Waaree Energies, Premier Energies shares decline up to 11% as US Tax Bill threatens clean energy incentives
Shares of Waaree Energies and Premier Energies declined sharply on Friday, May 23, tracking a major sell-off in US-listed solar and clean energy stocks. The downturn came after a new tax bill proposed by former US President Donald Trump signalled the rollback of clean energy subsidies and incentives that were introduced under the Inflation Reduction Act (IRA) by the Joe Biden administration.
US Bill Triggers Global Solar Sector Sell-Off
The newly proposed legislation, which was narrowly passed in the US House of Representatives with a 215-214 vote, aims to roll back several key provisions of the Inflation Reduction Act (IRA). Among the most significant changes, the bill seeks to eliminate funding dedicated to combating air pollution, lowering greenhouse gas emissions, and encouraging the adoption of electric heavy-duty vehicles. Notably, the legislation also proposes scrapping the 30 percent federal tax credit for residential solar rooftop installations — a move that could significantly impact the clean energy sector.
The bill now awaits approval from the US Senate, but the potential rollback of key climate measures has already sparked a global reaction. For Indian solar companies like Premier Energies and Waaree Energies, which have considerable exposure to international markets, especially the US, this development poses a significant sentiment risk.
According to market analysts, the proposed repeal threatens to reduce demand for solar equipment and clean energy technology in the US, impacting exports for Indian players that had benefited from booming green energy investments under the Biden regime.
US Solar Stocks See Massive Losses
The impact was felt most visibly on Wall Street, where clean energy stocks plummeted. Sunrun, the largest rooftop solar company in the US, and NextEra Energy, a major developer of wind and solar infrastructure, saw their stock prices collapse between 7 per cent and 37 per cent in a single trading session. The steep losses sent shockwaves through the global clean tech sector, dragging down solar and renewable energy stocks across markets.
Solid Q4 Results Fail to Support Sentiment
During the March 2025 quarter, bothWaaree Energies and Premier Energies posted stellar performances.
Waaree Energies reported a 34 per cent year-on-year (YoY) rise in net profit to ₹619 crore, up from ₹461.5 crore a year ago. Its revenue for the quarter rose 36.4 per cent YoY to ₹4,003.9 crore. The company’s order book stood at ₹47,000 crore for 25 GW, with 57 per cent of the orders from international markets, underscoring its global exposure.
Premier Energies delivered an even stronger result, with net profit surging 167 per cent YoY to ₹278 crore, driven by a 43.8 per cent increase in sales to ₹1,621 crore. Its order book totaled 5.3 GW worth ₹8,400 crore, of which 73 per cent is dedicated to modules, 27 per cent to cells, and a small portion to EPC.
Stock Price Trend
Shares of Waaree Energies slipped as much as 11 per cent to touch a day’s low of ₹2,666.00. Despite this drop, the stock has still gained over 6 per cent in May so far, following an 8.3 per cent jump in April and an 11.4 per cent rise in March. However, it had declined 10 per cent in February and over 16 per cent in January, making its year-to-date performance negative at around -7 per cent.
Meanwhile, Premier Energies dropped 6.1 per cent intraday, hitting a low of ₹1,017.55. The stock is down 25 per cent year-to-date, even though it recovered 6 per cent in May, after gaining 4.7 per cent in April and 7.4 per cent in March. Earlier, it had shed over 15 per cent in February and nearly 24 per cent in January.
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