Premier Energies Limited — Q1 FY26 earnings call

Call held 28 Jul 2025

Management summary

Premier Energies reported a strong Q1 FY26 with significant year-on-year growth in revenue, EBITDA, and PAT, despite planned annual maintenance on cell lines. The company successfully commissioned new module and TOPCon cell manufacturing lines, marking a key step in its growth journey towards integrated manufacturing. Management highlighted robust demand across all segments and continued progress on its mission to expand capacity in solar, BESS, and inverters, while navigating market volatility and policy uncertainties.

Highlights

  • Total revenue stood at ₹1,869.5 crores (INR 18,695 million), marking a 12% year-on-year growth.

  • Delivered robust profitability with EBITDA at ₹597.1 crores (INR 5,971 million), up 61% year-on-year.

  • Profit after tax reached ₹307.8 crores (INR 3,078 million), a 55% increase over the same quarter last year.

  • Successfully commissioned a 1.4 gigawatt module line and a 1.2 gigawatt TOPCon cell manufacturing line.

  • Strong and broad-based demand across all focus segments, with record capacity additions in the solar industry.

Concerns

  • Planned annual maintenance on cell lines during the quarter impacted performance.

  • Minor tweaks in PAT margin expected going forward due to increased depreciation and debt drawdown for expansion.

  • EBITDA margin was impacted by an inventory markdown due to sharp price reductions for sales and wafers in China.

Key financials

  1. Revenue ₹1,869.5 Cr +12%YoY
  2. EBITDA ₹597.1 Cr +61%YoY
  3. PAT ₹307.8 Cr +55%YoY
  4. EBITDA Margin 31.9%
  5. PAT Margin 16.5%

What they filed

Q1 FY27: revenue up 35.3%, net profit up 53.2% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue1,527 1,713 1,621 1,821 1,837 +20%1,936 +13%2,230 +38%2,463 +35%
EBITDA381 514 528 548 561 +47%593 +15%675 +28%714 +30%
Net profit206 255 278 308 353 +71%392 +54%457 +64%472 +53%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Order book

high confidence

Total value

₹8,602.7 Cr

as of 2025-06-30 quantified

Inflow this quarter

₹2,000 Cr

Execution

executable over next 12 to 15 months

Composition

  • Domestic (geography) ₹8,602.7 Cr 100%
  • Cell Mix (product) 39%

Pipeline

deal pipeline tcv

Very strong pipeline for future orders

The order book reflects strong domestic demand, with current capacities fully utilized for the Indian market, and no immediate plans to re-enter exports.

Source: Prepared remarks

Capital allocation

medium confidence
  • Capex Capex disclosed
    • Commissioning of 1.4 GW module line
    • Commissioning of 1.2 GW TOPCon cell manufacturing line
    • Accelerated BESS and inverter lines
    • Wafer manufacturing (4.8 GW cell and module)
    A key milestone this quarter was the successful commissioning of our 1.4 gigawatt module line and time-bound commissioning of our 1.2 gigawatt TOPCon cell manufacturing line. ... We have accelerated our plans for both BESS and inverter manufacturing. ... our wafer manufacturing, our 4.8 gigawatt cell and module, all that is available in the presentation.
  • Debt Debt disclosed
    • New borrowing More drawdown on debt expected due to expansion of new cell and module capacity.
    there will be more drawdown on debt because of expansion of a new cell and module capacity.

Guidance & targets

Capacity

  • Integrated manufacturing capacity Capacity · FY28 · High confidence 10 gigawatt
    our ambitious roadmap to build an integrated 10 gigawatt in-board to module manufacturing ecosystem

    — Management

  • Battery energy storage systems capacity Capacity · FY28 · High confidence 12 gigawatt
    12 gigawatt of battery energy storage systems

    — Management

  • Inverter capacity Capacity · FY28 · High confidence 3 gigawatt
    3 gigawatt of inverter capacity by the end of FY28.

    — Management

  • BESS capacity online and selling Capacity · Q1 FY27 · High confidence 6 gigawatt hour
    Quarter one of FY '27 is when we expect this capacity to come online and start selling.

    — Vinay Rustagi

  • Wafer plant initial capacity Capacity · End of FY27 / FY28 · High confidence 2 gigawatt
    we have announced for the time being only a 2 gigawatt wafer plant, and most of the development of the remaining 8 or 10 gigawatt capacity is going to be back-ended towards end of FY '27, FY '28.

    — Vinay Rustagi

  • Wafer plant total capacity Capacity · End of FY27 / FY28 · High confidence 10-12 gigawatt

    — Vinay Rustagi

  • Indian cell capacity growth Capacity · As demand increases · Medium confidence 150 gigawatts
    Today's cell capacity in India is around 20 gigawatts, 25 gigawatts, and this has to grow to about 150 gigawatts as the demand increases.

    — Chiranjeev Saluja

Revenue

  • BESS and Inverter verticals contribution Revenue · Beginning of FY27 · High confidence Begin contributing to top line
    We aim to have both verticals begin contributing to our top line from the beginning of FY27.

