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Indian Express
5 days ago
- Business
- Indian Express
Is Waaree Energies the next green energy multibagger?
The renewable energy cycle that began in 2023 made Suzlon Energy, Inox Wind Energy, and KPI Green Energy multibaggers. These stocks rose 700%, 1,200%, and 600%, respectively, between 2023 and 2024. The green energy wave also made way for green energy IPOs in 2024. A prominent name among them was Waaree Energies. While Suzlon is India's largest wind turbine manufacturer, Waaree is India's largest solar module manufacturer with a 14.1% market share as of Q1 FY26. Waaree is walking on Suzlon's path to become a vertically integrated solar energy company that not only manufactures solar modules but also solar cells, grid inverters, and solar products, and constructs, operates, and maintains solar farms. The company is moving a step further to become a solar Independent Power Producer (IPP). While Waaree and Suzlon have similarities, their operating style are starkly opposite. Suzlon is expanding conservatively, focusing on the domestic market. Waaree, on the other hand, is expanding aggressively in India and the United States to tap the solar opportunity. Can Waaree Energies be the next multibagger in the solar space? Let's find out. Waaree Energies increased its solar photovoltaic (PV) module capacity sevenfold from 2 gigawatt (GW) in FY21 to 15GW in FY24 as orders flowed in. The company made its debut on the stock exchange in October 2024 and raised Rs 4,321 crore to fund its backward and forward integration strategy and become an integrated energy player. It is expanding horizontally and vertically organically and through acquisitions. Over the years, Waaree perfected its solar PV modules to meet the most stringent global quality and performance standards. Today, Waaree accounts for 44% of PV module exports from India and 21% of domestic consumption. It expanded its module manufacturing capacity last year by acquiring IndoSolar and aims to add another 4.8 GW capacity by FY27. It even expanded in the US, bringing into operation its 1.6 GW module manufacturing facility in Texas in January 2025. The company plans to expand this facility to 3.2GW by FY26 and add a battery energy storage systems plant by 2028. Waaree Energies is also expanding vertically. In backward integration, it manufactures cells, ingots, wafers, battery storage, and green hydrogen electrolysers. This backward integration capacity operates on a book-and-ship model where execution is fast and generates quick revenue. The company builds a factory only after it has a sufficient order book, ensuring capacity utilisation. Its 5.4GW cell factory at Chikhli, Gujarat, is operating at more than 90% capacity due to a strong order book. Waaree expects volume orders once the government implements the Approved List of Models and Manufacturers (ALMM) for cells from June 2026 onwards. It is also acquiring Kamath Transformers for Rs 293 crore and expects to complete the deal in FY26. In its forward integration strategy, Waaree has expanded into inverters, Engineering, Procurement, and Construction (EPC) services, and power infrastructure. It is acquiring Enel Green Power India Private Limited (EGPIPL) for Rs 792 crore to expand its IPP business, and a non-operating company, Green New Delhi Forever Energy Pvt Ltd, to hold specific power projects under the IPP framework. EPC and power infrastructure projects have longer execution times and higher working capital requirements, which leads to a higher debt level. To ensure efficient execution of all businesses across the value chain, Waaree Energies has built a comprehensive structure of eight companies. Of the eight subsidiaries, its EPC arm, Waaree Renewable Technologies, is listed on the stock exchange. Waaree Energies' Subsidiaries Across the Value Chain Waaree Energies is chasing a pipeline of around 100 GW modules, and Waaree Renewable Technologies is chasing around 30 GW of EPC contracts. Waaree has signed a power purchase agreement with Rewa Ultra Mega Solar and Madhya Pradesh Power Management Company to supply 150 MW of solar power. Such aggressive expansion is part of Waaree's broader strategy of controlling EBITDA in a cyclical and volatile renewable energy market. Waaree Energies Financial Highlights (FY23-FY26) Waaree Energies Fundamentals FY23 FY24 FY25 Revenue (Rs Crore) 6,751 11,398 14,444 YoY Growth 137% 69% 27% EBITDA Margin 15.56% 21.04% Source: Waaree Energies Earnings Presentation Raw materials make up 68% of Waaree's total operating expenses. It is looking to improve EBITDA by reducing raw material costs through backward integration. Traditionally, the company sourced solar cells for 11.5-14 cents, which will reduce to 7-8 cents when it makes its cells, said Sonal Shrivastava, CFO of Waaree Energies, in the Q4 FY25 earnings call. The uncertainty around demand and the certainty around cost make it logical for Waaree to focus on EBITDA. The decision on what the company manufactures and how much will boil down to EBITDA. For FY26, the company expects to grow EBITDA by 76-92% to Rs 5,500-6,000 crore. This guidance is backed by its Rs 47,000 crore order book, which gives a three-year revenue visibility. This order book comprises 25GW of modules and 3.2GW of EPC orders. Around 