Waaree Energies Removes 3 GW of Export Orders Amid US Trade Rule Shifts

Mumbai-based solar module manufacturer Waaree Energies Ltd has proactively removed approximately 3 GW of export orders from its order book. The decision follows concerns that recent modifications in United States trade regulations could complicate the serviceability of these contracts.

According to Abhishek Pareek, Chief Financial Officer of Waaree Energies, the contracts have not been formally cancelled by customers. Instead, the company removed them to mitigate risks stemming from shifting US trade regimes. The adjustments are driven by changes under Section 232 of the Trade Expansion Act of 1962, which enables the US government to impose import restrictions. Under these rules, imported panels face minimum prices of around 38 cents plus a 15 percent duty, effectively raising prices by 43 to 45 percent and making Indian exports less competitive.

As a result of these headwinds, Waaree's overseas revenue for the second quarter of FY27 dropped by nearly 52 percent to ₹1,389 crore, compared to ₹2,875 crore in the same period of the previous fiscal year. Exports from India fell sharply to ₹89 crore from ₹2,143 crore a year earlier. Conversely, revenue generated from solar modules manufactured at the company's US facilities rose to ₹1,300 crore from ₹732 crore.

Waaree is actively exploring options to redirect some of the affected orders to its local US manufacturing plants. The company currently operates 1.6 GW of solar module capacity in the US and plans to scale this capacity to 4.8 GW within the current fiscal year. Despite the removal of the 3 GW export orders, Waaree maintains a total order book valued at approximately ₹59,000 crore, representing over 25 GW of capacity.

The company's order book composition reflects this transition. At the end of Q2 FY27, exports from India accounted for approximately 7.8 percent of the order book, while the US domestic market made up 43.8 percent and the Indian domestic market comprised 48.4 percent. In comparison, exports from India represented roughly 24 percent of the order book in Q1 FY27.

Beyond manufacturing adjustments, Waaree is eyeing expansion into supplying clean power to data centres. The company plans to target the engineering, procurement, and construction segment to set up power generation facilities and solar power plants integrated with energy storage, aiming to cater to the rising round-the-clock electricity demands of data centres.

"Shifting geopolitical and trade landscapes require manufacturing enterprises to build localized operational buffers. Waaree Energies' decision to proactively clear unserviceable export orders while scaling its US manufacturing footprint illustrates the importance of agile supply chain management in navigating regulatory risks." — Dr. Shishir Gupta, Founder & CEO, StartupLanes