    — Management

Efficiency

  • Cell line efficiency Efficiency · End of August or first week of September · High confidence 25% and above
    We expect to achieve 25% and above efficiency sometime in the end of August or first week of September.

    — Chiranjeev Saluja

Demand

  • DCR demand run rate Demand · Current · High confidence 15 gigawatts per annum
    Our estimate is that the current run rate of demand for DCL modules is about 15-gigawatts per annum.

    — Vinay Rustagi

  • DCR demand run rate Demand · Early 2026 · High confidence 25 gigawatts
    early next year onwards we will see the open access demand coming through, because projects commissioned by June 2026, we'll have to, procure, sales and modules, made in India. And so there on, early '26 onwards we expected the demand and rate to increase to about 25-gigawatts.

    — Vinay Rustagi

  • Total market DCR shift Demand · End of 2027 / Early 2028 · High confidence 40-45 gigawatts
    somewhere towards the end of the year early 2027 the entire market, which is about 40-gigawatts to 45-gigawatts, will shift towards DCR.

    — Vinay Rustagi

  • Time for cell capacity to meet local demand Demand · Future · Medium confidence At least 3 years
    my take would be at least about 3 years, where you have enough cell capacity to cater to local demand

    — Chiranjeev Saluja

Deployment

  • Annual India deployment Deployment · Next 10 years · High confidence 125 gigawatts per annum
    recent report of BNEF projects annual, deployment in India to go up from present 40-gigawatt to 125-gigawatts per annum in the next 10-years.

    — Chiranjeev Saluja

What to watch in Q2 FY26

Cell line stabilization and efficiency

End of August or first week of September
Current Just commissioned, ramping up
Target 25% and above efficiency

Why it matters

Crucial for optimal production and profitability from the newly commissioned TOPCon cell line.

We expect to achieve 25% and above efficiency sometime in the end of August or first week of September.

Risks & concerns

  • Volatility in raw material pricing

    medium

    Management noted volatility in raw material pricing but stated the company's ability to protect its margins.

    Management acknowledged

  • Potential US anti-dumping duties

    low

    Management stated that investigations are ongoing but their reliance on the export market is minimal, protecting them from potential duties.

    Analyst downplayed

  • Overcapacity in module manufacturing

    low

    While module capacity is high, the limiting factor in India is cell capacity, and Premier Energies is integrated, mitigating the risk of overcapacity.

    Analyst acknowledged

  • Slowdown in tendering activity

    low

    Management described the slowdown as a cyclical pattern in the sector, expecting an uptick in tenders from the next quarter onwards.

    Analyst acknowledged

Q&A highlights

6 direct
Pricing pressure and raw material volatility Direct
No. So the answer to that is, as of now, we don't see any pricing pressure. As you can see in the results for the quarter, as well as what we have in our order book. I think there is a lot of volatility in the market in terms of pricing of some of the raw materials. But, we don't on the whole, we are able to protect our margins. And we don't see that impacting our profitability.

Addresses a key concern about margin sustainability in a volatile market, with management asserting protection of margins.

Asked by Subramaniam Yadav

Re-entering export market given 100% domestic order book Direct
So, as we just answered the last question, we do not have capacities to sell into the export market. Our capacities are all sold out for the Indian market.

Clarifies the company's current focus on the domestic market due to full capacity utilization, indicating no immediate export plans.

Asked by Rehan Syed

Sustainability of 16.5% PAT margin given rising depreciation Partial
In terms of the PAT margin itself, there will be minor tweaks going forward because the depreciation rate, for example, as we go forward, there will be more drawdown on debt because of expansion of a new cell and module capacity. And as the debt gets drawn down, there will be more debt cost, and that will kind of take away something from the PAT margin. But overall, the EBITDA margin is very stable and attractive.

Provides insight into future PAT margin trajectory and emphasizes EBITDA margin as the key metric for evaluation, acknowledging potential short-term adjustments.

Asked by Rehan Syed

Strategy for building new capacity vs. acquiring depreciated assets Direct
Premier as a company, we would always invest in advanced technologies and the latest equipment. So we would never look at depreciated or second-hand lines if you meant in Southeast Asia or in China. We would not want to foray into such an idea because these are equipments which are getting new upgrades every quarter.

Highlights the company's commitment to advanced technology and high-quality manufacturing, differentiating its strategy from competitors focused on older assets.

Asked by Deepak Krishnan

Actual operational capacity in India vs. ALMM list and pricing pressure Direct
ALMM format is such that even, players who have, 300 megawatts, 500 megawatts of annual capacity which are supposed to operate, 24x7, the capacity is deciphered by on the basis of 24x7 operations. And many of these lines do not operate 24x7. ... And the 90-gigawatt what you see on the ALMM is not what is all operational, not what is all automated. Many of the lines are semi-automated. An IPP developer would not buy from such lines.

