Waaree Energies, a key renewable energy sector stock, is in the focus today. According to the brokerage report by Motilal Oswal, the company could benefit from this changing landscape.
For years, in the Indian solar industry space, large utility-scale projects dominated the sector.With the latest trends, the demand is now increasingly coming from rooftops, factories, commercial establishments and government-backed solarisation schemes.
The brokerage has maintained its ‘Buy’ rating on this renewable energy sector stock. Motilal Oswal has assigned a target price of Rs 3,825. This implies an upside potential of around 26% from current levels.
Motilal Oswal in its report added that the investment case rests on three major themes. These include – rising domestic solar demand, a shortage of manufacturing capacity, and Waaree’s ongoing expansion plans.
India’s solar demand is moving beyond large utility projects
One of the biggest changes highlighted by Motilal Oswal is the growing contribution of non-utility solar segments.
As per the brokerage report, rooftop solar installations, Commercial and Industrial (C&I) projects and the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) scheme are now contributing more than half of annual solar installations in the country.
The report noted, “C&I, rooftop, and PM-KUSUM now account for over 50% of the annual solar installations.”
Furthermore, the report also added that utility-scale solar installations are expected to contribute less than 50% of annual demand going forward, even though execution of existing projects remains strong.
Demand drivers in India’s solar market
| Segment | Estimated Annual Opportunity |
| Rooftop Solar | Around 10 Gigawatt (GW) |
| Commercial & Industrial Solar | 8-9 GW |
| PM-KUSUM | 6-8 GW |
| Utility Scale Solar | Around 15 GW |
According to Motilal Oswal, additional demand could also emerge from data centres and increasing electrification across sectors.
A manufacturing gap could support solar companies
The second factor supporting the brokerage’s positive view is the growing gap between solar demand and manufacturing capacity.
India is expected to install approximately 35 Gigawatt of solar alternating current capacity every year over the coming years, as per the report.
The brokerage stated, “100GW integrated solar manufacturing capacity required.”
However, currently available domestic manufacturing capacity remains well below this level.
The report further highlighted, “Current announced ingot-wafer capacity trailing annual requirement.”
According to Motilal Oswal, announced domestic ingot and wafer manufacturing capacity currently stands at around 50-60 gigawatts, excluding Reliance Industries, compared with the estimated requirement of nearly 100 gigawatts.
Waaree’s expansion plans remain on track
The third key reason behind the brokerage’s positive stance is Waaree’s ongoing capacity expansion.
The company is moving ahead with new manufacturing facilities both in India and overseas. The report noted, “Capacity expansion on track.”
Waaree is expected to commission 10 Gigawatt of domestic solar cell capacity and 2.6 Gigawatt of module manufacturing capacity in the United States during the second half of FY27.
The report added that nearly 54% of FY26 sales came from retail and overseas markets, helping diversify revenue sources.
According to the report, “An ambitious Rs 1 trillion revenue target by 2030, with 39% implied CAGR.”
This target implies nearly fourfold growth from FY26 revenue levels.
What investors need to look forward
The brokerage believes the broader solar sector will continue to be influenced by policy support, manufacturing additions and execution of new projects.
For Waaree specifically, investors are likely to monitor the progress of its domestic and US capacity expansion plans, growth in rooftop and commercial solar demand, and whether India’s manufacturing ecosystem can keep pace with the country’s rapidly rising solar installation requirements.
Disclaimer: The views and investment ratings mentioned above are those of the reporting brokerage, Motilal Oswal, and do not reflect the opinions of this publication. This content is for informational purposes only and does not constitute a personal offer or solicitation to buy or sell securities. Readers are advised to consult a SEBI-registered investment advisor before making any financial decisions based on target prices or market predictions. This disclaimer has been generated using AI to support user well-being and responsible content consumption.