Whereas the nation has made important progress in photo voltaic module and cell manufacturing, wafer and ingot manufacturing stays a weak hyperlink, with solely 2gigawatts (GW)of capability in comparison with 71 GW in modules and 11 GW in cells.
The federal government’s push mirrors its profitable cell phone manufacturing technique, which attracted world giants equivalent to Apple and Samsung with profitable incentives. An analogous strategy within the photo voltaic sector may reduce reliance on imports, decrease manufacturing prices, and create a aggressive home provide chain.
Nonetheless, India nonetheless lacks polysilicon manufacturing, a key enter for wafers and ingots, making some dependence on international suppliers inevitable within the close to time period.
With this coverage shift, a number of Indian photo voltaic firms are well-positioned to capitalise on authorities assist, together with these 5.
#1 Adani Enterprises
Adani Enterprises is aggressively scaling up its photo voltaic and renewable vitality enterprise, sustaining its gross sales run fee of 1 GW of modules per quarter. The corporate stays on monitor to develop photo voltaic manufacturing capability to 10 GW by 2028, with present operational capability at 4.5 GW yearly.
A key differentiator for Adani is its built-in photo voltaic manufacturing strategy, making it one of many only a few firms in India that produces wafers and ingots. In Could 2024, Adani Photo voltaic started industrial manufacturing of wafers and ingots at its Gujarat facility, strengthening India’s photo voltaic provide chain.
Additionally learn | Betting on the longer term: 5 high-growth shares poised for long-term success
Having began large-scale monocrystalline silicon ingot manufacturing in December 2022, Adani stays the one Indian producer that produces M10 (182×182 mm) and G12 (210×210 mm) ingots. The corporate additionally plans to start polysilicon manufacturing by 2027-28, which might make it India’s first totally built-in renewable vitality participant.
Adani New Industries Restricted noticed Ebitda soar 121% YoY in 9MFY25, reflecting sturdy progress in renewables. The corporate sells photo voltaic modules overseas, sustaining a steadiness between home and export markets, with a deal with utility-scale tasks; engineering, procurement and development gamers (EPC); and retail clients.
The corporate’s preliminary FY25 capex goal of ₹80,000 crore has been revised to ₹69,562 crore, with ₹11,000 crore deferred as a result of timing shifts in inexperienced hydrogen and PVC tasks. Within the first 9 months of FY25 it spent ₹21,000 crore, with a majority of this allotted to renewables.
Trying forward, the corporate doesn’t plan to expedite its 10 GW photo voltaic capability goal earlier than 2028, however renewable-energy growth stays a key precedence.
#2 Premier Energies
Premier Energies continues to develop as a number one photo voltaic options supplier. The corporate manufactures high-efficiency photo voltaic cells and provides mono-facial and bifacial modules tailor-made for tasks. It additionally offers EPC providers for ground-mounted, rooftop and floating photo voltaic installations, together with different providers and clear vitality era.
Sturdy home demand has pushed distinctive progress in Q3FY25. Premier’s income surged 144.76% year-on-year, whereas working margin expanded from 17.3% to 29.97% and internet revenue skyrocketed 490% year-on-year. The IPO proceeds strengthened the steadiness sheet, reducing the online debt-to-EBITDA ratio from 9.51 to three.49.
Premier is executing an aggressive growth technique. A 1 GW TOPCon (tunnel oxide passivated contact – superior photo voltaic cell expertise) cell & module line is ready to go stay in Q1FY26, adopted by a 4 GW line in Q1FY27.
The corporate additionally plans to backward combine with a 2 GW wafer facility and a 36,000 MT aluminum body unit. Whereas it doesn’t manufacture wafers but, this transfer will strengthen its provide chain and enhance margins.
Trying forward, the corporate stands to learn from sturdy coverage tailwinds. The PM Surya Ghar Yojana and rising home content material requirement (DCR) rooftop demand — now 25% of Premier’s DCR gross sales — will drive progress. A ₹6,900-crore order e-book (2 GW modules, 2.6 GW cells) offers 12-15 months of income visibility.
#3 Waaree Energies
Waaree Energies is India’s largestsolar photovoltaic (PV) module producer. The corporate elevated its capability from 4 GW in FY22 to 12 GW by mid-2024, including one other 1.3 GW in Noida through Indosolar. With EPC, operations and upkeep (O&M), and renewable vitality gross sales, Waaree is a full-spectrum photo voltaic options supplier.
Its Q3FY25 outcomes have been stellar, with income up 115% year-on-year, Ebitda hovering 257%, and margins increasing to 22.8%. PAT jumped 260% year-on-year. Its ₹50,000 crore order e-book (26.5 GW) includes 54% exports and 46% home gross sales, although the income combine stays 79% home owing to sooner execution cycles.
