Synopsis
Shares of Waaree Energies jumped following a US-India trade deal easing tariffs, improving export prospects. The company also reported strong third-quarter results, beating Ebitda forecasts and expanding its order backlog. Strategic backward integration and diversification into BESS and green hydrogen further support its growth trajectory.
AgenciesActions of Waaree Energiesthe country’s largest solar module maker, has surged nearly 28% in the past two weeks, including an 11% jump on Tuesday, after India and the United States agreed to a trade deal. The rebound reduced the stock’s three-month decline to 10%. The US contributed 15-20% to Waaree’s revenue in the December 2025 quarter, compared to 57% in the March 2024 quarter. With the easing of customs duties, the company’s exports to the US have considerable room for recovery.
In addition to the trade deal, investors reacted positively to the company’s strong third-quarter results. Management expects to beat its earlier forecast of operating profit before depreciation and amortization (Ebitda) of ₹5,500-6,000 crore for FY26, supported by robust execution and an expanding order book.
AND OfficeAs part of its backward integration strategy, the company is setting up a 10 gigawatt (GW) ingot and wafer facility and increasing cell capacity by another 10 GW, both of which are expected to be operational by FY27. This will give it a fully integrated solar value chain spanning polysilicon, ingots, wafers, cells and modules, thereby 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 revenue visibility across multiple quarters. About 65% of the order book is international, while domestic orders are increasingly skewed towards higher-margin segments, including domestic content requirement (DCR) modules, which are solar panels manufactured in India using locally sourced components and command a higher price.
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 plant which is expected to be ready by FY28. In the December quarter, it raised around ₹1,000 crore in equity capital to fund a lithium-ion cell and battery plant.
In the green hydrogen space, the company intends to build a 1 GW electrolyser manufacturing plant backed by production-linked incentives of ₹444 crore. The project, with a planned capital expenditure of ₹676 crore, is expected to be commissioned by FY27.
To comply with US requirements for non-Chinese sourcing, the company invested $30 million in an Oman-based polysilicon factory, with production expected to begin in the current quarter. This should give it a fully traceable non-Chinese supply chain, a key differentiator for its expansion into the United States.
For the December quarter, the company recorded its highest ever consolidated revenue of ₹7,565 crore, doubling year-on-year, while Ebitda tripled to ₹1,928 crore. Module production increased 94% to a record 3.5 GW and cell production reached 0.75 GW from a near-zero base.
After strong quarterly performance, PL Capital increased its earnings estimates by 5.7% and 1.2% for FY27 and FY28 respectively. The brokerage firm maintained a ‘Buy’ rating on the stock with a higher target price of ₹3,600 from ₹4,084 earlier, implying an expected price-to-earnings (P/E) multiple for FY28 of ’21.
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