The renewable energy sector is in focus, and the Waaree Energies share price has seen over 26% jump in the last 6 months. Motilal Oswal has initiated coverage on the stock with a Buy rating. It has set a target price of Rs 4,000 per share. This implies about 19% upside for the solar cell and module manufacturer from current levels.
Explaining the rationale driving the recommendation, Motilal Oswal detailed out that they “expect cell margins and pricing to remain resilient through FY27, supported by limited supply additions and elongated stabilisation timelines for new capacity in the industry.”
Motilal Oswal on Waaree Energies: Growth drivers ahead
Motilal Oswal pointed out that “emerging verticals such as battery energy storage systems (BESS), EPC, and green hydrogen are set to become key growth drivers, contributing an estimated 15% of EBITDA by FY28, thereby enhancing business diversification.”
While profitability is likely to stay firm in H1FY28, Motilal Oswal expects “potential margin pressure beyond FY28 as incremental cell capacity begins to align with demand” for this renewable power sector stock.
Motilal Oswal on Waaree Energies: Policy push
Motilal Oswal also pointed out that an ambitious government vision supports the prospects of the stock going forward. The report stated that, “The central government, aiming to achieve 500 GW of renewable energy (RE) capacity by 2030 using domestically manufactured components, has introduced supportive policies such as the Approved List of Module Manufacturers (ALMM).”
An Approved List of Cell Manufacturers (ALCM) is proposed from June 2026, while an Approved List of Wafer Manufacturers (ALWM) has already been conceptualised. “Industry participants also anticipate a similarly favourable policy framework for ancillary equipment including batteries, inverters, and transformers,” Motilal Oswal added.
Motilal Oswal on Waaree Energies: Expanding capacity
Waaree Energies plans to expand its total cell/module capacity by FY26/FY27-end. With a current order book of Rs 47,000 crore, “earnings visibility for FY26-FY27 remains high,” stated Motilal Oswal.
The management has guided for EBITDA of Rs 5,500-6,000 crore for FY26. As the company expands capacity, Motilal Oswal estimates “annualised growth of 43% in EBITDA and 40% in profit over FY25-FY28. By FY28, the earnings contribution from new businesses is estimated to rise to 15% of EBITDA.”