Waaree Energies , a prominent player in the renewable energy sector, has reported strong financial results for Q4 FY25 while setting ambitious targets for the future. However, the company has faced mixed reactions from analysts, with Nuvama reaffirming a 'Buy' rating and Jefferies downgrading to 'Underperform'.

Q4 FY25 Performance and Stock Movement

Waaree Energies has reported impressive financial results for the fourth quarter of fiscal year 2025:

Despite strong results, the stock experienced a 6% decline following a 19% rally.

Analyst Perspectives

• Nuvama reaffirmed a 'Buy' rating with a 29% higher target at Rs 3,622.00
• Jefferies downgraded from 'hold' to 'underperform' with a target price of Rs 2,100.00
• Jefferies' decision follows a 25% rally in the company's stock price
• Concerns cited: high US module inventories and potential impacts on Indian demand due to policy changes

FY26 Outlook and Capacity Expansion

Waaree Energies' management has provided guidance for continued strong growth:

• Projected EBITDA growth of over 100% for FY26
• FY26 EBITDA target range: Rs 5,500.00 crore to Rs 6,000.00 crore
• Plans to add 3.2 GW of module capacity

Strong Order Book and Global Pipeline

• Current order book: Rs 47,000.00 crore
• Global pipeline: 100 GW

Strategic Positioning

Waaree Energies emphasizes its readiness to manage uncertainties related to US tariffs, highlighting flexible production capabilities to maintain competitiveness in the international solar energy market.

Investor Communication

• Waaree Energies hosted an Analysts/Institutional Investors Meeting on April 23, 2025
• Meeting discussed financial results for the quarter and year ended March 31, 2025
• Audio recording available at https://waaree.com/investor/ under 'Schedule of Analysts or Institutional Meet' section

Shareholder Lock-in Period

A significant development for investors to note:

• Six-month shareholder lock-in period ends on April 25
• This will release 53% of the company's equity

While Waaree Energies demonstrates strong growth potential and commitment to stakeholder communication, the mixed analyst views and upcoming release of locked-in shares underscore the complex landscape and market uncertainties in the renewable energy sector.

Waaree Energies Limited , India's leading solar module manufacturer, has announced robust financial results for the fourth quarter and fiscal year 2025, showcasing significant growth and strategic expansion plans.

Record-Breaking Financial Performance

For the quarter ended March 31, 2025, Waaree Energies reported:

• Consolidated revenue: ₹4,140.92 crore (37.69% YoY increase)
• EBITDA: ₹1,059.57 crore (116.27% YoY increase)
• Net profit: ₹648.49 crore (254.52% YoY growth)

Full fiscal year 2025 results:

• Total income: ₹14,846.06 crore (27.62% YoY increase)
• EBITDA: ₹3,123.20 crore (72.59% YoY increase)
• Net profit: ₹1,932.15 crore (107.08% YoY growth)

Operational Highlights and Expansion

• Q4 FY25 production volume: 2.06 GW (vs 1.35 GW in Q4 FY24)
• Full-year production: 7.13 GW (vs 4.77 GW in FY24)
• Operationalized a 1.6 GW module manufacturing facility in Brookshire, Texas, USA in January 2025

Strategic Investments and Future Outlook

Waaree Energies is pursuing both backward and forward integration strategies:

• Approved 1.6 GW module manufacturing line expansion at USA facility
• Planned 3.2 GW expansion at Chikhli plant in India
• Projected FY26 EBITDA: ₹5,500 crore to ₹6,000 crore

Dr. Amit Paithankar, Whole Time Director & CEO of Waaree Energies Ltd, commented: "FY25 marks a pivotal inflection point in Waaree's journey- a year where our strategy, scale, and execution converged to deliver industry-leading EBITDA performance of ₹3,123.20 crore. This performance underscores the strength of our execution capabilities and the quality of order book, with centered focus on margins."

Market Position and Order Book

• 14.1% market share in India's module shipments
• Order book: Approximately 25 GW, valued at ₹47,000 crore
  • Domestic orders: 46%
  • Overseas orders: 54%

Sustainability Initiatives

• Achieved Gold Medal in EcoVadis Sustainability Rating (97th percentile)
• Committed to net-zero emissions:
  • Scope 1 and 2 by 2030
  • Scope 3 by 2040

Conclusion

Waaree Energies' strong financial performance, strategic expansions, and focus on sustainability position the company for continued growth in the evolving solar energy market. As global demand for renewable energy solutions increases, Waaree's investments in capacity expansion and technological advancements are likely to drive its future success.

Investors and industry observers will be watching closely as Waaree Energies continues to execute its growth strategy and capitalize on the burgeoning opportunities in the solar energy sector, both in India and internationally.