Premier Energies

Premier Energies reported a strong start to FY26 with its best-ever performance in revenue and profit. Total revenue reached ₹1,869.5 crores, marking a 12% year-on-year growth. The company achieved robust profitability with EBITDA at ₹597.1 crores, a significant 61% increase year-on-year, and a profit after tax of ₹307.8 crores, up 55% from the previous year. This performance was achieved despite planned annual maintenance on cell lines during the quarter.

A key milestone in Q1 FY26 was the successful commissioning of the 1.4 gigawatt module line and the time-bound commissioning of the 1.2 gigawatt TOPCon cell manufacturing line. These additions mark a significant step in the company's growth journey. Management expects the cell line to ramp up and achieve optimal efficiency over the current quarter, while the module line is already operating near full capacity.

The company remains firmly on track to deliver on its Mission 2028, which aims to build an integrated 10 gigawatt in-board to module manufacturing ecosystem, 12 gigawatt of battery energy storage systems, and 3 gigawatt of inverter capacity. All projects are progressing well, both on timelines and within budget. Premier Energies expects to more than double its cell and module capacities and unlock new revenues from BESS, inverters, and wafer manufacturing, with BESS and inverter verticals contributing to the top line from Q1 FY27.

The macro environment continues to be highly supportive, with strong and broad-based demand across all focus segments. The solar industry is witnessing record capacity additions, and this momentum is expected to continue. On the policy front, the government's sustained push for domestic manufacturing, including initiatives like the Prime Minister's Surya Ghar Muft Bijli Yojana, is encouraging. Management anticipates further initiatives to promote upstream capacity and advanced technology development.

The company's order book stands at ₹8,602.7 crores (INR 86,027 million) with 100% domestic exposure. New order inflow for the quarter was approximately ₹2,000 crores. The cell mix in the order book increased to 39% from 27% in the last quarter. Management clarified that the historical revenue mix data was restated to reflect the total business mix, including both domestic and export, rather than just domestic. The order book is executable over the next 12-15 months.

While the PAT margin for the quarter was 16.5%, management emphasized focusing on the EBITDA margin, which was 30.1% for Q1 FY26, down from 32.6% in the previous quarter. This reduction was primarily due to an inventory markdown caused by a sharp reduction in prices for sales and wafers in China. Management clarified that this is an accounting entry and that prices are generally passed through to customers, ensuring that core EBITDA margins remain stable and attractive.

Premier Energies has decided to keep its proposed cell manufacturing plant in the U.S. on hold, pending greater clarity on U.S. policy and tariffs. Management noted that less than 1% of its total order book currently comes from the United States. Regarding the ongoing US anti-dumping duty investigation, management believes the grounds for duty are weak and their reliance on the export market is negligible, thus protecting them from potential impacts.