Waaree Energies Reports Impact on US Exports Amid Tariff Pressures and Shift in Revenue Mix

Waaree Energies has reported significant shifts in its order book and operational metrics, driven by international tariff changes and adjustments in domestic project timelines. According to recent reports, Section 232 tariffs led to the cancellation of approximately 3 GW of US export orders. This development reduced India-origin exports to 7.8 per cent of Waaree’s total ₹59,200-crore order-book, down from about 24 per cent in the first quarter of fiscal year 2027.

Amid these international headwinds, the company's US manufacturing facility showed operational improvement. Capacity utilisation at the US facility increased to 71 per cent, up from 59 per cent in Q1FY27, helping to support growth in orders serviced through local manufacturing rather than direct exports from India.

On the domestic and operational front, Waaree's cell utilisation rose to 90 per cent in Q2FY27 compared to 67 per cent in Q1FY27. However, module production remained subdued at 52 per cent utilisation. This was primarily attributed to delayed project offtake caused by the deferment of ALMM-II implementation alongside geopolitical disruptions affecting US shipments.

A notable shift was observed in the company's revenue distribution, with retail contributing 46.1 per cent to Q2FY27 revenue. This points to a structurally higher contribution from the company's distribution network. The asset-light retail business leverages Waaree’s established nationwide distribution framework to drive incremental growth and operating leverage. The company maintains a target of ₹10,000 to ₹11,000 crore in revenue from this specific vertical for FY27.

Financial analysts have revised revenue estimates by 2.8 and (2.3) per cent for FY27 and FY28 respectively, reflecting lower domestic module sales and the cancellation of US orders. At the same time, higher retail contributions and Minimum Import Price (MIP) regulations are expected to aid realisations and margins. However, rising depreciation and finance costs stemming from capacity additions could moderate profit after tax (PAT) growth, while increasing capital intensity adds to overall execution risks. Market analysts maintain a 'Buy' rating on the stock with a revised target price of ₹3,244, valuing it at 10x FY29e EV/EBITDA.

"Waaree Energies' recent performance highlights the importance of supply chain resilience and geographical diversification for manufacturing enterprises. While international trade barriers like Section 232 tariffs can create sudden disruptions—as seen in the cancellation of US export orders—focusing on local manufacturing footprints and strengthening domestic retail channels can help mitigate these risks. Companies expanding their asset-light distribution networks are better positioned to drive operational leverage and manage regulatory shifts, though careful monitoring of capital intensity and execution risks remains essential for long-term stability." — Dr. Shishir Gupta, Founder & CEO, StartupLanes