Income Tax Department Conducts Investigations at Waaree Energies
The share price of Waaree Energies will be closely monitored by investors on Wednesday following revelations that officials from the Income Tax Department visited multiple company locations. In an official exchange filing made on Tuesday, the solar energy solutions provider confirmed that tax authorities had arrived at several of their offices and facilities across India.
The company stated, "We hereby inform that today certain officials of the Income Tax Department visited some of the Company's offices and its facilities in India for investigating the Income Tax Act, 1961." Waaree Energies emphasized that the proceedings are currently underway and that management is providing complete cooperation to the investigating officials.
Extensive Operation Across Multiple Locations
According to media reports, the Income Tax department's investigation involved substantial resources with approximately 25 teams deployed from Mumbai, Chikhli, and Vapi. The operation commenced at the company's massive 5.4 GW solar cell gigafactory located in Chikhli, indicating the scale of the investigation.
The timing of these developments is particularly noteworthy given the company's recent financial performance. Waaree Energies has been experiencing some pressure in the short term, with its stock declining nearly 2% over the past five trading sessions and dropping more than 6% during the last month. However, the longer-term perspective shows resilience with the solar energy stock delivering 12% returns over six months and 13.34% returns in the past year.
Strong Quarterly Performance Amid Investigations
Despite the ongoing tax investigations, Waaree Energies reported exceptional financial results for the second quarter. The company demonstrated remarkable growth with net profit surging 130% year-on-year to ₹871 crore, compared to ₹375.66 crore in the same quarter last year. This performance resulted in an impressive PAT margin of 14.10% for the quarter.
The company's total income showed substantial expansion, growing 69.96% year-on-year to reach ₹6,226.54 crore, up significantly from ₹3,663.47 crore in Q2 of the previous fiscal year. EBITDA performance was even more striking, jumping 155.29% year-on-year to ₹1,567.30 crore, while margins strengthened considerably to 25.17% versus 16.76% recorded a year earlier.
Operational metrics remained robust with the company producing 2.64 GW during the quarter, reflecting strong operational momentum. For the first half of FY26, total income increased 51.17% to ₹10,823.72 crore, while EBITDA rose 118.19% to ₹2,735.97 crore.
The company announced an order book of nearly 24 GW, representing approximately ₹47,000 crore in value. In a positive development for shareholders, the board approved an interim dividend of ₹2 per share on October 16, 2025.
Market analysts suggest that while the Income Tax investigation creates short-term uncertainty, the company's strong fundamental performance and substantial order book provide underlying strength. Investors are advised to monitor developments closely as the investigation progresses and the company continues to cooperate fully with authorities.
