India’s solar industry is witnessing rapid capacity expansion, but falling solar module prices are creating new challenges for manufacturers. Lower prices can pressure realisations and margins, making cost efficiency, scale and manufacturing capabilities increasingly important.
Against this backdrop, Waaree Energies and Premier Energies are drawing attention as major solar manufacturing players. Both companies are positioned to benefit from India’s renewable-energy push, but their ability to manage pricing pressure and protect profitability could differ.
Why are Solar Module Prices Falling?
Solar module prices are falling mainly because India has added module manufacturing capacity much faster than demand has grown. ICRA estimates India’s module capacity reached 217 GW by August 2026, while annual solar installations are expected at only around 55–60 GW, creating intense competition among manufacturers. This is particularly relevant for listed players such as Waaree Energies and Premier Energies.
Another factor is falling global input costs and cheaper Chinese supply. Prices of polysilicon and wafers have declined, while Asian cell and module prices have also softened as production costs eased and demand remained weak. Since Indian manufacturers still depend heavily on imported cells and upstream materials, lower input prices are feeding through into module pricing.
For Indian solar stocks, the bigger concern is therefore margin compression rather than demand destruction. IEEFA says Indian module factories are operating at only 35–40% utilisation, while excess capacity and weaker export opportunities are increasing domestic supply pressure.
Waaree Energies Ltd
Waaree Energies is one of India’s leading renewable energy companies, with a strong presence across solar PV modules, cells, EPC services, inverters, energy storage, and green hydrogen. Founded in 1990, the company has expanded its manufacturing footprint in India and overseas, while increasingly focusing on an integrated clean-energy value chain.
With a market capitalisation of Rs. 71,676.96 crore in the day’s trade, the shares of Waaree Energies Ltd rose upto 1.3 percent, making a high of Rs. 2,516.00, compared to the previous close of Rs. 2,483.00.
Q1 FY27 Performance
Waaree Energies reported consolidated revenue from operations of Rs. 7,932 crore, marking a strong 79.2% YoY growth. Operating EBITDA increased 44.4% YoY to Rs. 1,440 crore, while the EBITDA margin stood at 18.2%, reflecting strong operating performance despite the evolving solar module pricing environment.
The Consolidated profit after tax (PAT) rose 15.4% YoY to Rs. 892 crore, with a PAT margin of 11.0%. The slower growth in net profit compared with revenue and EBITDA indicates that factors below the operating level continued to influence overall earnings in Q1 FY27.
Strong Order Book and Manufacturing Scale
Waaree Energies has an order book of around Rs. 61,500 crore, providing visibility for future revenue growth. The company has approximately 26 GW of module manufacturing capacity, positioning it among the largest non-Chinese companies in the World.
It also has 5.4 GW of cell manufacturing capacity, making it India’s largest cell manufacturer. Its scale across modules and cells gives Waaree greater integration across the solar manufacturing value chain.
Waaree Energies reported a strong increase in module sales to 3.6 GW in Q1 FY27, compared with 1.9 GW in Q1 FY26, marking an 89 percent YoY growth and highlighting robust demand and higher production volumes.
Revenue Mix
Waaree Energies’ Q1 FY27 revenue was diversified across Utility/IPP/C&I, Retail, and Overseas markets. Utility/IPP/C&I contributed the largest share at 39.7%, followed by Retail at 30.2% and Overseas markets at 21.2%.
The company’s EPC, O&M, and T&D businesses accounted for the remaining 8.9% of revenue. This mix reflects Waaree’s presence across multiple customer segments and geographies, reducing dependence on any single revenue stream.
Capex
Waaree is investing Rs. 30,000+ Cr to evolve from “Waaree 1.0” — India’s largest solar module manufacturer (26 GW modules, 5.4 GW cells) with an existing solar value chain, EPC/O&M, and T&D business — into “Waaree 2.0,” a diversified clean-energy player.
The new capex builds out adjacent segments: RE-power infrastructure, a 20 GWh BESS plant (~Rs. 10,000 Cr), transformers (~Rs. 192 Cr), inverters (~Rs. 180 Cr), and a green hydrogen electrolyzer plant (~Rs. 676 Cr), plus smart meters.
The end goal is ~28 GW modules, 15 GW cells, 10 GW ingots/wafers, 20 GWh BESS, 20,000 MVA transformers, 4 GW inverters, and 1 GW electrolyzers — spanning solar, storage, EPC, and broader clean-energy manufacturing.
Premier Energies Ltd
Premier Energies, established in 1995, is an integrated solar manufacturer focused primarily on solar cells and modules, along with EPC and other solar-related solutions. The company has been expanding its manufacturing capacity and adopting newer technologies such as TOPCon, with operations centred around its facilities in Telangana and a growing presence in the domestic and international solar market.
