India's renewable energy stocks are showing sharp divergence ahead of the Q2 FY27 earnings season, with several companies recording steep year-to-date losses while select players remain in positive territory. As of October 12, ACME Solar had gained 76.11 per cent year-to-date and Adani Green Energy was up 22.41 per cent. In contrast, Inox Wind had fallen 45.75 per cent, Suzlon Energy 28.34 per cent and Waaree Energies 21.40 per cent.
Weakness has also extended to solar manufacturing and renewable energy services. Vikram Solar was down 39.97 per cent and Sterling and Wilson Renewable Energy had declined 24.60 per cent. Premier Energies, however, remained 5.62 per cent higher year-to-date.
Q2 Earnings Put Margins And Execution In Focus
Renewable energy stocks saw some recovery on October 12. Suzlon Energy gained 5.24 per cent to Rs 39.57, while Sterling and Wilson Renewable Energy rose 3.49 per cent to Rs 167.77. Adani Green Energy advanced 1.45 per cent to Rs 1,274, Waaree Energies gained 0.95 per cent to Rs 2,345 and ACME Solar edged 0.16 per cent higher to Rs 418.75.
However, recent gains have not been enough to erase the year-to-date losses recorded by several companies. For relatively highly valued companies including Waaree Energies, Adani Green Energy, ACME Solar and Clean Max, the September-quarter results will be closely watched to assess whether earnings performance supports market expectations. Companies that have undergone substantial corrections could also attract renewed investor interest if results exceed expectations.
Solar manufacturers will face scrutiny over production costs, capacity utilisation and operating margins. The level of vertical integration could also influence performance. Premier Energies and Emmvee Photovoltaic have operational solar cell manufacturing capabilities, while other manufacturers have varying levels of integration and exposure to input costs.
An October 8 assessment by Elara Capital flagged potential margin pressure for Waaree Energies, Premier Energies, Vikram Solar and Emmvee Photovoltaic, citing higher commodity costs and competition. Centrum Broking, meanwhile, expects healthy quarterly performance from select companies including Suzlon Energy, Waaree Energies, NTPC Green Energy and ACME Solar.
Solar pumping companies have also seen substantial corrections. Oswal Pumps was down 51.62 per cent year-to-date as of October 12, while Shakti Pumps had declined 43.28 per cent. Order execution, government-backed solarisation programmes and revenue diversification will be key factors to watch for these companies.
Renewable energy engineering, procurement and construction companies face challenges around project timelines, working-capital requirements and operating margins. Sterling and Wilson Renewable Energy's 24.60 per cent year-to-date decline reflects the weakness seen in parts of the segment, although share-price movements alone do not establish the underlying causes.
The Q2 results will provide a clearer indication of whether companies can translate capacity expansion and order books into earnings. Revenue growth, production efficiency and margins will be important for manufacturers, while project commissioning, generation performance and financing costs will be key for renewable power developers.
Battery energy storage and integrated renewable projects could also shape future earnings visibility and capital requirements. The divergence in stock performance indicates that investors are increasingly differentiating between renewable energy companies based on profitability, execution and financial performance rather than treating the sector as a single growth trade.