57% of orders are from overseas, and the remaining 43% are from India. However, the company sees 80% of its FY26 revenue to come from India and 20% from overseas. This gap in revenue and order book shows the company will continue to tap domestic retail and utility orders with an execution timeline of two months to 12 months in FY26 and FY27. Beyond FY27, the overseas orders with an execution timeline of 1 year, 2 years, and 2.5 years could take a larger share. Uncertainty has been brewing in the US market since November 2024, when Donald Trump was elected the President. His stance on green energy created uncertainties around India's renewable energy exports. Since Waaree's 58% of FY24 revenue came from exports, the stock was particularly hit. The tax bill passed on May 22 will pause the 30% federal tax credit households get on rooftop solar in 2025 and phase down other subsidies in 2028 instead of 2029. What others see as a threat, Waaree Energies sees as an opportunity. The company's CEO, Amit Paithankar, noted that tax credit restrictions are on products linked to 'foreign entities of concern (FEOC),' mainly China. This restriction puts Waaree at an advantage to replace FEOC. The US opportunity was visible in June 2025 as Waaree Energies secured a 599 MW solar module supply order in the US over and above the 586 MW solar modules contract, bringing new US deals in the first quarter of FY26 to around 1,200 MW. Paithankar is also optimistic about discussions between India and the US over resolving the tariff situation. These policy changes could delay the US order execution by a year or two, but not cancel it, as most of them are long-term contracts and Waaree has already received advance payments. In the meantime, the company looks to offset weak international demand with strong domestic demand as it did in FY25, increasing its revenue by 27% and improving its EBITDA margin to 21% from 15.5% a year ago. Despite policy changes, the US remains a key market for Waaree from a long-term perspective as the country is home to some of the biggest data centres in the world. Big Tech is investing billions of dollars in artificial intelligence (AI)-enabled data centres, which consume more electricity. According to an International Energy Agency report, almost half of the growth in US electricity demand by 2030 will come from data centres. Data Centre Electricity Consumption by Region 2020-2030 Waaree believes an AI data centre could accelerate the adoption of clean energy, presenting an opportunity for solar energy to power these centres. Waaree Energies' share price rose 55% between October 24 and November 4, 2024, but reversed course after Trump was elected. The next growth cycle of over 40% was also short-lived when Trump paused retaliatory tariffs. The US policy uncertainty has slowed its sales and earnings growth. The stock is trading at a price-to-earnings ratio of 43.6x, lower than Premier Energies' 48.7x. Brokerages have a mixed rating on Waaree Energies as weak exports and high capex keep its free cash flow negative. Analyst Ratings on Waaree Energies Post FY25 Earnings Analyst Rating Price target post FY25 earnings (Rs) Previous Target (Rs) Upside from market price Rs 2,840 Rating Nuvama Institutional Equities 3,622 2,805 28% Buy Jefferies 2,100 2,030 -26% Underperform Cholamandalam Securities 3,600 27% Buy Kotak Institutional Equities 2,600 -8% Sell Source: Brokerage reports Solar plays an important role in India's renewable energy story, and Waaree is well-positioned to tap this growth. Most multibaggers were beneficiaries of a demand spurt from the product-linked incentive (PLI) scheme, government subsidies, strong execution, and operational efficiencies. Waaree Energies' stock has the potential to pick up momentum once the US policy uncertainty ends. After all, the US makes up for more than half its order book. Cell manufacturing presents a growth opportunity in the domestic content requirement (DCR) space. However, increasing competition could dilute its revenue growth rate. To become a multibagger, Waaree needs the secular trend of solar power demand from AI data centers to materialise. An order win from a data centre, especially from a global tech company, could set the ball rolling for the multibagger gains. Waaree Energies is an interesting stock to add to the watchlist as its growth story is just beginning. Note: We have relied on data from throughout this article. Only in cases where the data was not available, have we used an alternate, but widely used and accepted source of information. Puja Tayal is a financial writer with over 17 years of experience in the field of fundamental research. Disclosure: The writer and his dependents do not hold the stocks discussed in this article. The website managers, its employee(s), and contributors/writers/authors of articles have or may have an outstanding buy or sell position or holding in the securities, options on securities or other related investments of issuers and/or companies discussed therein. The content of the articles and the interpretation of data are solely the personal views of the contributors/ writers/authors. Investors must make their own investment decisions based on their specific objectives, resources and only after consulting such independent advisors as may be necessary.
