News

Motilal Oswal Financial Services has started coverage on Waaree Energies Ltd, one of India’s top solar manufacturing companies, with a ‘Buy’ call and a target price of Rs 4,000. From its current market level of about Rs 3,361, that implies a potential upside of roughly 19 per cent.

The brokerage described Waaree as a key player in India’s renewable manufacturing story, noting that its size, product mix and early-mover position could make it one of the biggest beneficiaries of the clean-energy transition. It said the company has established itself as a reliable name in a sector where scale and integration increasingly matter.

At present, Waaree Energies runs 5.4 GW of cell and 16.1 GW of module capacity, besides a 2.6 GW plant in the US. The company holds around 21.6 per cent market share in solar cells and 13.3 per cent in modules, making it one of the leading domestic producers.

Plans are already in motion to expand rapidly. By FY26, cell capacity is projected to touch 15.4 GW, while module capacity could reach 26.7 GW. Waaree is also developing a 10 GW ingot-wafer facility, which will strengthen backward integration and cut dependence on imports.

Motilal Oswal expects the company’s EBITDA to rise at a compound annual rate of 43 per cent and net profit to grow around 40 per cent between FY25 and FY28. The firm also highlighted newer revenue streams — such as EPC projects, energy-storage systems, inverters and green hydrogen — which together may account for about 15 per cent of EBITDA by FY28.

The report pointed out that India’s installed solar capacity, currently near 100 GW, could climb to around 160 GW by FY28, driven by large-scale projects and government schemes like PM-KUSUM and Surya Ghar. That demand backdrop, the brokerage said, strengthens Waaree’s medium-term outlook. It also added that the company’s ability to execute quickly and maintain scale sets it apart from most peers.

At 13 times FY27 EV/EBITDA, Waaree’s valuation is considered attractive for a company with such long growth visibility. The brokerage, however, cautioned that higher competition and a sharp increase in domestic capacity could squeeze margins. A heavy dependence on exports to the US also leaves it exposed to policy changes or tariff moves there.

Motilal Oswal further noted that the company’s expansion involves large capital commitments, where execution delays or cost overruns might affect profitability in the short run. Even so, it said Waaree is well-positioned to benefit from India’s continued focus on self-reliant solar manufacturing.

Senior Sub-editor at Zee Business English

shweta.shukla@India.com

Shweta Birendra Shukla is a journalist covering the stock market and corporate aff