Waaree says 126% US CVD has no material impact

Waaree Energies Limited stated that the US Department of Commerce’s preliminary countervailing duty (CVD) of 126% on solar modules using India-manufactured cells does not pose a material risk to its operations or financial guidance. The clarification was issued during a special analyst and institutional investor call held on February 25, 2026.

Senior management, including Amit Paithankar, Whole-Time Director and Chief Executive Officer (CEO); Sonal Shrivastava, Chief Financial Officer (CFO); and Abhishek Pareek, Group Head Finance, addressed the implications of the duty. The 126% CVD applies to modules that use cells manufactured in India. Shrivastava explained that US import duties are determined by the country of cell manufacturing, not the location of module assembly or shipment. Waaree currently sources cells from jurisdictions subject to tariff rates of around 10%, and not from India for US-bound modules. The company added that it exited Chinese supply chains for US exports in 2019 and later discontinued sourcing from Southeast Asia after additional US trade restrictions were introduced.

Paithankar said Waaree operates 2.6 GW of module manufacturing capacity in the United States, with plans to expand this to 4.2 GW by around the end of the calendar year. A 1.6 GW facility is under construction at its existing Texas site, and a 1 GW heterojunction (HJT) technology-capable plant in Arizona was acquired for under $20 million. Both facilities are expected to become operational by mid-2026. Management noted that US output has increased each quarter sequentially and that capacity constraints, rather than demand, are currently the limiting factor.

Pareek confirmed that the company’s full-year financial guidance, reaffirmed during the third-quarter earnings call, remains unchanged. He said Waaree continued exports to the US over the past 12 months despite a 50% tariff on Indian products, without margin erosion. The order book increased from about Rs 40,000 crore at the start of the financial year to roughly Rs 60,000 crore at the time of the third-quarter results, net of dispatches. Management described the pipeline as one of the strongest to date, supported by rising US electricity demand linked to data centre development and artificial intelligence infrastructure.

During the question-and-answer session, management discussed the Foreign Entity of Concern (FEOC) framework, a US regulation taking effect from April 2026. The rule bars solar supply chain components, including polysilicon, from companies in which Chinese entities hold more than a 30% stake. Waaree stated that it has invested in a polysilicon venture in Oman, currently in pilot production and expected to achieve commercial output within two to three months. The company said its entire existing order book of over 25 GW is structured around FEOC-compliant supply chains. Pareek also cited emerging cell manufacturing capacity in the Middle East and Africa, along with growing availability of US-made cells, as alternative sourcing options.

On potential diversion of supply to the domestic market, Pareek outlined the company’s revenue mix. Around 20% to 25% of revenue is generated through retail distribution across more than 580 stores and over 4,000 distribution points, a segment that commands a premium of about 1 to 1.5 cents per panel. Overseas sales, including Indian exports and US local manufacturing, account for 30% to 35% of revenue. Engineering, procurement and construction (EPC) and operations and maintenance (O&M) services contribute 18% to 20%. Together, these segments represent approximately 70% of total revenue and carry entry barriers. The remaining 30% to 35%, considered more price-sensitive, is covered by the existing order book for the next 12 to 18 months.

Pareek estimated annual US solar module demand at 70 to 80 GW, translating into a two-to-three-year pipeline of 180 to 200 GW. Current delivered module prices in the US are in the range of $0.27 to $0.28 per watt, compared to the $0.35 to $0.38 range at which most of Waaree’s order book was structured. Management said this provides pricing flexibility in the event of tariff-related cost increases. Shrivastava reiterated that the United States remains a core market and that the company will continue adjusting its global supply chain strategy in line with regulatory developments.