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It's not every day a newly listed company delivers a 34 per cent profit jump and still gets investors asking, "Are we already late?"
That's exactly what Waaree Energies has pulled off this quarter. India's largest solar module maker posted a strong Q4—margins are up, production is up and the order book looks rock-solid.
So it's no surprise the stock surged over 7 per cent post-results, hitting Rs 2,855 intraday. But here's the real question: with the stock already up over 80 per cent from listing—is this rally still grounded in fundamentals?
Waaree Energies Q4 snapshot: A powerful quarter
- Net profit: Rs 619 crore (up 34 per cent YoY)
- Revenue: Rs 4,004 crore (up 36 per cent YoY)
- EBITDA margin: 23 per cent (vs 14.3 per cent last year)
- Modules shipped: 2.06 GW for the quarter
- Order book: 25 GW worth Rs 47,000 crore
Waaree isn't just growing—it's scaling efficiently. EBITDA nearly doubled, thanks to better capacity utilisation, operating leverage and the shift to premium modules.
That kind of margin jump in manufacturing doesn't come easy—and the market took notice.
What's driving the story?
- Capacity-led growth: Waaree produced 7.1 GW of modules in FY25 and is targeting 20 GW by FY27. Most of the new capacity is already locked in through long-term contracts.
- Strong demand visibility: The order book—25 GW at Rs 47,000 crore—offers two years of revenue visibility. That's not something many renewable players can claim.
- Global push: The company's new 1.6 GW plant in Texas signals serious intent to go global. With the US moving to localise clean energy supply chains, this could be a smart bet.
But here's the rub
The stock currently trades at a P/E of 61—steep by traditional manufacturing standards. But within the solar space, it actually looks moderate. Websol Energy, a smaller peer, trades at a P/E of 128 and Premier Energies is all the way up at 200.
That shows investors are willing to pay up for solar exposure. But it also raises a red flag—there's very little margin of safety. If execution falters or policy momentum slows, these multiples could compress quickly.
Brokerages like Bernstein have already flagged caution, saying the near-term upside could be capped unless earnings growth exceeds even the current optimistic trajectory.
Final take
Waaree Energies is doing all the right things—scaling fast, staying profitable and chasing global relevance. The solar story is strong, and Waaree is positioning itself as India's most serious bet in the space.
But the market isn't waiting—it's already priced in a lot of that optimism. At a P/E of 61, Waaree looks expensive unless growth keeps compounding without a hitch. Sure, it's still cheaper than peers like Websol and Premier Energies, but that's a low bar when everyone's priced for perfection.
- Use the Stock Screener to compare Waaree with other energy players.
- Download the Waaree Energies Stock Card for financials, margins and valuation trends.
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