Despite a dip in net profit for the second quarter of fiscal year 2027, Waaree Energies' shares have seen a rebound, with some analysts maintaining a positive outlook and forecasting significant upside potential. The solar energy firm's Q2 FY27 results revealed margin pressures and weaker export orders, leading many brokerages to cut their price targets.
Q2 FY27 Performance Overview
For the quarter ending September 30, 2026, Waaree Energies reported a net profit of Rs 718.68 crore, marking a 14.7 percent year-on-year (YoY) decline. Revenue from operations, however, grew 23.9 percent YoY to Rs 7,518 crore, and EBITDA increased 5.1 percent to Rs 1,406 crore. A key concern was the EBITDA margin, which contracted by approximately 540 basis points to 17.8 percent during the period.
Following the muted performance, Waaree Energies' stock initially fell to a 52-week low of Rs 2,162 on Wednesday. It subsequently recovered nearly 7 percent to Rs 2,309.95, bringing its market capitalization to around Rs 67,000 crore. However, the share price remains 35 percent below its 52-week high of Rs 3,556.10 recorded in April 2026.
Brokerage Views and Target Revisions
Brokerage firms remain divided on Waaree Energies' future. According to Bloomberg consensus data, 12 of 18 covering brokerages have a 'Buy' rating, while two recommend 'Sell' and four suggest 'Hold'.
- Kotak Institutional Equities maintained its 'Reduce' rating with a target price of Rs 2,350, citing weakness in the non-domestic content requirement (non-DCR) market and lower overseas revenue. The firm also highlighted a 4 percent quarter-on-quarter (QoQ) decline in the company's order book, including the cancellation of 3 GW of export orders amid US Section 232 uncertainties.
- JM Financial retained its 'Add' rating, noting a gross margin of 26 percent and EBITDA margin of 17.8 percent, supported by 38 percent QoQ growth in cell production. The brokerage mentioned an order book exceeding Rs 5,920 crore post the US export order cancellations and reiterated management's FY27 EBITDA guidance of Rs 7,000–7,700 crore.
- Emkay Global Financial Services kept its 'Buy' rating but reduced its target price by 13 percent to Rs 3,300 from Rs 3,800. Emkay expects volumes to recover from the December quarter, supported by higher cell production, expansion of US manufacturing operations, and operating leverage. They also highlighted the retail business as a significant growth driver, targeting Rs 10,000–11,000 crore in retail revenue for FY27.
- Elara Capital lowered its target price to Rs 2,479 from Rs 2,960 while retaining an 'Accumulate' rating. Elara cited margin compression, subdued utilization, and industry-wide oversupply of solar modules. Despite this, they acknowledged Waaree Energies' ambitious capacity expansion plans, aiming for module and cell capacities of 28 GW and 15.4 GW, respectively, by FY27, alongside diversification into battery energy storage systems (BESS), inverters, and green hydrogen.
Diverse Analyst Ratings and Upside Potential
Despite the target cuts, several brokerages project significant upside for Waaree Energies. Centrum Broking holds the highest target price among those cited, at Rs 3,457, implying a potential upside of 55 percent from its reference closing price. Nomura follows with a target of Rs 3,410, Anand Rathi at Rs 3,244, and Axis Capital at Rs 3,180, all with 'Buy' ratings. In contrast, UBS has a 'Neutral' rating with a target of Rs 2,700, and Jefferies maintains an 'Underperform' rating with a target of Rs 2,000.
The mixed analyst sentiment reflects the company's strong growth in revenue and future capacity expansion plans, tempered by current margin pressures and geopolitical trade uncertainties affecting export orders.