Nuvama Institutional Equities has reiterated its bullish stance on Waaree Energies, maintaining a ‘BUY’ rating and raising the target price to ₹3,622, following what it called the company’s strongest-ever quarterly performance. For Q4FY25, Waaree reported a robust EBITDA of ₹9.2 billion and PAT of ₹6.2 billion, with EBITDA margins surging to 23%, an 879 basis point year-on-year expansion, aided by the ramp-up of its new 1.4GW cell manufacturing facility and entry into the high-margin DCR module segment.
The company’s production hit 2.1GW for the quarter, up 53% YoY, driven by strong demand and operational efficiency. Management has guided for FY26 EBITDA in the range of ₹55–60 billion, implying 2x growth over FY25, supported by solid demand visibility, firm orders locked in through FY26, and favorable pricing for its offerings. Additionally, the remaining 4GW of cell capacity is expected to be commissioned in the next 45–60 days, further supporting its margin trajectory.
Nuvama highlighted Waaree’s transformation into a horizontally and vertically integrated New Energy company, likening the current energy transition phase to a Y2K-like, early-stage, multi-decadal opportunity. The company’s roadmap includes facilities for inverters (Q4FY26), green hydrogen and electrolysers, advanced lithium-ion cells, and battery energy storage systems (BESS), which are expected to commence in FY27. This expansion is seen as crucial to maintaining sustainable margins of ~20% and mitigating earnings concentration risk.
On the financial front, Nuvama expects positive free cash flow from FY27 onwards, driven by higher operational earnings and controlled capex. With ₹155 billion in available funds, Waaree’s balance sheet is viewed as well-capitalized to support its aggressive growth plans. Nuvama has also raised its FY26E and FY27E EPS estimates by 25% and 8%, respectively, to reflect the company’s improved earnings outlook and strategic execution.
Disclaimer: The above views are those of the brokerage and not the publication. Investors are advised to consult a certified financial advisor before making any investment decisions.
