The Indian solar equipment manufacturing sector is experiencing a mixed performance in the recent quarterly results, with signs of a slowdown in domestic demand despite overall optimism for future growth. In a recent market analysis segment, experts highlighted the earnings reports from four key players—Premier Energies, Vikram Solar, Waaree Energies (likely referred to as VI Energies or similar in discussions), and MB Photovoltaic (potentially a reference to another player or variant in the space)—that reported their Q3 FY26 figures over the past few days. 

The numbers indicate a broader slowdown in growth rates compared to the previous quarter (Q2), with most companies showing moderated momentum amid reduced domestic demand for solar installations. While the sector benefits from India's push toward renewables, recent quarters have revealed challenges such as a slowdown in domestic orders, potential overcapacity, and pricing pressures. 

Domestic-focused players have been particularly affected, as overall solar tendering and installation activity has cooled due to factors like transmission constraints and slower electricity demand growth. Premier Energies, which is nearly 100% domestic-oriented, showed revenue growth but faced questions around changes in depreciation policies. The company recently aligned its depreciation for solar modules and cells to an industry-standard 5-year period, moving away from accelerated rates in prior quarters. 

Management remained bullish, projecting the transformer segment to reach Rs 1,000 crore in the next 2-3 years and highlighting strong capex plans and sustained demand ahead.Vikram Solar, with about 84% domestic exposure and 16% exports, saw a notable reduction in its order book on a sequential basis. Despite this, the company expressed limited concern over module oversupply, emphasizing better utilization rates and advantages from newer technologies. Waaree Energies (VI Energies) stood out with stronger revenue growth, supported by a higher export orientation (around 28%). 

Better realizations from the US market helped offset domestic weakness, though the company faces an overhang from ongoing US duties and investigations. MB Photovoltaic echoed positive commentary for FY25-26, citing policy tailwinds such as the Approved List of Models and Manufacturers (ALMM) and government pushes for domestic manufacturing.

Overall, order books remain relatively stable or slightly improved quarter-on-quarter for most, helping companies maintain capacities. However, domestic slowdowns contrast with export-driven resilience in some cases. Management commentary across the board leans optimistic. Companies anticipate improved runways in FY26 and beyond, driven by policy support, technological advancements, and expected demand recovery. Key positives include government initiatives promoting local manufacturing and potential surges in renewable adoption.

Challenges persist, including intense pricing pressure (especially domestically), entry of larger conglomerates increasing competition, and domestic overcapacity concerns. These factors contribute to valuation differences—even among peers with similar capacities (around 3 GW), such as Premier Energies versus Vikram Solar, where the latter trades at a discount. 

Many of these firms are relatively recent listings that rode the wave of anticipated massive solar demand growth. While competition intensifies, the sector's long-term trajectory remains tied to India's renewable energy ambitions, though near-term domestic headwinds warrant close monitoring. Analysts suggest tracking these dynamics as the industry navigates supply-demand balances and external risks.