Waaree Energies Ltd. - Is it just the Dawn?

Stock Opportunities Not-so-Hidden Gems
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i have extracted the trascript from this youtube video and summarized it via chatgpt:

Opening Remarks (Management)

  • Speakers: Amit Bitankar (CEO), Sonal Srivastava (CFO), Abhishek Parikh (Group Head Finance), Rohit Wade (Investor Relations).
  • Highlights:
    • FY25 was a landmark year:
      • Revenue: ₹14,846 crore (+27% YoY).
      • EBITDA: ₹3,123 crore (+72.6% YoY), EBITDA margin improved to 21.04% from 15.56%.
      • PAT: ₹1,928 crore (+51.3% YoY).
    • Order book: Robust at ₹47,000 crore.
    • Funds available: ₹15,550 crore.
    • Module manufacturing capacity: Now at 15 GW — the largest in India.
    • Cell factory: 5.4 GW commissioned.
    • US operations: 1.6 GW manufacturing facility operational; IndoSolar acquisition posted ₹55 crore profit.
    • IPO success: Strong investor participation.
    • Recognitions:
      • Tier 1 PV Module Supplier (BNEF).
      • EcoVadis Gold Medal.
      • CARE Ratings upgraded to A+ (long-term) and A1+ (short-term).

Strategic Initiatives

  • Backward Integration:
    • Targeting additional 4.8 GW by FY27.
    • 6 GW integrated wafer-cell-module factory in development.
    • Battery storage (3.5 GW) and green hydrogen (300 MW electrolyzer) facilities scheduled by 2027.
  • Forward Integration:
    • Expanding into power infrastructure — 17.57 GW in development.
    • EPC business (V Renewable Tech) under execution: 3.2 GW.
    • 3 GW inverter facility by late FY26.

Sustainability Focus

  • Committed to net-zero emissions:
    • Scope 1 & 2 by 2030.
    • Scope 3 by 2040.
  • Achieved environmental product declarations for modules.
  • Aiming for lowest carbon footprint in the industry.

Financial Guidance for FY26

  • EBITDA projected: ₹5,500–6,000 crore.
  • Confidence backed by order book strength, integration across value chain, and execution capabilities.

Analyst Q&A — Key Highlights

1. DCR (Domestic Content Requirement) Strategy:

  • 5.4 GW cell plant running.
  • Strong DCR order build-up, especially in retail segment (~1.5 GW anticipated).
  • Margins expected to benefit.

2. US Business and Tariffs:

  • 17–20% of revenue from US exports.
  • Managing tariff uncertainties through flexible production in India and US facilities.
  • Current US tariff on Indian imports: 14% (with risk of an additional 26%).

3. Order Book Details:

  • 45% India, 55% Overseas (mostly US).
  • Orders secured with advances.
  • EPC order book (~3.2 GW) included in the total.

4. Capacity Utilization (CUF):

  • Varies from 60% to 90%.
  • Focused on maximizing EBITDA rather than only volume growth.

5. Future Revenue Mix:

  • FY26: Still mostly manufacturing and EPC.
  • New segments (batteries, green hydrogen) expected to contribute from FY27.

6. Margin and Cost Management:

  • Raw material cost optimization is key.
  • Gross margins have improved even with stable module realizations (~21 cents/Watt).

7. Retail Business Contribution:

  • Around 23–25% of revenue.

8. Financial Health:

  • Customer advances at ₹4,000–4,400 crore.
  • No major exceptional income included in EBITDA guidance.

In Short:
Waaree Energies reported a record FY25, delivered strong growth across all fronts, successfully expanded capacities, strategically integrated backward and forward, and gave a confident FY26 growth outlook while proactively managing risks like US tariffs.

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means 7.13 GW production generated respective Revenue

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how long order book take to realize into revenue

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Saw a recent notification of internal transfer of Promoter shares within family from Juniors to Seniors. Not sure how to take it. Generally it should happen the opposite way right?

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Premier, Waaree Energies shares fall as US peers tank after Trump Tax Bill Premier, Waaree Energies shares fall as US peers tank after Trump Tax Bill - CNBC TV18

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  • Waaree Energies : India’s largest solar module manufacturer earned 58% of its FY24 revenues from exports, with the US as its key market.

