Shares of Waaree Energies Ltd are in focus on Thursday morning after the company informed stock exchanges that it has received an order for supply of solar PV modules from Khaba Renewable Energy, a subsidiary of Engie India. The one-time order for supply of 362.5 Mwp solar PV modules is scheduled to commence in FY26.
Waaree’s current orderbook including its wholly-owned subsidiary WRTL stands at 26.5 GW, totalling Rs 50,000 crore. A total of 54 per cent of the orderbook comprises exports while the rest is for the domestic market. The orderbook is approximately 3.5 times trailing 12-month sales, offering strong visibility in the medium term. Additionally, the company expects a pipeline of 50-70 GW from India, which will be executed over the next few years, this will provide another lever to medium-term topline growth, Kotak Institutional Equities noted.
Waaree Energies shares are down 23 per cent in 2025 so far. The stock is up 1.6 per cent in the past five sessions.
The Waaree Energies management recently attended conferences by Kotak and Nuvama Institutional Equities. Waaree expects domestic solar module demand to be more than 50 GW for FY2026/27, on account of 40 GW from domestic IPPs, 10 GW from rooftop installation and 4-4.5 GW from other sources such as solar pump installations, Kotak Institutional Equities said.
Kotak said that as module facilities tend to operate at 60 per cent of utilisation, India will need total solar module capacity of 85 GW. Similarly, a total of 60 GW of capacity for solar cells is needed, assuming 85-90 per cent utilisation, to meet domestic demand. While solar module capacity will be able to cater the requisite demand, solar cell demand is unlikely to be met for the next couple of years, which will ensure a healthy pricing environment for the solar module/cell manufacturers such as Waaree, Kotak noted.
Nuvama said Waaree Energies' expansion plan is on track. The company intends to expand module and cell capacity to 21GW and 11GW by FY27. It has commissioned 1.6GW module capacity in the US. The management sees no major impact of IRA halt and is looking to foray into manufacturing electrolysersfor green hydrogen and battery manufacturing, Nuvama noted It has been awarded PLI for a 300MW electrolyser manufacturing facility.
"Acquisition of ENEL Green Power to be soon consummated. The stock is trading at 20 times/12 times FY26E/27E consensus EPS," Nuvama said.
The officials of Waaree Energies will hold a physical meeting with a group of investors on Monday, February 24, 2025, at the company’s manufacturing plant in Chikhli, Navsari, Gujarat.