Waaree Energies shares jump 18% on Q4 FY25 results – should you buy, hold or sell?

Shares of Waaree Energies surged 18% today to ₹3,073, hitting fresh highs following the company’s stellar Q4 FY25 earnings report. The stock has gained over 36% in the past nine sessions.

Q4 performance highlights

The solar energy major reported its best-ever quarterly results. Revenue grew 38% YoY to ₹4,140.92 crore, while Profit After Tax (PAT) soared 255% YoY to ₹648.49 crore. EBITDA more than doubled to ₹1,059.57 crore with margins rising sharply to 25.59% from 16.29% last year.

For the full year FY25, revenue rose 27.6% to ₹14,846.06 crore, and PAT jumped 107% to ₹1,932.15 crore. Annual EBITDA stood at ₹3,123.20 crore, with the margin expanding to 21.04% from 15.56%.

Waaree also ramped up solar cell production to 7.13 GW for FY25 and commissioned India’s largest solar cell plant (5.4 GW) in Gujarat. The company’s order book remains strong at 25 GW, valued around ₹47,000 crore.

Brokerage view: Cautious despite stellar results

Despite the earnings boost, Kotak Institutional Equities retained a ‘Reduce’ rating on the stock with an unchanged fair value of ₹2,280, significantly below current levels. The brokerage said Indian solar exporters, including Waaree, have seen limited gains so far from the U.S. antidumping (AD) and countervailing duties (CVDs) on imports from Cambodia, Malaysia, Thailand, and Vietnam.

India accounted for just 13% of U.S. solar module imports in early 2025, trailing behind Indonesia and Laos. Kotak warned that while AD/CVD duties may cut SEA imports, India’s share could be constrained due to higher domestic cell prices and limited export capacity.

Adding to the uncertainty, the U.S. IRA incentives remain paused under the new “Unleashing American Energy” executive order. With U.S. solar players ramping local module production, the net demand benefit for Indian exporters may be offset.

Verdict: Rally fueled by earnings, but valuations stretch outlook

While Waaree Energies’ operational and financial performance is undoubtedly strong, analysts remain cautious on the stock’s upside from current levels due to global uncertainties and limited export tailwinds.

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