Waaree Energies delivers Rs 648cr profit in Q4, eyes Rs 6,000cr FY26 EBITDA—Is this solar stock a buy now?

Why Did Waaree Energies Post Its Best-Ever Quarterly Performance?

Waaree Energies Limited has reported its most outstanding quarterly results to date, confirming its position as India’s largest solar PV module manufacturer and a growing global clean energy contender. In Q4 FY25, the company posted revenue of ₹4,140.92 crore, up 37.69% from the ₹3,007.44 crore reported in Q4 FY24. However, the real headline came in its bottom-line numbers. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) more than doubled year-on-year, rising 116.27% to ₹1,059.57 crore, while profit after tax (PAT) exploded by 254.52% to ₹648.49 crore.

These exceptional results came as the company scaled production from 1.35 GW in Q4 FY24 to 2.06 GW in Q4 FY25, reflecting strong operational execution and rising demand across key markets. EBITDA margins rose to 25.59% in Q4 FY25 compared to 16.29% in the previous year’s quarter, underscoring Waaree’s enhanced pricing power and leaner cost base.

How Did Waaree Perform Across the Entire FY25?

For the full financial year FY25, Waaree Energies generated total income of ₹14,846.06 crore, an increase of 27.62% over FY24’s ₹11,632.76 crore. EBITDA surged to ₹3,123.20 crore from ₹1,809.60 crore, representing a 72.59% jump. Meanwhile, PAT reached ₹1,932.15 crore, growing more than 100% over the ₹933.04 crore earned in FY24.

These gains reflect a combination of strong demand, higher capacity utilisation, and increased efficiencies across its manufacturing footprint. Full-year production rose to 7.13 GW from 4.77 GW, enabling stronger economies of scale and improved delivery timelines.

With a 21.04% EBITDA margin and 13.01% PAT margin for the year, Waaree continues to improve its financial resilience while navigating cost pressures, policy shifts, and evolving market dynamics across geographies.

What Strategic Expansions Is Waaree Undertaking in the U.S. and India?

A central component of Waaree’s forward strategy is expanding its global manufacturing footprint. During FY25, the company operationalised a 1.6 GW module manufacturing facility in Brookshire, Texas. This aligns with Waaree’s “local-for-local” supply chain model, designed to reduce logistics dependency, navigate U.S. tariffs, and cater to federal solar incentives under the Inflation Reduction Act.

Simultaneously, Waaree’s Board of Directors approved a 3.2 GW module line expansion at the company’s Chikhli plant in Gujarat. This capacity boost, aimed at reinforcing its leadership position in India, will further support the domestic solar ecosystem, especially as central and state governments roll out gigawatt-scale tenders to meet their energy transition targets.

With a combined module capacity of ~15 GW and a cell manufacturing capacity of 5.4 GW, Waaree now operates the largest integrated solar production infrastructure in the country.

How Valuable Is Waaree’s ₹47,000 Crore Order Book?

Waaree’s current confirmed order book stands at 25 GW, valued at ₹47,000 crore (~USD 5.6 billion). This robust pipeline provides significant revenue visibility and affirms strong global demand, especially from utility-scale solar developers, EPC companies, and institutional buyers in Europe, the U.S., and Southeast Asia.

This demand surge is directly tied to global decarbonisation goals, government subsidy support, and corporate ESG mandates that increasingly prioritise clean power procurement. The scale and diversity of Waaree’s customer base also mitigate concentration risks and add to its long-term business sustainability.

What Do Analysts and Institutional Investors Think of the Stock?

Investor interest in Waaree Energies has surged following the release of its Q4 FY25 results. The stock closed at ₹2,611.85 on April 22, 2025, jumping nearly 7% in a single session. Although it remains well below its November 2024 peak of ₹3,740.75, the stock has shown strong recovery from a recent low of ₹1,808.65, validating investor enthusiasm post-earnings.

Analyst ratings, however, remain divided. Nuvama Institutional Equities initiated coverage on the stock with a “Buy” rating and a price target of ₹2,805, citing Waaree’s large-scale backward integration and export-driven growth. On the other hand, Kotak Institutional Equities recommended a “Reduce” rating with a target price of ₹2,280, flagging concerns around future pricing competition and input cost volatility.

These divergent perspectives illustrate the balancing act between high earnings momentum and macroeconomic or policy risks that could pressure future performance.

How Are Institutional Holdings Evolving Post-Q4?

Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) have trimmed their stakes in Waaree in recent quarters. FIIs reduced their holdings from 1.40% in Q3 FY25 to 0.70% in Q4, while DIIs pared down their exposure from 2.63% to 2.46% in the same period.

The decline may signal cautious optimism or risk hedging by institutional players amid the stock’s sharp valuation swings and ongoing global interest rate recalibrations. However, increased retail and insider activity hints at latent market confidence, particularly among long-term growth investors focused on clean energy sectors.

What’s the FY26 Outlook, and Can Waaree Sustain Its Growth?

Waaree Energies’ guidance for FY26 EBITDA stands between ₹5,500 crore and ₹6,000 crore, implying up to 92% growth over FY25. According to management commentary, this optimistic projection is anchored in the strength of its order pipeline, increased plant capacities, and expected ramp-up in backward integration projects across ingots, wafers, and battery energy storage solutions.

CEO Amit Paithankar stated that FY25 marked a pivotal inflection in the company’s journey, driven by strategic execution and a commitment to profitability through integrated expansion. The focus now shifts to scaling these operations while balancing cost structures, maintaining margin discipline, and navigating regulatory frameworks in both developed and emerging markets.

As solar transitions from being subsidy-led to market-led, Waaree’s vertical integration, export diversification, and localised production hubs may prove to be long-term competitive advantages.

Should You Buy, Sell, or Hold Waaree Energies Stock?

For investors, Waaree Energies represents both opportunity and risk. On one hand, its earnings growth, global expansion, and dominant market share in India’s solar industry make it a compelling clean energy bet. On the other hand, valuation concerns, institutional exit signals, and policy sensitivity—especially in export markets—require careful consideration.

Those with long-term horizons and a focus on sustainability investing may find current stock levels favourable for accumulation, especially if guided FY26 numbers begin to reflect in earnings as early as H1 FY26. Meanwhile, short-term traders and risk-averse investors might prefer to wait for consistent institutional inflows or technical confirmation of continued uptrend.