India is one of the largest and fastest-growing renewable energy markets. The sector size is expected to grow at a CAGR of 8.1%, from US$23.9 billion in 2024 to US$52.1 billion (over ₹4.5 lakh crore) by 2033.
Increasing demand for solar modules is expected to be a key driver. Premier Energies estimates that solar module demand in India will more than double to 126 GW by 2035, from 50 GW in 2025.
Module Demand Forecast
The Macro Tailwinds: India’s 500 GW Sprint
The Indian government also wants to achieve 500 GW of non-fossil capacity by 2030, up from 250 GW in 2025. Non-fossil energy already accounts for 50% of India’s power mix, putting it on track to meet the target. This has provided a tailwind for green energy companies. The Green Hydrogen initiative and government schemes such as PM Surya Ghar and PM KUSUM are expected to be key growth drivers.
Roadmap to 100% Domestic Manufacturing
The implementation of the Approved List of Models and Manufacturers between 2026 and 2028 also mandates 100% domestic manufacturing use for rooftop, open-access, and utility-scale projects. Two companies are uniquely positioned to lead this transition.
Waaree Energies is a leading Indian solar manufacturer currently transitioning from a module-focused company (Waaree 1.0) to a fully integrated energy platform (Waaree 2.0). The company is experiencing record-breaking growth while aggressively diversifying into battery storage, inverters, green hydrogen, and power infrastructure.
The ₹60,000 crore Order Book
Waaree reported a “stellar Q3” with record numbers across key financial metrics. Revenue rose 119% year-on-year to ₹7,565 crore, driven by order execution. Operating EBITDA (Earnings before Interest, Tax, Depreciation, and Amortization) expanded by 167% to ₹1,928 crore, with margins expanding to about 25.5%.
Given this strong performance, management expects to exceed its FY26 EBITDA guidance of ₹5,500-6,000 crore. It holds an order book of ₹60,000 crore, providing revenue visibility of over 2 years based on trailing 12 months (TTM) revenue of ₹22,060 crore. The order book split is roughly 65% overseas and 35% domestic.
Waaree 2.0: Moving Beyond Modules
Waaree is shifting from solar modules to build a comprehensive “green energy ecosystem.” The strategy involves backward integration and expansion into new verticals. Waaree is investing in the full solar value chain, including polysilicon, ingots, wafers, cells, and modules. They aim to operationalize 6 GW of module, 10 GW of cell, and 10 GW of ingot/wafer capacity by FY27.
Waaree Roadmap to 2.0
Strategic Diversification: Hydrogen and Storage
A 20 GWh Battery Energy Storage Systems (BESS) manufacturing facility is planned for FY28, with a capital outlay of ₹10,000 crore. The company has already raised ₹1,000 crore in equity for this venture. It also aims to indigenize the supply chain, including anodes, cathodes, and electrolytes.
Waaree is setting up a 1 GW electrolyser facility expected to be operational by FY27, backed by a Production Linked Incentive of ₹444 crore. To address bottlenecks in land and connectivity that slow renewable adoption, it is developing renewable power infrastructure. It has secured 6.1 GW of connectivity and has acquired or secured over 17,000 acres of land.
Waaree continues to lead in manufacturing scale and efficiency. Waaree became the first Indian manufacturer to produce over 1 GW of modules in a single month, churning out nearly 52 modules per minute. While Q3 cell utilization appeared to be 56% on paper, the current run rate is now 80-81%. Following upgrades to “G12” cell technology in the coming months, utilization is expected to exceed 85-90%.
Waaree Capacity Roadmap
The US Market Factor
This growth came despite exposure to the U.S. market. Waaree is managing U.S. tariffs by strategically locating cell manufacturing in countries with minimal tariffs to ensure a favorable “country of origin” status for their modules. They are also doubling down on U.S. manufacturing, having acquired Meyer Burger assets to expand local capacity.
To secure raw materials, Waaree has made a strategic investment of approximately US$30 million in United Solar Holding (Oman) to build a fully traceable, non-Chinese polysilicon supply chain. Production from this partnership is expected to commence in Q4.
