Waaree Energies, Premier Energies Fall Up To 11% Fears Over US Clean Energy Subsidies

Last Updated:May 23, 2025, 12:11 IST

Shares of Waaree Energies and Premier Energies fell sharply on Friday, May 23, following a global sell-off in clean energy stocks

Waaree Energies Share Price: Shares of Waaree Energies and Premier Energies fell sharply on Friday, May 23, following a global sell-off in clean energy stocks. Both companies saw their stock prices drop by up to 11 per cent after a proposed US tax bill, backed by former President Donald Trump, signaled the potential rollback of several clean energy subsidies introduced under the Biden administration’s Inflation Reduction Act (IRA).

US Bill Triggers Global Solar Sector Sell-Off

The proposed legislation narrowly passed the US House of Representatives by a 215-214 margin and seeks to eliminate key funding allocated under the IRA. These include investments meant to combat air pollution, curb greenhouse gas emissions, and support the purchase of electric heavy-duty vehicles.

Crucially, the bill also targets the removal of the 30 per cent federal tax credit for rooftop solar installations—a move that could significantly weaken the clean energy market in the US.

Although the bill still requires Senate approval, the news has already rattled global markets. For Indian solar exporters like Waaree Energies and Premier Energies, which derive a sizable portion of their revenue from international markets, especially the US, the policy shift poses a significant risk to future demand.

Analysts say the proposed cuts threaten to reduce demand for solar equipment and clean energy solutions in the US, which has so far been a major market due to Biden-era subsidies. Several American clean energy firms warned that repealing the subsidies could result in factory closures, job losses, and increased electricity prices for households.

Strong Q4 Earnings Offer Little Support

Despite robust earnings for the March 2025 quarter, both companies were unable to resist the broader market downturn.

Waaree Energies posted a 34 per cent year-on-year (YoY) rise in net profit to Rs 619 crore, up from Rs 461.5 crore. Revenue surged 36.4 per cent YoY to Rs 4,003.9 crore. Its order book remains strong at Rs 47,000 crore for 25 GW of capacity, with 57 per cent of the orders coming from international clients, highlighting the company’s global exposure.

Premier Energies delivered even stronger performance, with net profit soaring 167 per cent YoY to Rs 278 crore, fueled by a 43.8 per cent rise in sales to Rs 1,621 crore. Its order book currently stands at 5.3 GW, valued at Rs 8,400 crore, with 73 per cent allocated to modules, 27 per cent to cells, and a minor share to EPC projects.

Stock Price Trend

Waaree Energies dropped as much as 11 per cent intraday, reaching a low of Rs 2,666.00. Still, the stock is up over 6 per cent so far in May, after gaining 8.3 per cent in April and 11.4 per cent in March. However, declines of 10 per cent in February and over 16 per cent in January have left the stock down roughly 7 per cent year-to-date.

Premier Energies fell 6.1 per cent intraday, touching a low of Rs 1,017.55. It is down 25 percent so far in 2025, despite recovering 6 per cent in May, following gains of 4.7 per cent in April and 7.4 per cent in March. Earlier in the year, the stock saw sharp corrections—over 15 per cent in February and nearly 24 per cent in January.

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