Waaree Expands US Module Output, Considers Cell Facility

Waaree Energies Chairman and Managing Director Hitesh Doshi indicated the company is considering building a solar cell manufacturing facility in the US. This move follows its ongoing US module manufacturing expansion, which will boost capacity from 1.6 GW to 4.5 GW within six months. Waaree recently acquired bankrupt Meyer Burger's US assets for $18.5 million, adding a 1 GW heterojunction technology (HJT) module assembly line. As of May 2026, Waaree Energies has a market capitalization of approximately ₹92,900 crore, with shares trading around ₹3230.10. Its Price-to-Earnings (P/E) ratio is about 25x, and analysts like Motilal Oswal have issued 'Buy' ratings with a target price of ₹3,850, anticipating a 19% upside.

US Market: Demand, Competition, and Policy

The US solar market offers significant opportunity, with annual demand at 50-60 GW and 80-85% reliance on imports, creating demand for local manufacturing. Waaree aims to capture market share by aligning its products with regulatory demands and customer needs. This expansion occurs amid strong competition. First Solar is expected to reach over 14 GW of domestic capacity by 2026, planning a new 3.7 GW module plant. Canadian Solar aims for 10 GW of module capacity in Texas by late 2026 and 6.3 GW of cell capacity in Indiana by year-end 2026. Waaree's strategy is supported by the Inflation Reduction Act (IRA), which encourages US solar manufacturing and domestic supply chains. However, industry faces challenges from import tariffs, including preliminary duties of 126% on modules using India-made cells. Waaree states it uses non-Chinese cells for US exports, lessening this direct impact.

Diversification and ₹10,000 Crore Funding

Beyond solar modules, Waaree Energies is diversifying across the renewable energy value chain. Plans include expanding into battery storage, electrolysers, inverters, transformers, solar glass, and semiconductors. A proposed ₹10,000 crore fundraising effort will support this expansion and potential acquisitions. The company provided a positive financial outlook, guiding for an operating EBITDA of ₹7,000-7,700 crore for FY27, up from FY26's reported ₹6,616.79 crore. For FY26, Waaree reported revenue of ₹26,536.77 crore and net profit of ₹3,884.15 crore, showing strong operational performance. The company also plans to commission a 20 GW advanced lithium-ion cell and battery pack manufacturing facility.

Potential Risks: Costs, Competition, and Investigations

However, Waaree faces several risks. Margin pressures could arise from fluctuating commodity prices like silver and copper, plus higher logistics costs due to shipping route disruptions. The US market is highly competitive, with rivals like First Solar and Canadian Solar significantly expanding their own capacity. Evolving trade policies and regulatory uncertainties, such as potential impacts from the 'One Big Beautiful Bill Act' on incentives, could also disrupt growth plans. Additionally, Waaree faces ongoing investigations from US Customs and Border Protection, Indian Income Tax authorities, and an international arbitration proceeding. These could present reputational and financial risks.

Analyst Outlook and Long-Term Targets

Analysts generally hold positive outlooks for Waaree Energies, forecasting substantial growth. Analyst ratings favor 'Buy' or 'Outperform,' with price targets indicating potential upside. The company has reaffirmed its long-term revenue target of ₹1 trillion by 2030, driven by its expanding presence across the renewable energy value chain. This diversification, combined with US capacity expansion, supports Waaree's aim to be a leading integrated player in the global energy transition.