Shares of Indian solar companies stabilised and traded higher in early trade on Thursday, recovering from yesterday's sharp sell-off triggered by US tariff concerns. Brokerages played down the earnings impact and reiterated largely positive views on frontline names such as Waaree Energies and Premier Energies.

Around 9:53 am, Waaree Energies stock was trading 0.5 percent higher at Rs 2,722, extending its rebound after losing more than 10 percent in the previous session. Premier Energies shares were marginally up at Rs 731.7, while the broader solar pack also showed signs of stabilisation.

Among other stocks, Borosil Renewables, Solex Energy, Sterling and Wilson Renewable Energy, Servotech Renewable Power System and Websol Energy System were up 1-3 percent. Vikram Solar was the only notable laggard, slipping marginally.

What changed today after the sell-off in solar stocks

The mild recovery follows clearer interpretation of the US Commerce Department’s decision to impose preliminary countervailing duties of about 126 percent, with brokerages emphasising that the levy applies only to modules using India-made solar cells, and not to panels assembled in India using imported cells. This distinction prompted several brokerages to reassess the scale of impact after the initial knee-jerk sell-off.

Brokerage views | Waaree Energies: Buy or Sell?

Nomura said the impact of the US duties would be lower for firms with US manufacturing capacity and modules using non-Indian cells, reiterating a buy call on Waaree Energies with a target price of Rs 2,709. The brokerage highlighted Waaree’s plan to expand US capacity to 4.2 GW by the first half of calendar year 2026.

Motilal Oswal Financial Services also maintained a buy rating on Waaree Energies, with a higher target price of Rs 3,514, saying the company’s US-bound modules do not use India-made cells, limiting direct exposure to the countervailing duties.

Nuvama Institutional Equities also retained a buy call with a target price of Rs 3,867, citing Waaree Energies' evolving renewable energy platform, diversification into green hydrogen and electrolyser orders, and a more balanced long-term revenue mix.

Brokerage views | Premier Energies: Buy or Sell?

On Premier Energies, views were cautious-to-positive. Nomura maintained a neutral stance with a target price of Rs 729, while Motilal Oswal reiterated a buy call with a target of Rs 1,000, noting Premier Energies' relatively low export dependence and minimal exposure to US tariffs.

What to watch next

Brokerages said near-term volatility cannot be ruled out, especially ahead of the US Commerce Department’s second ruling next month on alleged dumping. However, most analysts believe the sharp correction earlier this week has already priced in worst-case assumptions. For investors, the focus is now shifting to clarity on cell sourcing versus module assembly; progress on US manufacturing capacity; and companies' ability to offset export uncertainty through strong domestic solar demand.