Shares of Waaree Energies fell sharply on Wednesday after the company said Income Tax Department officials conducted searches at some of its offices. The stock dropped as much as 6.3%, though the company said it is fully cooperating with investigators. This note explains what happened, the company’s recent results, and what investors should watch next.
What happened — price move and official filing
- On the NSE, Waaree Energies share price fell up to 6.3% to ₹3,075.10. By 9:45 am it was down about 3.7% at ₹3,160.
- In an exchange filing, Waaree said Income Tax officials visited several offices and facilities and are conducting an investigation under the Income Tax Act, 1961. The company said it is extending full co-operation to the officials.
The business backdrop — strong Q2 numbers
Despite the search, Waaree reported strong quarterly results earlier this month:
- Consolidated net profit rose 133% year-on-year to ₹842.55 crore in Q2.
- Revenue from operations increased about 69.7% to ₹6,065.64 crore.
- The company declared an interim dividend of ₹2 per share (face value ₹10).
- Management highlighted capacity expansion: India module capacity rose to 16.1 GW, and US capacity to 2.6 GW after the Meyer Berger asset acquisition.
Waaree’s CEO Amit Paithankar called the quarter the best ever on revenue and profit, and reaffirmed FY26 EBITDA guidance of ₹5,500–6,000 crore.
Why the market reacted
- Regulatory searches can spook investors because they raise questions about compliance, taxes or past practices. Even when a company cooperates, short-term selling is common.
- The stock fall reflects a risk-off reaction while the probe is underway. Many traders prefer to wait for clarity before buying back.
What the company says
Waaree’s official statement stressed cooperation. Management also pointed to strong business fundamentals: healthy order book, margin expansion, capacity growth in India and the US, and the reaffirmed FY26 guidance.
What investors should watch next (simple checklist)
- Official updates from Waaree: Any follow-up filings or clarifications from the company about the scope and findings of the searches.
- Income Tax Department statements: While rare, authorities sometimes release short statements on large probes. Look for any public guidance.
- Stock movement: If the stock stabilises and recovers, it may indicate the market sees the probe as manageable. Continued weakness could reflect deeper concerns.
- Earnings follow-up: Track quarterly execution vs guidance — especially EBITDA and order book progress.
- Peer stocks: See how other solar manufacturing stocks react; sector sentiment often moves together.
Waaree Energies’ strong Q2 business numbers sit against short-term market worry after IT Department searches; investors should watch official updates and how the company meets its FY26 targets.
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