29 Jul 2025
Waaree Energies Ltd., India’s largest solar photovoltaic (PV) module manufacturer, has been a focal point in the Indian stock market, driven by its robust financial performance and leadership in the renewable energy sector. With a market capitalization of approximately ₹90,721 crore as of July 2025, the company has solidified its position as a key player in India’s solar industry, holding a 21% domestic market share and 44% of India’s solar module exports. This blog explores Waaree Energies’ recent performance, the growing interest from foreign institutional investors (FIIs), and the implications for its future growth in the context of India’s renewable energy ambitions.
Waaree Energies: A Snapshot
Founded in 1990, Waaree Energies has grown from a modest solar module manufacturer to a powerhouse with a 12 GW installed capacity as of June 2023, scaling to 13.3 GW by FY24. The company reported a 27.6% year-on-year revenue increase to ₹148.5 billion in FY25, with EBITDA rising 72.6% and net profit more than doubling to ₹1,928 crore. Its Q1 FY2025-26 results further underscored this growth, with a net profit surge of 89% to ₹745 crore. These figures highlight Waaree’s ability to capitalize on the global shift toward renewable energy, particularly solar power, aligning with India’s goal of achieving 500 GW of renewable energy capacity by 2030.
Waaree’s market leadership is bolstered by its vertically integrated operations, extensive export reach to 68 countries (with 98.67% of FY23 exports to the U.S.), and a robust order book of ₹470 billion, ensuring strong revenue visibility. However, this heavy reliance on the U.S. market and exposure to material cost volatility and import restrictions pose risks that investors must weigh.
Foreign Investor Interest: A Growing Trend
Recent data indicates a significant uptick in foreign institutional investor (FII) interest in Waaree Energies, with FII holdings increasing by 1.98% to 2.68% in the latest reported period. This surge reflects confidence in Waaree’s growth trajectory and its strategic positioning in India’s renewable energy sector, which has seen stocks rally up to 357% in 2024. Prominent global investors, including Goldman Sachs, BlackRock, and Morgan Stanley, backed Waaree’s ₹4,321.44 crore IPO in October 2024, which was oversubscribed 79.44 times, with qualified institutional buyers (QIBs) bidding for over 121 crore shares against the 55.38 lakh earmarked.
The appeal to foreign investors stems from several factors:
Market Leadership: Waaree’s dominance in solar module manufacturing and exports positions it as a prime beneficiary of India’s renewable energy push under the Production Linked Incentive (PLI) scheme.
Financial Growth: The company’s consistent profit growth (PAT rose from ₹79.65 crore in FY22 to ₹1,274.38 crore in FY24) and healthy PAT margin of 11.47% signal financial stability.
Global Demand: Strong export demand, particularly from the U.S., aligns with global decarbonization trends, despite risks from potential U.S. tariffs on Indian solar imports.
Strategic Expansion: Waaree’s plans to expand production capacity and its acquisition attempts (e.g., Voltshift Energy Transition) demonstrate ambition to diversify and strengthen its supply chain.
However, the exit of high-profile investor Madhusudan Kela in July 2025 raised questions about shareholder dynamics, though it did not dampen overall FII enthusiasm, as technical indicators and analyst recommendations remain bullish, with a buy target of ₹3,450.
Opportunities and Risks
Opportunities
Policy Support: India’s renewable energy policies, including the PLI scheme and the 500 GW target by 2030, provide a favorable backdrop for Waaree’s growth.
Global Transition to Renewables: As solar energy gains traction globally, Waaree’s export capabilities and 13.9% share in FY2025 solar module shipments position it to capture international demand.
Capacity Expansion: With plans to further scale its manufacturing capacity, Waaree is well-placed to meet rising domestic and global demand.
Risks
U.S. Market Dependence: With 98.67% of FY23 export sales tied to the U.S., potential tariffs or demand slowdowns could impact revenue.
Material Cost Volatility: Reliance on imported solar cells from China and Southeast Asia exposes Waaree to price fluctuations and import duties.
Exchange Rate Risks: Significant foreign currency expenses, primarily in U.S. dollars, make Waaree vulnerable to currency depreciation, despite hedging strategies.
Customer Concentration: A significant portion of revenue comes from its top 10 customers, posing risks if orders decline.
Market Sentiment and Technical Outlook
Waaree Energies’ stock has shown resilience despite occasional volatility. After listing at a 66.33% premium in October 2024, the stock hit an intra-day high of ₹2,624 but faced profit booking, closing at ₹2,356.20 on the NSE. Recent reports indicate a 2% drop due to U.S. trade petitions, yet the stock rebounded to a seven-month high in July 2025, driven by FII stake increases and strong Q1 results. Technical indicators suggest a bullish trend, with analysts forecasting a median target price of ₹2,607.25 within 12 months, though estimates range from ₹2,087 to ₹3,622.
Posts on X highlight both optimism and caution. Some users note Waaree’s vertical expansion as a margin cushion against global oversupply risks, while others point to challenges like Chinese module pricing volatility and potential PLI disbursement delays. This mixed sentiment underscores the need for investors to balance Waaree’s growth potential with external risks.
Conclusion
Waaree Energies stands at the forefront of India’s renewable energy revolution, with strong financials, market leadership, and growing foreign investor interest. The 2.68% FII holding increase reflects confidence in its ability to capitalize on domestic and global solar demand. However, risks tied to U.S. market dependence, material cost volatility, and currency fluctuations require careful consideration. For investors, Waaree offers a compelling opportunity in a high-growth sector, but maintaining a stop-loss (e.g., ₹2,000 as suggested by analysts) and monitoring global trade dynamics is prudent. As India accelerates toward its 2030 renewable energy goals, Waaree Energies remains a stock to watch for both domestic and foreign investors.
Disclaimer: This article is meant for general information only and doesn’t constitute financial advice. Please do your own research or consult a financial advisor before making investment decisions.
