Stock Target: How does Waaree Energies gain from its ₹270 Cr polysilicon investment in Oman?

Synopsis: Waaree Energies fetches a solid ~40% upside from Emkay Global after it flagged its enthusiasm over Waaree Energies’ recent investment in one of the polysilicone firms in Oman, citing cost benefits and so on.

The shares of this company, which is one of the largest manufacturers of solar PV modules in India, are in focus after Emkay sees a solid upside potential just days after its US arm made a notable investment that can significantly impact its business. In this article, we will dive more into the details.

With a market capitalisation of Rs 89,088 crore, the shares of Waaree Energies Ltd are closed at Rs 3,080 per share, up 0.3 percent from its previous day’s closing price of Rs 3,061.80 per share. In the last one year, the stock delivered a return of 5 percent, underperforming NIFTY 50’s return of 10 percent.

Analyst Comments

Leading brokerage house Emkay Global has assigned a target price of Rs 4,260 per share on Waare Energies, which signals an upside potential of nearly 40 percent from its previous day’s closing price.

Emkay sees Waaree Energies’ investment in United Solar Holding as a smart, strategic move. By putting $30 million into its 100ktpa polysilicon plant in Oman, Waaree gets access to a non-Chinese supply of polysilicon.

Even though Waaree’s ownership will probably be less than 5 percent, Emkay thinks the company can lock in “anchor customer” status. That means Waaree can grab a solid chunk of the polysilicon it needs for its huge 10 GW wafer–ingot facility in Nagpur, making its supply chain for the long run much clearer.

Emkay also points out some perks of the Oman facility. Energy costs are lower there, and being in the Sohar Freezone gives Waaree trade benefits with the US, India, and Europe. Sure, the costs aren’t as low as what top Chinese producers offer, but Emkay calls this the best global alternative right now, especially since the plant fits US and EU rules for traceability. With the plant almost ready and ramp-up expected in about a year, Emkay thinks this deal is a big win for Waaree as it grows internationally. 

About the Acquisition

Waaree Energies, through a stock exchange filing, announced that its US subsidiary, Waaree Solar Americas Inc., will subscribe to Series B preferred shares to the tune of around 53.7 lakh for a consideration of about $30 million (Rs 270 crore) in United Solar Holding Inc. The deal is scheduled to close by January 31, 2026, conditionally subject to the usual ​‍​‌‍​‍‌​‍​‌‍​‍‌clauses.

United Solar Holding Inc. (“United Solar”) is a leading producer of high-purity polysilicon, a vital component for the solar industry, operating one of the world’s most advanced manufacturing facilities in Oman. This​‍​‌‍​‍‌​‍​‌‍​‍‌ capital infusion allows Waaree to obtain a supply of polysilicon over the next several years, which is a major challenge in solar panels’ raw material. 

What is polysilicon?

Polysilicon​‍​‌‍​‍‌​‍​‌‍​‍‌ is one of the most important raw materials required to produce solar panels. After that, the material is transformed into silicon wafers that are used to manufacture solar cells. These cells absorb sunlight and generate electricity. The purity level of the polysilicon determines the efficiency and power of the solar panel.

Besides solar energy, polysilicon is used in semiconductors, electronics, and chips; however, the largest consumer of this material is the solar photovoltaic (PV) ​‍​‌‍​‍‌​‍​‌‍​‍‌industry.

Financial and Other Highlights

Waaree Energies Ltd has reported an operating revenue of Rs 6,066 crore in Q2 FY26, representing a 70 percent growth compared to Rs 3,574 crore in Q2 FY25.  Regarding its profitability, it reported a net profit of Rs 878 crore in Q2 FY26, a staggering growth of 134 percent as compared to Rs 376 crore in Q2 FY25.

The company has a robust order book of Rs 47,000 crore, consisting of 24 GW of projects.  Of this total order book, a staggering 59.5 percent is derived from overseas clients, while the remaining 40.5 percent is derived from Indian clients, making it extremely vulnerable to any shift in global policies like tariffs.

Waaree Energies is the largest solar panel manufacturer in India and has been concentrating on making quality and low-cost solar panels as a means of encouraging the use of clean energy and lowering carbon emissions since 2007. It runs five manufacturing units in India and is also present in the global markets. The company has a vast presence in India, serving over 700 districts, and also operates in 25 countries, including the US, which is a major client of the company. 

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