Premier Energies Ltd. and Waaree Energies Ltd. traded little changed on Tuesday after suffering their steepest single-day decline in nearly five months in the previous session on concerns over the government's decision to defer mandatory domestic solar cell sourcing.
Premier Energies swung between gains and losses before trading little changed at Rs 1,080. Waaree Energies also fluctuated between gains and losses and was largely unchanged at Rs 2,824.
The stocks had come under pressure on Monday after the Centre extended the deadline for mandatory domestic solar cell sourcing for certain solar power projects to Dec. 31, 2026.
Premier Energies had fallen as much as 6.1% to Rs 1,063 during Monday's session, while Waaree Energies declined as much as 3.8% to Rs 2,733. The drop marked their sharpest intraday fall in nearly five months.
Premier Energies Managing Director Vinay Rustagi told NDTV Profit on Monday that the extension would have no impact on the company's business or margins.
"We see no impact of the ALMM-II extension on our business," Rustagi said. "We also do not expect any impact on margins."
Rustagi said no customers had deferred placing orders in anticipation of the policy change and added that demand momentum is expected to continue through FY27.
He said the policy framework under ALMM-II should be maintained while domestic manufacturing capacity continues to expand.
Rustagi also said Premier Energies has started commercial production at its 11 GW manufacturing plant. Looking ahead, he said the proposed ALMM-III framework would require capital expenditure of more than Rs 50,000 crore over the next three years.
The domestic sourcing rule, which took effect on June 1, requires net-metering and open-access solar projects to use solar cells manufactured in India.
The Ministry of New and Renewable Energy has extended the implementation deadline by seven months, from May 31, 2026, to Dec. 31, 2026. The move gives developers and manufacturers additional time to comply with the localisation requirement as domestic solar cell manufacturing capacity expands.
The government had earlier said it would not grant a blanket exemption and would instead consider relief only for projects that had already completed milestones such as land acquisition, financial closure and grid connectivity.
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