CARE Ratings has upgraded the long-term bank facilities of Waaree Energies to ‘A+’ with a stable outlook, citing significant improvement in the company’s business and financial performance. The upgrade is based on factors such as improvement in capacity utilization, enhanced demand prospects for domestic solar cells and module manufacturers, and sustainable profitability margins and capital structure. Waaree Energies’ financial performance has been strong, with operating income of INR 11,446 crore and INR 10,441 crore in FY 2024 and 9M FY 2025, respectively, with operating margins of 14.2% and 17.2%. The company’s order book stands at 26.5 GW worth INR 50,000 crore as of December 31, 2024, providing strong revenue visibility.
The demand prospects for Waaree Energies are expected to remain strong in the domestic market due to favourable government policies. The imposition of basic customs duty, approved list of models and manufacturers, and mandatory use of domestic content requirement compliant solar modules in government-aided schemes are expected to boost demand. Additionally, the implementation of Approved List of Models and Manufacturers for solar cells (ALMM-II) is expected to strengthen demand for domestically manufactured solar cells, as it requires the use of solar modules made from domestically manufactured solar cells for projects commissioned after June 1, 2026.
The company has also successfully completed its initial public offering (IPO) and has expanded its manufacturing capacity to 14.9 GW for solar modules and 5.4 GW for solar cells, and has entered the wind energy space through the acquisition of Enel Green Power India. Overall, the upgrade of Waaree Energies’ bank facilities reflects the company’s strong financial performance and promising outlook.