Mumbai: Shares of Indian solar companies fell sharply on Wednesday, February 25, after the US government imposed preliminary import duties of 126 percent on solar products from India.
Waaree Energies and Premier Energies both dropped 10 percent during intraday trade. Waaree’s stock fell to around Rs 2,721 per share. Premier Energies hit its 10 percent lower circuit at Rs 699.35, which temporarily stopped trading. Vikram Solar also declined nearly 5.7 percent during the session.
Why Has The US Imposed Duties?
According to the US Commerce Department, the duties were calculated based on alleged foreign subsidies that allowed exporters to sell solar panels at lower prices in the US market.
Apart from India, duties have also been imposed on other countries. Imports from Indonesia face rates between 86 percent and 143 percent, while Laos faces an 81 percent duty.
The department said solar imports from India were worth $792.6 million in 2024, more than nine times higher than in 2022. This sharp rise in imports may have increased pressure from US domestic manufacturers.
Separate From Earlier Tariffs
These duties are different from the reciprocal tariffs announced earlier by the Trump administration. Those tariffs were struck down by the US Supreme Court last week.
After the ruling, Donald Trump announced a 10 percent universal tariff, later increasing it to 15 percent. The new 10 percent tariff has already come into effect. However, the fresh solar duties are separate and much higher.
Impact On Indian Companies
Waaree Energies has a strong presence in the US market. During its December quarter earnings call, management described the US as a key market. Overseas markets contributed 32.6 percent of its quarterly revenue.
The company has an order book of Rs 60,000 crore and expects to exceed its FY26 EBITDA guidance of Rs 5,500–Rs 6,000 crore.
Premier Energies has limited exposure to the US, while about 20 percent of Vikram Solar’s order book is linked to exports.
Citi analyst Vikram Bagri said such high duties could make it very difficult for Indian solar companies to sell products in the US market.
Disclaimer: This content is for general information only and does not constitute financial or investment advice. Investors should do their own research or consult a certified advisor before making decisions.
