Waaree Energies shares rally 7% ahead of Q4 results; check preview; targets & more

Shares of Waaree Energies surged nearly 7 per cent during the trading session on Monday ahead of its earnings for the quarter and year ended on March 31, 2025. The company board is scheduled to meet to consider and approve the audited financial results later today.

Ahead of its earnings, shares of Waaree Energies rallied 6.95 per cent to Rs 2,612 on Tuesday, commanding a total market capitalization close to Rs 75,000 crore. The scrip had settled at Rs 2,442.55 on Monday. The stock has tumbled more than 30 per cent from its 52-week high at Rs 3,740.75 hit in November 2024.

Brokerage tracking Waaree Energies expect it to report a strong performance on a year-on-year (YoY) basis, with net profit zooming manifold, while revenue and Ebitda coming in at a healthy growth rate. However, they are anticipating a more than 200 basis points (bps) drop in margins on a quarter-on-quarter (QoQ) basis.

Kotak Institutional Equities is expecting Waaree Energies to report net revenue of Rs 4,051 crore in March 2025 quarter, up 38 per cent YoY and 17.1 per cent QoQ. Ebitda may come in at Rs 759.3 crore, up 81.5 per cent YoY but 5.2 per cent QoQ, with Ebitda margin coming in at 18.7 per cent, contracting 214 bps QoQ. Net profit may nearly triple YoY to Rs 518.5 crore.

"We expect a growth in revenue driven by higher utilization of solar module facility, commissioning of 1.4 GW solar cell plant in February and strong yoy growth from EPC business. We model EBITDA margin falling sequentially driven by lower contribution from higher margin retail segment," said Kotak, which has a 'reduce' rating on the stock with a target price of Rs 2,280.

Listed in October 2024, Waaree Energies raised a total of Rs 4,321.44 crore via its IPO, selling its shares for Rs 1503 apiece. The issue saw a solid interest during the bidding period. The stock is currently 74 per cent above its IPO price.

Waaree is not just solar; it is strategically pivoting for exponential growth across the nascent, but multi-decadal renewable energy/green hydrogen opportunity, said Nuvama Institutional Equities in its IC report. "Margins would moderate over the medium term, but comprehensive integration—G H2, electrolysers, inverters, battery, BESS, RE- shall help sustain growth and de-risk, it said.

"Waaree’s FY24–27E revenue/EBITDA to gallop at a 30 per cent/54 per cent CAGR driven by a 25 per cent/8 times/6GW surge in module/cells/new wafer capacity. Given premium realisation pump-primed by government support—ALMM, DCR mandates for module/cells-we reckon Waaree’s Ebitda margin shall surge to 23 per cent by FY27E," Nuvama said, with a target price of Rs 2,805.

Incorporated in December 1990, Waaree Energies is an Indian manufacturer of solar PV modules with an aggregate installed capacity of 12 GW. The product portfolio of solar energy products consists of PV modules like Multicrystalline modules, Monocrystalline modules and TopCon modules.

Bernstein has an 'underperform' rating with a target price of Rs 1,902. "We project their revenue, Ebitda and NI, to grow at a CAGR of 21 per cent, 28 per cent and 15 per cent respectively over FY25-28. With increased capacity from competitors, we expect 13 per cent decline in module realisation over the next 2 years, it said.

As the company’s cell capacity comes up, margins are likely to improve slightly except for the NI margin- which will be impacted by higher depreciation as the general useful life for cells and modules equipment is 5 years. While the company is enjoying high returns due to reasons discussed in above sections, their ROE fell to the levels of 17 per cent in FY28 from 42 per cent  in FY24, Bernstein said.