Waaree Energies, Premier Energies: Nuvama retains 'Buy' on both stocks, says this

Nuvama Institutional Equities has retained its 'Buy' on Waaree Energies Ltd and Premier Energies Ltd following their December quarter earnings. Waaree’s backward and forward integration should de-risk earnings concentration, the brokerage said adding that the inverter facility should start by Q4FY26E while GH2, electrolyser facility, advanced li-ion cells and BESS capacities would start in FY27E, enabling it to capture what it sees a mammoth multi-decadal growth opportunity.

Premier Energies is optimistic about solar sector growth prospects in India on the back of rising demand, favourable government policies and improving technology, Nuvama noted.

Highlighting recent management concall, Nuvama said Waaree is seen surpassing its FY26 Ebitda guidance of Rs 5,500-6,000 crore. Its solar cell plant shuld rampup from 80 per cent currently to 85–90 per cent in Q4, it said adding that a shift to DCR modules may aid margin.

On Premier Energies, it said the 1.2GW TOPCon cell facility may fully ramp-up by February. The company's FY27 capex is seen at Rs 3,000 crore. Overcapacity issues may fall on DCR/non-DCR demand of over 50/65GW in FY27/28, it said while suggesting BESS/transformer as key new drivers.

"Waaree is undergoing a strategic transition from Waaree 1.0 (primarily focused on modules and cells manufacture) to Waaree 2.0, aiming to create a fully integrated solar value chain. Under this roadmap, the company is investing across the solar value chain including polysilicon, ingots, wafers, cells and modules with plans for a 10GW ingot and wafer facility and a 10GW cell capacity expansion, both targeted to be operational by FY27," Nuvama said.

Its management is optimistic about leveraging its learnings from the existing 5.4GW manufacturing operations and aims to implement it for the new production lines that typically requires four–six months to ramp-up, and expects faster stabilisation, Nuvama added.

On Premier Energies, Nuvama said the company is well insulated from silver price volatility through a combination of six months of hedged silver exposure, adequate inventory, and structurally declining silver intensity.