The share price of Waaree Energies is in focus. The brokerage house Motilal Oswal reiterated its positive stance on the renewable energy player following the company’s recent investor day presentation.
The brokerage house has maintained a ‘Buy’ rating on the stock and set a target price of Rs 3,850. This implies an upside potential of nearly 19% from the current market price.
Waaree Energies’ big bet on solar demand
According to the brokerage report, Waaree Energies is betting aggressively on India’s fast-growing solar energy market, with a long-term roadmap focused on manufacturing expansion, backward integration, rooftop solar growth and battery energy storage systems.
The company has also outlined a revenue target of Rs 1 lakh crore by 2030. This is supported by rising solar demand across commercial, industrial and residential segments.
Let’s take a look at what Motilal Oswal is saying about this renewable energy stock and the key reasons behind the brokerage’s positive outlook.
Motilal Oswal on Waaree Energies
Motilal Oswal believes Waaree Energies could benefit from India’s accelerating renewable energy transition and the company’s expansion across multiple solar-related businesses.
According to the brokerage report, management has shared detailed growth plans covering utility-scale projects, commercial and industrial solar demand, rooftop installations and energy storage solutions.
The brokerage stated, “We maintain our ‘Buy’ rating on Waaree Energies with an SOTP-based target price of Rs 3850.”
- Revenue target of Rs 1 lakh crore by 2030
One of the biggest highlights from the investor presentation was the company’s long-term revenue aspiration.
According to the brokerage report, “Management targets Rs 1 trillion revenue by 2030.”
Motilal Oswal noted that growth visibility is improving across several segments including utility projects, distributed solar systems and rooftop installations.
The brokerage also highlighted that India’s annual solar demand could rise sharply over the coming years. According to management estimates shared during the investor day, India’s yearly solar demand may increase from nearly 50 Gigawatt (GW) in FY27 to around 85GW by FY30.
- Commercial, industrial and rooftop solar demand picking up
According to the brokerage report, Waaree Energies expects strong momentum in commercial and industrial solar installations along with government-supported projects under the KUSUM scheme.
KUSUM stands for Kisan Urja Suraksha evam Utthaan Mahabhiyan, a government initiative aimed at promoting solar energy in the agriculture sector.
Motilal Oswal stated, “C&I, KUSUM, and rooftop solar witnessing a sharp acceleration.”
The brokerage added that installations in commercial and industrial projects as well as KUSUM projects have increased significantly in FY26.
The report also highlighted growing traction in rooftop solar under the PM Surya Ghar scheme.
According to the brokerage report, rooftop solar installations are expected to rise from nearly 8.7GW in FY26 to around 10GW in FY27, while the application pipeline has already crossed 11GW.
Management also sees agri-solarisation as a large long-term opportunity with a potential market size of nearly 191GW.
- Backward integration and technology becoming key focus areas
According to Motilal Oswal, Waaree Energies is focusing heavily on backward integration to reduce dependence on external suppliers and improve long-term competitiveness.
The brokerage report stated, “Backward integration critical to long-term competitiveness.”
Management also highlighted that technology upgrades and integrated manufacturing facilities will become increasingly important because of rising competition and industry overcapacity.
According to the report, capital expenditure intensity in the solar industry has increased sharply over the last decade as companies move from module-only manufacturing to fully integrated operations.
The brokerage also noted that Waaree has taken exposure in an Oman-based company linked to the polysilicon value chain to reduce risks related to commodity prices and tariffs.
- Battery energy storage seen as another growth trigger
Apart from solar modules, the company is also focusing on battery energy storage systems.
Battery Energy Storage Systems (BESS) help store electricity generated from renewable energy sources for later use.
Motilal Oswal stated, “BESS emerging as a key long-term growth driver.”
According to the brokerage report, the company plans to build India’s first fully integrated gigafactory covering battery cell manufacturing and containerised storage solutions.
Management aims to become a fully integrated 20 Gigawatt hour player by 2028.
What investors need to know
According to the brokerage report, the company’s future growth is expected to depend on rising solar installations, expansion in rooftop projects, battery storage demand and its ability to strengthen manufacturing integration.
Disclaimer: Investment in securities markets are subject to market risks; please read all the relevant documents carefully before investing. The target price and “Buy” rating mentioned are sourced from a third-party brokerage report and do not constitute professional financial advice or a solicitation by this publication. We recommend consulting a SEBI-registered investment advisor to assess the suitability of any stock based on your individual risk profile and financial goals.
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