Waaree Energies Eyes Bold Entry into the US Market with $1.2 Billion Investment Amid Tariff Hurdle
Waaree Energies Ltd, India’s solar powerhouse, is charting a bold course into the US market despite the clouds of import tariffs looming over the renewable energy sector. With global momentum shifting towards clean and affordable energy, Waaree is seizing this opportunity to expand its footprint by committing a massive $1.2 billion investment in the United States by 2028.
This ambitious push comes at a time when the company is riding high on solid financial performance and increasing investor confidence, as reflected by its nearly 90% return since IPO and consistently strong quarterly results.
Waaree’s Strategic Leap: Entering the US Energy Market
The expansion is spearheaded by Waaree Solar Americas Inc., a wholly owned subsidiary of Waaree Energies Ltd. At the recently held SelectUSA Investment Summit in Washington D.C., the company announced an additional $200 million investment, aimed at bolstering its Battery Energy Storage capabilities in the U.S.
This latest capital infusion builds on Waaree’s previous commitment of $1 billion, taking its total U.S. investment to $1.2 billion by 2028. These funds will be utilized to enhance technological advancements, support energy storage innovation, and drive the widespread deployment of affordable and sustainable energy solutions.
Why the US? A Perfect Fit for Solar Growth
According to Dr. Amit Paithankar, Wholetime Director and CEO of Waaree Energies, the decision to deepen investment in the US was driven by “significant market potential.” He emphasized that solar energy, being the most affordable and quickest to deploy, is uniquely positioned to meet the rising power needs of sectors like artificial intelligence and data centers, both of which are rapidly expanding in the US.
The company also underlined its commitment to economic development and job creation in the communities it serves—an important message that aligns with U.S. priorities around clean energy and domestic job growth.
Boosting US Production Capacity
In a move to solidify its physical presence in the U.S., Waaree Solar Americas Inc. is doubling the capacity of its Brookshire, Texas solar module manufacturing plant—from 1.6 GW to 3.2 GW. This strategic expansion not only strengthens the company’s supply chain resilience but also enables Waaree to navigate around import tariffs by boosting domestic manufacturing, a critical step in avoiding cost pressure from international trade policies.
Solid Financial Foundation Fuels Global Expansion
Waaree’s aggressive global strategy is backed by a strong balance sheet and robust earnings. The company posted Q4 FY25 revenue of ₹4,004 crore, marking a 36% increase year-on-year. Sequentially, revenue grew by 16% from ₹3,457 crore in Q3 FY25. Net profit for the quarter also surged 36% YoY to ₹644.47 crore.
Looking forward, Waaree expects EBITDA to reach ₹5,500–6,000 crore in FY26, a sign of confidence in its growth momentum and operational efficiency.
Key Financial Ratios of Waaree Energies Ltd
| Metric | Value |
|---|---|
| Market Cap | ₹83,918 Cr. |
| Current Price | ₹2,921 |
| High / Low | ₹3,743 / ₹1,809 |
| Stock P/E | 44.9 |
| Book Value | ₹330 |
| Dividend Yield | 0.00% |
| ROCE (Return on Capital Employed) | 35.1% |
| ROE (Return on Equity) | 27.6% |
| Face Value | ₹10.0 |
Waaree’s Stock Performance
On Friday, Waaree Energies’ shares rose by 4.4%, reaching an intra-day high of ₹2,994 from a previous close of ₹2,867.30. Although it settled slightly lower at ₹2,914.00, the overall sentiment remains bullish, especially with the company delivering over 90% return since its IPO.
Q&A: Understanding Waaree Energies’ US Expansion Strategy
Q1: Why is Waaree Energies investing in the US despite tariff challenges?
A: The company is focusing on building domestic manufacturing capacity in Texas to circumvent import tariffs while leveraging America’s vast energy market and tech-driven power demand.
Q2: How much has Waaree committed to invest in the US?
A: A total of $1.2 billion by 2028, including an additional $200 million recently announced for battery energy storage.
Q3: What is the significance of the Texas manufacturing plant?
A: It’s a strategic move to double manufacturing capacity to 3.2 GW, helping Waaree meet local demand while avoiding tariff-related costs.
Q4: How is Waaree performing financially?
A: The company posted a 36% YoY growth in both revenue and profit in Q4 FY25, with strong EBITDA guidance for FY26.
Q5: Is the company’s stock performing well?
A: Yes. The stock has delivered over 90% returns since its IPO, indicating investor confidence in the company’s long-term growth strategy.
Conclusion
With a powerful combination of strategic investments, market foresight, and strong financials, Waaree Energies is well-positioned to become a major player in the US renewable energy market. Its commitment to domestic manufacturing and sustainable energy innovation not only helps bypass trade hurdles but also aligns with global trends pushing for cleaner and more resilient energy systems.
This move may very well mark the beginning of a new chapter in Waaree’s journey—from India’s solar leader to a global clean energy powerhouse.
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