Waaree Energies shares in focus as CARE upgrades rating on bank facilities; key details

Waaree Energies Ltd, which has climbed 7 per cent in the past five sessions, will be in focus on Thursday, as rating agency CARE Ratings upgraded the Rs 1,904 long-term bank facilities of the renewable energy company to A+ from A earlier, with a 'stable' rating. It also upgraded its rating on Rs 2,690 crore long-term/short-term bank facilities to A+ with outlook 'stable'.

The ratings upgrade on the bank facilities of Waaree Energies, a company involved in the manufacturing of solar PV cells and modules, reflects a notable improvement in both its business and financial performance, CARE Ratings said.

This progress is demonstrated by higher capacity utilisation, a positive outlook for domestic solar cell and module manufacturers, and continued growth in operating income, alongside stable profitability margins and enhanced capital structure, it said.

For FY24 and the first nine months of FY25, Waaree Energies reported total operating income of Rs 11,446 crore and Rs 10,441 crore, with operating margins of 14.2 per cent and 17.2 per cent, respectively.

CARE Ratings said it also considered the successful completion of Waaree Energies' initial public offering (IPO), through which the company raised Rs 3,600 crore by issuing primary shares, as a positive factor.

Additionally, the rating agency noted that Waaree Energies has completed the installation of a 5.4 GW cell manufacturing line in Chikhli, Gujarat -- the commercial production for 1.4 GW of this capacity began in February 2025, with the remaining 4 GW expected to come online in the next few weeks.

Waaree Energies has expanded its module manufacturing capacity from 12 GW as of December 2023 to 14.9 GW by February 2025, through the establishment of a 1.3 GW line under its subsidiary Indosolar Limited and a 1.6 GW capacity in Texas under its subsidiary Waaree Solar Americas Inc, CARE Ratings said.

It also highlights that Waaree Energies entered into a share purchase agreement (SPA) with Enel Green Power Development S.R.L. (EGPD) to acquire a 100 per cent stake in Enel Green Power India Private Limited (Enel) for approximately Rs 792 crore.

Enel currently has an operational portfolio of 640 MWac (750 MWdc) and around 2 GW of capacity under development. According to Waaree's management, the transaction is expected to close in the next few months, subject to regulatory and lender approvals.

The company has stated that it does not plan to retain these assets long-term and will likely sell the operational assets in the near future. The primary goal of the acquisition is to gain access to EPC and module supply businesses for the under-construction assets. Waaree Energies intends to allocate up to Rs 700 crore for the development of assets in this segment over the short term. CARE Ratings said it would continue to monitor the acquisition's progress and assess its impact on WEL's consolidated credit risk profile.