A new report from brokerage firm Elara Capital has highlighted strong opportunities in India’s solar manufacturing sector, but with a surprising preference. Instead of the biggest names, the firm believes Vikram Solar and Emmvee Photovoltaic Power may offer better investment potential than Waaree Energies and Premier Energies.
Elara Capital recently began coverage of four major renewable energy equipment manufacturers: Waaree Energies, Premier Energies, Emmvee Photovoltaic Power, and Vikram Solar. While Waaree and Premier received an “Accumulate” rating, Emmvee and Vikram Solar were given a “Buy” rating due to more attractive valuations and growth potential.
India’s solar manufacturing capacity has grown rapidly in recent years. Solar module capacity has reached around 144 GW and is expected to rise to nearly 180 GW by FY30. However, actual annual installations are likely to remain at about 45–50 GW, which is lower than the expected module production of 60–65 GW. This gap between supply and demand is creating pressure on prices and company margins.
Another challenge comes from export restrictions, especially US tariffs, which have reduced overseas opportunities for Indian manufacturers. As a result, more products have been sold to the local market, hence competition has increased, forcing small manufacturers to consolidate.
Despite these challenges, India’s renewable sector has strong growth prospects in the long term. The country targets an installed capacity of 500 GW by 2030. In this, solar power has the largest potential. India has already experienced large growth in installed capacities of solar power in recent years, with support received from policies.
The report also reveals that vertically integrated companies, which manufacture both solar cells and modules, have a competitive edge. The government policies included the ALMM List II and the need to source solar cells from local manufacturers, which will become mandatory from June 2026.
Waaree Energies continues to hold its position as India’s largest manufacturer of solar modules, with a dominant local market share. The company is also venturing into related segments, such as battery energy storage systems, inverters, and green hydrogen. However, growth in its profit margins is also believed to remain constrained by the oversupply situation.
Similarly, Premier Energies is also venturing into new areas like battery storage and aluminium frame manufacturing; nonetheless, it faces similar margin pressures due to competition.
Meanwhile, Emmvee and Vikram Solar stand out because their stocks are currently trading at significant discounts compared to larger competitors. Emmvee has focused on advanced TOPCon solar technology and maintains a strong presence in government and business-to-business projects. Vikram Solar is planning a major expansion, including tripling its module capacity and building 12 GW of solar cell capacity to strengthen backward integration.
According to Elara Capital, these factors make Emmvee and Vikram Solar attractive opportunities in India’s fast-growing solar manufacturing industry.
Disclaimer: The information provided here is for general informational purposes only and should not be considered financial, investment, or trading advice. Stock prices and market data are subject to change without notice. Renewable Affairs does not guarantee the accuracy, completeness, or reliability of this information and assumes no responsibility for any investment decisions made based on it. Readers are advised to conduct their own research or consult a qualified financial advisor before making any buying or selling decisions.
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