Beyond the Rs 30,000 crore push: The solar supply chain’s new math
In Budget 2026, the government poured over Rs 30,000 cr into the solar sector. This isn’t just a green move but a Make in India or Aatmanirbhar Bharat policy change by the government. By doubling the budget for solar pumps and slashing taxes on raw materials, the state has cleared the way for a huge manufacturing boom.
While most investors only see the giants as this change take effect, 2 smaller subsidiaries from the Waaree Universe are working overtime. One builds the massive solar parks while the other makes the high-tech cells that power them.
While the masses throng the overcrowded parent, these two smaller-scale subsidiaries slowly and silently consolidated their market position in India’s solar space. Add to this a solid capital efficiency of over 75% and strong compounded profit growth of over 50%, and we have a combination of profits, capital efficiency and gains.
What makes them worth a dive now is the budget push and the fact that they are both trading at a discount of over 30%, raising questions if this creates an entry point for the upcoming solar rally.
Indosolar: A relisted Phoenix capturing the cell-manufacturing arbitrage
Incorporated in 2005, Indosolar Ltd manufactures solar photovoltaic cells.
With a market cap of Rs 1,807 cr, the company first went public with its Initial Public Offering (IPO) in September 2010. However, following years of financial distress and insolvency proceedings, trading was suspended in June 2022.
Things changed after Waaree Energies acquired the company through the NCLT process, and the company underwent a massive capital restructuring. Post that, it officially relisted and resumed trading on the NSE and BSE in June 2025.
The company has a current ROCE of 77% while the current industry median is 28%. Simply put, for every Rs 100 the company uses as capital, it generates Rs 77 on it, while its peers in the same industry average just about Rs 28.
With a Debt-to-Equity ratio of 0.02, the company has reduced its debt considerably post the restructuring and is virtually debt-free, eliminating high interest payments.
Before we investigate the financials of the company, we must understand that post-acquisition metrics provide the only relevant baseline for Indosolar’s current trajectory.
Financial turnaround: The ‘Waaree push’ in hard numbers
The company’s sales have grown from zero in FY20 to Rs 324 cr in FY25, and for the 3 quarters of FY26, sales of almost Rs 600 cr have been recorded already. While growth on such a small base is volatile, what must be considered is that it is now backed by the Waaree push.
Regarding EBITDA (earnings before interest, taxes, depreciation, and amortization) the company was recording losses till FY24 which changes post the acquisition and for FY25, it logged an EBITDA of Rs 95 cr. For the 3 quarters of FY26, EBITDA of Rs 206 cr has been logged already.
The net profits of the company have logged a pattern which hints towards a turnaround after Waaree’s entry.
| FY | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 |
| Net Profits/Rs Cr | -8 | -8 | -122 | 1,081 | -15 | 55 |
For the 3 quarters of FY26, the company has already logged profits of Rs 204 cr, hinting towards a much stronger end to FY26.
The share price of Indosolar Ltd was around Rs 2.5 in February 2021 and as of closing on 6th February 2026 it was Rs 434. Now while technically, this is over a 17,000% jump in 5 years, it’s important to note that this isn’t just organic growth, it’s a fundamental re-rating. At Rs 2.5 the market was pricing Indosolar as a defunct, near-insolvent entity.
In theory, Rs 1 lakh invested in the company 5 years ago would have been close to Rs 1.74 cr today.
But at Rs 434, the market is pricing it as the high-tech manufacturing arm of the Waaree titan, with a 1.3 GW capacity and a debt-free balance sheet.
At the current price of Rs 434, the stock is trading at a discount of 40% from its all-time high of Rs 725, offering a lower entry for investors looking to enter a high-growth manufacturing play completely transformed under the Waaree umbrella.
As for valuations, the company’s current PE is 7x, and the current industry median is 40x. This possibly means that the market is missing something big, or it hasn’t yet caught up to the company’s new reality.
I am speculating, but if Indosolar’s PE simply re-rates to even a slightly higher figure, the stock price would jump, even if the company doesn’t grow its profits by a single rupee.
