The company notified exchanges after market hours on Tuesday that the tax department conducted visits under provisions of the Income Tax Act, 1961.
"We hereby inform that today certain officials of the Income Tax Department visited some of the Company's offices and its facilities in India for conducting investigation under the Income Tax Act, 1961. The proceedings are underway and the Company is extending its full co-operation to the officials," the company said in its stock exchange filing.
The sharp fall comes despite the company delivering a standout performance in the September quarter.
Waaree Energies reported a 130% year-on-year surge in net profit to Rs 871 crore for Q2 FY26, compared to Rs 375.66 crore in the same quarter last year.
Total income jumped nearly 70% to Rs 6,226.54 crore, while EBITDA soared 155% to Rs 1,567.30 crore, with margins expanding to 25.17% from 16.76%.
# Waaree Energies Share Price Plunges Over 5%: Unpacking the Sudden Drop on November 19, 2025
In the volatile world of stock markets, few things can send shares tumbling faster than an unexpected regulatory visit. Today, November 19, 2025, Waaree Energies Ltd.—one of India's leading solar photovoltaic (PV) module manufacturers—saw its stock price nosedive by more than 5%, erasing recent gains and raising eyebrows among investors. As of mid-morning trading, the shares were down as much as 6% to around ₹3,075 on the BSE, after opening with a 4.26% slip to ₹3,143.20. What triggered this sharp correction in a company that's been riding high on robust financials and a booming renewable energy sector? Let's break it down.
## The Trigger: Income Tax Department's Surprise Visits
The immediate culprit appears to be a series of unannounced visits by Income Tax Department officials to Waaree Energies' offices and manufacturing facilities across India. The company disclosed to stock exchanges that these visits were part of an ongoing investigation under the Income Tax Act, 1961, with proceedings still underway. While details on the exact nature of the probe remain sparse—officials haven't publicly elaborated beyond the standard tax scrutiny framework—the timing couldn't have been worse for the solar giant.
Waaree has assured stakeholders that it is extending "full cooperation" to the authorities, a standard line in such scenarios that aims to calm nerves. However, markets don't always wait for clarifications. Investor sentiment turned skittish, leading to a knee-jerk sell-off as fears of potential tax discrepancies or compliance issues bubbled up. This isn't entirely out of left field; high-growth companies like Waaree, which have scaled aggressively amid India's push for green energy, often attract regulatory spotlights to ensure fiscal transparency.
For context, similar IT raids on other corporates in the past have led to temporary dips, but recoveries are common once the dust settles—provided no major irregularities surface. As of now, there's no indication of anything beyond routine checks, but the uncertainty is enough to spook short-term traders.
## A Quick Look at Waaree Energies: From Solar Startup to Market Leader
To understand why this drop stings, it's worth zooming out on Waaree Energies. Founded in 1989 and listed on the BSE and NSE just last year, the company has transformed from a modest solar player into a powerhouse with a massive order book. It boasts an installed capacity of over 12 GW for solar modules and is aggressively expanding—recently commissioning a 3 GW facility in Chikhli, Gujarat, to meet surging domestic and export demand.
India's renewable energy ambitions, backed by government incentives like the Production Linked Incentive (PLI) scheme, have been a tailwind. Waaree's 24 GW order book, valued at roughly ₹47,000 crore, underscores its strong positioning in a sector projected to grow exponentially as the country aims for 500 GW of non-fossil fuel capacity by 2030.
## Strong Fundamentals Amid the Storm: Q2 FY26 Delivers Big
Ironically, this raid comes hot on the heels of stellar quarterly results that should have had investors cheering. In Q2 FY26 (ended September 30, 2025), Waaree reported a whopping 130-133% year-on-year jump in net profit to ₹842-871 crore, driven by higher production volumes and favorable margins. Revenue from operations surged 70% to ₹6,066-6,227 crore, with EBITDA rocketing 155% to ₹1,567 crore and margins expanding to 25.17%—a testament to operational efficiencies.
For the first half of FY26, total income climbed 51% to ₹10,824 crore, and EBITDA more than doubled to ₹2,736 crore. The company even sweetened the pot with an interim dividend of ₹2 per share, paid out on November 6. Production hit 2.64 GW in the quarter alone, highlighting Waaree's execution prowess.
Year-to-date, the stock is still up about 10%, despite a 6% dip over the past month. At current levels, it's trading at a forward P/E multiple that's reasonable for a growth story in renewables, but today's action has pushed it toward the lower end of its recent range (day's low: ₹3,085; high: ₹3,199).
| Key Q2 FY26 Financial Highlights | Value | YoY Growth |
|---------------------------------|-------|------------|
| Net Profit | ₹842-871 Cr | +130-133% |
| Revenue from Operations | ₹6,066-6,227 Cr | +70% |
| EBITDA | ₹1,567 Cr | +155% |
| EBITDA Margin | 25.17% | Expanded |
| Production Volume | 2.64 GW | N/A |
## What's Next for Waaree Investors?
The million-dollar question: Is this a buying dip or a red flag? For long-term bulls, the fundamentals scream opportunity—India's solar sector is insulated from global headwinds, and Waaree's scale gives it an edge over peers like Premier Energies. A swift resolution to the IT probe could spark a rebound, especially with the company's dividend payout fresh in memory.
That said, short-term volatility is likely as more details emerge. Keep an eye on exchange filings and any official statements from the Income Tax Department. If history is a guide, these probes often fizzle out without material impact for compliant firms.
In the grand scheme, today's 5%+ tumble is a blip for a company powering India's green revolution. But it serves as a reminder: Even in sunny sectors, regulatory clouds can cast shadows. What are your thoughts—holding steady or hitting the sell button? Drop a comment below!
*Disclaimer: This is not financial advice. Always do your due diligence and consult a professional advisor before making investment decisions.*
