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Feb 25, 2026 - Why Solar Panel Stocks Crashed Today

Why Solar Panel Stocks Crashed Today

Feb 25, 2026

Image source: DiyanaDimitrova/www.istockphoto.com

Indian equity benchmarks, the Sensex and Nifty 50, jumped over 0.7% on Wednesday, 25 February 2026, led by gains in IT stocks.

Today's gains come after a sharp selloff in the previous session, as positive cues from global markets lift sentiment.

In the broader market, the Nifty MidCap and SmallCap indices advanced around 0.5% each.

Sector-wise, the Nifty IT index, which had fallen nearly 21% so far this month, emerged as the top gainer with a 2.5% rise.

However, while broader markets were rising, the solar-related stocks plunged by up to 14%.

Here's why Indian solar panel stocks are falling today.

# US Tariff

Shares of Indian solar panel companies took a hit on 25 Feb 2026 after the US announced steep preliminary duties on solar imports, according to media rep[orts.

The Trump administration imposed a 126% tariff on solar imports from India, alongside duties ranging from 86-143% on imports from Indonesia and 81% on imports from Laos.

The US Commerce Department stated that these duties were calculated based on alleged foreign subsidies that allowed exporters to undercut domestic solar producers.

The market reaction was swift. Waaree Energies Limited shares dropped 10% to Rs 2,721 per share, Vikram Solar Limited fell 5.72% to Rs 174.79, while Premier Energies Limited hit the lower circuit of 10% at Rs 699.35, temporarily halting trading.

Company	Price Movement	Share Price Intraday (Rs)
Waaree Energies Limited	-10%	2,721
Vikram Solar Limited	-5.72%	174.79
Premier Energies Limited	-10%	699.35

This new tariff is separate from the earlier reciprocal tariffs that were recently struck down by the US Supreme Court. Following that ruling, a 10% universal tariff was announced, later increased to 15% over the weekend, and took effect from last night local time.

Impact on the Companies:

Waaree Energies has a significant US presence. In its December quarter earnings call, management highlighted the US as a key market, with ongoing manufacturing and expanded investments. The company also acquired Meyer Burger and continues to pursue growth both organically and inorganically. Overseas markets contributed 32.6% of its December quarter revenue.
Vikram Solar has around 20% of its order book linked to exports.
Premier Energies has limited US exposure.

Other Impacted Solar Stocks

In addition to the major players, other solar stocks also felt the impact of the US import tariffs. Insolation Energy saw a sharp decline of over 12%, while Waaree Renewable Tech and Websol Energy dropped more than 3% each, reflecting broader investor concerns across the solar sector.

Conclusion

According to a IBEF report, India's solar manufacturing sector is poised for rapid growth, with domestic module and cell capacities expected to reach 200 GW and 100 GW, respectively, by FY28, well above the projected annual domestic module demand of 50 GW over the next three years.

As of July 2025, India had installed 118 GW of module capacity and 27 GW of cell capacity, though effective operational levels were lower, around 80-85 GW for modules and 11-13 GW for cells, due to stabilisation phases.

Current production stands at an estimated 50-60 GWp for modules and 8-10 GWp for cells, leaving an import dependency of 40-45 GWp for cells.

This growth has been supported by rising solar installations, supportive government policies, and easier access to financing.

While these companies are well-positioned to benefit from India's expanding solar capacity, the newly imposed US import tariffs create headwinds for export-linked revenue.

Investors should note that, despite strong domestic growth prospects, tariff-related uncertainties could weigh on stock performance, particularly for companies with significant international exposure.

Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.

Happy investing.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...

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