Which Solar EPC Stocks Are Deep Value Picks in Week of Apr 24, 2026?

Sector Pulse

The Solar EPC sector is entering a phase of hyper-execution, as evidenced by WAAREERTL's Q4 FY26 results. Revenue surged by 131.31% YoY to ₹1,102.40 Cr, driven by the rapid conversion of a massive order book. This performance highlights a sector benefiting from India's aggressive 500 GW renewable energy target. While absolute EBITDA grew 63.71%, margins saw a contraction to 18.76% from the previous year's 26.51%, a shift attributed to project mix and the inclusion of module supplies in turnkey contracts.

Catalysts Playing Out Across the Pack

The primary catalyst is the Order Book Or Contract Wins, with WAAREERTL holding 2,832 MWp in unexecuted orders. This is complemented by Operating Leverage Inflection, where full-year revenue growth of 108.5% significantly outpaced the 65.6% increase in employee expenses. Furthermore, Tam Expansion Changing Consumption is visible through a 29 GW bid pipeline, which includes 5-6 GW of active tenders. The emergence of BESS (Battery Energy Storage Systems) as a New Product Or Brand Launch catalyst is also noteworthy, as storage becomes a standard component in new renewable tenders.

What Managements Are Guiding

Management remains focused on disciplined growth. WAAREERTL has REAFFIRMED its long-term EBITDA margin guidance of 15%+, despite currently operating above that level. They expect to execute the current 2.83 GWp order book within a 12-15 month window. The company is also scaling its IPP segment, with 227.10 MWp under development, aimed at generating high-margin recurring revenue.

Sub-Sector Aggregates

The sector is characterized by massive scale, with an Unexecuted Order Book Mwp of 2,832 MWp for the lead constituent. The Bid Pipeline Gw stands at a staggering 29 GW, indicating that the opportunity set is far larger than current execution capacities. Revenue growth remains triple-digit at 131.31% YoY, although margins are expected to stabilize around the 15% mark as project mixes evolve.

Shared Risks (9-type taxonomy)

The most prominent risk is commodity volatility. The revocation of export rebates by China on solar modules and cells poses a potential threat to input costs. WAAREERTL mitigates this by immediately booking raw materials upon order confirmation. Additionally, regulatory risks regarding transmission capacity constraints are being monitored, though management currently reports no slowdown in the 29 GW pipeline.

Bottom Line

We maintain a BULLISH stance on the Solar EPC sector. The combination of a massive Order Book Or Contract Wins and a 29 GW bid pipeline suggests multi-year growth visibility, while proactive hedging against commodity price risks protects the reaffirmed 15% margin floor.