Premier Energies Limited — Q3 FY26 earnings call

Call held 23 Jan 2026

Management summary

Premier Energies reported record revenue and profit in Q3 FY26, driven by strong utilization levels and a healthy order book of INR 13,723 crores. The company is aggressively expanding its cell and module capacities, with significant new lines scheduled for completion through September 2026, aiming for 10.6 GW cell and 11.1 GW module capacity. Strategic acquisitions in transformers and planned investments in ingot wafers and BESS are set to diversify and integrate operations, despite volatile input costs and a cautious approach to full backward integration in BESS.

Highlights

  • Achieved record revenue and profit numbers, indicating strong operational performance.

  • Order book of INR 13,723 crores provides healthy top-line and bottom-line visibility through FY28.

  • Successfully completed brownfield expansion, adding 400 MW cell and 350 MW module capacity with low capex.

  • 1.2 GW G12R TOPCon cell line is operating at 80% utilization and is expected to reach full utilization by February 2026.

  • Targeting improved cell efficiency from 25.2% to 25.8% by the end of the year using advanced process technologies.

Concerns

  • Depreciation expense has halved YoY due to accelerated depreciation on older Mono PERC lines, which are now fully depreciated, potentially increasing in future quarters as new lines commission.

  • Cost environment is volatile with some input costs rising sharply, though managed through hedging and cost pass-through.

  • Delay in full backward integration into BESS cell manufacturing due to lack of clarity on ALMM protection from the government.

Key financials

  1. Revenue & Profit —
  2. Depreciation (YoY) — -50%YoY
  3. Cell Realization 0.14 $
  4. DCR Module Realization 0.23 $
  5. Non-DCR Module Realization 0.165 $
  6. Silver Cost Increase (YoY) 0.015 $/watt

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

₹13,723 Cr

as of 2026-01-23 quantified

Execution

70% to 75% of total order book due for execution over the next 12 months.

Composition

Mix 2 products
  • Cells 49.5%
  • Modules 50.9%

Share of order book by product

Pipeline

deal pipeline tcv

Discussion pipeline is at the highest number of all times, indicating strong future demand.

The order book remains healthy, providing strong top-line and bottom-line visibility. All disclosed order books are signed and confirmed with advances received, not just framework agreements.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex ₹3,000 Cr New plan — Total capex for the current calendar year across all segments.
    • New cell and module lines (Sitarampur and Naidupeta) ₹750 Cr
    • Aluminum frames capacity ₹260 Cr
    • BESS product (cell to pack and containerized solution line) ₹280 Cr
    • 10 GW Ingot wafer line (total expected capex) ₹5,900 Cr
    Yes. So, for the coming, for the current calendar year, total capex is about INR3,000 crores. Part of this is for the new cell line for coming in Naidupeta and Sitarampur. In addition to that, we will also incur remaining capex for Transcon and the KSolare acquisitions plus about INR280 crores each for the BESS product and the aluminum product.
  • M&A Transcon Acquisition · Closed · Consideration ₹[object Object] (cash)

    Expected to be a key growth contributor, increasing capacity to 16.75 GVA by July 2026.

    First tranche of acquisition paid, expected to reach top line of over INR1000 crores in 2-2.5 years.

    Our transformer acquisition was completed in December 2025.
  • M&A KSolare Acquisition · Pending regulatory

    Strategic acquisition to be closed soon.

    Our KSolare acquisition is also planned to be closed in the next one month.

Guidance & targets

Capacity Expansion

  • 1.2 GW G12R TOPCon cell line utilization Capacity Expansion · February 2026 · High confidence 100%

    From 80% today

    Our 1.2 gigawatt G12R TOPCon cell line has ramped up in relatively short time, currently operating at 80% utilization and expected to reach full utilization by February 2026.

