Is Waaree Energies an AI Company? The Solar Power Connection

Artificial Intelligence or AI, is changing many things in our world, but it needs a lot of electricity to work. Think about it: when you ask an AI platform like Google Gemini or ChatGPT a question, it uses about 10 times more power than a simple Google search.

India has a big plan to use more clean energy. By the year 2030, the country wants to get a huge amount of its power from sources that don't pollute, like the sun. By the year 2047, the plan is for solar power (power from the sun) to be the biggest part of India's energy, more than half of all the power used. This is about 1,200 gigawatts (GW), one GW is like the power needed for many thousands of homes. So, companies that make solar power things, like Waaree Energies, could become very important.

This blog will explore how these power-hungry AI platforms could make solar power companies an interesting angle on the AI theme. We will look at how much power AI uses, why solar power is crucial for India's future, what Waaree Energies does in this space, and finally, touch upon some factors to consider if you're thinking about the company from an investment perspective.

Short on time? We’ve summed it up in a quick video too:

Smart Computers Need Lots of Power

AI is not just about clever computer programs, it needs tons of electricity. Doing hard work like learning new things or answering your questions takes a lot of thinking power from computers.

• If you do 1000 simple Google searches, it’s like keeping a light bulb on for 6 hours.
• But if you do 1000 searches on an AI like Gemini or ChatGPT, it’s like running a big fridge for a whole day.

Source: Company Filings

This means we will need a lot more electricity. A group that studies energy, called the International Energy Agency (IEA), thinks that the electricity needed for big buildings full of computers (called data centers), which run a lot of AI, could more than double by 2030. Big tech companies want to use clean energy for this, to help our planet. So, making electricity, especially clean electricity, is now very connected to how much AI can grow.

Why Solar Power? Making India's Future Bright

India has special goals for clean energy. One goal is to get 500 GW of power from clean sources by 2030. Another is for half of all its energy to come from clean sources by that year. Solar power is going to be a very important part of this change.

Look at how much solar power India plans to have:

Source: Company Filings

This shows that solar power is not just growing a little bit; it's going to be the main way India gets its energy. Solar power is getting cheaper, it's good for the Earth, and we can build more solar farms easily. This makes it a great choice to get all the power India needs, especially with AI and data centers needing more.

India is on the rapid growth in terms of clean energy. In 2014, it had about 75.5 GW of clean energy. By 2024, this grew to 232 GW. A lot of this growth came from solar power, which jumped from just about 2.8 GW in 2014 to over 108 GW in 2024. Wind power also grew a lot, from 21 GW to 51 GW in the same time. By 2030, India wants to have 500 GW of energy from sources that don't use fossil fuels. To help this, India is also planning to make many more solar parts right here in the country, aiming for 150 GW of solar panels (modules), 100 GW of solar cells, and 40 GW of the special slices called wafers that are used to make cells.

Waaree Energies: Helping AI Shine?

So, what does Waaree Energies do in all of this? Waaree Energies is a big company in India that works with solar power. They do almost everything for solar: they make the solar panels that catch sunlight and the tiny parts inside them. They also offer ways to store solar energy and even design and build big solar farms (this is called EPC).

The company has been making a lot more money:

• Sales: The company’s sales jumped over 7 times from ₹1,996 crore in 2020 to ₹14,444 crore in FY25.
• Profit: The profit of the company shot up more than 49 times from ₹39 crore in 2020 to ₹1,928 crore in FY25.

Waaree Energies doesn't make AI computer programs or the tiny chips that go in computers. But their main job, making all the things needed for solar power, is becoming super important. As AI uses more and more power, we will need more clean energy like solar. So, companies like Waaree Energies that are good at solar power might get good things from the AI boom without being directly involved in making AI. The company is not just watching AI grow; it is helping to power it.

It is pretty simple: AI needs lots of power. Clean energy, especially solar, will give a lot of this power, especially in India, because of its big clean energy plans. Companies like Waaree Energies, which are involved in many steps of making solar power and are growing fast, are in a good spot to help with this change and get benefits, helping to make the AI future happen.

Thinking About Waaree Energies as an Investment?

When looking at any company as a potential investment, it's helpful to understand its market position, growth, and what might affect its future. Here's some information about Waaree Energies to consider:

Potential Upsides

Strong Market Position & Growth Track Record: Waaree holds a significant share of India's solar module market (around 21%) and is a major exporter (around 44% of India's solar module exports). It has shown impressive growth, with sales up nearly 49% and profits up over 118% annually on average in the last five years (as of FY25). It also has a substantial order book of around ₹47,000 crore, as of early FY26, which translates into a revenue visibility for nearly three years. Read here for more information on the company's financial information.

Positive Future Financial Outlook: The company's management expects strong profit (EBITDA) growth of 76-92% to ₹5,500-6,000 crore for FY26. Based on these growth expectations, its implied forward Price-to-Earnings (P/E) ratio could be under 30, which some might see as attractive compared to its recent P/E of around 44 (as of early June 2025).

Recent Share Price Performance: Waaree Energies' stock price has seen positive movement recently, with a growth of about 6.47% in the last month and about 36.87% in the last three months (as of June 4, 2025), suggesting current market optimism.

Key Considerations & Risks

US Trade Policy & Export Uncertainties: A significant portion of Waaree's revenue and orders comes from exports, particularly to the US. The US has a complex and changing tariff environment for solar products (currently around 27% reciprocal tariffs for India), which can impact costs and competitiveness. However, Waaree is setting up manufacturing in the US to help reduce these risks.

Operational & Supply Chain Risks: Achieving its ambitious growth targets depends on the company's ability to manage its operations effectively and scale up. Like many solar manufacturers, Waaree also relies on importing some components (like solar cells, partly from China), and disruptions or cost changes in this supply chain could affect production.

Forward-Looking Statements & Market Risks: The company's future financial guidance and implied valuations are forward-looking and based on certain assumptions. This means they are not guarantees and depend on many factors, including market conditions and the company's performance.

Disclaimer

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