Synopsis: Solar stocks including Waaree Energies and Premier Energies, fell up to 6% after the government extended the ALMM List-II implementation deadline, delaying the benefits of domestic solar cell manufacturing and weighing on FY27 earnings expectations.
The government’s latest policy decision to extend the implementation deadline for ALMM List-II has sparked a broad selloff in solar manufacturing stocks. The move delays the mandatory use of domestically produced solar cells for certain project categories, impacting market sentiment.
While the extension aims to ensure a smoother transition by addressing the shortage of domestic solar cell capacity, it is expected to postpone the benefits for integrated manufacturers and reduce the near-term pricing advantage of domestically produced solar modules.
Stocks Movement
With a market capitalisation of Rs. 81,229 cr, the shares of Waaree Energies Ltd were trading at Rs. 2823.90 per share, decreasing 4% in today’s market session, making a low of Rs. 2,735, down from its previous close of Rs. 2,839.85 per share.
With a market capitalisation of Rs. 48,595 cr, the shares of Premier Energies Ltd were trading at Rs. 1070.50 per share, falling 6% in today’s market session, making a low of Rs. 1,020.25, down from its previous close of Rs. 1,085.55 per share.
What’s the News
The Ministry of New and Renewable Energy (MNRE) has extended the implementation deadline for ALMM List-II (Approved List of Models & Manufacturers for solar cells) for Net Metering and Open Access (OA) solar projects from May 2026 to December 2026.
The extension was granted after industry concerns that India’s domestic solar cell manufacturing capacity is still insufficient to meet near-term demand, which could have led to project delays and higher costs. The government said the move will ensure a smoother transition to domestic cell sourcing while allowing developers and module manufacturers to utilize existing inventories.
The extension is considered negative for integrated solar manufacturers such as Waaree Energies and Premier Energies, which have invested heavily in domestic solar cell manufacturing. Since developers can continue using imported cells for a longer period, these companies will have to wait longer to realize the benefits of their backward integration.
The delay is also expected to reduce the pricing advantage of domestically manufactured DCR (Domestic Content Requirement) modules as more manufacturing capacity comes online over the coming months.
Although demand for non-DCR modules may improve in the second and third quarters due to the extension, these products generally generate lower realizations and profit margins than DCR modules. As a result, analysts expect the overall impact on the FY27 financial performance of Waaree Energies and Premier Energies to remain negative despite the temporary increase in demand.
In conclusion, the extension of the ALMM List-II deadline provides short-term relief for solar project developers but delays the expected benefits for domestic solar cell manufacturers. As a result, integrated players may face weaker pricing power and margin pressure in the near term until domestic cell manufacturing capacity catches up with demand.
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