Waaree Energies: Analysts see up to 23% upside after strong Q2 show, management guidance

Brokerage firms continue to remain positive on Waaree Energies after its quarterly earnings for the September 2025 period, with some analyst increased its target price, while some expecting the stock to deliver up to 22 per cent gains in the coming period. It reported its 'best quarterly earnings' on Thursday, September 16.

Waaree Energies reported a 132.97 per cent year-on-year (YoY) surge in consolidated net profit to Rs 871.21 crore in the quarter that ended on September 30, 2025. Its revenue from operations increased by 69.69 per cent YoY to Rs 6,226.54 crore in the reported period. Waaree reaffirmed its FY26 Ebitda guidance of Rs 5,500 to Rs 6,000 crore.

Ebitda increased 155.29 per cent YoY to Rs 1,560 crore, while Ebitda margin increased more than 840 basis points to 25.17 per cent in Q2 FY26. Waaree announced a dividend of Rs 2 per share and achieved a production output of 2.64 GW during the quarter, driven by strong operational focus.

Waaree Energies’ Ebitda/PAT grew 3 times/2 times YoY; production surged 42 per cent YoY. Maintained FY26 EBITDA guidance. It retained FY26 Ebitda guidance, led by strong demand, capacity expansion, cell plant ramp-up, GST cut. Q2 cell output of 0.6GW likely to rise in H2, potentially improving margins by 300–350bps. Demand lift likely from data centres, GH2, said Nuvama institutional Equities.

"Waaree’s backward and forward integration shall de-risk earnings concentration. The adjacent green businesses such as inverter facility, electrolyser facility, GH2 production and BESS capacity shall enable it to capture what we believe may be a mammoth multi-decadal growth opportunity," it said.

We reckon stronger OCF shall largely take care of higher capex needs. With Rs 5,100 crore of net cash, Rs 5,000+ p.a. Ebitda, balance sheet stays strong, Nuvama added. "We retain FY26E/27E PAT and roll forward DCF-based valuation to FY28. Braveheart ‘BUY’ with a target price Rs 4,105 (from Rs 3,622 earlier)."

Shares of Waaree Energies remained range-bound on Monday as the stock traded in a tight range of Rs 3,500-3,570 apeice. The total market capitalization of the company stood close to Rs 1 lakh crore mark. Waaree Energies shares have dropped nearly 9 per cent from its 52-week high at Rs 3,864.40, but have nearly doubled investors wealth from its 52-week low at 1,808.65.

Waaree Energies, India’s largest solar PV module manufacturer with over 12 GW capacity, stands at the forefront of India’s renewable energy expansion. Recent acquisitions, such as Enel Green Power India, and backward integration into solar cell manufacturing have significantly strengthened its market position, said Vertex Securities, adding Waaree to its top Diwali picks.

"Supported by government incentives and India’s target of 500 GW renewable capacity by 2030, Waaree is expected to benefit from sustained demand growth and policy-driven tailwinds. Strong execution capabilities and a robust order pipeline support the company’s long-term outlook combined with an attractive technical breakout which could be in play," it said with a target price of Rs 4,310.