With a market capitalisation of Rs. 40,773.92 crore in the day’s trade, the shares of Premier Energies Ltd rose upto 0.16 percent, making a high of Rs. 899.50, compared to the previous close of Rs. 898.00.
Q1 FY27 Performance
Premier Energies reported revenue of Rs. 25,076 million (Rs. 2,507.6 crore), registering 34.1% YoY growth. EBITDA increased 27.2% YoY to Rs. 7,594 million (Rs. 759.4 crore), with the EBITDA margin standing at 30.3%.
Profit after tax (PAT) rose 53.3% YoY to Rs. 4,719 million (Rs. 471.9 crore), while the PAT margin improved to 18.8%. The stronger profit growth compared with revenue indicates improved overall profitability during the period.
Production & Capacity
Premier Energies produced 844 MW of solar cells during the period, highlighting its manufacturing scale and growing focus on expanding its presence across the integrated solar value chain. The company recorded 953 MW of module production, reflecting its ability to manufacture at scale and cater to rising demand across different segments of the solar energy market.
Premier Energies currently has 3.6 GW of cell manufacturing capacity, which is planned to increase substantially to 10.6 GW. Its module manufacturing capacity stands at 11.1 GW, supporting future growth. Beyond cells and modules, the company is developing 10 GW of ingot-wafer capacity, while also having 18,000 MT aluminium frame and 12 GWh BESS container capacities.
Strong Order Book Visibility & Revenue Mix
Premier Energies had an order book of 9,867 MW worth Rs. 150 billion (Rs. 15,000 crore) as of 30 June 2026, providing visibility for future business growth and reflecting healthy demand across its solar manufacturing operations.
The order book is largely concentrated in cells, which account for 58% by value, followed by modules at 40%. Transformers contribute 2%, while EPC accounts for a negligible share of the total order book.
Geographically, the company’s entire order book is domestic, accounting for 100% of the total value. The order book increased from Rs. 140 billion in March 2026 to Rs. 150 billion by June 2026, supported by new orders during the quarter.
Premier Energies’ revenue mix remains heavily focused on the domestic market, with domestic modules contributing 71% of revenue, followed by domestic cells at 24%. Domestic Transcon operations accounted for the remaining 4%, while exports contributed 0%.
Which Solar Stock Can Handle Falling Module Prices Better?
There seems to be a bigger margin of safety with regard to declining prices for modules due to larger production scale at Waaree Energies. With 26 GW of module capacity, 5.4 GW of cell capacity, and an order book of approximately Rs. 61,500 crore, Waaree Energies seems to have more scale to take pricing pressures through increased volumes.
This is also a key factor for the company since its integrated manufacturing capacity helps Waaree derive more benefits from the entire value chain of the solar industry. Diversified income sources across segments such as Utility/IPP/C&I, retail, and international business further decrease its reliance on any particular market segment or region. The 89% YoY growth in module shipments up to 3.6 GW in Q1 FY27 is another indicator of growth through higher volumes despite the fluctuating price scenario.
On the other hand, Premier Energies appears to have more profitable operations currently, as reflected by its EBITDA margin of 30.3% and PAT margin of 18.8%, compared with Waaree’s EBITDA margin of 18.2% and PAT margin of 11.0%. The company’s PAT also increased by 53.3% on a year-over-year basis, far outpacing its sales growth, suggesting that Premier Energies started the quarter with healthy profit margins.
However, Premier Energies has a lower manufacturing base and a more concentrated revenue structure. The firm currently has 3.6 GW cell manufacturing capacity and 11.1 GW module manufacturing capacity, with 71% of revenue being generated from domestic modules and 24% from domestic cells. Although its order book of Rs. 15,000 crore is good, it is much smaller than that of Waaree.
Thus, Waaree’s strengths are scale, integration, diversification, and order visibility, while Premier Energies’ strengths are margins and faster PAT growth. In case of module price pressures continuing, the battle will mainly depend on how Waaree leverages its scale and integrated capacity to negate low realizations and how Premier Energies sustains its margin strength.
Falling solar module prices are putting pressure on manufacturers, making scale, cost control and strong demand increasingly important. Waaree Energies has an advantage in terms of manufacturing capacity, order book size, integration and diversified revenue streams, which could help it manage pricing pressure through higher volumes and a broader business base. However, Waaree is in the middle of a large capex; this expansion is keeping margins tight for now, and profitability may stay under pressure until the new capacities are commissioned and ramped up.
Premier Energies, meanwhile, currently stands out for its stronger EBITDA and PAT margins and faster profit growth. However, its smaller scale and greater dependence on the domestic market could make it more exposed to sustained pricing pressure. Going ahead, the performance of both companies will depend on their ability to maintain margins while expanding production and securing orders in a highly competitive solar market.