Analyst Concall
Waaree to backload capex, plans to ramp up capacities
This story was originally published at 16:27 IST on 17 October 2025
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--Waaree: Don't see dramatic change in demand-supply situation in coming mos
--CONTEXT: Waaree Energies' management in post-earnings concall
--Waaree: Govt-approved list for battery cos to have positive impact
--Waaree Energies: 53% of co's current order book domestic
--Waaree: Looking to ramp-up retail segment sales in next two quarters
--Waaree: Have to wait and watch regarding US tariff-related probe
--Waaree: Not using co's batteries for US ops due to higher tariffs
--Waaree: Closely eyeing entry into countries India to have FTA with
--Waaree: To incur about 15% of INR-250-bln planned capex FY26, rest in FY27
--Waaree: Will focus on ramping up capacity of subsidiary Indosolar
By Akash Mandal and Avishek Rakshit
MUMBAI – With the solar energy and related sectors expected to show robust growth in the next few years, the management of Waaree Energies Ltd. remains confident of good earnings visibility in the upcoming quarters. The company, which had announced capital expenditure of INR 250 billion in its investor presentation, said it expects to incur 15% of this expenditure in the financial year 2025-26 (Apr-Mar), with the rest lined up for FY27.
The battery maker plans to ramp up capacity across segments with special focus on retail operations, the management said. It also plans to ramp up the capacity of its retail segment over the next couple of quarters. "...export segments, retail segments are inherently segments which have slightly better profitability than the rest of the business," the management said.
The company is also looking to focus on ramping up the capacity of its subsidiary, Indosolar Ltd., but did not provide specific guidance for the arm. The subsidiary saw a capacity utilisation of around 75% in the September quarter, the management said. "Right now, what we are totally focusing on is how to ramp up the capacity, so there is a lot of ramp-up left... as you know, it is located in a market where it can easily access retail sales," the Waaree Energies management said about the plan for Indosolar. "...we are right now focusing on optimising the operations and increasing the profitability," it said.
The company said 53% of its current order book consists of domestic orders. The order book does not consist of orders in the company's retail segment, the management clarified.
Waaree Energies expects to see no "dramatic change" in demand and supply in the industry in the coming months. It also clarified its push towards backward integration with demand expected to rise on the back of changes such as the government's approved list of models and manufacturers for battery makers due in June and government schemes such as PM Surya Ghar. "...most of these projects will demand cells which are made in India and increasingly ingots and wafers, which are also made in India... the companies which are more and more backward integrated will have the highest chance of success," the management said.
The company said the government's approved list of models and manufacturers for battery makers will have a positive impact on its business. Once the list is out, industry players will be mandated to buy solar cells from manufacturers such as Waaree Energies who are on the list. The company targets a 25-30% market share after the list is introduced.
The company said it will "wait and watch" the ongoing trade probe against it in the US. "What I can say is that I definitely confirm that the probe is on... we really don't know in which direction and what manner it will proceed," the management said. The US Customs is probing whether Waaree Energies sidestepped the country's tariffs on China-made cells and panels by labelling them made in India. The company clarified that it is currently not using domestic-made cells for its US operations as "that would attract tariffs much higher than if we source (them) from some other country".
On the current anti-dumping probe in the US against Indian solar manufacturers, the company said, "Our internal review suggests that, you know, we may not be facing a whole host of liabilities as far as that is concerned... but it's best that we wait and understand as the, you know, as the (anti-dumping) investigation goes ahead."
The company said it is also looking to enter other markets, especially those that will have free trade agreements with India. "Whether it's the European Union, Great Britain, Australia, the GCC (Gulf Cooperation Council) countries, Africa, all of these, potentially, are areas where we are (keeping) a close eye," the management said.
Late Thursday, Waaree Energies had reported a consolidated net profit of INR 8.43 billion for the September quarter, up 133% on year. Its consolidated revenue for the quarter rose 70% on year to INR 60.66 billion. Friday, shares of Waaree Energies closed 2.5% lower at INR 3,535.30 on the National Stock Exchange. End
Edited by Rajeev Pai
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