Waaree Energies’ Strategic Moves: US Plant Launch, Domestic Expansion, and Rising Margins

Published on: 7 February 2025

Waaree Energies’ Strategic Moves: Revenue Surges, Margins Expand, and Order Book Hits 26.5 GW

Waaree Energies, India’s largest manufacturer of solar photovoltaic (PV) modules, has delivered an outstanding performance in the December quarter, showcasing robust growth and operational efficiency. The company’s revenue more than doubled, while its EBITDA more than tripled to ₹722 crore, driven by softening raw material prices, improved sourcing, and enhanced supply chain efficiency. This impressive performance has also led to a significant increase in operating margins, solidifying Waaree Energies’ position as a leader in the renewable energy sector.

Waaree Energies Key Highlights from the December Quarter

Production Capacity Surge :
In the first nine months of the current financial year, Waaree Energies manufactured 5.07 GW of solar PV modules, a substantial increase from 3.42 GW produced in the same period last year. This growth underscores the company’s ability to scale up operations and meet rising demand.
Strong Order Book:
The company’s order book stood at 26.5 GW at the end of the December quarter, with 6.5 GW of new orders added in the last three months. While the US market contributed significantly to these orders, the domestic market remains a key driver, accounting for 54% of the total order book.

Retail orders in the domestic market are completed in 1-2 months, while utility orders take 9-12 months.

US Market Expansion:
Waaree Energies has strategically set up a 1.6 GW solar PV module plant in Texas, USA, to align with changing regulations and boost its presence in the US market. Production at this facility began in January 2025, and the company aims to increase its export share, particularly from the US, in the coming years.
Domestic Growth and Backward Integration:
With an installed capacity of 13.3 GW in India, Waaree Energies operates multiple manufacturing plants in Gujarat and Uttar Pradesh. The company is also setting up a 5.4 GW solar cell manufacturing plant in Chikhli, Gujarat, with trial runs already underway. The company has many manufacturing plants in Gujarat and Uttar Pradesh. To increase its production capacity, the company is setting up a 5.4 GW cell manufacturing plant in Chikhli, Gujarat. The trial run of solar cell production has started. Production is likely to start in this plant by the end of this financial year. Full-scale production is expected by the end of this financial year.

This backward integration into solar cell manufacturing is projected to boost margins and profits by 200-300 basis points, further strengthening the company’s financials.

Stock Performance and Valuation

Waaree Energies’ stock has been on a remarkable rally, climbing nearly 60% since its IPO. Currently trading at 28 times the estimated earnings for FY26, the stock reflects investor confidence in the company’s growth trajectory. While the stock is attractive, investors may consider buying on price dips for better entry points.https://bindaasbola.com/web-stories/

Waaree Energies is a standout player in India’s renewable energy sector, with strong financials, strategic expansions, and a growing order book. The company’s focus on backward integration, coupled with its efforts to capture a larger share of the US market, positions it well for future growth. For investors, Waaree Energies presents a compelling opportunity in the renewable energy space, backed by solid fundamentals and a clear growth strategy.