Waaree Energies expands into BESS and inverter manufacturing as cell capacity advances

Investment View and Key Takeaways

Prabhudas Lilladher (PL), in its October 14, 2026 visit update on Waaree Energies, maintains a BUY recommendation with a target price of Rs 3,115, revised down from Rs 3,494. The investment case is supported by the opportunity to broaden the company’s renewable-energy manufacturing portfolio through an integrated battery energy storage system (BESS) and inverter platform, while improving supply-chain integration through local cell manufacturing.

BESS and Cell-Manufacturing Platform

Waaree Energies commissioned 5.15 GWh of BESS assembly capacity in July 2026 and is setting up 4 GWh of cell capacity, which is targeted to be operational by December 2026. The BESS facility covers 78 acres, with 39 to 40 acres earmarked for construction.

The planned BESS throughput is approximately 1,000 containers annually, or up to three containers a day. Assembly currently uses semi-knocked-down kits imported from China. Two containers have been completed and one has been picked up, while completely knocked-down pack manufacturing has not yet started. Customers span residential and commercial and industrial segments, including telecom, data centres, aerospace and defence.

BESS Specifications and Manufacturing Process

Waaree Energies has reported technology tie-ups with leading Chinese BESS equipment players and has obtained UL, IEC and UN transport certifications. PL identifies the rationale for 4 GWh of cell capacity versus 5 GWh of BESS capacity, the timeline for completely knocked-down localisation, government approvals and PLI eligibility as key monitorables.

According to PL, value addition will depend on cell localisation, system-integration capability, execution and the company’s ability to win profitable orders.

Inverter Manufacturing and Market Opportunity

Waaree Energies has 4 GW of inverter manufacturing capacity, established with Rs 180 crore of capital expenditure. The facility is operating at approximately 58% utilisation with two shifts and has scope for a third shift. It includes three SMT lines, box-build operations and manual assembly.

The facility can manufacture string and on-grid, micro and hybrid inverters, power-electronics PCBA and 350 kW electric-vehicle chargers. The company currently manufactures completely knocked-down string and on-grid inverters for retail and commercial and industrial orders.

Management indicated that the domestic commercial and industrial and retail inverter market is growing at 15% to 20% annually and could double over the next two to three years. Waaree Energies intends to participate in this growth while maintaining pricing discipline. Approximately 25% of inverter sales are third-party sales, with the balance sold through the company’s own channel.

Around 40% of power-electronics inputs for PCBA are sourced domestically. Export certifications have been applied for, and production is targeted to reach 5,000 inverters by December 2026.

Financial Outlook and Valuation

After incorporating BESS into its FY28E and FY29E estimates, PL forecasts revenue, EBITDA and PAT CAGRs of 22.5%, 16.4% and 8.9%, respectively, over FY26 to FY29E.

PL raised its FY28E and FY29E revenue estimates by 8.1% and 7.4%, respectively. EBITDA estimates were increased by 0.6% and 3.7%, while EPS estimates were raised by 0.9% and 5.1%, respectively.

PL values Waaree Energies at 10 times September 2028 EV to EBITDA, implying 18 times September 2028E PE.