Waaree Energies Shares Crash 5% After US Solar Ruling

Shares of Waaree Energies, India's largest solar panel maker, fell 5% on Monday. The drop came after a US trade ruling that could tighten the screws on Indian solar exports.

The US Department of Commerce has proposed new anti-dumping duties on solar cells from several countries, including India. Waaree Energies, which counts the US as a key export market, saw its stock tumble to ₹2,340 on the Bombay Stock Exchange.

The proposed duties range from 15% to 30% on Indian solar products. The US claims these products are being sold below market price. Waaree has not yet commented on the ruling.

What the ruling means

The US is the world's second-largest solar market. Indian solar panel makers have been shipping more to America over the past two years. Exports from India to the US crossed $1 billion in 2023.

Anti-dumping duties would make Indian panels more expensive for US buyers. This could push American developers to buy from other countries like Vietnam, Cambodia, or Malaysia. Those countries face similar probes but have lower duty rates.

Waaree Energies gets roughly 40% of its revenue from exports. The US is its single biggest foreign market. A prolonged duty regime could hurt its margins.

But the company has options. It can shift production to its new facility in Texas, set up in 2024. That plant is small for now, but Waaree has said it plans to scale it up.

Not the first shock

This is not the first time a US trade action has hit Indian solar stocks. In 2022, the US imposed duties on solar cells from Southeast Asia. Indian companies initially gained as buyers shifted away from those countries. But the current ruling targets India directly.

The stock market reaction was sharp but not panic-driven. Trading volumes were higher than average, but the stock recovered slightly later in the day to close at ₹2,380.

Analysts at Motilal Oswal said the impact on Waaree's earnings may be limited to 5-7% in the current financial year. They pointed out that the company has a strong domestic order book worth ₹12,000 crore.

Domestic demand is strong

India's own solar market is booming. The government wants 500 GW of renewable energy by 2030. Solar will make up the bulk of that. Waaree Energies has a 12 GW annual manufacturing capacity and is adding another 5 GW.

Most of that output goes to Indian projects. The company supplies panels to state-run NTPC, Adani Green, and several private developers. Domestic sales grew 35% last year.

The US ruling may sting, but it does not threaten Waaree's core business. The company's stock is still up 18% over the past 12 months.

Shares of other Indian solar makers, like Suzlon and Premier Energies, also fell on Monday. But the drops were smaller, between 1% and 3%.

The final anti-dumping order is expected in 4-6 months. Until then, the uncertainty will hang over Waaree Energies. But the company's size, its domestic pipeline, and its US factory give it room to absorb the blow.