Waaree Energies To Invest ₹8,175 Crore In Andhra Lithium-Ion Gigafactory

Waaree Energies has announced its intention to build an integrated lithium-ion battery gigafactory in Andhra Pradesh, a significant move to expand its energy storage manufacturing to advanced levels.

The proposed greenfield facility at Rambilli in the Anakapalli district can span the full battery value chain, from cell manufacturing to battery packs and large-scale battery energy storage systems.

The project is a part of the larger initiative to establish domestic battery production capacity to facilitate the implementation of renewable energy, electric mobility, and grid stability in India.

What Is The Project Scope?

• The gigafactory will be set up at Rambilli in Anakapalli district with an investment of around ₹8,175 crore.

• The facility will have a planned capacity of 16 GWh and will cover cell manufacturing, battery packs and battery energy storage systems (BESS).

• The project has received in-principle approval from the Andhra Pradesh State Investment Promotion Board.

Why Does The Location Matter?

The choice of Andhra Pradesh can be explained by the state's desire to become a clean-energy manufacturing centre. The project can create approximately 3,000 direct jobs, according to state authorities, and can be beneficial for industrial employment in the Anakapalli region.

The site also offers access to ports and industrial corridors that can support long-term local distribution and production for export. The state's authorities have made the project fit into a bigger ambition to attract huge investments in sustainable energy and establish strong local supply chains.

How Does This Fit Waaree’s Storage Strategy?

The Andhra gigafactory is the next step in Waaree Energies' backward integration into advanced energy storage.

The project is based on board approvals granted in October 2025 to increase the manufacturing capacity of lithium-ion advanced-chemistry cells and battery energy storage systems through its fully owned subsidiary.

The company has detailed the strategy to increase storage production capacity from 3.5 GWh to 20 GWh over time.

What Do Recent Financials Show?

Waaree Energies recorded high operating momentum in the third quarter.

• Net profit rose 26% sequentially to ₹1,062 crore in Q3, while revenue increased 24.7% quarter-on-quarter to ₹7,656 crore.

• Earnings before interest, taxes, depreciation and amortisation (EBITDA) climbed 37.2% to ₹1,928 crore, with margins improving to 25.5% from 23.2% in the previous quarter, reflecting higher operating leverage as capacity utilisation improved.

• However, the shares of Waree Energies fell 3.12% lower at ₹2,871 on February 19 despite the announcement of the project and the recent momentum of earnings.

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Key Investor Takeaway

The Andhra gigafactory shows that Waaree Energies wants to grow its business across the battery value chain, which can be positive news for investors. This is happening at a time when storage is becoming very important for integrating renewables and getting people to use electric vehicles.

With a big capital expenditure cycle going on and plans to increase capacity across cells and BESS, the big question is whether discipline in execution and demand visibility will turn this investment into long-term profits.

Sources:

Economic Times

CNBCTV18

BusinessStandard