Mint
12-06-2025
- Business
- Mint
GEF Capital Partners eyes $600 million fund after major success with Premier Energies
GEF Capital Partners, which invests across the US, Brazil and India, is planning a $600 million fourth fund on the back of its blockbuster partial exit from solar modules maker Premier Energies, according to a person briefed on the matter. The fourth fund could eventually deploy as much as $1 billion after including investor co-investments, the person cited above added, asking to remain anonymous. Co-investments allow investors in a fund to deploy capital alongside the main private equity fund to boost their exposure to an investment. The PE fund made a partial exit from its investment in Premier Energies by selling a 5.5% stake through a block deal on Tuesday, which amounted to ₹2,625 crore. The initial investment of around ₹177 crore (then $23.5 million) in Premier Energies was led by GEF partner Abhishek Loonker and co-founder Raj Pai in September 2021. It is expected to yield the firm close to ₹8,000-8,500 crore in profits (over $1 billion), including the unsold 5.5% stake GEF retains in the company. Tuesday's block was sold at ₹1,051.60 per share, which is 52X times higher than the original value of ₹20 per share, a second person with knowledge of the development said. The fund has made two partial exits before, including selling a chunk in August 2024, when it made its public markets debut. The buyers include marquee names such as Goldman Sachs, Morgan Stanley Asia, Nomura Singapore, Societe General, and Blackstone Aqua. Also read | Murugappa Group's EV arm raises new funds from GEF Capital GEF Capital, which focuses on climate-related investments, did not respond to a request for comment. According to its website, GEF Capital Partners was formed in March 2018 following a spin-out from the Global Environment Fund. Rise in profit 'Premier Energies is likely to generate phenomenal carry for the firm," one of the people cited above said. Carry is the profit a private equity firm will make after returning the principal fund capital and preferred return of around 8%. 'We are now seeing increased traction from investors wanting to foray into the wider array of decarbonization themes including solar module manufacturing, green hydrogen production, electric vehicles and associated infrastructure, circular economy segments including water and wastewater treatment, waste management, biofuels and recycling sectors," said Prateek Jhawar, managing director and head, infrastructure and real assets investment banking, Avendus Capital. He said the renewable energy boom, predominantly powered by solar power, is here to stay for the next 40-50 years. And expects companies that move backward along the value chain—from modules to polysilicon—to gain an edge, with policies also supporting more backward integration. Shivam Bajaj, chief executive of Avener Capital, believes that introducing regulations similar to the Approved List of Models and Manufacturers (ALMM) and the Basic Customs Duty (BCD) on solar modules could help create more success stories like Premier Energies, offering attractive returns for early investors. Read this | Mizuho: The Japanese giant in hot pursuit of Avendus In addition, he believes that policy momentum—such as the ₹18,100 crore ACC PLI scheme and energy storage mandates—is driving investments across the entire value chain. With the National Manufacturing Mission prioritizing clean technologies, including battery production, he expects the sector to attract significant investment and stimulate domestic innovation. 'Moreover, equipment manufacturing/OEM within the climate space continues to be a high-growth potential segment," he said. Avener Capital is a boutique investment bank focused on the infrastructure and energy sectors. Next fund The investment has also made it easier for GEF Capital Partners to raise its next fund. It is sitting on a 200% internal rate of return on its Premier Energies investment, the people cited above said. GEF Capital invested in Premier Energies from its second fund which was $193 million. The second fund has already exited investments in Syrma SGS Tech, ESDS Software Solution, and Prince Pipes. The second fund also has investments in e-mobility ventures of Hero Motors Ltd, and Ratan Tata-backed Electra EV, in addition to stakes in companies such as SeedWorks and SS Supply Chain Solution. The firm is currently investing out of its $440 million third fund, which has a $200 million co-investment envelope. Through the third fund, it has invested in Murugappa group's TI Mobility, Sahyadri Farms and EPACK Prefab. And read | Murugappa's chip testing plant to begin supplies next year, says JV partner
Time of India
10-06-2025
- Business
- Time of India
Avaada Butibori plant is India's 1st to make 720Wp solar modules
