Waaree Renewable Stock Price Closes in Red, After Assam Project Cancellation

Mumbai, July 21, 2025: 11:40 AM IST: Shares of Waaree Renewable Technologies Ltd (NSE: WAAREERTL) experienced a sharp decline on Monday morning, falling over 5% following the termination of a significant solar Engineering, Procurement, and Construction (EPC) project in Assam. The stock closed the day down by 6.33%, at Rs 1,111.

Stock Performance Snapshot

• Price as of 11:40 AM IST: ₹1,123.10
• Change: –₹63.00 (–5.31%)
• Day’s High: ₹1,193.60
• Day’s Low: ₹1,111.20
• Previous Close (July 18, 2025): ₹1,186.10
• VWAP (10:35 AM): ₹1,130.70
• 52-Week High: ₹1,272.00 (hit on July 17, 2025)
• 52-Week Low: ₹841.15 (recorded on April 9, 2025)

Trading volumes remained high, with 9.80 lakh shares traded, generating a turnover of ₹110.19 crore. The sell quantity of 1,76,174 shares significantly outweighed the buy quantity of 81,178 shares, indicating a strong bearish sentiment among investors.

Project Termination Triggers Stock Drop

On 19 July 2025, at 3:30 PM IST, Waaree Renewable Technologies announced the termination of the Letter of Award (LOA) for a 125 MWAC (181.3 MWp DC) solar power project. This project was awarded to a consortium that included Waaree as a participating member.

Key Details:

• Project Scope: Turnkey Engineering, Procurement, and Construction (EPC), along with operations and maintenance.
• Client: Assam Power Distribution Company Limited (APDCL).
• Reason for Termination: Withdrawal of funding by the Government of Assam under the Asian Development Bank (ADB) loan scheme.
• Result: APDCL decided to cancel all ongoing work, deeming the project infeasible due to the funding withdrawal.
  The project had been previously disclosed on 11 March 2025, with an expected completion timeline of 18 months from the contract signing date.

Valuation and Trading Metrics

• Total Market Capitalisation: ₹11,721.48 crore
• Free Float Market Cap: ₹2,877.26 crore
• Adjusted Price-to-Earnings (P/E): 67.43
• Symbol P/E: 68.63
• Applicable Margin Rate: 29.25%
• % of Deliverable Quantity: 43.06%
• Annualised Volatility: 72.98%
• Daily Volatility: 3.82%

Financial Performance

Waaree Renewable Technologies recently reported a strong Q1 FY26 performance, with its net profit more than tripling to ₹86 crore from ₹28 crore in the same period last year. Revenue from operations surged by 156% year-on-year to ₹603 crore. The company’s Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) also rose by 183.7% year-on-year to ₹118 crore, with the EBITDA margin expanding by nearly 200 basis points to 19.54%. Despite these robust financial results and a strong existing order book of 3.15 GW of solar EPC projects and 40 MWh in Battery Energy Storage System (BESS) EPC, the termination of this substantial EPC project in Assam is expected to adversely impact the company’s near-term revenue visibility. The market has reacted swiftly to this news, evidenced by the increased selling pressure and elevated volatility in the stock. The company continues to actively explore new EPC opportunities, including in West Asia, to mitigate such impacts and maintain its growth trajectory.

Future Outlook

The termination of this substantial EPC project is expected to adversely impact Waaree Renewable Technologies’ near-term revenue visibility. The market has reacted swiftly to this news, evidenced by the increased selling pressure and elevated volatility in the stock. This comes despite the company reporting strong Q1 FY26 results with a significant increase in profit and revenue, and a robust existing order book of 3.15 GW of solar EPC projects and 40 MWh in Battery Energy Storage System (BESS) EPC. The company is also actively exploring new EPC opportunities, including in West Asia.

REF: https://nsearchives.nseindia.com/corporate/WAAREERTL_19072025184639_Termination_LOA.pdf

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