Nuvama spots solar stock set to soar: 2x profit jump and ₹47,000 crore orders fuel rally

Solar stock Waaree Energies is heating up the renewable energy space with a 2x year-on-year jump in Q2FY26 profit and a 42% surge in production—backed by a robust order book and aggressive capacity expansion plans.

Nuvama has reaffirmed a ‘Buy’ rating on Waaree Energies, pegging the target price at ₹4,150—a 17% upside from current levels. The firm expects the solar player to sustain momentum, driven by strong demand, GST tailwinds, and rising global exports.

The company maintained its FY26 EBITDA guidance of ₹5,500–6,000 crore. “With ₹5,100 crore net cash and over ₹5,000 crore annual EBITDA, the balance sheet stays strong,” Nuvama noted, adding that operational cash flows should comfortably support the firm’s planned ₹25,000 crore capex.

Waaree's solar cell production is expected to rise in H2FY26, boosted by capacity expansions and tax reliefs, including a GST cut from 12% to 5%. Exports are set to grow across the EU, Gulf, UK, Africa, and Australia, while U.S. margins are being safeguarded through diversified supply chains and pass-through clauses.

The brokerage highlighted Waaree’s entry into adjacent sectors like inverters, electrolysers, green hydrogen (GH2), and Battery Energy Storage Systems (BESS) as a strategic move to de-risk earnings and capture a “multi-decadal opportunity.”

Waaree’s order book stood at 24 GW—valued at ₹47,000 crore—at the end of Q2, while its EPC arm, Waaree Renewables Technologies (WRTL), posted an order book of 3.5 GW. Nuvama forecasts a 43% CAGR in EBITDA between FY25 and FY28, fueled by consistent top-line growth.

Waaree's aggressive push in solar manufacturing and diversified green tech plays appear set to make it a dominant force in India’s energy transition.