India’s renewable energy sector is heading into the September-quarter earnings season with strong capacity additions but near-term challenges around execution, margins and seasonal generation. Brokerage Anand Rathi has identified Waaree Energies and Clean Max Enviro Energy Solutions as its top picks in the sector, while maintaining Buy ratings on Suzlon Energy and Emmvee Photovoltaic Power.

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The brokerage has set 12-month target prices of ₹2,399 for Waaree Energies, ₹1,392 for Clean Max, ₹39 for Suzlon Energy and ₹297 for Emmvee Photovoltaic. It has also assigned Hold ratings to Premier Energies, with a target of ₹904, and ACME Solar Holdings, with a target of ₹447. Vikram Solar has a Sell rating and a target price of ₹152.

Anand Rathi expects Q2FY27 to be a relatively subdued quarter for renewable energy companies, with lower volumes and pressure on margins in the non-domestic-content-compliant module segment. Delays linked to the revised timeline for the Approved List of Models and Manufacturers requirements for commercial and industrial projects have also affected project execution and module procurement.

Despite these near-term pressures, India added around 7 GW of renewable energy capacity during July and August, taking total installed capacity to 296 GW, according to the brokerage. Retail-focused schemes such as PM-KUSUM and PM Surya Ghar are expected to perform relatively better, supported by stronger realisations compared with utility-scale projects.

For independent power producers, monsoon-related declines in solar plant load factors are likely to weigh on quarterly performance. Rising solar-cell prices could also squeeze profitability, particularly for non-DCR modules. Investors will therefore be watching upcoming earnings for signs of margin stability, execution progress and demand strength. The brokerage’s target prices represent its estimates, not guaranteed returns, and investors should assess valuations and risks before making investment decisions.