Premier Energies Limited

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.

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.

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.

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.

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.

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.

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.