    — Chiranjeev Saluja

  • 5.6 GW module line completion Capacity Expansion · March 2026 · High confidence Completion
    Our 5.6 gigawatt module line is set for completion in March 2026

    — Chiranjeev Saluja

  • 4.8 GW cell line completion Capacity Expansion · June 2026 · High confidence Completion
    4.8 gigawatt cell line in June 2026

    — Chiranjeev Saluja

  • 2.2 GW cell line completion Capacity Expansion · September 2026 · High confidence Completion
    followed by 2.2 gigawatt of cell line in September 2026.

    — Chiranjeev Saluja

  • 10 GW ingot wafer line construction Capacity Expansion · Ongoing · High confidence Commencement
    work has also commenced on construction of our 10 gigawatt ingot wafer line in Naidupeta, Andhra Pradesh.

    — Chiranjeev Saluja

  • Transcon total capacity Capacity Expansion · July 2026 · High confidence 16.75 GVA
    total capacity expected to increase to 16.75 GVA by July 2026

    — Chiranjeev Saluja

  • Aluminum frames commissioning Capacity Expansion · December 2026 · High confidence Commissioning
    we expect commissioning by December 2026.

    — Chiranjeev Saluja

  • BESS capacity Capacity Expansion · Ongoing · High confidence 6 GWh per phase
    it's INR280 crores and the capacity is going to be 6 gigawatt hours per phase.

    — Chiranjeev Saluja

  • 5 GW ingot wafer implementation (first phase) Capacity Expansion · December 2026 · High confidence Completion
    first phase of 5 gigawatt implementation expected to be completed by December next year.

    — Vinay Rustagi

  • 5 GW ingot wafer implementation (second phase) Capacity Expansion · December 2028 · Medium confidence Completion
    For the second 5-gigawatt phase, we would expect that to be completed in December 28.

    — Chiranjeev Saluja

Efficiency Improvement

  • Cell efficiency Efficiency Improvement · End of 2026 · High confidence 25.8%

    From 25.2% today

    Similarly, we are working on improving efficiency from current levels of 25.2% to 25.8% by the end of this year using latest process technologies and know-how.

    — Chiranjeev Saluja

Total Capacity

  • Total integrated cell and module capacity Total Capacity · Post September 2026 · High confidence 10.6 GW (cell), 11.1 GW (module)
    These capacities would make us India's largest and most integrated cell and module manufacturer with total capacity of 10.6 gigawatt and 11.1 gigawatt, respectively.

    — Chiranjeev Saluja

Revenue

  • Transcon top line Revenue · Next 2-2.5 years (FY28) · Medium confidence >INR 1000 crores
    we are hoping that the company will touch a top line of over INR1000 crores in the next two to two and a half years.

    — Vinay Rustagi

Market Demand

  • DCR market demand Market Demand · FY27 · High confidence >30 GW
    we would expect the demand to be about 30 gigawatts plus for the DCR market in F27.

    — Vinay Rustagi

  • Total market demand (DCR + non-DCR) Market Demand · FY26, FY28 · High confidence >50 GW (FY26), 60-65 GW (FY28)
    FY26 should end with a total market demand, including the DCR and the non-DCR components of more than 50 gigawatts annualized. And by FY28 we would expect that demand to grow to about 60 to 65 gigawatts.

    — Vinay Rustagi

Aluminum Anodizing

  • India's self-sufficiency in anodizing Aluminum Anodizing · Next 18-24 months · Medium confidence Self-sufficient
    we expect in the next 18 to 24 months, India will be self-sufficient on anodizing to cater to the demand of the domestic industry.

    — Chiranjeev Saluja

What to watch in Q4 FY26

1.2 GW TOPCon Cell Line Utilization

February 2026
Current 80%
Target 100%

Why it matters

Achieving full utilization of this new capacity is crucial for operational efficiency and revenue generation.

Our 1.2 gigawatt G12R TOPCon cell line has ramped up in relatively short time, currently operating at 80% utilization and expected to reach full utilization by February 2026.

