Motilal Oswal has reiterated a 'Buy' rating on Waaree Energies with a target of Rs 3,825, driven by strong solar demand and execution momentum. The brokerage views Waaree as a key player in India's solar manufacturing shift, supported by its recent order wins and expanding production scale.
What Happened
Motilal Oswal Financial Services has reiterated its 'Buy' rating on Waaree Energies, setting a price target of Rs 3,825 for the stock. This update comes as the company continues to see strong momentum in its manufacturing operations and order execution. The brokerage's report focuses on Waaree’s strategic position within India’s solar energy landscape, noting that the company is well-placed to capture demand from the growing rooftop and commercial and industrial (C&I) solar segments, which are expected to drive significant industry growth in the coming years.
Order Wins and Financial Performance
Waaree Energies has seen recent operational success, including an 800 MW solar module supply order announced on June 15, 2026. This order, for delivery across fiscal years 2026 and 2027, highlights the company's ability to secure large-scale contracts from domestic energy solutions providers. Furthermore, the company delivered a strong performance in its fourth quarter of fiscal 2026, with net profit surging by 71.4% year-on-year to Rs 1,061 crore, while revenue more than doubled to Rs 8,480 crore. These results have provided a solid foundation for the brokerage's positive outlook.
Manufacturing Capacity and Market Position
As one of India's largest solar module manufacturers with an installed capacity of 12 GW, Waaree is a primary beneficiary of policy shifts such as the Approved List of Models and Manufacturers (ALMM). This policy effectively promotes domestically manufactured modules, giving an advantage to established players. The company is also scaling up its vertical integration, moving beyond simple module assembly into cells, wafers, and grid-connected infrastructure—a strategy intended to reduce dependence on imports and stabilize long-term profitability. Its subsidiary, Waaree Renewable Technologies, recently completed a Rs 1,225 crore acquisition of Associated Power Structures Private Limited (APSPL) to expand into power transmission and infrastructure.
Business and Sector Risks
While the outlook remains positive due to strong demand and policy support, investors should be aware of certain risks inherent in the solar manufacturing sector. Profit margins can be sensitive to the volatile prices of key raw materials like silver and copper. Additionally, the industry is seeing rapid capacity expansion by many players, which some analysts, including ICRA, have flagged as a potential risk for oversupply in the coming years. This could lead to increased competitive intensity and pressure on module prices. Furthermore, executing large-scale projects like the new 10 GW integrated ingot and wafer facility in Nagpur requires significant capital and carries inherent execution risks, such as potential delays or cost overruns.
What Investors Should Track
Moving forward, the primary monitorables for Waaree Energies will be the execution speed of its ongoing capacity expansions and the company’s ability to maintain healthy profit margins amidst rising raw material costs. Investors will also look for updates on the order book growth, specifically in the utility-scale and C&I segments, and how the company integrates its new acquisitions like APSPL to provide comprehensive energy solutions. Finally, the ability to successfully commission the planned backward integration projects—such as the wafer and cell facilities—will be critical to sustaining its competitive advantage in the long term.