Waaree Energies stock jumps 7% after its US Arm invests ₹270 Cr to strengthen polysilicon supply

Synopsis: Waaree Energies shares are in focus after its US subsidiary invested $30 million in a polysilicon firm, strengthening raw material supply security amid strong growth, a large order book, and global exposure.

The shares of this company, which is one of the largest manufacturers of solar PV modules in India, are in focus after its US arm made a notable investment that can significantly impact its business. In this article, we will dive more into the details.

With a market capitalisation of Rs 87,040 crore, the shares of Waaree Energies Ltd made a day high of Rs 3,077 per share, up by 7 percent from its previous day’s closing price of Rs 2,877.30 per share. In the last one year, the stock delivered a return of nearly 1 percent, underperforming NIFTY 50’s return of 8.4 percent.

About the Acquisition

Waaree Energies, through a stock exchange filing, announced that its US subsidiary, Waaree Solar Americas Inc., will subscribe to Series B preferred shares to the tune of around 53.7 lakh for a consideration of about $30 million (Rs 270 crore) in United Solar Holding Inc. The deal is scheduled to close by January 31, 2026, conditionally subject to the usual ​‍​‌‍​‍‌​‍​‌‍​‍‌clauses.

United Solar Holding Inc. (“United Solar”) is a leading producer of high-purity polysilicon, a vital component for the solar industry, operating one of the world’s most advanced manufacturing facilities in Oman. This​‍​‌‍​‍‌​‍​‌‍​‍‌ capital infusion allows Waaree to obtain a supply of polysilicon over the next several years, which is a major challenge in solar panels’ raw material. 

What is polysilicon?

Polysilicon​‍​‌‍​‍‌​‍​‌‍​‍‌ is one of the most important raw materials required to produce solar panels. After that, the material is transformed into silicon wafers that are used to manufacture solar cells. These cells absorb sunlight and generate electricity. The purity level of the polysilicon determines the efficiency and power of the solar panel.

Besides solar energy, polysilicon is used in semiconductors, electronics, and chips; however, the largest consumer of this material is the solar photovoltaic (PV) ​‍​‌‍​‍‌​‍​‌‍​‍‌industry.

Financial and Other Highlights

Waaree Energies Ltd has reported an operating revenue of Rs 6,066 crore in Q2 FY26, representing a 70 percent growth compared to Rs 3,574 crore in Q2 FY25.  Regarding its profitability, it reported a net profit of Rs 878 crore in Q2 FY26, a staggering growth of 134 percent as compared to Rs 376 crore in Q2 FY25.

The company has a robust order book of Rs 47,000 crore, consisting of 24 GW of projects.  Of this total order book, a staggering 59.5 percent is derived from overseas clients, while the remaining 40.5 percent is derived from Indian clients, making it extremely vulnerable to any shift in global policies like tariffs.

The stock delivered an exceptional ROE and ROCE of 27.42 percent and 34.94 percent respectively, and is currently trading at a P/E of 32.22x, slightly higher than its sector average of 30.64x.

Waaree Energies is the largest solar panel manufacturer in India and has been concentrating on making quality and low-cost solar panels as a means of encouraging the use of clean energy and lowering carbon emissions since 2007. It runs five manufacturing units in India and is also present in the global markets. The company has a vast presence in India, serving over 700 districts, and also operates in 25 countries, including the US, which is a major client of the company. 

Written by Satyajeet Mukherjee

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