Waaree sourced photo voltaic cells, the constructing blocks of photo voltaic panels, from suppliers in Southeast Asia to flee the crippling tariffs levied on India, the corporate’s administration mentioned throughout latest investor calls, because the US tariffs on photo voltaic panel imports are levied based mostly on the nation of origin of the photo voltaic cells moderately than the nation the place the panels are assembled. US tariffs on Southeast Asian nations comparable to Cambodia, Thailand and Vietnam are 19-20%, whereas Laos and Myanmar face 40% tariffs.
Waaree additionally has a panel manufacturing line within the US with a 1.6 gigawatts-per-annum capability that runs on imported cells, additional securing enterprise continuity. The corporate bought 275 megawatts price of regionally produced modules and 300 megawatts price of imported modules within the US throughout the December quarter. It earned a 3rd of its ₹7,565-crore income from abroad – predominantly the US – in line with an investor presentation. In the course of the September quarter, the corporate earned almost half of its ₹6,227-crore income from abroad.
A statistic shared by the Waaree Energies administration throughout a 22 January analyst name confirmed simply how profitable its photo voltaic exports to the US are. The corporate sells modules in India for ₹18-24 per watt relying on whether or not the cells are imported or home (the latter value extra). Within the US, it earns round 28 cents or ₹25 per watt, which might rise to 30 cents or ₹27.
Whereas solar-panel exports at the moment are anticipated to normalize with the India-US commerce settlement reducing tariffs on India to a aggressive 18%, the episode offers an fascinating perception into how firms navigated some of the vital enterprise disruptions because the covid-19 pandemic.
Shortcoming turns into alternative
Exports by Adani New Industries Restricted (ANIL) dropped to zero within the December quarter after clocking a pointy decline within the earlier quarter, information confirmed. The corporate, part of Adani Enterprises Ltd, bought 997 megawatts price of photo voltaic modules throughout the December quarter, all within the Indian market. In the course of the September quarter, it bought 1,001 megawatts price of modules, nearly 50% of which have been exports. The quarter earlier than that it bought about 1,379 megawatts of modules, with 60% being exports.
ANIL depends primarily on cells made in-house at its services in Mundra, Gujarat. The corporate has 4 gigawatts of cell manufacturing capability and a corresponding 4 gigawatts of module making capability, which supplies it a value benefit however much less flexibility on cell sourcing.
In distinction, Waaree Energies has 21.2 gigawatts of module manufacturing capability in India however simply 5.4 gigawatts of cell manufacturing capability, which compels the corporate to import cells for the majority of its module manufacturing. The corporate turned this shortcoming into a chance to mitigate US tariffs.
“We attempt to decrease the tariff as a result of should you purchase cells from particular geographies, you’re really capable of restrict the quantity of tariff that you want to pay,” Amit Paithankar, the chief government of Waaree Energies mentioned in an analyst name on 17 October. As a lot as 65% of Waaree’s ₹60,000-crore order e book was from abroad, Paithankar mentioned in an analyst name on 22 January.
Harshraj Aggarwal, government vice chairman, institutional fairness analysis at Sure Securities, mentioned, “Even after tariffs, US orders got here for Waaree Energies and their realisations have additionally gone up. The corporate benefitted from having module meeting vegetation within the US and likewise from presumably sourcing cells from Southeast Asian nations with decrease tariffs than India.” He added, “The explanation for a drop in Adani’s exports could possibly be tariffs or increased home demand.”
The pause in Adani’s photo voltaic exports to the US was non permanent and got here after conversations with its purchasers in that nation, mentioned an government conversant in the scenario, who didn’t want to be named. With the tariff scenario normalizing, the corporate is prone to resume exports quickly, the manager added.
Analysts at credit standing company ICRA mentioned in a credit score observe on 22 December that ANIL’s income and profitability progress have been affected barely in H1 FY2026 as in comparison with the earlier yr due to a moderation in gross sales realisations owing to growing home and worldwide competitors, coupled with the impression of US tariffs. This additionally led to a realignment of the corporate’s order e book, they famous. Whereas these headwinds are prone to have an effect on demand over the long run, the ICRA analysts mentioned, ANIL could possibly be partly insulated from such dangers owing to its backward-integrated operations, captive demand throughout the group at Adani Inexperienced Energies Ltd, and its sturdy place within the home market.
Waaree Energies and the Adani Group didn’t reply to Mint’s requests for remark.
Will extra firms observe go well with?
No different main photo voltaic panel maker has vital ongoing exports to the US, although some are taking a look at getting into that market. One among these is Vikram Photo voltaic Ltd, which additionally thought of sourcing cells from nations with decrease tariffs than India to export to the US, administration mentioned in an analyst name on 20 January. About 16% of its order e book is from abroad, however the firm is but to begin exports. Premier Energies Ltd additionally was additionally seeking to develop into the US however put its plans on maintain resulting from tariff uncertainty, the corporate’s administration mentioned in an analyst name on 29 October.
Rinal Shah, common supervisor – company finance at Vikram Photo voltaic mentioned in an investor name on 20 January, “Indian cells are unviable to make use of for exports due to the reciprocal tariff imposed on India. Therefore, a UFLPA-compliant and FEOC-compliant provide chain from different Southeast Asian nations must be labored out and have pre-approval from the CBP for us to have the ability to export to the US.”
UFLPA refers back to the US’s Uyghur Pressured Labor Prevention Act (UFLPA), in drive since June 2022, which prohibits the import of products which are produced wholly or partly in China’s Xinjiang Uyghur Autonomous Area (XUAR). FEOC is ‘international entity of concern’, a designation for organizations from China, Russia, Iran and North Korea, that are restricted from US power tasks. CBP is the US Customs and Border Safety, which regulates worldwide commerce motion and tariff assortment within the North American nation.
Vikram Photo voltaic didn’t reply to Mint’s requests for remark.