Input Cost Pressures
Volatility in raw material costs, particularly silver and polysilicon, poses a risk to gross margins. Silver accounts for nearly 25% of the cell cost and less than 9% of the module cost. While rising prices are a concern, management uses back-to-back purchasing and hedging to lock in costs when orders are booked, minimizing direct commodity risk.
There is a risk that customers may seek to renegotiate contracts if global module prices decline. Waaree safeguards against this by collecting a 5%-15% advance payment for large orders and requiring full payment before shipment for retail orders.
Premier Energies is a comprehensive solar manufacturing and cleantech solutions company. The company is a leading manufacturer of solar cells and modules in India. It is actively diversifying its portfolio to include allied products like transformers, inverters, and BESS. However, Premier’s growth is slower than Waaree’s.
Premier Energies operates primarily in Telangana and is expanding into Andhra Pradesh. In Q3 FY26, the company produced 593 MW of solar cells and 956 MW of modules. The effective capacity utilization for modules stood at 78% for the quarter.
The ₹13,723.5 Crore Order Book
In Q3FY26, revenue rose by 13% year-on-year to ₹1,937 crore, driven by order book execution. Operating EBITDA surged by 15.6% to ₹593.2 crore, with a 30.6% margin. Profit after tax expanded by 53.4% to ₹391.6 crore. Solar modules were the primary revenue driver, accounting for 75% of total revenue, while solar cells accounted for 22%.
Premier Financials
The company holds a robust order book valued at ₹13,724 crore, comprising 54% cells, 46% modules, and a small fraction of EPC contracts. Notably, 100% of these orders are from the domestic market. The order book provides revenue visibility of about a year, based on the TTM revenue of ₹7,215 crore.
Scaling Capacity: The Road to Mission 2028
The company is executing “Mission 2028,” aiming to become a top cleantech solutions provider with allied products contributing 25% of group revenues. A 400 MW expansion for cells and a 350 MW expansion for modules are scheduled for commissioning at existing sites in January 2026.
A 7 GW cell manufacturing plant is under construction in Naidupeta, Andhra Pradesh, with partial completion targeted for June 2026. A 5.6 GW module manufacturing plant is being built in Seetharampur, Telangana, with completion targeted for March 2026. The company acquired a transformer business (Transcon) and is expanding capacity to 10 GVA by July 2026.
A brownfield inverter facility with a 10 lakh unit capacity (3 GW per annum) is being designed, with an estimated commercial operation date of December 2026. With these expansions, it aims to achieve a vertically integrated capacity of over 10 GW, covering ingots, wafers, cells, and modules.
The company is actively managing costs by reducing silver consumption per cell, which has dropped by 68% over five years and is expected to reduce by another 30% by 2030.
The Investor’s Verdict: Efficiency vs. Scale
Valuations of both Waaree and Premier have moderated in the recent correction. In return ratios, Premier stands out for efficiency, with Return on Capital Employed (RoCE) of 41.1% and Return on Equity of 53.6%, well ahead of Waaree.
From a valuation standpoint, Waaree and Premier valuations now align with the broader industry median. Due to a lack of historical trading history, we haven’t used their historical median multiple. India’s solar shift creates a long runway. Waaree offers scale and integration; Premier delivers efficiency. The choice hinges on whether investors prioritise capacity-led growth or capital discipline.
Note: Throughout this article, we have relied on data from http://www.Screener.in and the company’s investor presentation. Only in cases where the data was unavailable have we used an alternative, widely used and accepted source of information.
The purpose of this article is only to share interesting charts, data points, and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educational purposes only.
About the Author: Madhvendra has been deeply immersed in the equity markets for over seven years, combining his passion for investing with his expertise in financial writing. With a knack for simplifying complex concepts, he enjoys sharing his honest perspectives on startups, listed Indian companies, and macroeconomic trends.
A dedicated reader and storyteller, Madhvendra thrives on uncovering insights that inspire his audience to deepen their understanding of the financial world.
Disclosure: The writer and his dependents do not hold the stocks discussed in this article.
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