Shares of India’s largest solar module manufacturer tumbled 9 percent despite reporting strong quarterly results. The unexpected decline has raised eyebrows among investors, prompting questions about what’s driving the negative sentiment despite the company’s solid performance on paper.
Price Movement
During Friday’s trading session, Waaree Energies Ltd reached an intra-day low of Rs.2,590.20 per share, falling 8.9 percent from its previous close of Rs.2,839.90 each. However, the stock recovered a bit before closing at Rs.2,668.10 apiece.
Waaree Energies shares came under pressure following the expiry of the shareholder lock-in period on April 25, making 15 crore shares eligible for trading. These shares account for 53 percent of the company’s outstanding equity, sparking concerns of potential sell-offs in the market.
The sharp dip in share price reflects investor caution, even though the company posted robust Q4 results with strong growth in both profit and revenue. Despite the volatility, analysts note that the unlocking does not imply all shares will be sold, but the increased float could impact near-term sentiment.
In Q4 FY25, the company reported revenue of Rs.4,140.92 crore, marking a 37 percent increase from Rs.3,007.44 crore in Q4 FY24. On a quarterly basis, revenue surged 17 percent from Rs.3,545.27 crore in Q3 FY25, highlighting steady business expansion.
Net profit for the quarter witnessed a 36 percent year-on-year rise to Rs.644.47 crore, compared to Rs.475.16 crore in the similar quarter of previous year. Additionally, on a quarterly basis, net profit saw a 27 percent jump from Rs.506.88 crore in Q2 FY25, demonstrating robust earnings growth.
Business Highlights
Waaree Energies currently has a solar module manufacturing capacity of approximately 15 GW and a cell manufacturing capacity of 5.4 GW. Its US manufacturing facility became operational in January 2025, marking a key milestone in its global expansion strategy. The company also completed its first year of operations under IndoSolar following its acquisition.
For the full year, the company reported a profit of Rs.55 crores. It holds a robust order book valued at Rs.47,000 crores and has Rs.15,550 crores in available funds, providing strong financial backing for future growth and capacity enhancements.
The company is deepening its backward integration with a 6 GW ingot and wafer facility set for FY27, alongside its existing 5.4 GW cell capacity. Its 15 GW solar module capacity will expand by 4.8 GW in FY26–27, supported by tech collaborations for Perovskite tandem cells. These steps aim to boost efficiency and control across the solar value chain.
It is also investing in energy storage, with a 3.5 GWh lithium-ion cell facility expected by FY27. In green hydrogen, the company has secured PLI approval for a 300 MW electrolyser plant, also set to be operational by FY27. These moves underline its focus on clean energy and self-reliance.
The company is actively strengthening its power infrastructure segment with the ongoing acquisition of EGPIPL. It recently won RUMSL’s 170 MW project and has secured connectivity for nearly 1 GW. A 3 GW inverter manufacturing facility, capable of producing three lakh units annually, is under construction and expected to be operational by Q4 FY26. In the EPC space, the company has 3.2 GW under execution and manages a 695 MWp O&M portfolio of solar power plant assets.
EBITDA Guidance
The company is projecting strong year-on-year growth in EBITDA, driven by rising demand and continued operational excellence. For FY26, it has provided guidance indicating expected EBITDA in the range of Rs.5,500 to Rs.6,000 crores, reflecting confidence in its growth trajectory and efficient execution capabilities.
Written by – Ashok Kumar