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Trade Brains Portal has recommended a “BUY” call on India’s largest solar module manufacturer with an upside potential of 18.95%. India’s clean energy transition serves as an important metric of national economic growth, driven by aggressive renewable capacity targets, rapid solar adoption, expanding grid infrastructure, and rising power demand across utility, commercial, and residential sectors.
The recommended company, Waaree Energies Limited, is India’s largest solar module manufacturer, touching millions of lives through its extensive portfolio spanning solar modules, cells, energy storage systems, inverters, green hydrogen, and EPC services. Operating world-class manufacturing facilities with 26 GW of module and 5.4 GW of cell capacity, nationwide retail distribution reaching 1 in every 6 installations through 775+ exclusive centres, and an unexecuted order book of Rs 59,200 crore, the company leverages high-cell integration, proprietary technologies, robust supply chain expansion, and strategic market positioning to deliver market leadership, capital efficiency, sustainable value creation, and long-term financial performance.
Waaree reported a solid top-line performance in Q2 FY27, with revenue rising 24% year-on-year to Rs 7,518 crore, though it dropped 5% sequentially from Rs 7,932 crore in Q1. Operating earnings (EBITDA) fell 5% year-on-year to Rs 1,335 crore and slid 7% quarter-on-quarter from Rs 1,440 crore, bringing the operating margin to 18% compared to 23% in the same period last year and 18% in the previous quarter. Net Profit (PAT) declined 14% year-on-year to Rs 754 crore and 16% sequentially from Rs 892 crore, primarily impacted by higher depreciation of Rs 347 crore (up from Rs 240 crore) as new capacity came online.
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Operationally, module sales grew 27% year-on-year to 3.0 GW during the quarter. In-house cell production increased to 1.1 GW in Q2 from 0.8 GW in Q1, pushing cell utilisation up to 81% from 62% in Q1 and 42% in FY26. US module plant utilisation also improved to 71% from 59%, while Indian module plant utilisation eased to 45% from 50%. Management noted that higher utilisation rates in cells and US operations helped protect Q2 margins. To further drive profitability, Waaree is targeting a cell-to-module integration rate of 64% in FY27, up from 22% in FY26.
The retail business scaled significantly, surging 253% year-on-year to generate Rs 3,464 crore in Q2 and contributing 46% of total company revenue. For H1 FY27, retail revenue jumped 191% to Rs 5,753 crore compared to Rs 1,977 crore in H1 FY26, lifting retail’s share of total top line to 37% from 19% and surpassing full-year FY26 retail revenue of Rs 5,515 crore. Waaree currently holds about a 30% retail market share, servicing 1 in every 6 installations across India. Supported by over 775 exclusive centres, 3,000 distribution points, and 700 franchises across 27 states, the company has sold 100,000 solar kits since April 2025 and recently introduced a 5 MW feeder-level solarisation kit alongside an inverter data portal.
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Revenue from the Utility, IPP, and C&I segments accounted for 23% of total revenue in Q2, down from 38% in Q1, reflecting deliberate efforts to reduce customer concentration. The revenue share of the top 10 customers dropped to 20% compared to 47% in FY26. The company secured strong customer advances for domestic and international utility contracts, including a notable 2 GW order, alongside new module bookings of 2 GW and 740 MW.
International revenue dropped to Rs 1,389 crore from Rs 2,875 crore, largely due to a sharp drop in exports from India to Rs 89 crore (down from Rs 2,143 crore) amid US Section 232 restrictions. However, US domestic manufacturing filled part of the gap, with revenue expanding to Rs 1,300 crore from Rs 732 crore and H1 US revenue growing 113%. Waaree rationalised around 3 GW of export orders and is investing US$ 37 million to upgrade its Arizona facility, bringing total US capacity to 4.8 GW. Manufacturing modules directly in the US yields 8–9 cents/W (including 45X tax credits) compared to 3–4 cents/W when exporting from India.
The EPC, O&M, and T&D divisions contributed 13% of total revenue in Q2. Waaree has executed 6.4 GWp of solar EPC to date and holds an unexecuted EPC order book of Rs 3,300 crore, which includes over Rs 2,200 crore in T&D projects.
In renewable power infrastructure, the company secured a Letter of Award (LOA) for 700 MW of solar and 2,800 MWh of Battery Energy Storage Systems (BESS), expanding its overall PPA portfolio to 1,778 MW of solar and 2,800 MWh of BESS. It also commissioned 119 MW of a 170 MW solar park in Neemuch. Waaree has committed approximately Rs 3,250 crore to this business vertical, supported by over 10 GW+ of grid connectivity.
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Waaree’s total order book stands at Rs 59,200 crore, representing 25.6 GW of modules, after executing Rs 7,300 crore of orders and booking Rs 5,000 crore in new orders during the period. Geographically, domestic India accounts for 48% of the order book, domestic US makes up 44%, and exports from India account for 8%. In terms of manufacturing infrastructure, domestic capacity stands at 24.2 GW for modules and 5.4 GW for cells. Additionally, the BESS container facility has been commissioned, and inverter capacity has been expanded by 1.1 GW to 4.15 GW.
Management reaffirmed FY27 EBITDA guidance of Rs 7,000–7,700 crore, expecting H2 to drive 55–60% of earnings as 10 GW cell and 3.2 GW US module capacities expand. Retail revenue is projected at Rs 10,000–11,000 crore.
By FY28, capacities will reach 29 GW modules, 15.4 GW cells, 5 GWh BESS packs, 3.5 GWh battery cells, 4 GW inverters, and 20,000 MVA transformers. Of the ~Rs 30,000 crore capex, 35% is deployed, 28% executed, and 37% planned across FY27–FY29. Non-module lines will target 30–45% of revenue. Higher US realisations under Section 232 support a 4–5 year target of Rs 90,000–1,00,000 crore.
Between FY24 and FY26, Waaree Energies Ltd expanded rapidly, with operational revenue rising 132.8% from ₹11,397.61 Cr to ₹26,536.77 Cr and PAT jumping 204.8% to ₹3,884.15 Cr. Core costs fell from 79% to 68% of revenue, boosting EBITDA margins to 22% and nearly doubling EPS to ₹129.00. PPE surged 5x alongside a 91% capex CAGR, lifting total assets to ₹30,115.37 Cr. Working capital expanded with higher inventory and receivables. Despite working capital absorption, Operating Cash Flow remained positive at ₹1,626.95 Cr, bringing cash equivalents to ₹774.16 Cr.
Waaree Energies Limited is India’s largest solar module manufacturer, operating 26 GW of module and 5.4 GW of cell capacity. Under ‘Waaree 2.0,’ the company is expanding into an integrated energy transition player. Its roadmap includes scaling solar capacity, establishing a 10 GW ingot-wafer facility, and producing solar glass and polysilicon. Waaree is also diversifying into energy storage, transformers, inverters, smart meters, and green hydrogen electrolysers, while maintaining strong solar EPC, O&M, and T&D operations.
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With a market capitalisation of Rs. 70,101 crore, Waaree Energies Limited is currently trading at a price of Rs. 2,438 per share. Trade Brains Portal has recommended a “Buy” call on the stock with a target price of Rs 2,900 per share, implying an upside potential of 18.95% from its current trading price. The company’s future growth is expected to be driven by cell integration, US manufacturing scale, retail leadership, and new energy expansion, which together are anticipated to restore margins and boost earnings growth in the upcoming quarters.
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