Sun shines on Waaree Energies as tariff clouds clear

Shares of Waaree Energies, the country’s largest solar module manufacturer, have surged nearly 28% over the past two weeks, including an 11% jump on Tuesday, after India and the US agreed to a trade deal. The rebound has narrowed the stock’s three-month decline to 10%. The US contributed 15–20% of Waaree’s revenue in the December 2025 quarter compared with 57% in the March 2024 quarter. With tariffs now set to ease, the company’s exports to the US have significant room to recover.

Apart from the trade deal, investors have reacted positively to the company’s strong third-quarter results. The management expects to exceed its earlier guidance for operating profit before depreciation and amortisation (Ebitda) of ₹5,500–6,000 crore for FY26, backed by robust execution and expanding order book.

As part of its backward-integration strategy, the company is setting up a 10 Gigawatt (GW) ingot and wafer facility and expanding cell capacity by another 10GW, both targeted to be operational by FY27. This will give it a fully integrated solar value chain covering polysilicon, ingots, wafers, cells and modules, reducing dependence on imports and improving margins.

The company’s order book grew 28% sequentially to ₹60,000 crore in the December quarter, supported by an order pipeline exceeding 100 GW that provides multi-quarter revenue visibility. Around 65% of the order book is international, while domestic orders are increasingly skewed towards highermargin segments, including domestic content requirement (DCR) modules, which are solar panels manufactured in India using locally sourced components and command a pricing premium.

The company also plans to expand into related areas such as battery energy storage systems (BESS), inverters, and green hydrogen. It is setting up a 20-gigawatt-hour BESS manufacturing facility that is expected to be ready by FY28. In the December quarter, it raised around ₹1,000 crore in equity to fund lithium-ion cell and battery-pack plant.In green hydrogen, the company intends to build a 1GW electrolyser manufacturing facility supported by production-linked incentives of ₹444 crore. The project, with planned capital expenditure of ₹676 crore, is expected to be commissioned by FY27.To comply with US non-Chinese sourcing requirements, the company has invested $30 million in an Oman-based polysilicon facility, with production expected to begin in the current quarter. This is expected to give it a fully traceable, non-Chinese supply chain, a key differentiator for its US expansion.

For the Dember quarter, the company posted its highest-ever consolidated revenue of ₹7,565 crore, doubling year-on-year, while Ebitda surged threefold to ₹1,928 crore. Module production rose by 94% to reach a record 3.5GW and cell output touched 0.75GW from a near-zero base.

Following strong quarterly performance, PL Capital has raised the earnings estimate by 5.7% and 1.2% for FY27 and FY28 respectively. The broking firm has maintained a ‘Buy’ rating on the stock with a higher target price of ₹3,600 compared with ₹4,084 earlier implying an FY28 expected price-earnings (P/E) multiple of 21.