Waa Solar Shares Hit 20% Upper Circuit on Rs 225 Cr Order

Introduction

Waa Solar Limited's shares surged, hitting the 20% upper circuit limit at Rs 55.62, following a major contract announcement. The company has secured a Letter of Award (LOA) valued at approximately Rs 225 crore from M.P. Urja Vikas Nigam Limited (MPUVNL), a Government of Madhya Pradesh enterprise. This development marks a significant milestone for the company, signaling a substantial boost to its project pipeline and future revenue streams.

Details of the Contract

The contract pertains to the implementation of grid-connected solar photovoltaic (PV) power plants. This project is a component of the Surya Mitra Krishi Feeders Scheme, which falls under the feeder solarisation part of the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM-C) scheme. The primary objective is the development of these solar power plants for the sale of electricity to the Madhya Pradesh Power Management Company (MPPMCL).

The order is domestic and comes with a clear execution timeline. Waa Solar is required to complete the project within 18 months from the date of signing the Power Purchase Agreement (PPA). This timeline provides a clear roadmap for the project's development and eventual commissioning.

Stock Market Reaction

The market responded with strong optimism to the news. Waa Solar's stock immediately locked in the 20% upper circuit at Rs 55.62. Trading data from the BSE showed the stock's previous close was Rs 49.53. During the day, it saw significant activity with an intraday high of Rs 48.54 and a low of Rs 46.30, though the final lock at the upper limit underscored the positive investor sentiment. The total turnover for the day was recorded at Rs 9,91,424, with 20,800 shares traded across 15 trades, indicating keen investor interest.

Financial Context and Company Profile

This contract is transformative for Waa Solar, especially when viewed against its recent financial performance. For the fiscal year 2026, the company reported a consolidated net profit of Rs 6.97 crore, a 5.1% increase from the previous year. Its revenue from operations stood at Rs 28.25 crore, up 5.8% year-on-year. The Rs 225 crore order value is nearly eight times the company's entire revenue for FY26, highlighting the project's scale and potential impact on its financial health.

As of December 29, 2025, Waa Solar's market capitalization was approximately Rs 73.79 crore. The company, which specializes in solar power generation, has a history of developing solar projects and investing in Special Purpose Vehicles (SPVs) for this purpose.

Corporate Governance and Transparency

In its official filing, Waa Solar provided an important clarification regarding corporate governance. The company stated that neither its promoters nor the promoter group hold any interest in MPUVNL, the entity that awarded the contract. This confirms that the deal does not fall under the category of related-party transactions, ensuring transparency and assuring stakeholders of the contract's arm's-length nature.

Analysis and Market Impact

The successful acquisition of this contract is a major catalyst for Waa Solar. The sheer size of the order is expected to significantly scale up the company's operations and revenue base over the next two years. It aligns with the Indian government's broader push towards renewable energy and solar power for agricultural feeders through schemes like PM-KUSUM. For investors, this order provides strong revenue visibility and a clear growth trajectory, justifying the sharp rally in the stock price. The project's execution over the next 18 months will be a key factor to monitor, as successful and timely completion will be crucial for realizing the full financial benefits.

Conclusion

Waa Solar's Rs 225 crore contract win from MPUVNL is a landmark achievement that has been met with strong investor confidence. The project not only provides a massive boost to its order book but also positions the company as a key player in the implementation of government-backed solar energy schemes. The focus now shifts to the execution phase, with the successful completion of the project within the stipulated 18-month period set to redefine the company's financial landscape.