Premier Energies

Premier Energies reported a record Q4 FY26, with total revenue increasing by 20.7% year-on-year to INR 8,026 crores. Net profit saw a significant jump of 61.1% year-on-year, reaching INR 1,510 crores. Despite challenging market conditions and rising commodity prices, the company maintained strong profitability, with an operational EBITDA margin of 30.4% and a PAT margin of 18.8%. This resilience is attributed to high capacity utilization, strategic DCR product mix, and ongoing efficiency improvements.

The company completed construction of its 5.6 gigawatt module plant in Sitarampur, Telangana, expected to achieve full ramp-up within the next two months. This expansion contributes to a total module capacity of 11.1 gigawatts and a cell capacity of 10.6 gigawatts, positioning Premier Energies as a leading integrated manufacturer. The TOPCon cell line, commissioned in June 2025, has stabilized and is now operating at over 90% utilization, contributing to efficient production.

Premier Energies' growth order book expanded by 66% year-on-year, reaching INR 14,010 crores, providing strong revenue visibility for FY27 and beyond. New installations in FY26 grew by 87% over FY25 to almost 45 gigawatts, with estimated total module demand nearing 60 gigawatts. Management anticipates a surge in DCR order intake, particularly from the C&I segment, as ALMM-2 regulations become applicable from June 1, shifting a significant portion of the market towards domestic cells.

The company has outlined a substantial capex plan of INR 5,100 crores for FY27, to be deployed across cells, ingot wafers, batteries, and inverters, aiming to increase total capacity to 16.75 GVA by July 2026. This aggressive expansion led to a net debt increase of approximately INR 660 crores. However, management is committed to maintaining an A+ credit rating and targets a debt-to-equity ratio of about 1 and a debt-to-EBITDA ratio of 1.5 or below, funding capex through a mix of internal accruals and debt.

Premier Energies launched new products, including Zero Busbar cells and All-Black modules, demonstrating strong technical expertise and market acceptance. The Zero Busbar technology contributes to a 10% reduction in silver consumption, a key cost-saving measure. The company is also exploring longer-term initiatives like replacing silver with copper or aluminium within 1.5-2 years. These innovations, combined with operating leverage from increased scale and procurement efficiencies, are crucial for sustaining margins amidst commodity price fluctuations.

The company is actively pursuing opportunities in the Battery Energy Storage Systems (BESS) segment, with the acquisition of a 51% stake in Transcon now complete. Transcon reported annual revenue of INR 423 crores and PAT of INR 45 crores, with strong margin improvements. Management expects a localization policy for BESS from the government within the next 3-4 months, which would significantly boost domestic manufacturing. The Transcon plant is due for completion in July 2026, with full ramp-up and certification expected within two years.

Premier Energies sees strong export potential in Europe and the US, particularly for solar cells and inverters, with Europe's demand estimated at 80 gigawatts per annum. The company is re-initiating discussions for its US solar cell manufacturing plans. In terms of cell technology, the TOPCon line is expected to reach 25.8% efficiency in a couple more quarters, while further advancements beyond 26.1% will require new innovations like tandem cell technology, anticipated 2-3 years away for mass production.