Waaree Energies Stock Falls Nearly 10% To New Low On Outlook Worries

The share price of Waaree Energies Ltd. declined for the fourth consecutive session on Monday. The stock dropped nearly 10% during early trade today, extending its loss over the period to 18%.

The pressure comes amid a decline in solar PV module prices globally due to persistent overcapacities. Despite price drops, global capacity in 2024 grew 31% for polysilicon, 9% for wafers, 19% for cells, and 22% for modules, Nuvama said a note last week.

"With further supply coming on stream, the race to the bottom of the chain still has legs. Capacity additions in China are likely to make up more than 80% of the global additions ... Indian module production is likely to burgeon 6x from current levels by FY29 as domestic capacity-adds ramp up as manufacturers avail benefits of the PLI scheme," the brokerage said.

Besides these factors, Waaree Energies is also reeling under the likely impact of US energy policy under President Donald Trump.

If the US imposes import tariffs or reduces Inflation Reduction Act (IRA) incentives — designed to boost the domestic solar industry by offering tax credits to American manufacturers — it could negatively affect Indian exporters.

In the event of unchanged IRA incentives, but higher import tariffs, Indian exports may initially decline, with increased US module prices narrowing competitiveness until new domestic capacities come online.