Waaree Energies Share Price Dips After Rs 293 Crore Deal Falls Through

Market Performance

Shares of Waaree Energies declined slightly on Thursday, July 17, following the cancellation of a high-value acquisition deal.

At 9:40 AM, the Waaree Energies share price was trading at ₹3,249.90, marking a 1.23% drop from the previous session.

Despite the dip, the stock has shown strength over the past few weeks, recording a 16.7% gain in the last month.

Main News: Acquisition Deal Terminated

Waaree Energies, in its stock exchange filing on July 16, announced the termination of its proposed acquisition of Kamath Transformers Pvt Ltd.

• The deal, approved initially on May 19, was valued at ₹293 Crore.
• The acquisition was intended to expand Waaree's business through a 100% equity purchase in Kamath Transformers.
• However, both parties were unable to finalize the terms of a definitive agreement within the agreed-upon timeline, leading to the cancellation.

Company Details

Waaree Energies has recently been in focus due to its strong operational performance and expansion strategies. The cancellation of the acquisition, although short-term negative for market sentiment, does not overshadow the company's impressive financial performance.

Kamath Transformers Pvt Ltd

• Incorporated: May 23, 1996
• Revenue Performance:
  • FY22: ₹25.73 crore
  • FY23: ₹54.41 crore
  • FY24: ₹122.68 crore

The steady rise in revenue over three years highlights Kamath Transformers' growth trajectory, which Waaree intended to tap into through the acquisition.

Financial Performance (Q4 FY25)

Despite the deal cancellation, Waaree Energies' financials remain robust:

Revenue and Production

• Q4 FY25 production stood at 2.1 GW, up 53% YoY.

EBITDA

• Reported EBITDA: ₹920 Crore

EBITDA Margins

• EBITDA margin at 23%, up 879 basis points YoY
• Boost attributed to the startup of a 1.4 GW cell facility
• Enabled entry into high-priced DCR modules

Net Profit

• Reported Profit: ₹620 Crore

These numbers indicate Waaree Energies' operational strength, with the expansion of manufacturing capacity significantly contributing to higher margins and profitability.

Summary

The Waaree Energies share price faced minor pressure after the company officially announced it had called off its ₹293 Crore acquisition of Kamath Transformers. The stock dipped 1.23% in early trade, but recent momentum remains strong, with a 16.7% gain over the past month.

While the acquisition was aimed at enhancing its growth in the power equipment segment, Waaree's record-breaking quarterly performance underlines the company's resilience and strong fundamentals, which continue to drive investor confidence.