Waaree Energies shares: Jefferies downgrades stock, Nuvama ups target price; what's next?

Shares of Waaree Energies have remained at the spotlight of investors as the stock has zoomed more than 70 per cent in less than 3 weeks. The renewable energy firm announced a strong set of numbers in the March 2025 quarter with positive guidance, and was buzzing amid US imposed steep anti-dumping duties on solar equipment imports from four Southeast Asian countries.

However, brokerage firms continue to remain divided on the stock. While overseas brokerage firm Jefferies has downgraded the stock following the sharp upmove in the recent times, Nuvama Institutional Equities has increased its target price on the stock citing its positive outlook for the future.

Waaree Energies clocked a 34.1 per cent year-on-year (YoY) jump in its net profit at Rs 618.9 crore, while reported a 36.4 per cent YoY rise in its revenue in the March 2025 quarter. The renewable energy player's Ebitda zoomed more than 120 per cent YoY to Rs 922.6 crore, while Ebitda margins expanded to 23 per cent for the quarter.

Waaree Energies reported revenue in line with estimates, with Ebitda/PAT 29 per cent/31 per cent ahead on strong volume and rising Ebitda. Orderbook fell 5 per cent QoQ but it guided for a more than 100 per cent Ebitda growth YoY in FY26 and capacity increases in the US and India, said Jefferies in its report.

"While profits should inflect over FY26-27E we see lower imports into US in FY26 on high inventories and weak non-DCR economics in India 2HFY27 onwards," it added, downgrading the stock to 'underperform' with target price Rs 2,100 after a 25 per cent rally in the last month. It saw a 30 per fall in the stock from its previous close.

Waaree is ramping up capacity, with a 6 GW ingot/wafer facility expected to be ready by FY27. In its module segment, the current capacity of 15 GW may grow by an additional 4.8 GW over FY26–27. Its order book stands at Rs 47,000 crore for 25 GW, marginally lower than ₹50,000 crore in the last quarter, with 57 per cent of the orders coming from international markets.

"Waaree Energies reported its strongest-ever quarter. The stock has run up 30 per cent since our initiation, we now raise DCF-based target price by 29 per cent to Rs 3,622 given strong prospects and guidance. We reaffirm our contrarian Braveheart ‘buy’ rating," said Nuvama Institutional Equities.

Nuvama reckons Waaree’s free cash flow would turn positive from FY27E given stronger operating cash flow, which shall largely take care of its higher capex requirements. With Rs 15,500 crore of funds at its disposal, Waaree’s balance sheet remains strong, said the brokerage.

Ahead of its Q4 results, Waaree Energies surged more than 70 per cent in less than 3 weeks from its 52-week low at Rs 1,808.65 to Rs 3,100 on Wednesday, before settling at Rs 3006.15 for the day. However, the stock saw some profit booking to Rs 2,830 on Thursday, falling nearly 6 per cent on Thursday. The company commanded a total market capitalization of more than Rs 80,000 crore.

Amid the rising demand of the solar products, Waaree Energies will see the end of its six-month shareholder lock-in on April 25, which makes it another important date for the stock.