORES1,597 CRORES

Profitability & Margin Analysis

Operating profits of the company have gone up over the years, being 19% in the past March 2025 while the industry average being 10%. This is a sign that the management is focused on cost efficiency and increasing the profit, which would help company to scale profit faster when the sales increase as the fixed cost burden is already minimized. Although its OPM is moderate among its EPC- focused players it is robust and indicative of solid execution.

March
2020		March
2021		March
2022		March
2023		March
2024		March
2025
2%36%9%22%24%19%

Balance Sheet Strength

The total assets of the company have grown from 68 crores in March 2020 to 1,121 crores in March 2025 showing subsequent capital investment. This subsequent growth is majorly due to the investment in the fixed assets rather than only in the working capital which shows company ability to support expanded operations. This asset appreciation plus cutting operational costs can build a solid foundation for future earnings growth, provided execution stays on track. The expanded assets base delivered higher return on capital employed (ROCE) of 82.1%, which shows a strong foundation for the growth of the company.

Debt Profile

Borrowings of the company have been nil for the FY21-22 AND FY22-23 years, but the company has taken a loan of 40 Crores and 27 crores in FY2024 and FY2025 which is not alarming. Reserves showed a sharp increase from 10 crore to 436 crores, indicating a large portion of the assets are financed through retained earnings and not through debt while its competitor Premier Energies Ltd borrowings as of March 2025 is 1,954 Crores. This makes the balance sheet of the WAAREE RENEWABLE TECHNOLOGIES LIMITED healthier than if it was purely debt-driven. This conservative approach of the company may cap the aggressive growth opportunity compared to the leveraged peers.

Cash Flow Health

Operating cash flow of the company has been increasing sharply, i.e. 3 crores in March 2021 to 302 crores in March 2025, which shows that the company is easily able to convert its profit into cash. Cash Conversion Cycle of the company has shown an increase in the past years when compared to its peer’s, indicating company is not able to collect cash from its customers and settle the dues of its supplier, weakening liquidity and affecting company reserves.

Analysis of the Company Management (Investors presentation/Disclosures-based view)

Recent conference calls highlighted:

  • Management is focused on winning larger orders and efficiently executing such orders.
  • Management in its concalls had acknowledged working capital requirement and are implementing measures to reduce costs and increase the proportion of cash generation.
  • Concalls reflects that the company is of a view to diversification into energy storage, integrated EPC + O&M contracts, and interest in green hydrogen use.

Disclaimer: The article is for informational purposes only and not investment advice. 

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