The Trump administration has introduced a 26 percent reciprocal tariff on all imports from India, effective April 9, 2025, with exceptions for sectors such as pharmaceuticals and energy.
This action is part of U.S. President Donald Trump’s broader trade strategy aimed at correcting perceived global trade imbalances and imposing higher tariffs on countries that impose significant barriers to U.S. exports. India was specifically targeted due to its 52 percent tariff on goods imported from the U.S.
Price Action
The shares of Waaree Energies Ltd, with a total market capitalization of Rs 62,087.64 crore on Friday, closed at Rs 2161.20 per share, which was 3.3 percent lower than the previous closing price of Rs 2,234.9 apiece.
How Trump’s Tariff will impact Waaree Energies
Waaree Energies, India’s largest solar module manufacturer, might face significant challenges due to the 26 percent reciprocal tariff imposed by the Trump administration on Indian exports. The U.S. is a critical market for Waaree, accounting for approximately 20 percent of its revenue. Additionally, its total order book, which stood at Rs 50,000 crore (26.5 GW) as of January 2025 consists of 54 percent share from the overseas market, including the U.S.
Increased tariffs may force Waaree to absorb some costs or pass them on to customers, potentially reducing profit margins or pricing competitiveness.
In January 2025, the CEO mentioned the potential scaling up of production at its Texas Plant, which presently is at 1.6 GW capacity but can expand to 3 GW, which could help mitigate tariff impacts by producing locally for the U.S. market.
However, as per DRHP, Waaree Energies Ltd imports around 54 percent of its raw materials and components, especially solar cells, from countries like China and uses them to manufacture the final product; this could further complicate the trade conditions.
Despite these hurdles, Waaree continues to strengthen its global manufacturing presence. As of March 2025, the company operates state-of-the-art manufacturing facilities with an installed capacity of 15 GW for solar PV modules globally, which also includes 1.3 GW of Indosolar and 1.6 GW in Texas, USA. It also has inaugurated India’s largest cell manufacturing facility at Gujarat with a 5.4 GW capacity.
Products and services
Waaree Energies Ltd. provides solar PV modules, including TopCon, Bifacial, BIPV, and Flexible types, along with inverters and solar kits. They offer EPC and O&M services for ground-mount, rooftop, and floating solar projects. Their portfolio also includes green hydrogen solutions with electrolysers, battery storage with cells and containers, and renewable power generation and infrastructure.
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CAPEX
As of February 2025, Waaree Energies Ltd. has a solar module manufacturing capacity of 13.3 GW in India, 1.6 GW in the USA, and a 5.4 GW solar cell capacity domestically. The company has been awarded 6 GW under the Production-Linked Incentive (PLI) scheme for an integrated facility encompassing ingot, wafer, cell, and module manufacturing. By FY27, Waaree’s total capacities are projected to reach 21 GW for modules, 11.4 GW for cells, and 6 GW for ingot-wafers.
Industry Overview
Global renewable energy (RE) capacity is expected to grow at a 12 percent CAGR, doubling from 4.9 TW in 2024 to 9.8 TW by 2030. India’s RE capacity is set to rise at a faster 16 percent CAGR, reaching 500 GW from 209 GW.
In 2023, solar accounted for 76 percent of global RE additions. By 2030, global solar capacity is projected to reach 5.8 TW, with India targeting 280 GW.
Battery energy storage is also expanding rapidly. Global capacity is expected to grow at a 21 percent CAGR from 1,296 GWh in 2024 to 4,064 GWh by 2030, while India’s capacity is set to rise at a 30 percent CAGR from 36.9 GWh to 177 GWh.
Financials
The company posted strong growth in revenue from operations and net profit in Q3FY25. Revenue from operations grew by 117 percent YoY from Rs 1,596 Crore in Q3FY24 to Rs 3,457 Crore in Q3FY25. Similarly, net profit jumped by 371 percent YoY from Rs 141 Crore to Rs 507 Crore over the same period.
About Waaree Energies Ltd
Waaree Energies Ltd is India’s leading renewable energy company, accelerating the global energy transition. It has a presence across India and 25+ countries worldwide and offers innovative solar solutions, including panel manufacturing, EPC services, project development, and rooftop systems.
Written By Adhvaitha Nayani
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