India’s Solar Sector Soars: 3 Explosive Stocks FIIs are Betting Big On in 2025!

India’s solar sector is attracting significant Foreign Institutional Investment (FII) due to its ambitious renewable energy goals and government support, aiming for 500 GW of renewable energy by 2030. Companies like Websol Energy, Premier Energies, and Waaree Renewables are capitalizing on this momentum, showing impressive growth and expanding international presence. Websol has transformed from losses to profitability, Premier Energies has seen a dramatic rise in revenue and profits, while Waaree benefits from diversified solar solutions and strong parental backing.

Policy incentives, such as production-linked incentives (PLIs), and India’s competitive manufacturing edge further fuel growth. However, investors must stay cautious of valuation risks and policy shifts. Overall, India’s solar future looks promising, with strong investor confidence in the sector’s long-term potential.

India’s Solar Sector Soars: 3 Explosive Stocks FIIs are Betting Big On in 2025!

India’s ambitious renewable energy goals and thriving solar industry have captured the attention of Foreign Institutional Investors (FIIs), who are increasingly funneling capital into the sector. With the government’s push for clean energy, initiatives like ‘Make in India,’ and plans to become a global solar exporter, FIIs are signaling strong confidence in the sector’s long-term potential. This surge in foreign investment not only injects capital but also accelerates technological advancements and financial stability for solar companies. A closer look at three standout firms attracting FII attention and their recent growth trajectories.  

Why FIIs Are Rallying Behind India’s Solar Sector 

• Policy Support: India aims to achieve 500 GW of renewable energy capacity by 2030, with solar power playing a pivotal role.  

• Export Ambitions: The government is incentivizing domestic manufacturing to position India as a global solar equipment supplier.  

• Robust Financials: Solar companies are reporting exponential revenue and profit growth, driven by rising demand and economies of scale. 

Top Solar Stocks Drawing FII Investments 

1. Websol Energy System Ltd: A Leap from Losses to Profitability 

Key Highlights:  

• Specialization: High-efficiency crystalline silicon solar modules for residential, commercial, and utility projects.  

• FII Stake Surge: Stake rose 72.3% QoQ (2.46% to 4.24% between Dec 2024–Mar 2025).  

• Financial Turnaround: Revenue skyrocketed 27,767% YoY (₹0.53 Cr to ₹147.7 Cr in Q3 FY25), turning a ₹54.2 Cr loss into a ₹41.5 Cr profit.  

• Growth Driver: Recovery attributed to expanded production capacity and entry into international markets. 

Insight: Websol’s dramatic growth highlights the scalability of solar manufacturing, though its low revenue base in prior years underscores the volatility of emerging players.  

2. Premier Energies Ltd: Scaling New Heights 

Key Highlights:  

• Market Position: India’s 2nd-largest integrated solar cell/module manufacturer with 2 GW cell and 3.36 GW module capacity.  

• FII Confidence: Stake climbed 28.1% QoQ (2.31% to 2.96% in Q1 2025).  

• Financial Surge: Revenue jumped 144% YoY (₹714.7 Cr to ₹1,749 Cr in Q3 FY25), with profits soaring 490% (₹43.2 Cr to ₹255.2 Cr).  

• Strategic Edge: Vertical integration (cells, modules, EPC services) and global partnerships bolster its competitive edge. 

Insight: Premier’s integrated model and capacity expansion align with India’s self-reliance goals, making it a FII favorite.  

3. Waaree Renewables Technologies Ltd: Diversifying Solar Solutions 

Key Highlights:  

• Portfolio Strength: Over 2.5 GW of installed capacity across rooftops, ground-mounted, and floating solar projects.  

• FII Interest: Stake grew 14.1% QoQ (0.99% to 1.13% in Q1 2025).  

• Steady Growth: Revenue increased 75% YoY (₹274.6 Cr to ₹481.4 Cr in Q4 FY25), with profits up 73% (₹54.2 Cr to ₹93.8 Cr).  

• Parental Backing: Subsidiary of Waaree Energies, leveraging R&D and a pan-India project footprint. 

Insight: Waaree’s diversified offerings and execution capabilities position it to capitalize on India’s booming solar EPC market.  

What’s Fueling the Growth? 

• Policy Catalysts: Production-linked incentives (PLIs) and customs duty cuts on solar components.  

• Global Demand: Rising international orders as India emerges as a cost-competitive alternative to Chinese manufacturers.  

• Economies of Scale: Larger projects and improved efficiencies are driving profitability for established players. 

Investor Considerations 

While FII inflows reflect optimism, investors should note:  

• Valuation Risks: Rapid stock price surges may lead to overvaluation.  

• Policy Dependence: Changes in subsidies or import/export regulations could impact margins.  

• Competition: Domestic and global players are vying for market share. 

Conclusion: A Bright Future with Strategic Caution 

India’s solar sector is poised for transformative growth, backed by policy tailwinds and global decarbonization trends. Companies like Websol, Premier, and Waaree exemplify the sector’s potential, but investors should balance enthusiasm with due diligence. As FIIs continue to bet big, these stocks could remain in the spotlight—though consulting a financial advisor is prudent to navigate risks and opportunities.