Waaree Energies, Premier Energies Share Price Decline up to 11% — Here’s Why

Market Performance

Shares of Waaree Energies and Premier Energies witnessed sharp declines on Friday, May 23, with both stocks tumbling up to 11% during intraday trade.

• Waaree Energies fell as much as 11% to ₹2,666.00
• Premier Energies dropped 6.1% to ₹1,017.55

Despite recent gains in April and May, both stocks are trading lower on a year-to-date basis:

• Waaree Energies: -7% YTD
• Premier Energies: -25% YTD

Main News: US Tax Bill Hits Global Solar Sentiment

The sell-off in Indian solar stocks followed a significant setback for clean energy companies in the United States. A new tax bill proposed by former US President Donald Trump, narrowly passed the US House of Representatives (215-214 vote).

Key Provisions in the Proposed Bill:

• Seeks to repeal clean energy subsidies introduced under the Inflation Reduction Act (IRA)
• Aims to abolish the 30% federal tax credit on solar rooftop installations
• Cuts funding to reduce air pollution and greenhouse gas emissions and supports electric heavy-duty vehicle adoption

While the bill still requires Senate approval, its passage in the House has triggered a global negative sentiment, affecting solar companies with exposure to the US market—including Waaree and Premier Energies.

Company Details & Global Exposure

Both companies rely significantly on international business, making them vulnerable to policy shifts abroad.

Waaree Energies

• Order Book: ₹47,000 Crore (25 GW capacity)
• International Orders: 57%
• Despite positive domestic traction, the global policy risks weigh on stock sentiment.

Premier Energies

• Order Book: ₹8,400 Crore (5.3 GW)
• Modules: 73%
• Cells: 27%
• Most of its operations are aligned with module manufacturing and closely tied to global demand patterns.

Financial Performance — March Quarter (Q4 FY25)

Despite substantial Q4 numbers, investor sentiment turned bearish due to global policy uncertainty.

Waaree Energies

• Revenue: ₹4,003.9 Crore (▲ 36.4% YoY)
• Net Profit: ₹619 Crore (▲ 34% YoY)

Premier Energies

• Revenue: ₹1,621 Crore (▲ 43.8% YoY)
• Net Profit: ₹278 Crore (▲ 167% YoY)

Summary

The sharp correction in Waaree Energies and Premier Energies share prices reflects a broader market reaction to potential US clean energy policy changes.

While both firms have delivered impressive financial growth, their high dependency on international orders, especially from the US, makes them vulnerable to external shocks.

Investors remain cautious as the bill awaits Senate review, and the clean energy landscape globally remains in flux.