Waaree Energies at Risk as Export-Focused Order Book Faces Uncertainty
One of the most impacted firms outside the US is India’s Waaree Energies, which entered FY26 with a robust order book of nearly ₹47,000 crore. Notably, approximately 57% of this backlog is tied to international contracts—predominantly in the United States. Analysts warn that if the tax bill becomes law, it could jeopardize a large portion of Waaree’s export pipeline.
According to a research note from brokerage firm Jefferies, the proposed rollback of incentives could significantly reduce demand for utility-scale and rooftop solar installations in the US. Jefferies emphasized the material risk to Waaree’s US-bound orders, particularly given the country’s current reliance on IRA-linked subsidies to drive solar adoption.
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Sentiment Turns Cautious as Global Headwinds Mount
The potential fallout from the US bill adds to a string of concerns for Waaree Energies investors, who have already seen the stock trend lower amid a broader global selloff in renewable energy equities. With over half its future revenue linked to overseas markets, particularly the US, the company could face delays or cancellations in key projects unless policy clarity emerges soon.
This development underscores the vulnerability of export-reliant clean energy companies to shifts in international regulatory environments. Investors and analysts alike are watching closely as the bill progresses to the Senate, where its fate—and the future of several cross-border green energy initiatives—hangs in the balance.
Shares of Waaree Energies, India’s leading solar module manufacturer, have experienced a notable decline in recent weeks, influenced by a combination of global policy changes and cautious analyst outlooks.
Global Policy Changes Impacting Renewable Energy Sector
A significant factor contributing to the downturn is the recent passage of a controversial tax bill by the U.S. House of Representatives, supported by former President Donald Trump. This legislation has raised concerns about its potential negative impact on the renewable energy sector, leading to a global sell-off in related stocks, including Waaree Energies.
Analyst Downgrades Reflect Growth Concerns
Adding to investor apprehension, brokerage firm Bernstein initiated coverage on Waaree Energies with an “underperform” rating, citing valuation concerns and profitability headwinds. Bernstein set a target price of ₹1,902 for Waaree Energies, implying a potential downside of over 17% from current levels.
Expiration of Shareholder Lock-In Period
The recent expiration of a six-month shareholder lock-in period has also contributed to the stock’s decline. Approximately 15 crore shares, representing around 53% of the company’s total equity, became eligible for trading, leading to increased market volatility.
Strong Financial Performance Amid Market Challenges
Despite these challenges, Waaree Energies reported impressive financial results for the fourth quarter of FY25. The company recorded a 34.1% year-on-year increase in net profit to ₹618.91 crore and a 36.4% rise in revenue to ₹4,003.93 crore. EBITDA more than doubled to ₹922.6 crore, with margins improving significantly.
Future Outlook and Strategic Initiatives
Looking ahead, Waaree Energies is focusing on expanding its manufacturing capacity and exploring new avenues in the renewable energy sector. The company has set up a 1.6 GW module manufacturing plant in Brookshire, USA, reinforcing its commitment to the American market.
However, uncertainties surrounding U.S. renewable energy policies and potential import tariffs pose challenges to the company’s international operations. Analysts remain cautious about the long-term prospects, emphasizing the need for strategic adaptability in a rapidly evolving global energy landscape.
