Synopsis: Waaree Energies encapsulates India’s solar manufacturing shift through scale, integration, technology leadership, and global reach. Its order book, capacity expansion, and margin resilience make it a compelling proxy for tracking how India’s solar manufacturing market may evolve next?
A single stock today captures almost every major shift underway in India’s solar manufacturing landscape, from rapid capacity expansion and technology transitions to global exports and margin resilience. Its order book mirrors policy momentum, its capex cycle reflects future supply, and its execution offers early signals on where the industry is headed. Could tracking this one company reveal how India’s solar manufacturing market may perform next?
About The Company
Founded in 1990, Waaree Energies Limited (WAAREE) is a leading Indian renewable energy company driving the global energy transition. Headquartered in Mumbai, the company operates advanced manufacturing facilities with an installed capacity of approximately 18.7 GW (Including India and USA) for solar PV modules and 5.4 GW for solar cells. With a presence across India and in over 25 countries worldwide, Waaree provides a wide range of solar solutions, including panel manufacturing, EPC services, project development, and rooftop systems. Focused on sustainability, the company aims to deliver innovative and cost-effective energy solutions for a greener future. Waaree Energies has a market capitalization of Rs. 87,625.49 crore, with its shares currently trading at Rs. 3,046.35.
What Do They Offer?
Waaree Energies provides a wide range of solar PV modules, including multicrystalline, monocrystalline, high-efficiency TopCon, and flexible options such as bifacial MonoPERC (framed or unframed) and BIPV modules. In addition to modules, the company manufactures MonoPERC and TopCon solar cells and is expanding into green hydrogen solutions, including electrolysers and related systems, as well as inverters and battery components like cells, packs, and containers.
Its service portfolio includes comprehensive end-to-end O&M and EPC solutions for ground-mounted, rooftop, and floating solar projects, leveraging Waaree Energies strong expertise in solar module manufacturing. The company positions itself as a full-service renewable energy provider and is expanding into renewable power generation and infrastructure, aiming to contribute toward India’s 500 GW renewable energy capacity target by 2030.
Market Leadership
Waaree Energies has established itself as a leader in India’s solar sector, accounting for approximately 17 percent of total solar module shipments in India during Jan-Mar 2025. The company maintains a strong consolidated order book of around 24 GW (approximately Rs. 470 billion) as of the end of Q2FY26, covering EPC and allied businesses, with roughly 40 percent of orders from India and the remainder from international markets.
The project pipeline remains robust at over 100 GW, closely aligned with India’s national goal of reaching 280 GW of installed solar capacity by 2030. The US continues to be WEL’s largest export market, with utility-scale projects requiring longer gestation periods of 2-2.5 years, while projects in India follow comparatively shorter timelines. Strengthening its integrated presence across the solar value chain, WEL’s listed subsidiary, Waaree Renewable Technologies (WRTL), provides end-to-end EPC and O&M services for solar projects. WRTL has successfully commissioned over 3 GW of solar projects and manages an O&M portfolio of approximately 769 MW of solar assets.
Expansion Plans
Waaree Energies is further diversifying its offerings by expanding into the green hydrogen business, renewable power infrastructure, lithium-ion battery storage, and inverters, reinforcing its commitment to the global energy transition. Under the PLI scheme, the company is establishing a 6 GW module and cell facility in Gujarat and a 6 GW ingot-wafer facility in Maharashtra, with the module facility targeted for commissioning by FY26 and the cell facility by FY27. Additionally, the board has approved a capital expenditure of Rs. 27.5 billion to expand cell and ingot-wafer capacities by 4 GW each, taking the total to 10 GW each.
The company is also exploring opportunities in the EU to broaden its international presence. Initially, Waaree Energies had planned a large-scale solar equipment manufacturing facility in Odisha across 595 acres, with an envisaged 6 GW capacity and commissioning by 2027. This strategy was revised in favor of executing a 6 GW integrated module and cell facility in Gujarat and an ingot-wafer manufacturing unit at Butibori (Nagpur, Maharashtra), both expected to be commissioned between FY26 and FY27.
By 2027, Waaree Energies aims to achieve an integrated capacity of 26.7 GW for modules, 15.4 GW for cells, 10 GW for ingots and wafers, 3.5 GWh for batteries, and 4 GW for inverters. Through this extensive capacity build-out across modules, cells, ingots, wafers, batteries, and inverters, Waaree Energies is positioning itself as a fully integrated solar solutions provider.
New Verticals
Waaree Energies is expanding into the BESS, green hydrogen (electrolyser manufacturing), and inverter segments. As these businesses scale, they are expected to contribute approximately 15 percent to FY28 EBITDA on a combined basis.
The company also expanded into tunnel oxide passivated contact (TOPCon) technology, which is projected to become the dominant photovoltaic technology by 2026, while Mono PERC adoption is set to gradually decline. Heterojunction (HJT) technology is likely to gain traction after 2027. Although TOPCon entails around 15-20 percent higher capital expenditure, it is increasingly emerging as the global industry standard.
With rising renewable energy penetration, grid stability and round-the-clock power supply require energy storage solutions. Backed by government mandates and declining battery costs, Waaree Energies is expanding into this segment with a 3.5 GWh BESS facility near Chikhli, targeted for commissioning by FY27. The company recently announced an enhancement of this project’s capacity from 3.5 GWh to 20 GWh.
Additionally, the company is entering the green hydrogen space by establishing a 1GW electrolyser manufacturing plant, with an investment of upto Rs. 676 Crores scheduled for commissioning in FY27, in line with India’s energy transition objectives. Also, it is expanding its power infrastructure projects with an outlay of over Rs. 2,250 Crore.
