Domestic solar companies Waaree Energies, Vikram Solar, and Premier Energies witnessed a steep fall in their share prices on Wednesday, February 25, after the US announced a preliminary countervailing duty of 125.87% on imports of certain Indian solar goods, alleging that these products are unfairly subsidised.
The new levy will add to the 10% overall tariffs announced by the Donald Trump administration on all countries from February 24.
At the close, Waaree Energies' share price stood at ₹2,705 on the NSE, down 10.53%. Premier Energies ended nearly 6% lower at ₹731.50, while Vikram Solar ended 5.66% lower at ₹174.90. Besides, Emmvee Photovoltaic Power shares ended at ₹207.50 apiece on the NSE, down 2.7%.
126% duty: What will be the impact?
Companies such as Vikram Solar, Waaree Energies, and Premier Energies said the US decision to impose countervailing duties on certain solar goods from India will have a limited impact on them.
What Vikram Solar said
Commenting on the move, Vikram Solar CMD Gyanesh Chaudhary said, "Our US order strategy was not structured around sourcing Indian cells; we already operate with a diversified supply chain for that market, including sourcing from geographies with lower tariff exposure. As a result, the direct financial impact on us is limited."
Besides, with the Cabinet's decision to ease evacuation infrastructure, the company expects domestic installation momentum to accelerate further, he noted.
Waaree Energies' statement
"At this stage, the company does not anticipate any material adverse impact on its ability to service its US order book," said Abhishek Pareek, Group Head, Finance, Waaree Energies.
The company said in the first nine months of FY26, it has continued to ramp up its shipments to the US even though the steep 50% duty was in force.
Premier Energies' statement
Vinay Rustagi, Chief Business Officer, Premier Energies, said, "Premier Energies has already reduced its share of exports in our business to almost nil, and there is no impact of any US duties on our business."
He said that exports to the US fell more than 50% in 2025 and are currently estimated at only about 5-7% of total production.
The imposition of countervailing duty has, therefore, no material impact on us, the CFO added.
What other companies said
Emmvee Photovoltaic Power Ltd also said in a statement that there is no impact on its business operations due to the latest duty, as the company's integrated solar cell and module manufacturing is primarily aligned with the domestic demand.
With a strong focus on the Indian market and domestic consumption of its cell output, the company remains insulated from external trade developments, it explained.
Tarun Padhi, Senior VP-Operations, Datta Power Infra Private Limited, said the additional levy on Indian solar imports may slow exports and push excess production into the domestic market, increasing price competition.
"However, the impact could vary from manufacturer to manufacturer, as many domestic manufacturers are importing cells from low-duty countries and assembling panels in India for export," he said.
What rating agencies said
ICRA
According to rating agency ICRA, the countervailing duty and the growing regulatory uncertainty in the USA are likely to dampen export volumes from India and hit Indian manufacturers' profitability.
"…countervailing duties and the growing regulatory uncertainty in the USA are likely to dampen export volumes from India, which were around 3 GW for the last calendar year, potentially exerting pricing pressures on domestic OEMs and thus can impact the profitability of the solar module manufacturers," said Ankit Jain, Vice President & Co Group Head - Corporate Ratings, ICRA Ltd.
Jain pointed out that the Indian market is already oversupplied with solar module manufacturing capacity at more than 140 GW as of the date, which is expected to increase to over 165 GW by March 2027.
Crisil
Sehul Bhatt, Director, Crisil Intelligence, said the latest move by the US Commerce Department will have a negative impact on export-focused manufacturers.
India exported cells and modules worth around ₹340 billion to the US between April 2023 and November 2025. This was supported by the lower cost of Indian modules compared with those made in the US, both using imported cells - an advantage that the duties will erode.
According to Bhatt, three factors are at play here. First, the US accounts for more than 95% of India's solar cell and module exports, as seen over the past three quarters.
Second, modules imported from India will now become expensive by at least 30% compared to those made in the US, making Indian products unviable.
Third, the announcement comes at a time when Indian players have planned healthy capacity expansion over the next three years. Given the tariff uncertainty over the past year or so, a few Indian companies have strategised expansion outside India, which cushions them from this increased duty.
"Overall, we believe the duties will create volatile trade patterns for exports from India till final determinations of the rates, scheduled in July 2026, forcing the companies to navigate limited market opportunities amid supply addition," Bhatt said
Report by Upstox
source: Dailyhunt
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