Waaree Energies management addressed the preliminary countervailing duty (CVD) of 126% imposed by the US Department of Commerce on Indian solar imports during a conference call on February 25, 2026. Management stated emphatically that the new duties will have no material adverse impact on their US order book or margins due to their highly diversified, non-Chinese supply chain, which currently sources cells from jurisdictions subject to only 10% tariffs.
Management Commentary on New US Solar Duties
During the conference call held on February 25, 2026, Waaree Energies provided clarity regarding the US Department of Commerce’s preliminary countervailing duty announcement of 126% on India-based cells.
Mr. Amit Paithankar, Whole Time Director and CEO, reiterated that the company does not anticipate any material adverse impact on servicing its existing US order book. This resilience stems from two primary factors: the continued ramp-up of their US manufacturing footprint (expanding to 4.2 gigawatts by year-end) and a highly diversified, non-Chinese supply chain.
Supply Chain Diversification Strategy
Ms. Sonal Shrivastava, CFO, elaborated on the existing sourcing structure, noting that Waaree has been deliberately non-China for US supplies since 2019.
- Currently, Waaree sources cells from jurisdictions incurring tariff duties around 10%, moving away from previous sourcing at 19%.
- The 126% duty specifically targets modules using India-based cells sourced from non-Chinese suppliers, a scenario Waaree currently avoids.
- The company has actively diversified, including investments in Oman for fully traceable and non-Chinese polysilicon, demonstrating proactive management against potential headwinds like the UFLPA rules.
US Manufacturing Expansion and Capacity
Mr. Abhishek Pareek provided an update on the US operational expansion.
The existing US module capacity of 2.6 gigawatts is set to expand significantly. The company is adding 1.6 gigawatts under construction in Texas and has acquired an additional 1 gigawatt capacity in Arizona. Management expects the total US capacity to reach 4.2 gigawatts by the end of the current calendar year, with the acquired and under-construction capacities becoming operational by mid-2026.
Margin and Order Book Outlook
When addressing potential margin impact, management confirmed that the existing guidance remains firm. Having operated successfully under the previous 50% tariff on Indian products for the last 10-12 months, the current commercial reality is not expected to change.
Mr. Abhishek Pareek clarified that their contracts often allow them to pass through potential cost increases. Furthermore, existing US order books were secured when prices were quoted between $0.35 to $0.38 cents, providing a strong buffer against current module prices in the range of $0.30 to $0.31.
The overall order book strength is notable, growing from ₹40,000 crore at the start of the year to ₹60,000 crore as of the last earnings call, net of nine months of dispatches.
Demand Dynamics and Future Strategy
Management estimates the US annual module demand pipeline to be around 70 to 80 gigawatts, leading to a total outlook of 180 to 200 gigawatts over the next two to three years.
Ms. Sonal Shrivastava concluded by emphasizing Waaree’s identity as a global supply chain company, remaining flexible and prioritizing markets that yield better realizations, with the US remaining a crucial base market.
Source: BSE
