Waa Solar (WAA) | News Based Sentiment Analysis

• On May 9, 2025, Waa Solar reported a remarkably strong Q4 FY25, with Total Income surging 355.39% to ₹13.86 Cr. This impressive growth continued with Operating Profit jumping 3625.03% to ₹6.24 Cr and Profit After Tax increasing by 274.90% to ₹7.26 Cr, demonstrating a significant turnaround in profitability.
• For the full Fiscal Year 2025, Waa Solar’s Total Revenue reached ₹26.69 Cr, a 12.79% increase, outperforming its 3-year CAGR of -13.01%. However, the company experienced a Net Cash flow from Operating Activities of -₹4.55 Cr, indicating cash outflow from operations despite the revenue growth.
• Waa Solar is expanding its operations with the development of 14.96 MW solar plants in Gujarat under the PM-Kusum-C Yojana, as announced in September 2025. This project aligns with the company’s focus on renewable energy and sustainability.
• The company’s share price experienced fluctuations throughout September 2025, including a high of ₹69.00 on September 16 (+0.77%) and a low of ₹67.35 on September 11 (-0.94%). These movements suggest investor sensitivity to recent developments.
• As of September 16, 2025, promoters hold 67.86% of Waa Solar, with 75.16% of their shares pledged – a slight decrease from 75.17%. While the pledge has decreased slightly, it remains high and continues to be a point of attention for investors.
• Waa Solar’s 16th Annual General Meeting (AGM) is scheduled for September 26, 2025, with book closure dates from September 19 to September 26, 2025. Remote e-voting will be available from September 23 to September 25, 2025, allowing shareholder participation.

The Investment Story: Waa Solar continues to demonstrate strong financial performance, highlighted by significant revenue and profit growth in FY25, while simultaneously pursuing expansion opportunities in Gujarat. However, the high promoter pledge and negative operating cash flow remain key concerns for investors.

What It Means for Investors: The impressive financial results suggest Waa Solar is executing its strategy effectively, but the cash flow situation and promoter pledging require careful monitoring. The discounted valuation relative to peers, with a P/E ratio of 12.55 and P/B ratio of 0.48 as of September 9, 2025, could present an opportunity for investors willing to accept the associated risks.

Looking Ahead: Investors should closely watch the company’s cash flow management and any further changes in promoter pledging levels. The AGM on September 26, 2025, will be an important opportunity to gain insights from management regarding these issues.

The Bottom Line: Waa Solar presents a compelling, yet complex, investment case. The strong growth and potential undervaluation are attractive, but the risks associated with promoter pledging and cash flow necessitate diligent monitoring and a long-term investment horizon.