Shares of Waaree Energies and Premier Energies fell sharply on Friday, May 23, mirroring the slump in US-listed solar and clean energy companies overnight. Both stocks dropped up to 11 percent after a new tax bill, proposed by former US President Donald Trump, signaled the repeal of several clean energy subsidies and incentives previously introduced under the Inflation Reduction Act (IRA) by the Biden administration.
US Bill Triggers Global Solar Sector Sell-Off
The proposed legislation, which narrowly passed the US House of Representatives by a 215-214 margin, seeks to eliminate funding allocated under the IRA to combat air pollution, reduce greenhouse gas emissions, and promote the purchase of electric heavy-duty vehicles. Most critically, the 30 percent federal tax credit for solar rooftop system installations is also proposed to be abolished.
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 percent and 37 percent 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
Despite strong financial performance in the March 2025 quarter, shares of Waaree Energies and Premier Energies could not resist the broader bearish sentiment.
Waaree Energies reported a 34 percent 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 percent YoY to ₹4,003.9 crore. The company’s order book stood at ₹47,000 crore for 25 GW, with 57 percent of the orders from international markets, underscoring its global exposure.
Premier Energies delivered an even stronger result, with net profit surging 167 percent YoY to ₹278 crore, driven by a 43.8 percent increase in sales to ₹1,621 crore. Its order book totaled 5.3 GW worth ₹8,400 crore, of which 73 percent is dedicated to modules, 27 percent to cells, and a small portion to EPC.
Stock Price Trend
Shares of Waaree Energies slipped as much as 11 percent to touch a day’s low of ₹2,666.00. Despite this drop, the stock has still gained over 6 percent in May so far, following an 8.3 percent jump in April and 11.4 percent rise in March. However, it had declined 10 percent in February and over 16 percent in January, making its year-to-date performance negative at around -7 percent.
Meanwhile, Premier Energies dropped 6.1 percent intraday, hitting a low of ₹1,017.55. The stock is down 25 percent year-to-date, even though it recovered 6 percent in May, after gaining 4.7 percent in April and 7.4 percent in March. Earlier, it had shed over 15 percent in February and nearly 24 percent in January.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
