Waaree Energies stock drops 5% after US CBP EAPA note

Early trade slide despite Sunday clarification

Shares of Waaree Energies fell nearly 5% in early trade on Monday even after the company issued a clarification on a recent US Customs and Border Protection (CBP) determination. The clarification relates to EAPA Consolidated Investigation No. 8163, a case that has attracted investor attention because it concerns alleged tariff evasion risks in the US solar market. Waaree, which describes itself as the country’s largest solar module manufacturer by capacity, said the CBP findings do not conclude that it exported solar modules made using Chinese-origin solar cells to the United States. The stock reaction suggested the market was still weighing the broader regulatory backdrop in the sector. Investors also appeared to focus on the fact that the determination applies to historical entries and sits within an ongoing legal process. The company, in its filing, framed the outcome as supportive and limited in scope.

Stock performance and valuation snapshot

Waaree Energies shares fell as much as 4.9% to ₹2,862 on the BSE during early trade, according to the update. At the time of reporting, the stock was trading 4.06% lower at ₹2,887.45. The decline brought the company’s market capitalisation to ₹83,057 crore. The move came even though the company’s communication aimed to address market concern around US trade investigations. The trading action highlighted that regulatory and tariff-related headlines can drive sharp near-term volatility for solar manufacturers.

What the CBP determination said, according to Waaree

In its exchange filing on Sunday, Waaree said the CBP conducted a detailed investigation, including an on-site verification of its manufacturing facility in India. The company stated that the US customs authority had “expressly confirmed” that Waaree did not export solar modules manufactured using Chinese-origin solar cells to the United States. Waaree also said the findings do not conclude that it exported such products to the US. The clarification was issued after media reports referenced the CBP determination under the EAPA consolidated investigation.

Scope: limited historical entries, not a final adjudication

Waaree said the determination was limited to “a narrow subset of certain historical import entries.” It stressed that the finding was not a final adjudication under US law. The company said it has the right to seek a de novo administrative review and then judicial review before the US Court of International Trade. Waaree also said the CBP acknowledged its full cooperation during the investigation and drew no adverse inference against the company. Importantly, it said the CBP rejected the petitioner’s request to extend the findings to all of Waaree’s imports into the United States.

Company response and next legal steps

Whole-time Director and Chief Executive Officer Jignesh Rathod reiterated in the filing that the determination is limited, and not legally final, and that Waaree has review rights available under applicable US law. The company said it is evaluating all available legal remedies in consultation with its US trade counsel. Waaree’s statements were positioned as a reassurance that the company is actively managing the process and has procedural pathways to contest or review aspects of the determination.

Operations in the US: “no impact”, says management

Waaree further stated that its US operations continue to function normally. It said there is no impact on manufacturing activities, customer deliveries, or commercial operations. Rathod said the company remains committed to regulatory compliance, transparency, and governance, while emphasising that the US business continues to operate normally. This operational reassurance was a key part of the clarification, addressing concerns that an investigation could disrupt shipments or customer fulfilment.

Background: scrutiny since September 2025

The development follows scrutiny from US Customs and Border Protection since September 2025, as referenced in the information provided. In parallel reporting, Waaree has said it is cooperating with authorities and providing documentation in relation to the inquiry. The company has also indicated in other updates that its internal assessment suggests limited duty exposure and that it does not expect a material financial impact from the inquiry.

Wider trade pressure: preliminary duties and sector volatility

The clarification also comes amid broader trade action affecting solar imports. Separately, the US Commerce Department imposed preliminary countervailing duties of 126% on solar imports from India, citing unfair manufacturing subsidies, according to the information provided. That announcement triggered a sharp selloff in solar stocks on a prior Wednesday, with Waaree Energies falling as much as 14% in that session, while Premier Energies hit its 10% lower circuit. Another update described Waaree Energies falling as much as 15% before recouping some losses to trade 11% lower, described as a potential worst session for the stock.

Capacity and expansion references cited in reports

Waaree has discussed its manufacturing footprint and expansion plans in multiple updates cited in the provided material. In a Reuters statement, a company executive said Waaree does not anticipate a “material adverse impact” on its ability to service its US order book and expects its US manufacturing capacity to substantially support existing commitments. The company also said it is expanding US manufacturing capacity to 4.2 GW by the end of the year, and another update described a rise to 4.2 GW by the end of FY26. In another company statement, Waaree said the Texas plant expansion from 1.6 GW to 3.2 GW is already underway. A Reuters interview also cited Waaree’s module production capacity at 16.1 GW in India and 2 GW in the US, while another line in the supplied material referenced an installed US manufacturing capacity of 2.6 MW.

Key facts at a glance

Why the development matters for investors

For Waaree Energies, the immediate issue is not only the content of a specific CBP determination but also the persistence of US trade scrutiny and changing tariff conditions for solar supply chains. The company’s filing sought to narrow the market’s focus to the stated scope of the determination and to emphasise that it is not final. At the same time, investor sensitivity remains high because separate US actions, including preliminary countervailing duties on imports from India, have led to sharp, rapid selloffs across listed solar names. The situation also matters operationally because the US is a high-growth market for solar demand, and Waaree has repeatedly indicated that it is investing in local capacity and expects US manufacturing to support commitments.

Conclusion

Waaree Energies’ stock fell nearly 5% in early trade even as the company said US Customs found no evidence that it exported modules made using Chinese-origin solar cells, and that the determination is limited and not final. The company has said it will evaluate legal remedies with US trade counsel and that its US operations are continuing without disruption. Further clarity will depend on the next steps available under the US review process and any additional trade policy developments that affect Indian solar exports.