Waaree Energies share price: Jefferies sees downside; what UBS, Nomura, others say post Q1 miss
Waaree Energies shares: Nomura said its Ebitda estimates are largely unchanged, as it lowered estimates for the existing business due to the Q1 miss but that is offset by contribution from new business verticals.
- Jul 31, 2026,
- Updated Jul 31, 2026 8:38 AM IST
Waaree Energies Ltd reported a weak June quarter, prompting mixed views from brokerages. While Jefferies maintained an 'Underperform' rating and UBS and DAM Capital retained 'Neutral' calls, brokerages such as Nomura, Emkay Global and Anand Rathi reiterated their 'Buy' recommendations on the stock, though with lower target prices.
Among the brokerages that came out with post-Q1 updates, Jefferies has the lowest target of Rs 2,430 on the stock, implying 7.4 per cent potential downside over Thursday's closing price of Rs 2,624.90 on NSE. Nomura's target of Rs 3,740 is the highest on the Street so far, Bloomberg data compiled by Business Today suggests.
Foreign brokerage Nomura said its Ebitda estimates are largely unchanged, as it lowered estimates for the existing business due to the Q1 miss but that is offset by contribution from new business verticals such as BESS. It introduced FY29 estimates and rolled forward its valuation base to FY28 earnings. "We maintain our Buy rating with a lower target of Rs 3,740, at 13 times FY28F EV/Ebitda. The stock trades at 10x FY28F EV/Ebitda. Downside risk is softer than expected margins and persistent export headwinds," Nomura said.
Emkay cut its target price by 11 per cent to Rs 3,800 from Rs 4,260 earlier. It said Waaree's Q1 was hurt by weaker non-DCR demand following ALMM-II extension, resulting in higher spot sales at lower realisations. Lower exports due to slower US customs clearances, partial OEM sourcing in the US, limiting IRA benefits and higher raw material costs also hurt numbers.
"However, the management reiterated its FY27 Ebitda guidance of Rs 7,000-7,700, expecting profitability to improve as these headwinds reverse from Q2 onwards. Cell production is currently 400MWpm and is expected to increase to 1.2GW in Q2, 1.5GW in Q3, and further in Q4 as the new 10GW facility scales up. Cell integration would increase from current 20-25 per cent to 65 per cent by December 2026, supporting margin expansion," Emkay said.
JM Financial called Waaree's Q1 an all-around miss. It said the revenue was aided by one-off sales, adjusting which the print came in 6 per cent lower than consensus estimates. Ebitda margin, it said, dropped to 14 per cent against 19 per cent in Q4FY26. Production too declined to 3.2GW, down 23 per cent QoQ. "Currently, we reiterate ADD with an unchanged target of Rs 3,296, subject to review post the call," it said.
Anand Rathi's target now stands at Rs 3,333, down from Rs 3,718 earlier. Axis Capital reduced its target on the stock to Rs 3,600 from Rs 3,800 earlier. UBS maintained Waaree's target at Rs 3,100.
Waaree Energies Ltd reported a weak June quarter, prompting mixed views from brokerages. While Jefferies maintained an 'Underperform' rating and UBS and DAM Capital retained 'Neutral' calls, brokerages such as Nomura, Emkay Global and Anand Rathi reiterated their 'Buy' recommendations on the stock, though with lower target prices.
Among the brokerages that came out with post-Q1 updates, Jefferies has the lowest target of Rs 2,430 on the stock, implying 7.4 per cent potential downside over Thursday's closing price of Rs 2,624.90 on NSE. Nomura's target of Rs 3,740 is the highest on the Street so far, Bloomberg data compiled by Business Today suggests.
Foreign brokerage Nomura said its Ebitda estimates are largely unchanged, as it lowered estimates for the existing business due to the Q1 miss but that is offset by contribution from new business verticals such as BESS. It introduced FY29 estimates and rolled forward its valuation base to FY28 earnings. "We maintain our Buy rating with a lower target of Rs 3,740, at 13 times FY28F EV/Ebitda. The stock trades at 10x FY28F EV/Ebitda. Downside risk is softer than expected margins and persistent export headwinds," Nomura said.
Emkay cut its target price by 11 per cent to Rs 3,800 from Rs 4,260 earlier. It said Waaree's Q1 was hurt by weaker non-DCR demand following ALMM-II extension, resulting in higher spot sales at lower realisations. Lower exports due to slower US customs clearances, partial OEM sourcing in the US, limiting IRA benefits and higher raw material costs also hurt numbers.
"However, the management reiterated its FY27 Ebitda guidance of Rs 7,000-7,700, expecting profitability to improve as these headwinds reverse from Q2 onwards. Cell production is currently 400MWpm and is expected to increase to 1.2GW in Q2, 1.5GW in Q3, and further in Q4 as the new 10GW facility scales up. Cell integration would increase from current 20-25 per cent to 65 per cent by December 2026, supporting margin expansion," Emkay said.
JM Financial called Waaree's Q1 an all-around miss. It said the revenue was aided by one-off sales, adjusting which the print came in 6 per cent lower than consensus estimates. Ebitda margin, it said, dropped to 14 per cent against 19 per cent in Q4FY26. Production too declined to 3.2GW, down 23 per cent QoQ. "Currently, we reiterate ADD with an unchanged target of Rs 3,296, subject to review post the call," it said.
Anand Rathi's target now stands at Rs 3,333, down from Rs 3,718 earlier. Axis Capital reduced its target on the stock to Rs 3,600 from Rs 3,800 earlier. UBS maintained Waaree's target at Rs 3,100.