Risks & concerns

  • Volatile input costs

    medium

    Cost environment is becoming more volatile with some input costs rising sharply, but managed through hedging, advanced planning, and passing incremental costs to customers.

    Management acknowledged

  • Lack of ALMM protection for backward integration into BESS cell manufacturing

    medium

    The company is delaying core BESS cell manufacturing investment until clarity on ALMM-like protection from the government, as the market is currently open to China.

    Management cautious approach

  • Unsigned PPAs and transmission delays

    low

    These issues exist but are mitigated by a large pipeline of signed PPAs providing strong demand visibility.

    Management acknowledged

  • Industry overcapacity

    low

    Management believes concerns about overcapacity are overdone, citing financial discipline, time required for execution, and technical expertise needed for new capacities.

    Management downplayed

  • Competition from newer, smaller players

    low

    Newer players with smaller capacities, high debt, and less technical competence are expected to struggle with technology upgrades and backward integration, giving Premier a competitive advantage.

    Management downplayed

Q&A highlights

7 direct
Depreciation policy and its impact on financial numbers Direct
So I think basically what has happened is that we did see an increase in depreciation over the last three quarters because of accelerated depreciation on our old cell and module lines. Now that came to an end in the last quarter. So what you're seeing in this quarter is only the depreciation on our new lines, which got operational in the middle of last year.

Clarifies the reason for the significant YoY drop in depreciation, attributing it to the full depreciation of older assets and the start of depreciation on newer assets, indicating future changes.

Asked by Nidhi Shah

Transcon's revenue potential and certification timeline post-acquisition Direct
And we are hoping that the company will touch a top line of over INR1000 crores in the next two to two and a half years. ... So, by July 26, we're expecting the plant to be commissioned. It will take about six months post July '26 for us to get certifications in a progressive manner.

Provides specific revenue guidance for the acquired transformer business and a clear timeline for plant commissioning and necessary certifications.

Asked by Raman K.V.

Strategy for BESS project and backward integration into cell manufacturing Partial
It is a cell to pack and containerized solution assembly and the final solution kind of line that we give containerized solutions to our customers. As I said, that core manufacturing of cell is something we want to go slow on until we get clarity on ALMM kind of protection from government of India.

Highlights the company's cautious approach to full backward integration in BESS cell manufacturing, pending government policy clarity, indicating a potential delay in deeper investment.

Asked by Raman K.V.

Order book composition (DCR vs non-DCR) and its impact on revenue and margins Direct
Now, in this quarter from October to December, my non-DCR sales have gone up because my customer sites were ready. And my DCR sales had a slight dip because most of my customers had realizations to recover or to get from the projects they had supplied DCR modules into various programs. ... But there is no impact on margins because the DCR orders which we executed in this quarter were contracts which were signed much earlier and had higher margins.

Explains the variability in quarterly revenue due to the mix of DCR and non-DCR sales, clarifying that while revenue mix can fluctuate, margins are protected by earlier signed contracts.

Asked by Praveen Sahay

Gross margin trajectory and effectiveness of silver hedging policy Direct
we have a very strong hedging policy and we have almost six months of silver which is hedged. ... we are in advanced stages with our suppliers of silver paste who are almost ready with copper instead of silver, and we are expecting that to be coming up soon, maybe in the next few quarters.

Reassures on margin protection despite commodity price volatility through hedging and outlines a strategic shift towards copper paste to further mitigate silver price risk.

Asked by Nitin Arora

Demand-supply dynamics for the DCR market in FY27 and industry capacity commissioning Direct
So for F27, the demand for the DCR market is basically expected to come from the residential rooftop solar scheme, where we expect installations of about 10 gigawatt. KUSUM scheme, where on a conservative, we would estimate installations of about between 5 to 7 gigawatt. ... So across all these three markets, we would expect the demand to be about 30 gigawatts plus for the DCR market in F27.

Provides a detailed breakdown of expected DCR market demand drivers and quantifies the significant demand expected in FY27, supporting the company's expansion plans.

