Solar stocks set to shine from policy tailwinds, says Nuvama; Waaree Energies top pick
The EBITDA of Waaree Energies and Premier Energies jumped by 81% and 53% year-over-year, driven by strong demand and improved operational efficiencies; the EBITDA margins increased by 633 basis points and 849 basis points year-over-year, according to Nuvama.
According to the brokerage, Waaree Energies' integration both backward and forward will help mitigate earnings concentration risks. The inverter manufacturing facility is expected to commence operations by Q4FY26E, while the G H2 electrolyser plant, advanced lithium-ion cell production, and BESS capabilities are projected to begin in FY27E, allowing the company to tap into what the brokerage predicts could be an immense growth opportunity over several decades.
Premier holds a positive outlook on the growth potential of the solar sector in India, driven by increasing demand, supportive government regulations, and advancements in technology. Premier Energies intends to concentrate on the domestic market as the ALMM for cells is implemented starting June 2026.
Nuvama has assigned a 'Buy' rating to Waaree Energies, indicating its belief in the company's future growth plans and financial stability. Conversely, Nuvama has not issued a rating for Premier Energies, although the company's strategic growth and operational enhancements remain noteworthy. Premier's emphasis on expanding within the domestic market aligns with its overall goal of improving its market presence.
According to the brokerage, if a 25% tariff is imposed on US imports from India, Waaree Energies could potentially negotiate a pass-through for certain contracts; however, it may have to make compromises for others to strengthen its long-term business relationships, resulting in a mixed outcome. Waaree Energies has made export shipments to the US in Q1FY26, which will be recorded as revenue upon delivery.
The management at Premier Energies is optimistic about a consistent rise in DCR demand, supported by initiatives like the PM Surya Ghar Yojana, the PM KUSUM Scheme, and the CPSU scheme. With the current rate at 15GW annually, it is expected that demand will grow to between 40 and 45GW each year by FY27, as the entire market transitions to a DCR market following the implementation of ALMM on cells from June 2026. Over the next decade, according to BNEF, demand is projected to reach 125GW. The management intends to capitalise on this industry trend as rooftop solar continues to gain significant traction and open access demand increases.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
4 hours ago
- Time of India
Voda Idea rings in relief: Subscriber losses hit record low since merger
New Delhi: Vodafone Idea reported the lowest subscriber loss at half a million in the June quarter since the merger of Vodafone India and Idea Cellular in 2018, with analysts attributing the decline in customer losses to a bolstered 4G network, rollout of fifth-generation (5G) services in key metros, and pricing interventions. Analysts, however, added that Vi's capital expenditure (Capex) intensity may slow down from the second half of FY26 in the absence of its much-awaited debt funding and significant statutory dues. "Vodafone Idea reported a mere 500,000 quarter-on-quarter mobile subscriber loss (albeit a 12.4 million year-on-year decline) to 197.7 million. The subscriber loss... was the lowest since the merger and was a big reduction from the average quarterly loss of 3.7 million subscribers in FY25," Nuvama said in a research note. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 'A failing liver' The words still haunt us! Please help us. Donate For Health Donate Now Undo The telco's gross subscriber additions stood at 24 million, compared to rival Jio's 36.5 million and Airtel 's 30.3 million in the quarter that ended June 30, 2025, but the struggling telco has been grabbing more gross subscriber market share, according to analysts. "Subscriber losses have moderated and are trending downwards as the company has improved its network coverage and rolled out 5G services. This is definitely an encouraging trend, which can bridge the gap between ARPU and revenue growth, though we would like to see its consistency for the next few quarters," Nuvama stated. Live Events It said the telco's much-delayed fundraise is a key monitorable, and will be crucial to support capex along with upcoming adjusted gross revenue (AGR) and spectrum obligations. "While parameters such as pace of subscriber loss and ARPU also need to improve, balance sheet repair has become highly crucial for VIL's survival," as per the brokerage. Vi's average revenue per user (ARPU) grew by 0.6% quarter-on-quarter on the back of one additional day in the June quarter. "Post-paid subscribers have been growing steadily for VIL, up 10.1% year-on-year (+1 million), which is also helping in growing organic ARPU. VIL's 5G subscriber additions benefitted from its introductory offer of ₹299 (vs. Jio's at ₹349 and Bharti's at ₹398) for 28 days," ICICI Securities said. Vi executives, during the most recent post-earnings analyst call, indicated a strong traction in 5G uptake on its network in the 22 cities it has launched. 'Mobile Broadband' "VIL started an aggressive rollout - it had strong MBB (mobile broadband) deployment with 4G/5G-site net add of 22,000 BTS in Q1FY26, which has helped in increasing data capacity by 36% and population coverage from 77% to 84.1%. Data subscribers rose 0.7 million to 135 million, while 4G subs rose 1 million to 127.4 million," said ICICI. Citi Research said Vi's unique tower base over the last three quarters has risen by ~13,000 to 197,000, and estimated that Indus Towers holds a two-thirds share of this footprint.
