While the country has made significant progress in solar module and cell manufacturing, wafer and ingot production remains a weak link, with only 2gigawatts (GW)of capacity compared to 71 GW in modules and 11 GW in cells.
The government’s push mirrors its successful mobile phone manufacturing strategy, which attracted global giants such as Apple and Samsung with lucrative incentives. A similar approach in the solar sector could cut reliance on imports, lower production costs, and create a competitive domestic supply chain.
However, India still lacks polysilicon production, a key input for wafers and ingots, making some dependence on foreign suppliers inevitable in the near term.
With this policy shift, several Indian solar companies are well-positioned to capitalise on government support, including these five.
#1 Adani Enterprises
Adani Enterprises is aggressively scaling up its solar and renewable energy business, maintaining its sales run rate of 1 GW of modules per quarter. The company remains on track to expand solar manufacturing capacity to 10 GW by 2028, with current operational capacity at 4.5 GW annually.
A key differentiator for Adani is its integrated solar manufacturing approach, making it one of the very few companies in India that produces wafers and ingots. In May 2024, Adani Solar began commercial production of wafers and ingots at its Gujarat facility, strengthening India’s solar supply chain.
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Having started large-scale monocrystalline silicon ingot production in December 2022, Adani remains the only Indian manufacturer that produces M10 (182×182 mm) and G12 (210×210 mm) ingots. The company also plans to begin polysilicon production by 2027-28, which would make it India’s first fully integrated renewable energy player.
Adani New Industries Limited saw Ebitda soar 121% YoY in 9MFY25, reflecting strong growth in renewables. The company sells solar modules abroad, maintaining a balance between domestic and export markets, with a focus on utility-scale projects; engineering, procurement and construction players (EPC); and retail customers.
The company’s initial FY25 capex target of ₹80,000 crore has been revised to ₹69,562 crore, with ₹11,000 crore deferred due to timing shifts in green hydrogen and PVC projects. In the first nine months of FY25 it spent ₹21,000 crore, with a majority of this allocated to renewables.
Looking ahead, the company does not plan to expedite its 10 GW solar capacity target before 2028, but renewable-energy expansion remains a key priority.
#2 Premier Energies
Premier Energies continues to grow as a leading solar solutions provider. The company manufactures high-efficiency solar cells and offers mono-facial and bifacial modules tailored for projects. It also provides EPC services for ground-mounted, rooftop and floating solar installations, along with other services and clean energy generation.
Strong domestic demand has driven exceptional growth in Q3FY25. Premier’s revenue surged 144.76% year-on-year, while operating margin expanded from 17.3% to 29.97% and net profit skyrocketed 490% year-on-year. The IPO proceeds strengthened the balance sheet, cutting the net debt-to-EBITDA ratio from 9.51 to 3.49.
Premier is executing an aggressive expansion strategy. A 1 GW TOPCon (tunnel oxide passivated contact – advanced solar cell technology) cell & module line is set to go live in Q1FY26, followed by a 4 GW line in Q1FY27.
The company also plans to backward integrate with a 2 GW wafer facility and a 36,000 MT aluminum frame unit. While it does not manufacture wafers yet, this move will strengthen its supply chain and improve margins.
Looking ahead, the company stands to benefit from strong policy tailwinds. The PM Surya Ghar Yojana and rising domestic content requirement (DCR) rooftop demand — now 25% of Premier’s DCR sales — will drive growth. A ₹6,900-crore order book (2 GW modules, 2.6 GW cells) provides 12-15 months of revenue visibility.
#3 Waaree Energies
Waaree Energies is India’s largestsolar photovoltaic (PV) module manufacturer. The company increased its capacity from 4 GW in FY22 to 12 GW by mid-2024, adding another 1.3 GW in Noida via Indosolar. With EPC, operations and maintenance (O&M), and renewable energy sales, Waaree is a full-spectrum solar solutions provider.
Its Q3FY25 results were stellar, with revenue up 115% year-on-year, Ebitda soaring 257%, and margins expanding to 22.8%. PAT jumped 260% year-on-year. Its ₹50,000 crore order book (26.5 GW) comprises 54% exports and 46% domestic sales, though the revenue mix remains 79% domestic owing to faster execution cycles.
