Waaree Energies Bags Major Solar-Module Contract

Waaree Energies Ltd. received a letter of award for the supply of solar PV modules with a capacity of 180 megawatt peak, according an exchange filing on Monday.

The modules will be supplied to a "renowned customer" engaged in owning, developing and operating renewable power projects in India. The supply is scheduled to commence in the financial year 2025–26.

On Jan. 10, Waaree revealed plans to acquire Enel Green Power India Pvt., a company with a portfolio of solar and wind projects totalling approximately 640 megawatts alternating current (or 760 megawatts direct current) of operational capacity.

The renewable energy company will acquire 100% of the share capital of EGPIPL for Rs 792 crore, subject to customary closing adjustments. After the acquisition, EGPIPL will become a Waaree Energies subsidiary.

The portfolio includes joint ventures where EGPIPL holds a majority equity stake. The acquisition is expected to strengthen Waaree's independent power producer business, diversify revenue streams, and enhance its execution capabilities for wind projects.

In December, the company’s board approved capital-expenditure commitments worth nearly Rs 3,500 crore across its electrolyser, lithium-ion battery and inverter manufacturing businesses.

This includes a Rs 2,073-crore investment to establish a 3.5 GWh lithium-ion advanced chemistry storage cell manufacturing plant under its wholly owned subsidiary, Waaree Energy Storage Solutions Pvt. The capex will be funded through a mix of debt and internal accruals.

Shares of the company closed 1.12% higher at Rs 2,634.6 per share, compared to a 0.61% advance in the NSE Nifty 50. It has risen 12.64% in the last 12 months. 

An analyst tracking the stock suggests 'sell', according to Bloomberg data. The average of 12-month analysts' price targets implies a potential downside of 3.2%.