Waaree Energies’ stock surged 14% following an impressive Q3FY25 earnings report. But can the renewable energy leader maintain this momentum? Let’s dive in.
Waaree Energies Q3FY25 results:
Waaree Energies, a major player in India’s renewable energy sector, delivered an outstanding performance in Q3FY25. Here’s how the numbers stack up:
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| Financial Metric | Q3FY25 | Q3FY24 | YoY Growth |
| Revenue | ₹3,458 crore | ₹1,596 crore | 117% |
| Solar PV Modules Revenue | ₹3,108 crore | ₹1,402 crore | 122% |
| Profit Before Tax (PBT) | ₹507 crore | ₹141 crore | 260% |
| Profit After Tax (PAT) | ₹493 crore | ₹124 crore | 296% |
| EBITDA Margin | 22.84% | 13.73% | +911 bps |
| Order Book | 26.5 GW | – | ₹50,000 crore value |
Key takeaways:
- Net profit surged by 296% YoY, reflecting strong operational efficiency.
- The EBITDA margin expanded significantly, reaching 22.84%.
- Waaree’s order book stood at 26.5 GW, valued at ₹50,000 crore.
What’s driving Waaree Energies’ stock rally?
1. Explosive revenue and profit growth
Waaree Energies has exceeded market expectations, reporting a 117% revenue growth and a massive 296% jump in net profit. This exceptional performance has attracted strong investor interest.
2. Brokerage confidence and market optimism
Leading analysts and brokerage firms are bullish on Waaree, citing:
- Strong Q3 earnings exceeding expectations.
- Expanding order book and global expansion plans.
- Long-term growth potential in renewable energy.
3. Expansion in solar and green hydrogen projects
Waaree is investing heavily in renewable energy projects:
- Solar Manufacturing: Trial production at its 5.4 GW solar cell plant in Chikhli, Gujarat, has begun.
- Global Expansion: Commercial production started at a 1.6 GW module plant in Texas, USA.
- Green Hydrogen Investments: ₹551 crore allocated for electrolyser technology.
- Battery Manufacturing & Power Infrastructure: ₹2,073 crore for battery projects and ₹650 crore for renewable infrastructure.
4. India’s growing renewable energy sector
- India added 24.5 GW of solar and 3.4 GW of wind capacity in 2024, setting a record.
- India’s total installed renewable energy capacity now stands at 209.44 GW, contributing 45% of total power capacity.
- Global solar capacity is expected to reach 5.8 TW by 2030, while India targets 280 GW of solar capacity by the same year.
Stock performance: How has Waaree Energies fared?
| Timeframe | Stock Price Change |
| 1 Day | +14% |
| 1 Month | +8.83% |
| Since IPO (Oct 2024) | +59% |
| 52-Week High | ₹3,743 |
| 52-Week Low | ₹2,026 |
Waaree’s stock debuted in October 2024 at ₹1,503 per share and was listed at ₹2,338. With a current price of ₹2,505, it is 59% above its IPO price.
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Market sentiment:
- IPO Oversubscription: 76 times, indicating strong demand.
- Growing Institutional Interest: More global funds are adding Waaree to their portfolios.
- Analysts’ Views: Many recommend a ‘Buy’ rating, citing long-term growth.
Should you invest in Waaree Energies now?
Bull case:
- Strong earnings growth, improving margins, and a robust order pipeline.
- Expansion in international markets and diversification into green hydrogen and energy storage.
- Solar energy demand is rising, and India is a major growth market.
Bear case:
- Valuation concerns: Current PE ratio is 44.19, making it relatively expensive.
- A quarterly revenue decline of 3.2% could indicate some short-term volatility.
Investor takeaway: Waaree Energies is a promising stock for long-term investors who believe in the renewable energy transition. However, short-term fluctuations should be considered before entering at current levels.
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Conclusion
Waaree Energies’ 14% stock surge is backed by stellar Q3 earnings, expansion into green hydrogen, and strong market demand for renewable energy. With a 26.5 GW order book and international growth plans, the company is well-positioned to capitalize on the energy transition. Investors looking for exposure to the renewable energy boom should keep an eye on this stock.
