Kolkata: Donald Trump has sprung a nasty surprise on India on Feb 24 by slapping 126% tariffs on solar power equipment imports. While they US administration has used the excuse of the Indian govt subsidizing this sector and putting the Indian manufacturers/exporters in an advantageous position vis-a-vis the US manufacturers, the stocks of these three solar power manufacturers that have exposure in the US markets have been impacted. These are Waaree Energies and Vikram Solar.
Around 1 pm on Wednesday (Feb 25) the Waaree Energies share was trading at Rs 2,682.90 after suffering a decline of Rs 340.60 or 11.27%. Vikram Solar prices also dived 5.50% or Rs 10.19 and was trading at Rs 175.20. Another solar major Premier Energies was trading at Rs 724.25, down Rs 52.80 or 6.79%.
Trump drops a bombshell
The fact is that all the three above companies derive a significant portion of their revenue from exports. Significantly, they export most of their products to the US. If the tariffs proposed by Donald Trump are implemented, these companies will suffer a deep impact in their export income. These fears have led to the stocks plunging on Feb 25. Indians woke up to the report of the US administration proposing sky high tariff wall of 126% on solar panels shipped from India. The US Commerce Department says that due to subsidies, Indian companies were able to sell panels at cheaper prices than US producers.
US exposure of the companies
Afternoon Energies: The US is a key export market for solar major Waaree Energies. The company not only exports to the US but is also building a manufacturing unit there and continuously increasing investment. According to information available on Waaree Energies’ website, the company’s current order book is approximately 24 gigawatts (GW), which translates to a value of about Rs 47,000 crore. It also has a robust order pipeline of over 100 GW. Disaggregating the order book position, it is seen that about 59.5% of the company’s orders come from India and 40.5% from overseas markets. 52.8% of the company’s revenue comes from domestic (retail, EPC, and enterprise) revenue, while 47.2% comes from overseas.
Vikram Solar: About 20% of Vikram Solar’s order book is related to exports of which the US is a significant part. Vikram Solar has a separate US entity, Vikram Solar US Inc. which is registered in Nevada. This entity primarily engages in the trading/sales of solar photovoltaic modules and systems. According to the company, the US unit’s total revenue for FY2025 (as of March 31, 2025) was approximately $8.35 million.
Premier Energies: Premier Energies’ exposure to the US market is limited compared to the two companies mentioned above. Therefore, it witnessed a bit of a recovery after a deeper dive in the morning.
What Waaree Energies has said
The turbulence in the market notwithstanding, an official of Waaree Energies has said that the latest tariffs won’t impact the ability of the company to service its US order book. Waaree Energies is currently rapidly expanding its manufacturing capacity in the US and plans to reach 4.2 GW by the end of the year. The company is confident that increased local production in the US will help meet its existing commitments and largely offset the impact of the new duty, the statement mentioned.
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