Explains why listed ALMM capacity doesn't translate directly to operational capacity, justifying the lack of pricing pressure despite high listed capacity.

Asked by Sarang Joglekar

Impact of US anti-dumping duty on Indian market and exports Partial
I think the investigation has just begun. And there is a pretty long period for these investigations to get completed and any duty to get effective. ... our reliance on the export market is next to nil. And hence we are protected irrespective of the outcome of this investigation.

Addresses a potential geopolitical risk, stating the company's limited exposure and protection due to its domestic focus.

Asked by Apoorva

Indian market price discovery for cells and modules vs. Chinese pricing Direct
No, I think we always had our own price discovery. It was never related to the Chinese prices. ... So because of that, there is really no connection between what is happening in China and what is happening in India. The Indian market, as you, I think, were trying to say, there is a completely independent price discovery in the Indian market, depending on local demand, particularly given for DCR cells and modules and local supply.

Clarifies that the Indian market operates with independent price discovery, insulating it from Chinese price volatility and ensuring stable margins.

Asked by Apoorva Bahadur

Slowdown in tendering activity and June '26 ALCM deadline impact Direct
So I think this is a very conscious move by the government to basically completely tie up the old auctions in terms of PPAs and then move on to new auctions. So I think we typically see this kind of cyclical pattern in the sector where we see a lot of auctions which the market takes time to absorb, followed by a slight slowdown in new tenders and followed by uptick in tenders again.

Provides context on the cyclical nature of tendering activity and reassures that the June '26 deadline won't affect current projects, with an expected uptick in tenders soon.

Asked by Kunal Shah

3 min read 7 chapters

Detailed narrative

Q1 FY26 Performance Overview

Premier Energies reported a strong start to the financial year with its best-ever revenue and profit performance. Total revenue for Q1 FY26 stood at ₹1,869.5 crores (INR 18,695 million), marking a 12% year-on-year growth. The company delivered robust profitability with EBITDA at ₹597.1 crores (INR 5,971 million), up 61% year-on-year, and a profit after tax of ₹307.8 crores (INR 3,078 million), a 55% increase over the same quarter last year. This strong performance was achieved despite planned annual maintenance on cell lines during the quarter.

Capacity Expansion and Commissioning Milestones

A key milestone in Q1 FY26 was the successful commissioning of the company's 1.4 gigawatt module line and the time-bound commissioning of its 1.2 gigawatt TOPCon cell manufacturing line. These additions mark a significant step forward in Premier Energies' growth journey and set the stage for its next phase of expansion. The newly commissioned cell line is expected to achieve 25% and above efficiency by the end of August or first week of September, with full ramp-up and optimal efficiency anticipated over the course of the next quarter.

Market Demand and Policy Support

The macro environment continues to be highly supportive, with strong and broad-based demand across all focus segments. The solar industry is experiencing record capacity additions, a momentum expected to continue. Government initiatives such as the Prime Minister's Surya Ghar Muft Bijli Yojana are driving long-term structural growth in residential rooftop solar. The government's sustained push for domestic manufacturing and initiatives to promote upstream capacity and advanced technology development further support the industry.

Order Book and Business Mix

The company's order book stands at ₹8,602.7 crores (INR 86,027 million), representing 5,545 MW, with 100% domestic exposure. New order inflow for the quarter was approximately ₹2,000 crores. The cell mix in the order book has increased to 39% compared to 27% in the previous quarter, reflecting market demand. The current order book provides revenue visibility for the next 12 to 15 months, with management continuously evaluating the market for optimal sales mix.

Profitability and Margin Dynamics

While the PAT margin of 16.5% is strong, management anticipates minor tweaks going forward due to increased depreciation and debt drawdown associated with capacity expansion. However, the underlying EBITDA margin remains stable and attractive. The Q1 EBITDA margin was impacted by a sharp reduction in prices for sales and wafers in China, leading to an inventory markdown. Management asserts that the company is able to protect its margins despite volatility in raw material pricing.

Future Growth Strategy and Vertical Integration

Premier Energies is progressing well on its Mission 2028, aiming for an integrated 10 gigawatt in-board to module manufacturing ecosystem, 12 gigawatt of battery energy storage systems, and 3 gigawatt of inverter capacity. The BESS and inverter verticals are targeted to begin contributing to the top line from the beginning of FY27. Plans for wafer manufacturing, starting with an initial 2 gigawatt plant and scaling to 8-10 gigawatt by end of FY27/28, are also underway, pending greater clarity on policy. The company is committed to investing in advanced technologies and high-quality equipment.

US Market and Export Strategy

The company's business model is primarily anchored in the Indian market, with less than 1% of its total order book currently from the United States. Plans for a proposed cell manufacturing plant in the U.S. are on hold, awaiting greater clarity on U.S. policy and tariffs. Due to strong domestic demand and full utilization of existing capacities, Premier Energies currently does not have surplus capacity to sell into the export market, including the US.

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