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Waaree Energies Ltd. has experienced a significant surge in its share price, gaining as much as 19% on Wednesday, April 23rd. This positive market reaction follows the company's release of its financial results for the quarter spanning January to March. The earnings report, which was made public after market hours on Tuesday, reveals substantial growth in revenue, net profit, and EBITDA, underscoring the company's strong performance in the renewable energy sector. This performance, coupled with the upcoming expiration of a shareholder lock-in period, has made April 25th a date of significant interest for investors and analysts alike. The surge in share price reflects investor confidence in Waaree Energies' ability to capitalize on the growing demand for solar energy solutions and its strategic initiatives to expand its manufacturing capacity. The company's financial metrics paint a picture of robust growth. Revenue for the March quarter reached ₹4,003.9 crore, a notable 36.4% increase compared to the ₹2,935.8 crore reported in the same period last year. Net profit also experienced a significant jump, rising 34.1% to ₹618.9 crore from ₹461.5 crore a year ago. However, the most impressive growth was seen in EBITDA, which more than doubled, increasing by 120.5% year-on-year to ₹922.6 crore. This remarkable growth in EBITDA is further reflected in the company's EBITDA margin, which expanded significantly from 14.3% to 23%, indicating improved operational efficiency and profitability. These figures demonstrate Waaree Energies' effective management of its resources and its ability to generate substantial profits from its operations. The company's strong financial performance is not only a result of increased demand for solar energy but also a testament to its operational efficiency and strategic decision-making. Looking ahead, Waaree Energies has provided guidance for an EBITDA of ₹5,500–6,000 crore in FY26. This ambitious target reflects the company's confidence in its ability to sustain its growth trajectory. Waaree anticipates that this EBITDA growth will be driven by strong demand realization and ongoing operational improvements. The company's focus on operational efficiency and its ability to meet the increasing demand for solar energy solutions are key factors underpinning this optimistic outlook. In addition to its financial performance, Waaree Energies is also actively expanding its manufacturing capacity to meet future demand. The company is currently ramping up its capacity, with a 6 GW ingot/wafer facility expected to be ready by FY27. This expansion will significantly increase Waaree's ability to produce key components for solar panels, further strengthening its position in the market. Furthermore, in its module segment, the current capacity of 15 GW is projected to grow by an additional 4.8 GW over FY26–27. These capacity expansions demonstrate Waaree Energies' commitment to investing in its future and its confidence in the long-term growth of the solar energy sector. Waaree Energies' order book currently stands at ₹47,000 crore for 25 GW. The minor decrease from ₹50,000 crore in the last quarter, is not a significant concern. Notably, a substantial 57% of the orders are originating from international markets, signifying the company's growing global presence and its ability to compete effectively in the international solar energy market. This diversified order book mitigates the risk associated with reliance on a single market and provides a stable foundation for future growth. The international component of the order book also suggests the strong appeal of Waaree products beyond Indian borders.
Adding another layer of significance to the current market activity surrounding Waaree Energies is the impending end of its six-month shareholder lock-in period on April 25th. This event is poised to potentially influence the company's share price and trading volume. According to a note from Nuvama Alternative & Quantitative Research, approximately 15 crore shares will become eligible for trading as the shareholder lock-in expires. This substantial number of shares represents approximately 53% of the company's outstanding equity. The release of this large number of shares into the market could potentially increase the supply of Waaree Energies shares, which could put downward pressure on the share price. However, it's crucial to understand that the end of the shareholder lock-in does not automatically mean that all these shares will be sold immediately in the open market. The holders of these shares may choose to retain their holdings, sell them gradually, or explore other investment strategies. The actual impact on the share price will depend on the decisions made by these shareholders and the overall market sentiment towards Waaree Energies. The availability of a significant number of shares for trading could also attract new investors and increase the liquidity of the stock. This increased liquidity could make it easier for investors to buy and sell shares, potentially leading to a more efficient market for Waaree Energies stock. The potential impact of the lock-in expiration adds an element of uncertainty to the market's response to Waaree Energies' strong Q4 results. Investors will be closely monitoring the trading activity in the days and weeks following April 25th to gauge the impact of the lock-in expiration on the share price. The combination of positive financial performance and the shareholder lock-in expiry has created a complex and dynamic situation for Waaree Energies. The stock market, despite all the analysis, projections, and predictions, is often guided by sentiment that is hard to quantify. As such, predicting the share price post lock-in period could be inaccurate.
Despite the complexities surrounding the shareholder lock-in, shares of Waaree Energies are currently trading 14.69% higher on Wednesday at ₹2,995.50. While this represents a significant increase, it's important to note that the stock is still below its post-listing high of ₹3,743. This suggests that there is still room for further growth, but also that there may be some resistance at higher price levels. The stock has turned positive in 2025, rising 5%. This year-to-date increase indicates a positive trend and suggests that investors are becoming increasingly optimistic about the company's prospects. However, it's crucial to remember that past performance is not necessarily indicative of future results, and investors should conduct their own thorough research before making any investment decisions. The overall outlook for Waaree Energies appears positive, driven by its strong financial performance, capacity expansion plans, and growing international presence. The company's ability to capitalize on the increasing demand for solar energy solutions and its commitment to operational efficiency are key factors that support this optimistic outlook. The end of the shareholder lock-in period presents both opportunities and challenges for the company. While it could potentially lead to increased trading volume and new investors, it also carries the risk of downward pressure on the share price. Investors will need to carefully monitor the trading activity in the coming weeks to assess the impact of the lock-in expiration. In conclusion, Waaree Energies' recent strong Q4 results and strategic initiatives have positioned it well for future growth in the solar energy sector. The company's ability to navigate the challenges and capitalize on the opportunities presented by the end of the shareholder lock-in period will be crucial in determining its long-term success. Investors should carefully consider all the factors before making any investment decisions related to Waaree Energies. This is not investment advice and individual investors should make decisions based on their personal financial situation.
Source: Waaree Energies shares rally 19% post Q4 results; Here's why April 25 is an important day