Asked by Kunal Shah

Aluminum frame market in India, including domestic production, imports, and anodizing capacity Direct
So, the challenge on the Aluminium Industry in India is that we've got enough aluminium manufacturing, but the challenge is on the anodizing side. And there is not enough anodizing facilities available in India for supplying aluminium frames. ... we expect in the next 18 to 24 months, India will be self-sufficient on anodizing to cater to the demand of the domestic industry.

Identifies a key bottleneck in the domestic solar supply chain (anodizing capacity) and outlines the company's and industry's plans to achieve self-sufficiency within 18-24 months.

Asked by Sabri

G12R vs M10 technology adoption and its implications for the industry Direct
So, we at Premier were the first ones. And as we speak today, there are only two companies in India which are manufacturing G12R cells, and that is Adani and us. We were, early movers to G12R. If you look at China, almost 80% to 90% of China market has moved to G12R. And making M10 is not economical today.

Highlights Premier's leadership in adopting advanced G12R technology, positioning it favorably against competitors and indicating the obsolescence of older M10 technology.

Asked by Prakhar

2 min read 6 chapters

Detailed narrative

Q3 FY26 Performance & Operational Highlights

Premier Energies reported another quarter of record revenue and profit numbers, with consistent utilization levels across its lines. The 1.2 GW G12R TOPCon cell line is currently operating at 80% utilization and is projected to reach full utilization by February 2026. The company is also focused on improving cell efficiency from 25.2% to 25.8% by the end of the year, leveraging the latest process technologies.

Capacity Expansion & Technology Roadmap

The company completed a brownfield expansion, adding 400 MW of cell and 350 MW of module capacity with relatively low capital expenditure. New capacity additions include a 5.6 GW module line set for completion in March 2026, a 4.8 GW cell line by June 2026, and a 2.2 GW cell line by September 2026. These expansions will bring total integrated cell capacity to 10.6 GW and module capacity to 11.1 GW, marking a significant growth inflection point. Construction has also commenced on a 10 GW ingot wafer line in Naidupeta, Andhra Pradesh.

Order Book & Market Demand Outlook

Premier Energies boasts a healthy order book totaling INR 13,723 crores, with 70-75% expected to be executed within the next 12 months, providing strong revenue visibility through FY28. The order book is split between approximately INR 6,800 crores for cells and INR 7,000 crores for modules. Management anticipates robust demand for the DCR market, projecting over 30 GW in FY27, and expects the total market demand (DCR + non-DCR) to reach over 50 GW by FY26 and 60-65 GW by FY28.

Strategic Acquisitions & Diversification

The acquisition of Transcon, a transformer manufacturer, was completed in December 2025, with INR 250 crores paid for the first tranche. Transcon's capacity is expected to increase to 16.75 GVA by July 2026, aiming for a top line exceeding INR 1000 crores within 2-2.5 years. The KSolare acquisition is also slated for closure in the next month. Additionally, the company is venturing into Battery Energy Storage Systems (BESS) with a 6 GWh per phase cell-to-pack and containerized solution line, involving a capex of INR 280 crores, with commissioning expected by December 2026 for aluminum frames.

Capital Expenditure Plans

Total capex for the current calendar year (CY26) is projected at INR 3,000 crores, covering new cell lines, remaining capex for Transcon and KSolare acquisitions, BESS, and aluminum products. The total expected capex for the 10 GW ingot wafer line is around INR 5,900 crores, with the first 5 GW phase anticipated to be completed by December 2026 and the second 5 GW phase by December 2028.

Cost Management & Industry Dynamics

The company acknowledges a volatile cost environment but manages risks through hedging, advanced planning, strong supplier relationships, and passing incremental costs to customers. Premier maintains a strong hedging policy for silver, covering almost six months, and is exploring copper-based alternatives for silver paste. Management believes concerns about industry overcapacity are overdone, citing financial discipline, execution timelines, and technical expertise as key differentiators, especially against newer, smaller players.

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