  • Premier Energies : While US exports contributed 8.77% to its FY24 revenues, the company holds a 100% share of Indian solar cell exports to the US, making it the leading exporter in this category.
    The return on capital employed (ROCE) varies significantly:

  • Manufacturing solar modules in India yields a ROCE of 22%-28%.

  • Exporting these modules to the US boosts ROCE to over 72%.

  • Expansion Plans in the US

  • Waaree Energies : The company is testing production at its new 1.6 GW solar module plant in the US. It also plans to establish a 3.4 GW solar module and 5 GW solar cell manufacturing facility there. Waaree is optimistic about the growth potential due to cost benefits in the US market.

  • Premier Energies : In partnership with Canada’s Heliene Inc., Premier Energies plans to set up a 1.2 GW solar cell plant in the US. However, the company is cautious and monitoring how US policies, like the Inflation Reduction Act, may affect its expansion plans.
    It does seem the Act passed by the US House of Representatives is likely to affect them substantially. In the cases of Waaree the effect would be more dire.
    The Waaree share is down by 7.74% today, showing the market is treating the news with trepidation.
    So, the question is what happens next? Will better sense prevail in the US? The consensus about such steps generally is that we should not talk of good sense in the US for the next four years. Also, such have been flip-flops of policies there that nothing is predictable. However, the present regime apparently takes all the talk of environmental issues as “old wives’ tale”. The proverbial clock has turned back to fossil fuels.
    Countries like Germany on the other hand are going full-throttle about renewable energy. Germany aims for mark 80% of electricity to come from renewable sources by 2030 mark, and 100% by 2035. They also intend to phase out coal completely by 2038. Furthermore, Germany wants 50% of total heat production to be climate-neutral by 2030.
    https://www.iea.org/countries/germany
    Even countries which are major suppliers of petrolem The Saudi Green Initiative was launched by His Royal Highness Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince, Prime Minister, and Chairman of the Higher Committee for the Saudi Green Initiative in 2021. It is a whole-of-society initiative to oversee and unite the Kingdom’s efforts to combat climate change, drive sustainable innovation and accelerate the green transition. Saudi Arabia is on track to achieve its goal to reduce carbon emissions by 278 million tonnes per annum (mtpa) by 2030. The Kingdom aims to achieve an optimal energy mix for electricity production by having gas and renewable energy at approximately 50% each by 2030. When achieved, this will displace approximately 1 million barrels of liquid fuel currently used.
    Since 2022, an additional 2,100 MW of renewable energy has been connected to the grid, bringing the total capacity of installed renewable energy to 2,800 MW (2.8 GW), generating energy equivalent to powering over 520,000 homes. This marks a 300% increase in installed capacity, demonstrating the pace at which Saudi Arabia is accelerating its energy transition. By the end of 2023, the production capacity of renewable energy projects under construction in Saudi Arabia will exceed 8 GW, with an additional 13 GW of renewable energy capacity in various stages of development across multiple projects.Saudi Arabia announces 300% increase in installed renewables capacity, 43.9 million trees planted since launch of Saudi Green Initiative.
    All of this will not be from solar source though, and a major emphasis is on hydrogen though.
    With the change in atmosphere, sometimes the much touted projects may start having negative connotations. Probably, Waaree’s investment in the US may seem to be one such example.
    Waaree has been darling of the investors for a few years. They will be keeping their fingers crossed.
    Disclaimer: Invested in Waaree.

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I’m currently holding the stock at an average price of ₹2,478. The recent concall seemed quite positive — the management sounded confident, guiding for an EBITDA of ₹5,500–6,000 Cr. However, despite this upbeat outlook, there hasn’t been any meaningful positive price action.

Would appreciate thoughts from fellow members — how should one interpret this? Is the market still skeptical or is it just a matter of patience?

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It’s just a matter of patience.. company is going great guns .. I had a discusson with the management and they are confident enough ..
Enhanced capacity on account of solar cell will definitely increase top line ..
There is huge demand in DCR solar panel because of subsidy and now that company has started solar cell production as backward integration coupled with tail wind in the sector market will definitely react positively

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Anybody compared the two Waarees, Renewable and Energies? Would be so grateful for your views.

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In simple analogy Renewable is a EPC company and energies is a tech company do PV panels,BESS and Hydrogen energy (Recently bought another transformer company).

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solar & wind ??

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