Waaree Energies shares fall 5% despite clarification on U.S. customs determination

Shares of Waaree Energies fell nearly 5% in early trade on Monday despite the company issuing a clarification regarding a recent determination by the U.S. Customs and Border Protection (CBP) in EAPA Consolidated Investigation No. 8163.

The country's largest solar module manufacturer by capacity said the findings do not conclude that it exported solar modules made using Chinese-origin solar cells to the United States. The clarification came after reports stated that the U.S. CBP had found the company to have evaded tariffs applicable to solar imports linked to Vietnam and Malaysia between 2021 and 2026.

Weighed down by the development, Waaree Energies shares fell as much as 4.9% to ₹2,862 on the BSE during early trade. At the time of reporting, the stock was trading 4.06% lower at ₹2,887.45, taking its market capitalisation to ₹83,057 crore.

The stock had touched a 52-week high of ₹3,864.40 on September 12, 2025, and a 52-week low of ₹2,402 on January 21, 2026. The shares are down around 2% on a year-to-date basis and have declined nearly 8% over the past year.

CBP determination not a final adjudication

In an exchange filing on Sunday, Waaree said that following a detailed investigation, including an on-site verification of its manufacturing facility in India, the U.S. customs authority had "expressly confirmed" that the company did not export solar modules manufactured using Chinese-origin solar cells to the United States.

The company said the determination was limited to "a narrow subset of certain historical import entries" and stressed that it was not a final adjudication, noting that it has the right to seek a de novo administrative review and subsequent judicial review.

It added that the CBP acknowledged its full cooperation during the investigation, drew no adverse inference against the company, and rejected the petitioner's request to extend the findings to all of Waaree's imports.

"The determination is limited to a narrow subset of certain historical import entries. Importantly, the determination is not a final adjudication. Under applicable U.S. law, Waaree has the right to seek a de novo administrative review and, thereafter, judicial review before the U.S. Court of International Trade," Whole-time Director and Chief Executive Officer Jignesh Rathod said.

The company said it is evaluating all available legal remedies in consultation with its U.S. trade counsel.

Waaree further stated that its U.S. operations continue to function normally, with no impact on manufacturing activities, customer deliveries or commercial operations.

"Waaree remains committed to the highest standards of regulatory compliance, transparency and governance. The company's U.S. business continues to operate normally, and there is no impact on ongoing manufacturing, customer deliveries, or commercial operations," Rathod added.

JM Financial flags reputational risk

Domestic brokerage JM Financial said the CBP's observation that Waaree had a "four-year history of reporting the wrong country of origin" carries reputational implications and could affect a significant portion of the company's overseas business.

The brokerage noted that nearly 65-70% of Waaree's ₹53,000 crore order book, excluding the retail business, is linked to overseas long-term contracts scheduled to be executed over the next three to four years.

Waaree currently operates 1.6 GW of manufacturing capacity in the United States, which is expected to increase to 4.2 GW over the next six months.

While maintaining its 'ADD' rating with a target price of ₹3,185, JM Financial said the newly imposed 271.28% cash deposit requirement on certain flagged entries could create near-term cost pressures.

However, the brokerage said the downside risk appears limited because the CBP confirmed that Waaree had sufficient non-Chinese cell production to support its U.S. shipments, declined to impose a blanket adverse-inference ruling, and restricted the findings to specific historical entries linked to Vietnam and Malaysia.

"This is far short of the worst-case scenario, where all of Waaree's imports would have been treated as tainted," the brokerage said.

JM Financial identified three key factors to monitor going forward: the final quantum of retroactive duties, the outcome of Waaree's administrative or judicial appeal process, and any spillover impact from the pending anti-dumping and countervailing duty investigation covering solar imports from India.

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