Indian solar energy stocks demonstrated resilience on Thursday, February 26, 2026, recovering from a sharp sell-off triggered by trade tensions with the United States. Shares of major players like Waaree Energies and Premier Energies traded in positive territory, marking a pivot in investor sentiment. The sector faced intense pressure earlier in the week after the U.S. Department of Commerce announced a preliminary countervailing duty of 125.87% on crystalline silicon photovoltaic cells and modules from India. This duty is part of a broader investigation that also affects imports from Indonesia and Laos, aiming to counter alleged government subsidies. Market reaction was initially severe, with Waaree Energies sliding 10.5% and Premier Energies dropping 6% on Wednesday. However, by Thursday morning, Waaree Energies climbed over 1% to approximately ₹2,737.80 on the NSE. Premier Energies and other industry peers also stabilized as brokerage firms issued reassuring outlooks. Analysts emphasize that the long-term impact on leading Indian firms may be minimal. Premier Energies has already reduced its U.S. exports to negligible levels, focusing instead on a booming domestic market. Similarly, Waaree Energies is mitigating risks by expanding its localized manufacturing presence within the United States and diversifying its global supply chain. The domestic landscape remains a primary growth engine. India's installed solar capacity crossed the 140 GW mark in early 2026, supported by robust government initiatives like the PM Surya Ghar Rooftop Solar scheme. The Union Budget 2025-26 further bolstered the sector by increasing allocations for rooftop solar to ₹22,000 crore and removing basic customs duties on critical manufacturing components like sodium antimonate. Despite the U.S. trade hurdles, India's solar manufacturing capacity continues to expand rapidly. The country is currently adding roughly 17 GW to 20 GW of utility-scale solar annually. With a national target of 500 GW of non-fossil power capacity by 2030, the shift toward domestic self-reliance is expected to offset potential export losses. Investor confidence is currently supported by strong corporate earnings. For the quarter ending December 2025, Waaree Energies reported a significant revenue surge of 119% year-over-year, with net profits rising to ₹1,107 crore. These fundamentals suggest that while trade volatility persists, the structural demand for green energy remains a dominant force.