Waaree is trying to develop aggressively, with its US manufacturing unit commencing manufacturing in January 2025. The corporate is within the ultimate trial stage for a 1.4 GW Mono PERC (passivated emitter and rear contact – high-efficiency photo voltaic cell expertise) cell line, whereas a 4 GW TOPCon cell facility is ready to go stay by April or Could 2025.
Additionally learn | UltraTech’s entry into cables & wires: This smallcap proxy inventory is insulated
Whereas it doesn’t but manufacture ingots and wafers but, Waaree is growing a 6 GW built-in facility in Odisha to provide ingots, wafers, photo voltaic cells and PV modules. Supported by the federal government’s production-linked incentive (PLI) scheme, that is anticipated to be operational by FY27, strengthening its position within the photo voltaic worth chain.
Past photo voltaic, the corporate is increasing into inexperienced hydrogen, batteries and inverters, solidifying its management in India’s renewable vitality transition.
#4 Solex Vitality
Solex Vitality is quickly increasing its footprint within the renewable vitality house, with photo voltaic panels contributing almost 95% of its income.
The corporate has delivered distinctive progress in H1FY25, with income surging 192% year-on-year, Ebitda rising 167.7% and PAT skyrocketeding 1,697%, pushed by capability growth and a robust order pipeline.
With demand rising, Solex is scaling its module manufacturing capability to 4 GW by June 2025, with plans to develop additional to fifteen GW by 2030. The corporate has additionally initiated a 2 GW photo voltaic cell growth, making certain larger effectivity and higher value optimisation. In a significant product innovation, Solex has launched Tapi-R rectangular cell modules, that are designed for larger energy output and decrease prices.
Whereas it doesn’t produce ingots and wafers but, authorities assist may allow seamless integration, strengthening its provide chain and value competitiveness.
Trying forward, Solex is concentrating on each home and worldwide markets. It’s already securing exports to Europe and Africa, with plans to enter the US after 2025.
With a ₹100 crore funding roadmap by 2030, Solex is positioning itself as a key producer, driving innovation, increasing capability and integrating backward into photo voltaic cell manufacturing.
#5 Tata Energy
Tata Energy is solidifying its place asIndia’s vitality chief with 25 GW put in capability, and shifting aggressively in the direction of clear vitality. The corporate is changing into a one-stop photo voltaic options supplier, increasing its photo voltaic manufacturing and EPC enterprise.
Whereas the renewable vitality main doesn’t manufacture wafers and ingots, it may enter the house as authorities insurance policies push for home photo voltaic provide chains. The corporate is increasing EPC and its manufacturing capabilities to scale back its reliance on imports and strengthen its clean-energy footprint.
Tata Energy’s EPC division is prospering, having secured 612 MW of orders value ₹2,800 crore. The PM Surya Ghar Yojana is ready to speed up rooftop photo voltaic adoption, with 30-40 GW of capability anticipated to be added within the subsequent two to 3 years. The corporate can also be evaluating private-sector nuclear alternatives.
Additionally learn | Espresso can investing: These 5 small cap shares meet Saurabh Mukherjea’s standards
Tata Energy operates a 4 GW cell & module facility, whereas rooftop photo voltaic income has crossed ₹500 crore.
The corporate has earmarked ₹22,000 for capex in FY25, specializing in renewables, group captive tasks and T&D growth. From FY26-FY27, Tata Energy plans so as to add 2-2.5 GW of renewable capability yearly, strengthening its clear vitality portfolio.
It’s balancing inside and third-party module gross sales because the Authorised Checklist of Fashions and Producers -2 (ALMM) takes impact in June 2026.
On the monetary entrance, Tata Energy maintains a internet debt of ₹44,700 crore, with a debt-equity ratio of 1.1:1. The main target stays on high-return tasks, making certain internet debt/Ebitda stays beneath 3.
With a robust mission pipeline, strategic growth and disciplined capital allocation, Tata Energy is well-positioned to steer India’s vitality transition.
Conclusion
With its $1 billion photo voltaic subsidy plan, the federal government is giving its backing to wafer and ingot manufacturing, opening doorways for firms to develop, innovate and compete on a worldwide scale.
For buyers, this marks the beginning of a brand new progress section in India’s photo voltaic sector. Firms that transfer early into wafer and ingot manufacturing may see important value benefits and long-term features.
Nonetheless, buyers should intently monitor operational efficiency, scalability, and strategic execution on this evolving panorama to capitalize on potential upsides whereas managing industry-related dangers.Buyers also needs to consider the corporate’s fundamentals, company governance, and valuations of the inventory as key components when conducting due diligence earlier than making funding choices.
Disclaimer:This text is for data functions solely. It isn’t a inventory suggestion and shouldn’t be handled as such.
This text is syndicated from Equitymaster.com
