Waaree Energies, one of India’s leading solar PV module manufacturers, has witnessed a correction in its stock price. The stock, which reached an all-time high of ₹3,740.75 on November 6, 2024, has now dropped 22.49% to close at ₹2,899.45 as of November 19. However, this decline hasn’t overshadowed its stellar performance since its IPO, as the stock has still delivered an impressive 92.91% rally from its issue price of ₹1,503.

Q2 FY25: Mixed Results with Growth Potential

Encouraging Financial Growth

Waaree reported a 15% increase in net profit, with earnings reaching ₹362 crore compared to ₹315 crore in the same quarter last year. Revenue saw a modest 1% growth, standing at ₹3,574 crore against ₹3,537.2 crore in Q2 FY24.

Challenges on the Horizon

The company faced setbacks due to a significant drop in export contributions, which fell to 27% from 60% in Q2 FY24. Additionally, higher costs and lower realizations impacted its overall quarterly performance.

What’s Driving Waaree’s Future Plans?

• Capacity Expansion: The company aims to boost its solar module capacity to 21 GW and cell manufacturing capacity to 11 GW by FY27.
• Cost Efficiency: By integrating cell and module production, Waaree expects to lower costs and improve margins by 2–3%.
• Retail Focus: Initiatives like the Surya Grah Muft Bijli Yojana are expected to support growth in the retail segment, offering new opportunities for expansion.

Conclusion: A Bright Future Ahead

While the recent dip in share price may raise concerns, Waaree Energies' long-term growth story remains intact. Its solid expansion strategy, focus on cost efficiency, and alignment with renewable energy policies position the company for sustained success.

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