Waaree is looking to expand aggressively, with its US factory commencing production in January 2025. The company is in the final trial stage for a 1.4 GW Mono PERC (passivated emitter and rear contact – high-efficiency solar cell technology) cell line, while a 4 GW TOPCon cell facility is set to go live by April or May 2025.
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While it doesn’t yet manufacture ingots and wafers yet, Waaree is developing a 6 GW integrated facility in Odisha to produce ingots, wafers, solar cells and PV modules. Supported by the government’s production-linked incentive (PLI) scheme, this is expected to be operational by FY27, strengthening its role in the solar value chain.
Beyond solar, the company is expanding into green hydrogen, batteries and inverters, solidifying its leadership in India’s renewable energy transition.
#4 Solex Energy
Solex Energy is rapidly expanding its footprint in the renewable energy space, with solar panels contributing nearly 95% of its revenue.
The company has delivered exceptional growth in H1FY25, with revenue surging 192% year-on-year, Ebitda rising 167.7% and PAT skyrocketeding 1,697%, driven by capacity expansion and a strong order pipeline.
With demand rising, Solex is scaling its module manufacturing capacity to 4 GW by June 2025, with plans to expand further to 15 GW by 2030. The company has also initiated a 2 GW solar cell expansion, ensuring higher efficiency and better cost optimisation. In a major product innovation, Solex has launched Tapi-R rectangular cell modules, which are designed for higher power output and lower costs.
While it doesn’t produce ingots and wafers yet, government support could enable seamless integration, strengthening its supply chain and cost competitiveness.
Looking ahead, Solex is targeting both domestic and international markets. It is already securing exports to Europe and Africa, with plans to enter the US after 2025.
With a ₹100 crore investment roadmap by 2030, Solex is positioning itself as a key manufacturer, driving innovation, expanding capacity and integrating backward into solar cell manufacturing.
#5 Tata Power
Tata Power is solidifying its position asIndia’s energy leader with 25 GW installed capacity, and shifting aggressively towards clean energy. The company is becoming a one-stop solar solutions provider, expanding its solar manufacturing and EPC business.
While the renewable energy major doesn’t manufacture wafers and ingots, it could enter the space as government policies push for domestic solar supply chains. The company is expanding EPC and its manufacturing capabilities to reduce its reliance on imports and strengthen its clean-energy footprint.
Tata Power’s EPC division is thriving, having secured 612 MW of orders worth ₹2,800 crore. The PM Surya Ghar Yojana is set to accelerate rooftop solar adoption, with 30-40 GW of capacity expected to be added in the next two to three years. The company is also evaluating private-sector nuclear opportunities.
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Tata Power operates a 4 GW cell & module facility, while rooftop solar revenue has crossed ₹500 crore.
The company has earmarked ₹22,000 for capex in FY25, focusing on renewables, group captive projects and T&D expansion. From FY26-FY27, Tata Power plans to add 2-2.5 GW of renewable capacity annually, strengthening its clean energy portfolio.
It is balancing internal and third-party module sales as the Approved List of Models and Manufacturers -2 (ALMM) takes effect in June 2026.
On the financial front, Tata Power maintains a net debt of ₹44,700 crore, with a debt-equity ratio of 1.1:1. The focus remains on high-return projects, ensuring net debt/Ebitda remains below 3.
With a strong project pipeline, strategic expansion and disciplined capital allocation, Tata Power is well-positioned to lead India’s energy transition.
Conclusion
With its $1 billion solar subsidy plan, the government is giving its backing to wafer and ingot manufacturing, opening doors for companies to expand, innovate and compete on a global scale.
For investors, this marks the start of a new growth phase in India’s solar sector. Companies that move early into wafer and ingot production could see significant cost advantages and long-term gains.
However, investors must closely monitor operational performance, scalability, and strategic execution in this evolving landscape to capitalize on potential upsides while managing industry-related risks.Investors should also evaluate the company’s fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.
Disclaimer:This article is for information purposes only. It is not a stock recommendation and should not be treated as such.
This article is syndicated from Equitymaster.com
