Solar stocks trim losses but Waaree Energies, Premier Energies end down 6-11% on US tariff concerns

Solar Power

• US imposes 126 percent duties on India-made solar cells
• Waaree Energies and Premier Energies stocks fell sharply
• Most Indian solar firms import cells, limiting US duty impact

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Shares of Indian solar companies ended Wednesday’s session mixed after paring losses from early lows, following clarifications that the US countervailing duties apply only to India-made solar cells. However, key stocks such as Waaree Energies and Premier Energies remained sharply lower by the close, reflecting persistent investor caution around export exposure.

Waaree Energies stock closed down 10.5 percent at Rs 2,705, after having hit the lower circuit earlier in the day. Premier Energies shares ended 5.9 percent lower at Rs 731.5. Vikram Solar declined 5.7 percent. Among other solar stocks, Solex Energy fell 7.7 percent and Websol Energy System slipped 6.6 percent. Saatvik Green Energy ended nearly 4 percent lower, while Waaree Renewable Technologies declined about 3 percent. In contrast, Borosil Renewables rose over 2 percent.

The stocks had recovered part of their losses after Waaree Energies Chairman and Managing Director Hitesh Doshi clarified in a TV interview earlier in the day that the US duties are levied based on the country of origin of solar cells, and not on panels assembled in India using imported cells. Most Indian manufacturers import solar cells from countries where import duties are relatively low and then manufacture panels in India for export, limiting the impact of the US decision. Doshi said Waaree Energies does not export panels made using India-made solar cells and has no plans to do so, citing sufficient domestic demand.

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Commenting on the market reaction, Ravi Singh, Chief Research Officer at Master Capital Services, said the US has emerged as an important export destination for Indian solar manufacturers, which explains the sharp initial response. He noted that exports to the US had surged to about $792.6 million in 2024, nearly nine times the level seen in 2022.

“Among the major names, Waaree appears more exposed, with close to one-third of its Q3 revenue coming from overseas markets. Vikram Solar also has meaningful exposure, with around 20 percent of its order book linked to exports,” Singh said. He added that if the higher duties persist, companies could face pressure on margins and fresh order inflows from the US, although strong domestic solar demand may provide some near-term stability.

The US Commerce Department has imposed preliminary countervailing duties of about 126 percent on solar cell and panel imports from India, citing unfair government subsidies. The ruling marks the first of two determinations in the trade case, with a separate decision on alleged dumping due next month.

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