Waaree Energies share price targets: What Nuvama, Emkay Global, others say

Brokerages such as Emkay Global, Nuvama Institutional Equities and MOFSL maintained 'Buy' rating on Waaree Energies Ltd after the company delivered a strong December quarter performance, with Ebitda and adjusted profit beating Street expectations. 

Nuvama said the solar module manufacturer, providing solar and renewable energy solutions, is on track to surpass its FY26 Ebitda guidance, aided by a sharp ramp up in module and cell production, margin expansion and a rising order book.

Nuvama said Waaree’s revenue and Ebitda, up two times and three times YoY, respectively, beat its estimates by 17 per cent and 20 per cent. It attributed the outperformance to a 94 per cent YoY jump in module production to 3.51 GW and cell output of 0.75 GW. Gross margin and Ebitda margin expanded to 44 per cent and 25 per cent, up 1,254 basis points and 461 basis points year on year.

The brokerage said Waaree was transitioning from a module and cell manufacturer to a fully integrated solar player, with investments across the value chain including polysilicon to modules, inverters, transformers, battery energy storage systems and electrolysers. 

"Currently, cell utilisation is up, at 80 per cent, which Waaree plans upgrading to G12R over the next three months, following which utilisation is likely to reach 85-90 per cent. The company’s battery subsidiary raised Rs 1,000 crore through the sale of 10 per cent stake. Module capacity target by FY27-end is up, at 28.4GW. We raise FY26E EPS by 11 per cent, based on 9M run-rate, while retaining FY27E/28E earnings and target price of Rs 4,260. We reiterate Buy on Waaree," Emkay Global said.

MOFSL retained 'Buy' rating on the stock in its flash earnings update. Q3 revenues beat its estimates by 16 per cent, Ebitda by 26 per cent and adjusted profit by 24 per cent.

Nuvama said Waaree Energies has prudently recognised a one-time provision related to a US investigation. The company delivered a beat on all operating parameters, driven by volume ramp up and strong realisations, Nuvama said.

Nuvama said module production rose to 3.5 GW in the quarter, while cell production stood at 0.75 GW, with utilisation at around 80 per cent. It said utilisation was expected to rise to 85 to 90 per cent, supporting further operating leverage.

Nuvama said the US continued to be an important growth driver, with revenue of Rs 2,000 crore during the quarter. Module production and sales in the US stood at 275 MW and 313 MW respectively, while tariff pass through supported realisations. The brokerage said the Q3 IRA benefit was Rs 80 crore.

Nuvama said Waaree had planned capex of Rs 25,000 crore, with backward and forward integration capacities expected to start over FY26 and FY27. It said the strategy would help de risk earnings concentration and open up multi decadal growth opportunities across adjacent green energy businesses.

Nuvama said stronger operating cash flows were expected to largely fund the higher capex over the next two to three years. With a net cash balance sheet and Ebitda of over Rs 6,000 crore per annum, it said the balance sheet remained strong. The stock traded at 17.6 times and 16.4 times FY27 and FY28 estimated earnings.

This brokerage had raised its FY26, FY27 and FY28 profit estimates by 23 per cent, 18 per cent and 6 per cent respectively and reiterated its Buy rating with a target price of Rs 3,867, adding that the transition to a fully integrated Waaree 2.0 positions the company for sustained long term growth.