Financial Snapshot
According to a Motilal Oswal report, Waaree Energies reported a consolidated EBITDA (including Other Income) margin of 25.8 percent in 2QFY26, representing a year-on-year improvement of 860 basis points. This margin resilience is supported by the company’s strategy of locking in raw material costs against confirmed orders, mitigating the impact of declining module prices.
For FY26, management has guided for EBITDA in the range of Rs. 55-60 billion. Motilal Oswal estimates EBITDA at Rs. 59.6 billion/Rs. 73.5 billion/Rs. 80.3 billion for FY26E/FY27E/FY28E, implying a CAGR of 43 percent over FY25-28E, driven by incremental capacity additions. EBITDA margins are expected to expand from 19 percent in FY25 to 21 percent by FY28.
The company has planned a capex of approximately Rs. 250 billion over FY26-28 for integrated manufacturing facilities and new business initiatives. Funding is expected to be comfortably met through existing cash reserves, internal accruals, and bank facilities, maintaining a largely debt-free balance sheet in the near term. Revenue and APAT CAGRs for FY25-28 are projected at 39 percent and 40 percent, respectively, supported by scaling integrated capacity. Effective domestic module capacity in India is estimated at 17.4 GW in FY26 and 21.6 GW in FY27, with utilization rates of 78 percent and 72 percent.
EBITDA margins for domestic operations are expected at approximately 23 percent and 22 percent in FY26 and FY27, while the US facility is anticipated to deliver higher margins of around 25 percent and 28 percent over the same period. The company delivered strong returns in FY25, with RoE of roughly 28 percent and post-tax RoCE of 27 percent.
Motilal Oswal’s projections indicate RoE of 35 percent and 29 percent for FY26 and FY27, while RoCE is expected to rise to 33 percent in FY26 before moderating to 26 percent in FY27 due to elevated capex. Waaree Energies has historically maintained a net cash position and is expected to continue doing so in FY26 and FY27.
The company operates with a very short working capital cycle compared to peers, aided by advance customer payments and letter-of-credit–backed sales. Its lean operating model, with minimal inventory holding, results in limited working capital requirements. Working capital days were 54 and 20 in FY24 and FY25, and Motilal expects them to remain around 20 going forward, reflecting continued operational efficiency.
Industry Outlook
In 2025, growth in installed solar PV capacity will continue to be driven primarily by China, benefiting from its cost advantages. However, increasing political, economic, and geopolitical pressures are creating market uncertainty. Overall growth is expected to slow, highlighting the urgent need for enhanced grid flexibility, as underinvestment and aging infrastructure could lead to higher curtailment and negative pricing, potentially impacting the profitability of new projects.
Despite these challenges, the global solar market is projected to expand by 10 percent to 655 GW in CY25 under SolarPower Europe’s medium scenario, slowing from 85 percent growth in 2023 and 33 percent in 2024. Growth risks remain, with potential policy changes in China and the US capable of dampening momentum, and fragmented EU policies posing a risk of market contraction. Under the low scenario, global solar capacity could decline by 8 percent to 548 GW, while the high scenario forecasts a 30 percent surge to 774 GW, driven by sustained low costs and possible stimulus measures in China.
SolarPower Europe expects the global solar PV market to maintain strong momentum through 2029, supported by continued cost reductions, ample product supply, and robust demand, particularly from China. However, geopolitical tensions, economic volatility, and inconsistent policies in key markets are increasing uncertainty. Notably, 2026 growth is projected to slow sharply to just 1 percent, largely due to China’s shift from feed-in tariffs to market-based pricing, which could delay project timelines. The US market is also expected to see an 8 percent decline in installations in 2026 amid ongoing policy uncertainty.
Despite these headwinds, the medium scenario projects global annual solar installations rising from 597 GW in 2024 to 930 GW by 2029, increasing total installed capacity from 2.2 TW in 2024 to 6.1 TW, nearly triple current levels. Under the high scenario, accelerated policy support and infrastructure investment could push annual capacity additions above 1 TW by 2028, with cumulative installed capacity reaching 7.2 TW. Conversely, the low scenario, affected by delayed reforms and trade barriers, forecasts slower growth, with annual installations limited to 0.7 TW by 2029 and total installed capacity reaching 5.3 TW.
Why Waaree Energies Serves as a Market Indicator
Waaree Energies’ dominant position in India’s solar manufacturing sector, with the country’s largest module and cell capacities, makes it a reliable proxy for overall industry trends. Its scale and diversified portfolio, from multicrystalline and MonoPERC modules to high-efficiency TopCon cells, reflect the adoption patterns of emerging technologies across the market. Observing Waaree Energies order book growth, capacity utilization, and technology transitions provides insights into the broader demand-supply dynamics shaping India’s solar ecosystem.
The company’s robust domestic and international order pipeline mirrors policy-driven and market-led growth in solar adoption. With roughly 40 percent of its orders from India and the remainder from overseas, Waaree Energies performance signals both local and global market health. Its expansion into integrated solar manufacturing, green hydrogen, and energy storage solutions also indicates where the industry is heading in terms of innovation, cost efficiencies, and technology adoption.
Finally, Waaree Energies operational efficiency, financial resilience, and ability to maintain high margins despite module price pressures make it a strong barometer for investor confidence in the sector. Changes in its production timelines, capacity expansions, or international footprint often precede broader market movements. In this sense, monitoring Waaree Energies provides a practical window into the trajectory of India’s solar manufacturing market and, by extension, the country’s renewable energy growth story.
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