Time of India
6 hours ago
- Time of India
Statcon Energiaa and Su-vastika collaborate to develop digital energy storage technologies
New Delhi, August 20, 2025: As India scales up renewable energy adoption, the demand for intelligent Battery Energy Storage Systems (BESS) is becoming critical to balance supply, ensure grid stability, and support digital energy infrastructure. In this context, Statcon Energiaa and Su-vastika Systems have entered into a collaboration to design and manufacture Made-in-India storage technologies with embedded digital and IoT projections estimate India's BESS market will expand from USD 7.8 billion in 2024 to more than USD 32 billion by 2030. While lithium-ion systems are expected to dominate due to efficiency and lifecycle advantages, the next phase of growth will be driven by digitally enabled features such as predictive maintenance, remote diagnostics, and data-driven load management. The collaboration aims to advance innovation in four key technology areas: • IoT-enabled Monitoring : Real-time data from sensors to track charge cycles, temperature, and performance parameters. • Remote Management: Cloud-based diagnostics and control to reduce downtime and optimize operations. • Grid Integration: Intelligent systems that can interact with distributed renewable sources and respond dynamically to demand fluctuations. • Data Analytics: Use of AI and analytics to forecast energy consumption patterns and enhance efficiency. 'Storage is no longer just about hardware capacity. The future lies in digitally intelligent systems that integrate seamlessly with modern grids,' said Manoj Pande, Managing Director, Statcon Energiaa. According to Kunwer Sachdev, Founder of Su-vastika, developing indigenous BESS with embedded digital control is vital for reducing reliance on imported systems and for ensuring resilience in critical infrastructure. The partnership is backed by Rotomag Enertec Ltd, which has consolidated investments in solar pumping and energy storage. Industry analysts note that such collaborations align with India's policy focus on clean energy and digital grid modernization. Beyond renewable integration, digitally enabled storage technologies are expected to support emerging use cases such as electric vehicle charging, urban microgrids, and smart city infrastructure. By embedding IoT and analytics into energy storage, India is positioning itself to build systems that are not only sustainable but also adaptive to the demands of a digital economy.
Time of India
7 hours ago
- Time of India
India's solar module manufacturing capacity surges 100 GW in past two years: Report
India's solar module manufacturing capacity has surged to 100 GW over the past two years boosted by schemes like the Production Linked Incentive (PLI) and the Approved List of Models and Manufacturers (ALMM), said SBI Capital Markets in its latest report. This domestic expansion has been met with equally robust demand, with solar additions in the last fiscal year (FY25) jumping 60 per cent to 24 GW, a growth that required an estimated 50 GWdc of modules. However, the rapid capacity build up is raising concerns about a potential oversupply. With annual solar additions expected to stabilise at 40-50 GW, the 190 GW of capacity projected to be installed by 2027 could outstrip domestic demand. "Players who want to take advantage of the lucrative market would look to set up onshore facilities, with a distinct advantage for early movers as the US market is also building up indigenous upstream capacity," added the report. Cell and wafer bottlenecks While module manufacturing is reaching maturity, a significant gap remains in the upstream value chain. India's solar cell capacity, at less than 30 GW, is far from sufficient. The new ALMM-II order for cells, which mandates the use of domestically listed cells for projects with bids submitted after August 31, 2025, is a significant policy intervention aimed at closing this gap. The order is also set to open up the substantial Commercial & Industrial (C&I) market to domestic manufacturers by applying to projects benefiting from net metering and open access rules. Planned capacity additions are expected to bring cell manufacturing closer to self-sufficiency in the medium term. In the interim, however, the higher price of domestically-sourced Domestic Content Requirement cells could temporarily inflate project costs and dampen bidding enthusiasm. A key policy clarity, which exempts approximately 100 GW of projects bid out since December 2024, will provide a crucial buffer for the market to adjust without undue price spikes. Polysilicon issue Further up the value chain, the reliance on foreign, specifically Chinese, components is almost total. The target to achieve a 40 GW wafer capacity by March 2027 is an ambitious goal, but on-ground progress is moderate. A government order mandating the use of blue wafers for cells to be classified as domestic is a positive step, but more concerted action is needed. The most critical and absent link in India's solar manufacturing chain is polysilicon. The analysis highlights that China's recent decision to shut down a third of its polysilicon capacity has caused a global price spike of 35-40 per cent While this has not yet affected module prices, it is eating into the margins of mid- and downstream players who are not vertically integrated. Long-Term Questions The superior growth and margin profile of Indian integrated manufacturers compared to their international counterparts is a direct result of this policy support and tight domestic supply-demand conditions in the cell segment. Standalone module makers, in contrast, may see more variable returns, pushing some to diversify into adjacent sectors like inverters, independent power producers, and battery storage.