The company is also seeing big changes at the top level as its Non-Executive Director & CEO; Amit Ashok Paithankar resigned on 16th January 2026 effective close of business for the day. Dr. Jignesh Devchandbhai Rathod replaced him as Additional Non-Executive Director & CEO effective the same day.
Before taking the helm at Indosolar, he served as the Director of Operations at Waaree Energies Limited. In the last 18 years of his stint with Waaree, he was the primary architect behind scaling Waaree’s global solar module capacity to its current 22.77 GW scale.
Waaree Renewable: The lean 115% ROCE outlier
Incorporated in 1999, Waaree Renewables Technologies Ltd is engaged in the business of generation of power through renewable energy sources and provides consultancy services in this regard.
With a market cap of Rs 9,399 cr the company is a subsidiary company of Waaree Group and spearheading the Solar EPC business.
Just like Indosolar above, Waaree Renewable is also highly capital efficient, with a current ROCE of 82% while the industry averages only about 20%.
The company is virtually debt free with a Debt-to-Equity ratio of 0.12 only.
Looking at the financials, the company’s sales jumped from Rs 6 cr in FY20 to Rs 1,598 cr in FY25, logging a compound growth of 209% in the last 5 years. And for the first three quarters of FY26, sales of Rs 2,229 cr have been recorded already.
EBITDA grew at a compound rate 215% from Rs 1 cr in FY20 to Rs 311 cr in FY25. And for the first 3 quarters of FY26, an EBITDA of Rs 435 cr has been logged already.
As for the net profits, the company logged losses of Rs 3 cr in FY20 and for FY25 the company recorded profits of Rs 229 cr. Theoretically, the compound growth in the last 5 years has been over 140 %. By the end of Q3FY26, profits of Rs 322 cr have been recorded already.
The share price of Waaree Renewable Technologies Ltd was about Rs 6 in February 2021 and as of closing on 6th February 2026 it was Rs 901, which is almost a 15,000% jump in 5 years. Rs 1 lakh invested in the stock 5 years ago would have been close to Rs 1.5 cr today.
At the current price of Rs 901, the company’s share is technically trading at a discount of over 70% from its all-time high price of Rs 3,038. Even after adjusting for the 1:5 stock split from 2024, which brings the historical peak to a relative Rs 607, the stock is still trading at a good discount of about 30%.
If we look at the post-split 52-week high of Rs 1,358, the stock is currently trading at a more reasonable discount of 34%.
Valuation and visibility: Analyzing the Rs 3,500 crore backlog
Valuation wise, the company’s share is trading at a PE of 24x, while the current industry median is 27x. The 10-Year median PE for the company is 56x and the industry median for the same period is 27x.
The company as of early February 2026 has an unexecuted order book of over Rs 3,500 cr, which was quantified by CARE in the latest Credit Rating Report dated February 05, 2026, giving a fair revenue visibility for the time to come.
The valuation gap: De-risking the entry point
The solar transition in India is no longer a distant goal but a present-day industrial reality. While the broader market remains fixated on large-cap leaders, the true agility often lies within these specialized universe players. With strong order books and renewed leadership, the stage is potentially set for a decade of decarbonization and growth.
This is not a story about chasing past returns, but about understanding structural shifts. The union of favourable policy, disciplined capital use, and corrected valuations creates a unique window for deep analysis. Investors must now decide if these companies are simply rising with the tide or steering the ship.
Ultimately, the path from small-cap underdogs to energy titans depends on execution and scale. The Waaree Universe has provided the platform, but the market’s next re-rating will rely on sustained quarterly delivery. For those watching the energy transition, the real work of building a solar-powered future has only just begun. Perhaps, you should add these stocks to your watchlist and track them to see whether they continue to deliver in time to come.
Note: We have relied on data from www.Screener.in and www.trendlyne.com throughout this article. Only in cases where the data was not available, have we used an alternate, but widely used and accepted source of information.
The purpose of this article is only to share interesting charts, data points and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educative purposes only.
Suhel Khan has been a passionate follower of the markets for over a decade. During this period, He was an integral part of a leading Equity Research organisation based in Mumbai as the Head of Sales & Marketing. Presently, he is spending most of his time dissecting the investments and strategies of the Super Investors of India.
Disclosure: The writer and his dependents do not hold the stocks discussed in this article.
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