Waaree Energies share price gains 3% on securing solar module order

Shares of Waaree Energies, one of India’s leading renewable energy companies, rose nearly 3% in early morning trade on February 20, reaching ₹2,278 apiece after the company secured an order for 362.5 MWp solar modules.

In an exchange filing on Wednesday, the company informed investors that it had secured an order for the supply of solar modules totaling 362.5 MWp from Khaba Renewable Energy Pvt Ltd, a subsidiary of Engie India. The supply of modules is scheduled to commence in FY 2025-26.

Meanwhile, the company is increasingly focusing on green hydrogen and making significant investments in the sector. As part of its ongoing efforts, its wholly owned subsidiary, Waaree Clean Energy Solutions, received a Notification of Award (NOA) in late January from the Solar Energy Corporation of India Limited (SECI) for setting up a production facility of 90,000 MT per annum for green hydrogen under the Strategic Interventions for Green Hydrogen Transitions (SIGHT) Scheme (Model-1, Tranche-II).

For the quarter ending December, the company reported a 260% surge in its consolidated net profit to ₹507 crore, compared to ₹141 crore in the same quarter a year ago. Its revenue from operations jumped 117% to ₹3,458 crore in Q3 FY 2024-25, up from ₹1,596 crore in the corresponding quarter last year.

The company’s primary revenue source, solar photovoltaic (PV) modules, grew 122% to ₹3,108 crore in the October-December quarter, compared to ₹1,402 crore in the same period a year ago.

Regarding expansion plans, the company announced that trial production has commenced at its 5.4 GW solar cell plant in Chikhli, Gujarat, while commercial production has begun at its 1.6 GW module plant in Texas, USA.

As part of its energy transition strategy, the company is making strategic investments in green hydrogen and electrolyzer technologies ( ₹551 crore), battery manufacturing ( ₹2,073 crore), renewable power infrastructure ( ₹650 crore), and inverters ( ₹130 crore), according to its earnings filing.

Additionally, the company has entered into a Share Purchase Agreement to acquire Enel Green Power India for ₹792 crore. On the production-linked incentive (PLI) front, it has received a Letter of Award (LOA) for a 300 MW electrolyzer manufacturing unit, while an LOA for a 90kT green hydrogen production unit is still awaited.

Stock trades 52% above IPO price

The company’s shares debuted on Dalal Street in October 2024, after raising ₹4,321.44 crore from investors. The stock was listed at ₹2,338 apiece, compared to the IPO price of ₹1,503. The issue received a stellar response from investors, as it was oversubscribed by 76 times.

At current levels, the stock is trading 52% above its IPO price.

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