Waaree Energies Limited has announced the incorporation of a new step-down subsidiary, marking another expansion in its renewable energy portfolio. The company informed stock exchanges on January 23, 2026, about the formation of Decarbon X Projects Private Limited, which was incorporated on January 22, 2026.

Subsidiary Structure and Ownership

The new entity has been incorporated through Waaree Forever Energies Private Limited, which is a wholly-owned subsidiary of Waaree Energies Limited. This creates a step-down subsidiary structure where Waaree Forever Energies Private Limited holds 100% of the share capital in Decarbon X Projects Private Limited.

Business Focus and Operations

Decarbon X Projects Private Limited will operate in the Independent Power Producer (IPP) industry. The company has been incorporated specifically for facilitating and holding specific power projects under the IPP framework. As a newly incorporated entity, the subsidiary is yet to commence its business operations and currently has nil turnover.

Regulatory Compliance

The announcement was made pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The disclosure follows the requirements under SEBI circular SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024. The company has provided comprehensive details about the incorporation as mandated by regulatory guidelines.

Strategic Implications

The incorporation of this step-down subsidiary represents Waaree Energies' continued focus on expanding its presence in the renewable energy sector. By establishing a dedicated entity for Independent Power Producer operations, the company is positioning itself to develop and manage specific power projects more effectively within the IPP framework.

Waaree Energies has positioned battery manufacturing at the core of its energy transition strategy, with plans to roll out a 20 GW battery cell and pack manufacturing facility in phases starting from FY27. Group Head Finance Abhishek Pareek outlined the company's ambitious expansion plans during a post-results interaction, emphasizing the strategic shift toward becoming a broader energy transition player.

Pareek explained that Waaree's decision to enter battery manufacturing stems from consistent work over the past few years as the company expands both vertically and horizontally. The expansion includes backward integration, EPC capabilities, and new segments such as inverters, hydrogen, electrolysers, and batteries. According to Pareek, battery storage is essential to address solar power limitations, as 6-8 hours of generation is insufficient for large-scale, round-the-clock power needs.

Battery Manufacturing Project Details

The proposed battery project represents a significant investment in India's energy storage capabilities. The facility will be developed strategically to meet growing market demand.

Pareek noted that construction of the first phase is at an advanced stage, with the company already receiving orders and maintaining an encouraging pipeline from both domestic and overseas markets. The ability to deliver 24x7 electricity at competitive costs requires either hybrid solutions or round-the-clock power, both of which depend on battery integration.

Financial Backing and Investment Plans

Waaree recently raised ₹1,000 crore in equity from investors to support its battery manufacturing plans, validating the company's execution capabilities. The finance chief outlined a comprehensive capital expenditure plan of ₹25,000 crore to be deployed over the next 24 months.

The investment will cover multiple areas:

• Backward integration into ingots and wafers
• Expansion of solar cell capacity
• Battery manufacturing
• Inverter production
• Renewable power infrastructure

Oman Polysilicon Facility Progress

The polysilicon facility in Oman has reached an advanced stage of development, with trial production expected to begin this quarter. The facility boasts an installed capacity of 100 KTPA of polysilicon, equivalent to nearly 40 GW of annual polysilicon production.

This capacity provides adequate supply options for Waaree's vertically and pseudo-vertically integrated operations. Pareek highlighted that a section of the customer base increasingly seeks non-Chinese polysilicon, and the Oman facility will supply traceable polysilicon for such requirements.

US Operations and Market Strategy

Waaree's early establishment of US manufacturing operations has helped insulate both its order book and pipeline from tariff impacts. The company currently operates 1.60 GW of capacity in the US, with additional expansion planned.

Following changes in US trade rules, Waaree has shifted parts of its supply chain from Southeast Asia to the Middle East and African countries such as Ethiopia. Exports from India continue with solar cells sourced from territories facing relatively lower tariffs of 15-20%.

Shares of Waaree Energies surged 9.67% on Thursday, January 22, rising ₹233.80 to close at ₹2,652.80 on the NSE, reflecting investor confidence in the company's strategic expansion plans.