JM Financial slashed its 12-month price target for Waaree Energies to Rs 3,185 from Rs 3,509 after the US flagged the company for evading tariffs on solar cells. This new target sees an upside of 6% from the closing price of June 25. However, the brokerage maintained its “Add” recommendation on the stock.
US tariff evasion findings
The US Customs and Border Protection (CBP) issued a final determination that Waaree Energies evaded tariffs on solar cells from Vietnam and Malaysia between 2021 and 2026. The CBP cited a “four-year history of reporting the wrong country of origin,” which the brokerage believes carries significant reputational weight.
Significant financial penalties
As a result of the ruling, the CBP will require cash deposits for anti-dumping tariffs of up to 271.28% on the specific imports found to be circumventing trade orders.
The probe stemmed from a 2025 petition by the American Alliance for Solar Manufacturing Trade Committee. It pointed to data showing Waaree Energy’s sharply rising imports of Chinese solar cells into India, over 5.4 million kg of crystalline silicon photovoltaic (CSPV) modules shipped to the US in 2024, and a more than 2,250% surge in the US imports of CSPV modules from India between 2021 and 2023. This coincided with declining Chinese imports amid AD/CVD enforcement.
Risk to order book
The brokerage house highlighted that 65–70% of the solar equipment maker’s Rs 53,000 crore order book is tied to overseas long-term contracts. The ruling and its reputational impact could potentially affect a significant portion of these international orders.
Mitigating factors and limited downside
Despite the negative ruling, JM Financial said that the downside appears to be limited because the CBP rejected a “blanket evasion finding” for all of the company’s imports. Additionally, the investigation confirmed that Waaree Energy produced enough modules from non-Chinese cells to cover its total shipments to the US.
“This is far short of the worst-case scenario where all of Waaree’s imports would have been treated as tainted,” read the brokerage report.
Waaree Energies Q4FY26
The company reported a jump of 112% year-on-year in revenue to Rs 8,840.25 crore, while net profit surged 74.7% to Rs 1,126.26 crore in the fourth quarter of FY26.
On the operating front, Earnings before interest, tax, depreciation, and amortisation (Ebitda) stood at Rs 1,577 crore, up 80% YoY. However, Ebitda margin contracted sharply to 18.6% from 23% a year ago.
Waaree Energies share price performance
The share price of Waaree Energies has fallen 3.5% in the last five trading days. The stock has declined 5.33% in the past one month and 1.25% in the last six months. Waaree Energies’ share price has erased 6.6% over the previous 12 months.