Nagpur: Avaada Electro, which is building a solar power equipment plant at Butibori, has claimed to be the first to manufacture large-sized 720 Watt peak (Wp) TOPcon solar modules in the country. The plant at Butibori near Nagpur is expected to emerge as the country's largest solar modules and cells manufacturing facility. Avaada's projects in the state entail an investment of Rs13,000 crore, most of which is for the Butibori plant. The company has now begun manufacturing 720Wp modules at Butibori. It is currently importing the cells, which are a key component for making modules, from China. However, there are plans to operationalise the cell-making unit also by October. This will enable fully indigenous manufacturing of solar modules, doing away with dependence on China, said company officials. Even China started making 720Wp capacity modules less than a year ago. Avaada is expected to be second globally after China, said a source. Avaada Electro had performed the groundbreaking ceremony for its Butibori plant last October. Modules are the equipment that generate solar power. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 5 Books Warren Buffett Wants You to Read In 2025 Blinkist: Warren Buffett's Reading List Undo They are made of numerous solar cells. So far, modules made in India have smaller 182x183mm M10 cells which can generate 595Wp solar power. Avaada has begun manufacturing modules made of 220x220mm G12 cells. The modules have the capacity to generate as much as 720Wp power, explained a company official. The manufacturing of the first phase with a capacity of 1.5 gigawatts (GW) has started at Butibori . By July, the full capacity of making modules with a combined capacity of 7GW is expected to be reached. Modules made through the G12 cells can generate more solar power in less area due to the cell's size. Solar module installations occupy a sizeable area, said the source. Similarly, the company has also commercially launched the 630Wp solar modules. The Butibori plant has also been included in the ministry of renewable energy's (MRE) approved list of models and manufacturers (ALMM). This will ensure Avaada's eligibility for taking part in the govt tenders. The Butibori unit has already started supplying solar panels for the state govt's Mukhya Mantri Saur Krishi Vahini Yojana -- the state govt project for supplying solar power to farmers. According to company chairman Vineet Mittal with ALMM accreditation of the Butibori plant and the launch of 720Wp and 630Wp cells, the company hopes to achieve a major revolution in the sector. With Butibori emerging as a prime destination for solar energy equipment makers, Avaada is the first to start production. Other companies like Jindal Group and Waaree Energies also have similar plans for Nagpur.
Time of India
10-06-2025
- Business
- Time of India
Avaada Electro eyes 12 GW module & cell manufacturing capacity by FY27 at Butibori facility, ET Manufacturing
Advt Avaada Group's manufacturing arm Avaada Electro is looking to scale up module and cell manufacturing capacity to 12 Gigawatt each at its Butibori facility in Nagpur The capacity will be increased up to 7 gigawatt by next month, the company said in a statement."Avaada Electro is scaling towards a 12 GW solar module and 12 GW solar cell manufacturing capacity by the next financial year," it company also announced that its Butibori facility has been officially included in the Approved List of Models and Manufacturers ( ALMM ) by the Ministry of New and Renewable Energy (MNRE). Vineet Mittal , Chairman & Founder , Avaada Group, said, "With ALMM certification of our Butibori plant and the commercial launch of our 720 Wp and 630 Wp N-type TOPCon modules, we are proud to lead India 's solar manufacturing revolution."The company's Dadri facility is already was introduced by the government to boost domestic manufacturing of solar panels.
Time of India
07-06-2025
- Business
- Time of India
Reliance, Avaada among new entrants in ALMM solar modules list
Mumbai: The Ministry of New and Renewable Energy has issued the latest revision to the Approved List of Models and Manufacturers (ALMM) for solar photovoltaic modules , with several key additions including Reliance Industries , and Avaada Electro . According to the latest update dated 5 June, 2025, Reliance Industries has made the entry with an enlisted capacity of 1,716 MW per annum manufactured at its Jamnagar facility. Avaada Electro's Nagpur unit has been enlisted with a capacity of 1,272 MW per annum. Other firms such as ReNew Photovoltaics have added advanced solar panels to the list and enlisted a capacity of 2,926 MW per annum manufactured at its Jaipur facility in Rajasthan. Agrawal Renewable Energy, Unique Sun Power, Oswal Solar, Navitas Green, and Insolation Green Energy have also had module additions or capacity changes approved, indicating broad-based expansion across the sector. The latest list features a wide range of bifacial glass-to-glass and glass-to-transparent-backsheet module types across manufacturers. This ALMM revision is effective immediately and is valid up to June 4, 2029, subject to valid BIS certification. The update also clarifies that enlisted capacity reflects only the current revision and should not be interpreted cumulatively with past lists. The move comes amid India's push for domestic manufacturing capacity under the Production Linked Incentive scheme and its ALMM compliance mandate for government projects.
