With India’s solar energy capacity continuing to expand, domestic brokerage Nuvama Institutional Equities expects a strong September-quarter performance from solar module manufacturers Waaree Energies and Premier Energies.
The brokerage estimates Waaree to record a strong jump in revenue to ₹51 billion, up 41 per cent year-on-year and 14 per cent quarter-on-quarter, with EBITDA at ₹11 billion, doubling from last year and rising 7 per cent sequentially.
This growth is expected to be driven by robust demand and improved operational efficiencies resulting from higher production, with margins projected to expand by 635 basis points year-on-year to 21 per cent.
Waaree’s solar module production is expected to rise to 2.7 gigawatts as utilisation improves on expanded capacity. The brokerage also forecasts net profit to jump to ₹9.4 billion, supported by higher other income of ₹4.7 billion, primarily due to a stake sale in its subsidiary, Indosolar Limited.
For Premier Energies, the brokerage projects revenue and EBITDA to rise to ₹19 billion and ₹5.4 billion, driven by strong demand for its high-margin DCR modules and solar cells, along with steady DCR-module realisations.
The brokerage forecasts EBITDA margin at 29 per cent, supported by better capacity utilisation for cells at 94 per cent and modules at 75 per cent. On the bottom line, Nuvama expects the company to report a net profit of ₹2.9 billion.
Nuvama expects Waaree Technologies stock to reach ₹3943
The brokerage believes that Waaree’s backward and forward integration is set to de-risk earnings concentration. Its inverters facility is scheduled to start by Q4FY26, while the GH2 electrolyser facility, advanced lithium-ion cells, and BESS capacities are expected to commence in FY27. These expansions are expected to enable the company to capture what could be a significant multi-decadal growth opportunity.
Stronger operating cash flow is expected to largely support its higher capital expenditure requirements of ₹150 billion. With ₹75 billion in net cash and EBITDA exceeding ₹50 billion per annum, Waaree’s balance sheet remains robust.
Amid multiple growth levers, the brokerage expects the stock to touch ₹3,943 per share, representing an 18.30 per cent jump from its latest closing price.
Premier Energies, which is not rated by the brokerage, remains optimistic about domestic growth prospects, citing expanding demand, favourable government policies, and improving technologies.
Policy-driven demand, including initiatives such as PM Surya Ghar Muft Bijli, PM Kusum Scheme, and CPSU Scheme Phase II, is expected to support growth over the next two to three years, the brokerage noted.
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