A 26% reciprocal tariff imposed by the Trump administration on Indian imports has started to affect Indian exporters, particularly those in the renewable energy sector, since April 9, 2025. Waaree Energies Ltd. is significantly affected by the newly implemented United States tariff policy, as the company maintains major solar module export businesses to the United States.
Impact on Waaree Energies
Waaree Energies derives a quarter of its business income from the United States market. The company maintained a 50,000 crore (26.5 GW) total order book in January 2025, with foreign markets accounting for 54%, including the United States. Waaree’s new pricing strategy, along with its profit margin structures, is directly influenced by the recently established trade tariffs.
Strategic Responses
Waaree Energies has taken several strategic actions to reduce the negative effects of these tariffs on its business operations.
Using its 1.6 GW manufacturing capacity, Waaree began commercial operations at its Brookshire, Texas, facility in January 2025. Over the next four years, Waaree Energies intends to spend $1 billion to raise its manufacturing capacity to 5 GW by 2027, thereby reducing import dependence while avoiding tariff restrictions.
The company follows a strategy to expand its export markets in the Middle East and African territories, as well as in Australia, to reduce its dependence on the U.S. market.
Reuters
The company actively expanded its domestic production facilities during this period. Waaree established the largest 5.4 GW solar cell manufacturing facility in Chikhli, Gujarat, in March 2025.
Supply Chain Considerations
The company imports 90% of its raw materials for solar cells from suppliers in China, Vietnam, Malaysia, and Thailand, with Chinese suppliers accounting for half of those materials. The company is vulnerable because it heavily relies on international components, making it susceptible to both trade policy changes and supply chain disruptions.
Financial Performance
The company delivered strong Q3 FY25 financial results despite significant obstacles.
- Revenue from Operations: Surged 116.6% year-over-year to 3,457.3 crore.
- The company achieved a 296% increase in net profit, reaching 492.69 crore in Q3 FY25.
The company experienced significant performance growth, with EBITDA in Q3 FY25 rising 321.5% to 721.71 crore, while the operating profit margin expanded to 20.9%.
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Industry Outlook
The renewable energy industry worldwide will expand by 12% annually from 2024 to 2030 while its capacity increases from 4.9 TW to 9.8 TW. India’s renewable energy capacity will expand at a higher compound annual growth rate, reaching 500 GW from 209 GW. The environmental sector expects solar energy to dominate, as global solar capacity is projected to reach 5.8 TW by 2030 and India aims to develop 280 GW of solar power.
Conclusion
Waaree Energies faces significant difficulties due to the 26% duty the United States has imposed. Waaree plans to address current market challenges by opening new production facilities in the United States, expanding business operations abroad, and building stronger domestic solar power capacity. The company maintains strong financial performance through proactive initiatives, enabling it to remain a key player in the worldwide renewable energy market.