Waaree Energies’ stock faced significant downward pressure on Wednesday, falling over 5% early in the trading session following the company’s announcement that the Income Tax Department officials had conducted visits to some of its offices and facilities as part of an ongoing investigation. The stock initially dropped by 4.26% to Rs 3,143.20 on the BSE and later extended the decline to trade 5.6% lower at Rs 3,089.
The company informed the stock exchanges after the market closed on Tuesday about the visits conducted by the tax department under the provisions of the Income Tax Act, 1961. In a filing, Waaree Energies stated, “We hereby inform that today certain officials of the Income Tax Department visited some of the Company’s offices and its facilities in India for conducting investigation under the Income Tax Act, 1961. The proceedings are underway and the Company is extending its full co-operation to the officials.”
Despite the stock’s sharp decline, Waaree Energies posted impressive results for the September quarter. The company reported a remarkable 130% year-on-year increase in net profit to Rs 871 crore for Q2 FY26, compared to Rs 375.66 crore in the corresponding period last year. Total income surged by nearly 70% to Rs 6,226.54 crore, while EBITDA saw a significant rise of 155% to Rs 1,567.30 crore, leading to an expansion in margins to 25.17% from 16.76%.
During the quarter, production reached 2.64 GW, supported by robust operational performance. For the first half of FY26, income grew by 51% to Rs 10,823.72 crore, and EBITDA increased by 118% to Rs 2,735.97 crore. Waaree Energies also highlighted an order book of approximately 24 GW, valued at around Rs 47,000 crore. Additionally, the company’s board approved an interim dividend of Rs 2 per share on October 16, and a new 3 GW solar module manufacturing facility in Chikhli, Gujarat was commissioned during the quarter.
Despite the company’s strong financial performance and significant capacity expansion, investor confidence has been tempered by the news of the income-tax investigation. It is common for markets to react with caution to regulatory scrutiny, particularly when details are scarce. The stock may experience volatility until there is more clarity on the nature and outcome of the tax department’s inquiry.