Waaree Energies has removed 3 GW of export orders from its books after US trade regulations under Section 232 made importing Indian solar modules costlier. The company saw a sharp drop in overseas revenue for the September quarter of FY27 and is now rapidly scaling up its manufacturing capacity within the US to offset the impact.
Waaree Energies Ltd has reduced its export order book by approximately 3 GW in response to shifting trade regulations in the United States. New rules under Section 232 of the US Trade Expansion Act have introduced pricing floors and additional import duties on solar panels. These changes have made direct shipments from India less economically viable, leading the company to adjust its order book to align with current trade realities.
The financial impact of these trade hurdles was visible in the company’s performance for the second quarter of fiscal year 2027. Overseas revenue contracted to ₹1,389 crore, down from ₹2,875 crore in the same period last year. Specifically, exports originating from India saw a steep decline, falling to ₹89 crore from ₹2,143 crore in the previous year. To manage these costs, the company is shifting its focus toward US-based manufacturing.
Strategic Shift to US Manufacturing
Waaree Energies is aiming to increase its solar module manufacturing capacity in the US to 4.8 GW by the end of the current fiscal year, up from its current 1.6 GW. This move is intended to serve the American market without facing the same trade barriers that affect imports. Revenue from products manufactured within the US reached ₹1,300 crore in the September quarter, which acted as a partial hedge against the loss in export revenue.
Despite the reduction in the export order book, the company reports a total order book valued at ₹59,000 crore, covering approximately 25 GW of capacity. Export orders now represent only 7.8 percent of this total, a significant change from the 24 percent share they held in the previous quarter. The reduction reflects the company's decision to move away from contracts that became difficult to service under the new regulatory framework.
New Focus on Data Centers
Looking ahead, the company is targeting the growing demand from the data center sector. It plans to provide engineering, procurement, and construction (EPC) services for solar plants paired with energy storage to meet the round-the-clock power requirements of these facilities. Investors will likely monitor how effectively the company executes its US capacity expansion and whether its pivot to the data center segment can sustain growth. The primary monitorable remains the stability of US trade policies and the pace at which the company can scale its local US production to replace lost export volume.