Nuvama retains 'Buy' on Waaree Energies; highlights strong momentum at Premier

Nuvama Institutional Equities has reaffirmed its 'Buy' rating on Waaree Energies Ltd after the company reported a record performance in the September quarter (Q2) of FY26. Waaree's revenue, EBITDA and PAT rose 70 per cent, 1.7 times and 1.3 times year-on-year (YoY), respectively, in Q2 FY26.

The domestic brokerage noted that EBITDA margin expanded sharply by 850 basis points (bps) YoY to 23 per cent, aided by a 24 per cent improvement in module realisation and a 3 per cent reduction in raw material cost. The company also recorded its highest-ever module output of 2.6 GW, marking a 42 per cent YoY and 15 per cent sequential increase.

Premier Energies Ltd also posted a strong set of numbers, with revenue, EBITDA and PAT rising 20 per cent, 47 per cent and 72 per cent YoY, respectively. According to Nuvama, the performance was driven by a 29 per cent improvement in cell realisation, a 27 per cent reduction in raw material cost, and a 63 per cent and 40 per cent increase in module and cell production, respectively.

Premier's EBITDA margin stood at 31 per cent, up 562 bps YoY. Cell utilisation was at 79 per cent, lower than 94 per cent in the previous quarter due to the ongoing ramp-up of a new 1.2 GW cell line, while module utilisation also stood at 79 per cent.

Nuvama underlined that Waaree's backward and forward integration initiatives are expected to reduce earnings concentration risk. The brokerage said Waaree's inverter manufacturing facility is scheduled to begin operations by Q4 FY26E, while its green hydrogen, electrolyser, advanced lithium-ion cell and battery energy storage system (BESS) capacities are anticipated to come online in FY27E. These expansions, it said, position the company to benefit from what it expects to be a multi-decadal growth opportunity in the clean energy ecosystem.

Looking ahead, Waaree reiterated its FY26E EBITDA guidance of Rs 5,500–6,000 crore, nearly double FY25 levels. Nuvama added that the ramp-up of the solar cell plant to 80–85 per cent utilisation from 44 per cent earlier could lift margins by 300–350 bps in the second half. The company has also outlined a capex plan of Rs 25,000 crore covering 20 GWh of BESS capacity, a 1 GW electrolyser line and 4 GW of inverter capacity.

For Premier, Nuvama highlighted accelerated expansion plans, including Rs 4,000 crore capex for cell and module capacity, and Rs 6,000 crore and Rs 600 crore investments in ingot-wafer and BESS, respectively. The brokerage said Premier expects EBITDA margins for BESS and inverters to align with module assembly, while the transformer business is projected to maintain 20–25 per cent margins.

To conclude, Nuvama has retained its 'Buy' call on Waaree, while Premier Energies continues to remain unrated.