Waaree Energies Shares Drop 43% from All-Time High Amid Market Decline
Shares of Waaree Energies Ltd continue to trade above their issue price, but returns have significantly declined since hitting their peak. The broader market selloff has impacted the stock, and experts predict further downside in the next 12 months due to concerns over oversupply in the solar sector.
Stock Performance and Market Movement
Shares of Waaree Energies gained 2.71% on March 17, 2025, as the markets saw a slight recovery amid concerns over US tariffs.
- The stock opened higher and reached an intraday high of ₹2,183 per share, marking a 2.71% increase on the NSE compared to its previous close.
- However, despite this marginal recovery, Waaree Energies shares have plunged 43.55% from their all-time high of ₹3,743 per share, recorded on November 6, 2024.
Since its listing on October 28, 2024, the stock has provided strong returns from its issue price of ₹1,503 per share. However, gains have eroded in recent weeks due to heavy selloffs in the broader market.
Impact of US Tariffs on Renewable Energy Stocks
The renewable energy sector has been under pressure due to fears of US tariff hikes on solar equipment imports from Southeast Asia under President Donald Trump’s administration.
- Investors fear that higher import tariffs could negatively impact companies reliant on overseas manufacturing.
- Additionally, Trump’s focus on boosting fossil fuel production has further weighed on renewable energy stocks.
Waaree Energies’ US Expansion and Future Challenges
To mitigate the impact of tariffs, companies like Waaree Energies have started setting up manufacturing plants in the US.
- Waaree Energies recently launched production at its US facility, a move aimed at bypassing import restrictions and securing access to the American market.
- However, experts warn of a potential oversupply in the solar market by 2027, as the US moves toward self-sufficiency in solar energy production.
- With incentives for local manufacturing and restrictions on Chinese imports, US demand for foreign-made solar panels could decline significantly in the coming years.
Strong Financial Performance in Q3
Despite market challenges, Waaree Energies delivered robust earnings for the December quarter, with a 260% increase in net profit to ₹507 crore.
- Revenue surged 117% year-on-year to ₹3,458 crore, reflecting strong growth in the global and Indian solar markets.
- The company credited this growth to favorable macroeconomic conditions and rising demand for solar energy solutions.
Future Outlook and Global Solar Market Expansion
The global solar capacity is expected to triple by 2030, reaching 5.8 terawatts from the current 2.1 terawatts, according to company projections.
- In 2024, India’s solar capacity stood at 98 gigawatts, with Waaree Energies aiming to expand this to 280 gigawatts by 2030.
- The company remains optimistic about the long-term growth prospects of the solar industry, despite short-term market volatility.
Closing Price and Investor Sentiment
On March 17, 2025, Waaree Energies shares closed 0.58% higher at ₹2,112.9 per share on the NSE.
While the stock remains above its IPO price, the recent market downturn, US policy risks, and supply concerns have led to a sharp decline from its peak. Investors will closely watch the company’s strategies to navigate regulatory changes and industry challenges in the coming months.