Waaree Energies’ Revenue increased to Rs 3,457 crore in the December quarter to Rs 3,457 crore. Operating Profit (EBITDA) also increased three times to ₹ 722 crore. This happened because the decrease in raw material prices, improved product sourcing and improvement in supply chains helped increase operating margin. In the first 9 months of the current financial year FY25, the company produced 5.07 GW (GW) Solar PV module, which is more than the last year’s 3.42 GW.
The strong demand in the domestic market and the company’s volume growth from the government at the level of policy remains strong. However, export of exports in the US market has come down to 10–11%, earlier 60%. If we talk about the future growth possibilities of the company, WaAree Energies currently have an order of 26.5 GW, out of which 6.5 GW orders have been received in just the last three months.
54% of the total order comes from the Indian market and the rest of the foreign markets. The Indian market takes 1-2 months to complete the retail order, while it takes 9–12 months to complete the utility order.
By the way, a large part of the earnings of war energy comes from the US. The condition of the waaree energies there remains a bit unstable there. The US government has decided to impose double duty on Nesolor imports and stop funding of IRA (Inflation Reduction Act), which has increased pressure on Indian solar companies. Waaree has set up a 1.6 GW Solar PV module plant in the US to face this challenge and production has also started from January 2025. However, there is still uncertainty about Trump’s policies.
Production capacity and expansion plans
Talking about the production capacity of the company, WaAree Energies in India have a 13.3 GW installed production capacity, which is spread over Gujarat and Uttar Pradesh. Apart from this, the company is building a solar cell plant with a capacity of 5.4 GW, which is expected to start by the end of this financial year. In addition, WaAree has acquired ENEL GREEN POWER India (EGP India) for Rs 792 crore, which will further strengthen its solar and wind energy projects.
Apart from this, the company is also getting the benefit of government schemes. Waaree Energy has been approved to set up a new manufacturing plant of 6 GW under PLI (Production Linked Insantic) scheme. This will increase the company’s total module production capacity to more than 20 GW in the next 2-3 years. Also, the company is also stepping into the field of creating a green hydrogen electronizer and has been approved under the PLI scheme for 300 MW capacity.
FF Text: Invest or not?
The possibilities of long-term growth of WaAree Energies look quite strong. Demand is increasing in the renewable energy sector. The Government of India also remains a focus on this sector. But the challenges in the US market and the constantly increasing competition in India can create pressure for this company in the near future. The stock of Waare Energies has given tremendous returns after IPO and currently costs 60% more than the IPO price. Talking about the valuation, this stock is trading on the P/E ratio of 28x based on the estimated income of FY26, which can be considered a fair value according to this sector.
According to the research by Moneycontrol Pro, if you are a long -term investor and you have confidence in the possibilities of solar energy sector, this stock can be a good option. But given the current instability of the market, waiting for a better opportunity to enter it at the moment can be a sensible step.
Also read- Waaree Energies: Revenue of Wari Energy doubled in the December quarter, should you invest in stock?
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