It will be a big paragraph. I will write it in the evening.
Now. the good news is FII have increased their shareholding from 0.48% to 2.46 % in Q3 despite their huge selling in overall market. This shows the interest of informed Investors in Websol and its near future prospects…
One trend noticed that fund houses have sold module players like waare post listing but continuously buying cell+module players like premier
Websol has placed itself better than most of the other companies in solar value chain except Premier energies. Premier has the advantage of scale and money coupled with latest TOPCon cell lines (one launched in 2024, other lines are underway).
Websol management is having 30+ years of experience and they managed to sense the future & also wanted to secure from China supply disruptions by announcing their plans of operating Ingot-wafer-Cell-Module line of 2.4 GW in future.
However, to attain self sufficiency, Websol needs to manufacture polysilicon, ingots and wafers in India. No Polysilicon producers in India till now. Only Adani Mundra is making Wafers, Ingots that too for self consumption.
Polysilicon and Wafers can be manufactured in India but the technology and huge investment are the concerns. I came across in Internet that Trina solar is fighting with Adani for TOPCon technology related patent infringement in US.
Most of the large global manufacturer fight with each other for patent infringements. Source. X tweet @Industrlpolicy dated 21-01-2025.
I am not saying that all Indian manufacturers will get the same kind of notices but patented technology is available with Chinese biggies so they have an upper hand in solar value chain manufacturing and supplying machineries to Indian Companies.
Again Websol is placed better as they source most of the machineries from Centrotherm, Germany. Wafers are imported from China but that is not the case with other biggies like Waaree, Adani, Premier & etc. Waaree and Adani are completely procuring machineries, technicians support, technology and raw materials like polysilicon and wafers from China.
Coming back to Websol, To achieve self sufficiency in India, Websol needs money, a lots of money to invest in backward integration (Assuming Centrotherm supports in technology patents but not sure). Capex for converting MonoPerc to TOPCon (not much), HJT needs to be added + production loss during the upgradation time. Hence, It will definitely take a long time to generate sufficient cashflow with the current pace of expansions unless a foreign/established Indian investor purchases a significant stake in the company and infuses huge money.
So to summarise the long story short, Websol is comparatively placed better than its Indian peers at least in Domestic demand context . I personally don’t see any threat for Websol up to FY2028 subject to sorting out funding arrangements. The valuation needs to be moderated at a FY26 Forward PE of 45.
Just my opinions. Invested from double digit price levels.
Good read article on China’s overcapacity and their plans, strategies to reduce losses.
If this article information is true then Wafer price (input cost for Websol) won’t increase minimum for next 2-3 years. Positive.
However, I personally expect the ALMM list-2 implementation may get delayed as we won’t have a sufficient DCR Cell capacity by June 2026. Even ALMM List-1 was introduced in 2019 first and withdrawn later to firmly implement back in April 2024. I think the same will happen in Cells too but the delay may be one year. Only time will answer.
From Kotak report on IRA halt and impact for Waaree and Premier.
I am not sure of the percentage of exports that Websol has / is contemplating to the US .
While this is predominantly for manufacturing in US which Waaree has initiated and Premier is contemplating, I believe the ripple effects could be felt across board .
Disc : Invested…
Websol sells more than 90% in DCR (Domestic market), so not a direct impact.
And Websol manufactures cell, where as Waaree manufactures modules (trying to start cells). So basically not directly comparable as websol manufactures cells and sells domestically majorly.
24/7 Solar PV and BESS project by L&T in abroad. 24/7 is the keyword for renewables. World is adopting to a natural energy which is available in plenty. Good times ahead.
Only short term…no problem in long term…still very much in hyper growth phase and should give decent returns even at half of current valuations
Result is on 06th February. I expect them to repeat the same numbers of Q2 or a slightly better numbers than Q2.
Solar cells import duties increased by 2%. Module import duties remain unchanged.
Haven’t the duty on solar cells been revised from 25% to 20%, and the duty on solar modules from 40% to 20%? Your post says duty has increased.
I understand they have reduced Basic Custom Duty on solar cells to 20% but added AIDC to 7.5%. The total duty on solar cells therefore is 27.5%. AIDC revenue is not shared with the states.
Disclosure: Invested in Websol Energy.
Hi,
The Union Govt. is playing with the State Govts. on their Revenue sharing. However, the end user will pay the same 27.5% on import of Cells.
Same way, they will pay 40% duty on import of modules which was 44% earlier.
So, no change in Cell duty is positive for Websol.
National Manufacturing Mission announced in the Budget to develop in house Solar PV cells, wind turbines, etc. However, just 100 crs. Budget is earmarked for FY26. So, a long way to balance the DCR cell demand vs supply. Existing players will surely take advantage of this policy.
I have one question, This quarter also tax will be not applicable to websol? I am suspecting PAT can go down in coming quater because of tax. Last 2 quater company current tax was nil. Can anyone please give light, how many more quater tax exemption will be applicable based on previous losses.
