Premier Energies

Premier Energies reported record revenue and profit numbers for Q3 FY26, with manufacturing lines consistently operating at best-in-industry utilization levels. The company completed a brownfield expansion, adding 400 MW of cell and 350 MW of module capacity. The 1.2 GW G12R TOPCon cell line, commissioned recently, is already operating at 80% utilization and is expected to reach full utilization by February 2026. Module utilization has consistently been between 75% to 80%, and cell utilization close to 90%, which are considered peak levels.

The company is embarking on significant capacity expansions, with a 5.6 GW module line set for completion in March 2026, followed by a 4.8 GW cell line in June 2026, and an additional 2.2 GW cell line in September 2026. These expansions will make Premier Energies India's largest and most integrated cell and module manufacturer with total capacities of 10.6 GW and 11.1 GW respectively. Additionally, construction has commenced on a 10 GW ingot wafer line in Naidupeta, Andhra Pradesh, with a total expected capex of INR 5,900 crores, with the first 5 GW phase expected by December next year.

The total order book stands at INR 13,723 crores, representing 9.4 GW, with deliveries scheduled up to FY28. Approximately 70% to 75% of this order book is slated for execution over the next 12 months. The order book is composed of INR 6,800 crores for cells (DCR) and INR 7,000 crores for modules (mix of DCR and non-DCR). Management expects robust demand for the DCR market in FY27, projecting over 30 GW, driven by 10 GW from residential rooftop solar and 5-7 GW from the KUSUM scheme.

Total capex for the current calendar year (FY26) is estimated at INR 3,000 crores, allocated for new cell lines, remaining capex for Transcon and KSolare acquisitions, and investments in BESS and aluminum products. The Transcon transformer acquisition was completed in December 2025, with its capacity expected to increase to 16.75 GVA by July 2026, aiming for a top line of over INR 1,000 crores by FY28. The KSolare acquisition is anticipated to close in the next month. A BESS cell-to-pack solution line is being set up with INR 280 crores capex for 6 GWh per phase, and an aluminum frames plant with INR 260 crores capex is expected by December 2026.

Premier Energies is focused on improving cell efficiency from current levels of 25.2% to 25.8% by year-end, leveraging advanced process technologies. The company's 1.2 GW TOPCon cell line is G12R, and all new lines will also be G12R or G12. To mitigate volatile input costs, particularly silver, the company employs a strong hedging policy, with approximately six months of silver hedged. They are also exploring the use of copper paste as an alternative to silver, expected in the next few quarters, to further reduce costs.

Management believes that while many companies announce large capacities, actual operational capacity lags significantly due to financial discipline, execution time, and technical expertise, leading to a more balanced demand-supply environment than often projected. The company expects to maintain its competitive advantage due to its scale, backward integration, and use of latest technology. They foresee further consolidation in the industry, as smaller players may struggle with technology upgrades and integration complexities.