The renewable energy sector is poised at an interesting juncture as India’s solar manufacturing sector enters a phase where upstream security is becoming as important as module capacity. The country still depends heavily on imported wafers, and this remains the point where margins can weaken across the sector. Two key players, Waaree Energies and Premier Energies, released their Q2 FY26 numbers. Both companies reported strong growth in Q2FY26 but how are they poised to achieve future growth?
Here is a detailed comparison of both companies
Waaree Energies Vs Premier Energies: What the Q2 order book indicates
Waaree reported an order book of Rs 47,000 crore in Q2 FY26. The management told analysts that about 60% of this came from overseas customers, while the rest was from domestic institutional buyers. Waaree Energies is trying to balance more than one demand cycle, because its capacity is spread across markets that operate under different policies and pricing signals.
Premier reported an order book of Rs 13,246 crore for the same period and secured Rs 6,511 crore of fresh orders during the quarter, all domestic. This pattern suggested that Premier’s dependence on local programmes is now one of its key strengths, especially given the scale of schemes that require domestic cells.
Waaree Energies Vs Premier Energies: Analysis of Q2 FY26 performance
Waaree Energies posted Q2 FY26 revenue of Rs 6,226.54 crore, EBITDA of Rs 1,567.30 crore, and Profit after tax of Rs 878.21 crore. The PAT included a one-time gain of Rs 523.2 crore from the Indosolar OFS. The company said on its call that operational earnings benefited from both export lines and domestic DCR deliveries, and it reaffirmed EBITDA guidance of Rs 5,500 – 6,000 crore for FY26. The quarter showed that Waaree’s blended exposure makes its performance sensitive to shifts in multiple geographies.
Premier Energies reported Q2 FY26 revenue of Rs 1,836.86 crore, EBITDA of Rs 645.38 crore, and Profit after tax of Rs 353.44 crore. Its EBITDA margin stood at 33.56%. The firm remained in a net cash position and reported operating cash flow of Rs 616.68 crore for H1 FY26. The management, during the analyst call, specified that demand from each customer segment had remained steady through the quarter. Premier’s stronger cell contribution continues to support earnings at a time when cell supply in India is not abundant.
Waaree Energies Vs Premier Energies: Production and capacity additions
Waaree produced 2.64 GW of modules and 0.6 GW of cells in Q2 FY26. It operates 18.7 GW of module capacity and 5.4 GW of cell capacity and plans to increase these to 26.7 GW and beyond 10 GW, respectively. The expansion plan made it evident that Waaree expects to manage larger volumes across domestic tenders and overseas shipments once new lines stabilise.
Premier produced 661 MW of modules and 507 MW of cells in the quarter. It operates 5.1 GW of module capacity and 3.2 GW of cell capacity. The company revised its earlier 4.8 GW cell expansion plan and is now building 7 GW by modifying existing infrastructure. The managing director said on the call that “we took a decision that we would increase this to 7 GW from 4.8 GW with a nominal incremental capex and we’ll be able to pull this off quickly” and noted that it would be funded through internal accruals with “no new debt being taken.”
This shift in plan showed that Premier is strengthening upstream output without increasing financial risk.
Waaree Energies Vs Premier Energies: Role of Govt incentives and schemes
Schemes such as PM Surya Ghar, PM-KUSUM, and CPSU programmes continue to rely on domestic cell supply. Premier’s exclusively domestic presence places it directly within that demand pool. Waaree participates too, but because it covers international and Indian customers, the effect of domestic programmes on its order flow is different.
It became visible in Q2 FY26 that Premier’s domestic bias is supporting steady demand at a time when local content rules remain active.
Waaree Energies Vs Premier Energies: Brokerage valuations and projected outcomes
Anand Rathi assigned Buy ratings to both companies with targets of Rs 4,654 for Waaree Energies and Rs 1,321 for Premier Energies. It was valued both at 30 times average FY27-FY28 earnings and applied different PEG treatments. Premier received a full PEG because of its track record with cell operations, while Waaree received a lower PEG due to the number of expansion areas it is handling. The brokerage targets imply more room for both stocks. Waaree has an upside potential of about 41.5% from its current price, while Premier has about 32.6% based on the same calculations.
The brokerage estimated that Premier may grow revenue faster over FY25 to FY28 because of rising cell volumes, while Waaree may expand EBITDA faster once its upstream additions begin contributing more meaningfully.
Waaree Energies Vs Premier Energies: Stock performance
Premier Energies’ share price has slipped about 5% in the past month and is down more than 25% year to date (YTD). Meanwhile, Waaree Energies share price has fallen about 6% over the past month but remains nearly 15% higher on YTD basis.
Waaree Energies Vs Premier Energies: What lies ahead
The next phase of India’s solar manufacturing cycle hinges on upstream execution. Module additions alone may not support earnings once supply rises further. Premier is enhancing its cell base and entering wafers with a staged plan that fits its balance sheet. Waaree is attempting to build a broader upstream chain with larger wafer capacity and additional verticals.
If their plans progress on schedule, the projects show how each company may help reduce India’s dependence on imported wafers. Premier’s approach supports its cell-focused model while Waaree’s larger target gives it a wider foundation across markets. The period between FY26 and FY28 will reveal which firm can establish stable upstream operations sooner and how that affects pricing and competitiveness across the sector.
Waaree Energies Vs Premier Energies: Wafer gap defines next phase of competition
India’s wafer shortage is now central to the sector’s future. Anand Rathi’s September 2025 report described wafers as the missing link in the domestic chain. The brokerage wrote that while module and cell capacity is rising, wafer additions are still limited. It is estimated that module capacity could reach about 265 GW by FY28, but wafer production would remain behind. The report highlighted that India remains dependent on imported wafers to keep cell and module lines running, and this gap is large enough to influence costs and margins over time.
Waaree Energies has approved about Rs 8,175 crore of capex across BESS, inverters, electrolysers, and wafer-ingot facilities. It plans to build 10 GW of wafer-ingot capacity by 2027.
The size and timing of this project suggest that Waaree expects to cover a meaningful part of the wafer shortfall if ramp-up proceeds as planned.
Premier Energies is building 5 GW of wafer-ingot capacity due for completion by December 2027. It is also entering BESS in smaller steps of around Rs 300 crore each, funded through internal resources. This places the firm inside the same upstream space, though in a more controlled manner that reflects its cell-led approach.