US duty triggers sell-off in Indian solar stocks

Indian solar stocks declined sharply on February 25, 2026 after the US Commerce Department imposed a preliminary countervailing duty (CVD) of 125.87% on solar cell and module imports from India. Following the announcement, manufacturers including Emmvee Photovoltaic Power Limited, Waaree Energies Limited, and Premier Energies Limited issued statements indicating limited immediate impact on their business operations.

The duty, which took effect immediately and requires US importers to provide cash deposits, led to broad sector declines. Waaree Energies Limited shares fell up to 14.6% in early trade, while Premier Energies Limited declined more than 12%. Other solar related stocks, including Vikram Solar, Waaree Renewable Technologies Limited, and Solex Energy Limited, also traded lower.

The US action forms part of a wider trade investigation covering India, Indonesia, and Laos, with duty rates set at 104.38% and 80.67% respectively. The case follows a petition by the Alliance for American Solar Manufacturing and Trade, whose members include Hanwha Qcells and First Solar, Inc. US trade data shows imports from the three countries were valued at about $4.5 billion last year, representing nearly two thirds of total US solar imports in 2025. Indian exports to the US increased nine fold to nearly $793 million between 2022 and 2024.

In a press note dated February 25, Emmvee Photovoltaic Power Limited stated that the duty development has no impact on its operations, noting that its integrated solar cell and module manufacturing is primarily aligned with domestic demand.

Waaree Energies Limited, in a regulatory filing, informed exchanges that its position on the matter had already been communicated. The company stated that the share price movement is market driven and that there is no undisclosed price sensitive information. Waaree also confirmed that no regulatory or legal proceedings are being initiated in relation to the development.

Premier Energies Limited responded to an exchange clarification regarding a news report on tariff impact, stating it is not involved in any undisclosed negotiations or developments with US authorities. The company said the situation is industry wide and does not foresee any material adverse impact on its operations or financial position arising solely from the reported development, adding that share price movement appears driven by overall market sentiment.

The ruling is a preliminary determination. The US Commerce Department is expected to issue a separate decision next month on potential anti dumping duties (ADD). A final determination on the countervailing duties is scheduled for July 2026. If confirmed, the higher tariffs could affect export competitiveness for Indian manufacturers with significant exposure to the US market. Some companies have previously explored establishing manufacturing facilities in the US to reduce such risks.

The featured photograph is for representation only.