Waaree Energies and Premier Energies shares fall up to 7% today; Here are the key reasons

Synopsis: Solar stocks Waaree Energies and Premier Energies declined amid concerns over U.S. policy favoring fossil fuels, uncertainty around renewable incentives, and negative brokerage commentary highlighting potential downside risks for both companies.

Two leading solar stocks, engaged in manufacturing solar modules and providing clean energy solutions for utility-scale and rooftop projects, fell by up to 7 percent in intraday trading, driven by concerns over U.S. renewable energy policy uncertainty, a shift toward fossil fuels, and negative brokerage commentary highlighting potential downside risks.

With a market capitalization of Rs. 78,454.06 crore, the shares of Waaree Energies Limited were currently trading at Rs. 2,727.50 per equity share, down nearly 4.85 percent from its previous day’s close price of Rs. 2,866.60. The stock is down by 29.42 percent from the 52-week high of Rs. 3,864.40. 

Similarly, with a market capitalization of Rs. 36,280.32 crore, the shares of Premier Energies Limited were currently trading at Rs. 785 per equity share, down nearly 7.25 percent from its previous day’s close price of Rs. 846.40. The stock is down by 41.89 percent from the 52-week high of Rs. 1,378.15. 

Reason Behind the Fall:

During the presidency of Donald Trump, U.S. energy policy leaned strongly toward oil and gas. His pro-oil support was mainly related to boosting domestic fossil fuel production, energy independence, and protecting traditional energy jobs.

At the same time, renewable energy faced pressure, as funding for clean energy programs was reduced and renewable energy tax credits in the United States were either cut back or allowed to expire. This created uncertainty for the renewable sector, especially solar and wind companies operating in the U.S. market.

Indian solar manufacturers like Waaree Energies and Premier Energies have built a strong presence in the U.S., where a significant share of their exports comes from utility-scale and rooftop solar projects. Any slowdown in U.S. renewable incentives can directly affect demand for their products, even though the U.S. remains one of the largest solar markets globally.

A major example of this shift is the recent U.S. military and diplomatic focus on Venezuela, a country with the world’s largest proven oil reserves, over 303 billion barrels. Trump has openly discussed involving major U.S. oil companies to rebuild Venezuela’s oil infrastructure and tap into these reserves after the removal of President Nicolás Maduro, calling for them to invest billions of dollars and restore output.

Such discussions around gaining control over oil-rich regions may push energy priorities back toward fossil fuels, which could slow renewable energy growth in the short term.

Brokerage Downgrade

Another reason for the share price decline is that, in a note issued on Monday, brokerage firm Bernstein maintained its “Underperform” rating on both Premier Energies and Waaree Energies. Bernstein has set a target price of Rs. 718 for Premier Energies and Rs. 2,109 for Waaree Energies. Based on these targets, Premier Energies faces a potential downside of 10.2 percent from current levels, while Waaree Energies could see a sharper decline of around 22 percent. 

Recently, on December 31, 2025, Premier Energies and Waaree Energies were included in the Futures and Options (F&O) segment, increasing their trading activity and market participation.

Revenue mix 

As of Q2FY26, Waaree Energies derives 47 percent of its revenue from overseas, which signals caution, while Premier Energies derives just 1 percent, which provides relief from global tension. While it looks like both are reducing their exports, they are actually building facilities in the USA itself to reap the benefits of made locally and exempt from import tax and other restrictions.

Order Book & Revenue Diversification

Premier Energies Limited’s order book stands at 9,114 MW, valued at Rs. 13,249.6 crore as of September 30, 2025. It is largely driven by cell (59 percent) and module (40 percent) orders, with 100 percent domestic exposure and negligible contribution from EPC and exports. As of Q2FY26, it derived just 1 percent of its revenue from exports.

Likewise, Waaree Energies Limited has a solid order book of 24 GW, valued at around Rs. 47,000 crore, with 59.5 percent from India and 40.5 percent from overseas markets. Additionally, it has a strong order pipeline exceeding 100 GW, indicating robust future growth visibility. As of Q2FY26, it derived 47 percent of its revenue from overseas.

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