Indian solar manufacturing stocks rebounded sharply on January 12, with Waaree Energies and Premier Energies climbing up to 5% after China announced significant policy changes affecting solar export subsidies. The rally marked a pause in weeks of steep losses for both companies as investors reacted positively to potential relief from Chinese pricing pressure.

Stock Performance on January 12

Both solar manufacturers posted strong gains in early trading:

China's Policy Shift Details

According to a Chinese finance ministry statement dated January 9, China will implement sweeping changes to its export tax rebate system. The policy changes include:

• Immediate Impact (April 1, 2025): Removal of VAT rebates for 249 products, including solar cells, ceramic roof tiles, and lithium hexafluorophosphate
• Extended Timeline (April 1, 2026): Complete cancellation of VAT rebates for photovoltaic and related products
• Battery Sector Changes: Reduction of rebate rates on 22 battery-related goods from 9% to 6%, with complete removal by January 1, 2027

Market Context and Recent Performance

The rally comes after both stocks experienced significant downturns. Chinese solar industries have been dealing with overcapacity and intense price competition, creating margin pressure globally for solar manufacturers.

Recent Trading Patterns

Strategic Implications

While Premier Energies does not have significant exposure to export markets, Waaree Energies maintains a presence in international markets, making the Chinese policy shift particularly relevant for the latter company. The removal of Chinese export subsidies could potentially level the playing field for Indian manufacturers competing in global markets.

Both companies are relatively new entrants to the futures and options segment, adding to the volatility in their stock prices. The policy announcement represents a potential turning point for the sector, which has been under pressure from subsidized Chinese competition.

Waaree Energies has secured a substantial order for 105 MW of domestic solar modules, reinforcing its position as a leading solar PV module manufacturer in India. The order, received from a reputed customer on January 8, 2026, adds significant value to the company's already robust order book of ₹47,000 crores.

Order Details and Strategic Impact

The latest order comes from a reputed customer involved in owning, operating, and developing renewable power projects across India. This contract represents a one-time supply arrangement with no related-party involvement, ensuring clean governance and arm's-length execution.

The order strengthens Waaree's positioning within India's utility-scale solar ecosystem and provides incremental visibility in the near-term module dispatch pipeline. This development supports capacity utilization across the company's manufacturing facilities and contributes to the acceleration of renewable project commissioning in the country.

Strong Financial Performance

Waaree Energies demonstrated exceptional financial growth in Q2 FY26, with significant improvements across key metrics compared to the previous year.

The company's revenue surge of 70% year-on-year reflects strong operational performance and market demand for solar modules. The net profit growth of over 133% demonstrates improved operational efficiency and margin expansion.

Robust Order Book and Market Position

Waaree Energies maintains a commanding market position with substantial order visibility and global reach. The company's current order book provides clear execution and revenue visibility for sustained growth.

The geographic distribution of orders highlights Waaree's growing global footprint while maintaining a strong domestic presence. The substantial pipeline exceeding 100 GW indicates robust future project flow, supporting sustained growth and capacity utilization.

Market Valuation and Trading Metrics

With shares closing at ₹2,548, Waaree Energies commands a market capitalization of ₹73,230 crores. The company trades at a PE ratio of 27, which is competitive compared to the industry average of 29, suggesting reasonable valuation relative to sector peers.

The latest order reinforces Waaree's strategic importance as solar developers increasingly favor stable, domestic suppliers for their renewable energy projects. This trend positions the company well to capitalize on India's expanding solar installation capacity and growing renewable energy sector.