PREMIERENE - Premier Energies

📊 NSE: PREMIERENE 🏢 Electric Equipment 📅 Last Updated: 12/14/2025 11:14

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue grew 107.35% YoY to INR 6,518.7 Cr in FY25. In Q2 FY26, the Cell segment contributed 24% of revenue, Modules 72%, and Others 5%. Standalone turnover for FY25 was INR 989.06 Cr, a slight decrease from INR 1,050.25 Cr in FY24.

Geographic Revenue Split

In Q2 FY26, Domestic sales accounted for 99% of revenue, while Exports contributed 1%. This reflects a shift from FY24 where exports were higher (9% in Q2 FY25). The company has a presence across 23 Indian states.

Profitability Margins

PAT margin for FY25 stood at 14.38%. Q2 FY26 PAT margin was 18.40%, up from 13.26% YoY. Gross margins saw a marginal increase in Q2 FY26 due to a higher proportion of cell sales and fixed cost operating leverage.

EBITDA Margin

EBITDA margin improved significantly to 29.3% in FY25 from 16.1% in FY24. Operational EBITDA margin in Q2 FY26 was 30.53%, representing a 47.39% YoY growth in absolute EBITDA value to INR 560.87 Cr.

Capital Expenditure

The company raised INR 1,239 Cr through an IPO in 2024 to support ongoing capex. Planned expansion includes increasing cell capacity to >7 GW and module capacity to >9 GW by FY27, along with 5 GW of wafer/ingot facilities.

Credit Rating & Borrowing

CRISIL assigned a Long Term Bank Facility rating of CRISIL A+ with a Positive outlook. Finance costs for FY25 were INR 177.44 Cr, up from INR 121.17 Cr YoY due to increased scale.

⚙️ Operational Drivers

Raw Materials

Solar wafers, silver paste, solar glass, and aluminum frames. Wafers represent a critical input cost and are currently a major import dependency.

Import Sources

Raw materials and machinery are primarily imported, though the company maintains a well-diversified supplier mix to avoid reliance on any single region.

Key Suppliers

Not specifically named in the documents, but described as a well-diversified mix of international and domestic vendors.

Capacity Expansion

Current installed capacity is 2 GW for cells and 4.1 GW for modules. Planned expansion to >7 GW cell and >9 GW module by FY27, plus 5 GW of backward-integrated wafer and ingot facilities.

Raw Material Costs

Cost of materials consumed in Q2 FY26 was INR 1,270.6 Cr, representing 69.1% of revenue. The company uses variable contracts with pass-through clauses to mitigate wafer pricing volatility.

Manufacturing Efficiency

Effective average utilization rates in FY24 were 81% for cells and 60% for modules, significantly improved from 41% and 43% respectively in FY23.

Logistics & Distribution

Not specifically disclosed as a percentage of revenue.

📈 Strategic Growth

Expected Growth Rate

20-25%

Growth Strategy

Growth will be achieved through massive capacity expansion (7GW cell/9GW module), backward integration into wafers/ingots to secure supply and margins, and diversification into high-margin ancillary products like solar inverters, BESS, and aluminum frames (36,000 MTPA).

Products & Services

Solar cells, solar modules (DCR and non-DCR), EPC project services, solar inverters, and Battery Energy Storage Systems (BESS).

Brand Portfolio

Premier Energies.

New Products/Services

Solar inverters and BESS are expected to have structurally lower margins similar to module assembly but contribute to overall revenue scale. Aluminum frames (36,000 MTPA) will support internal requirements and external sales.

Market Expansion

Targeting expansion in both domestic (currently 99% of Q2 FY26 revenue) and international markets, leveraging 30 years of manufacturing experience.

Market Share & Ranking

One of the largest integrated solar cell and module manufacturers in India.

Strategic Alliances

The company has incorporated new subsidiaries to enhance control over the solar value chain and build a portfolio of complementary products.

🌍 External Factors

Industry Trends

The industry is shifting toward higher cell-level integration and larger, specialized products like transformers where leading players achieve 20-25% EBITDA margins.

Competitive Landscape

Faces intense competition from both large-scale domestic manufacturers and imported modules.

Competitive Moat

Moat is built on 30 years of experience, integrated manufacturing (cell + module), and high entry barriers due to capital intensity and technological requirements.

Macro Economic Sensitivity

Highly sensitive to government renewable energy policies and fiscal incentives; GDP growth drives overall energy demand.

Consumer Behavior

Increasing shift toward sustainable energy solutions and government-mandated domestic content is driving demand for PEL's products.

Geopolitical Risks

Susceptible to trade barriers and regulatory changes affecting the competitiveness of domestic manufacturers against international (primarily Chinese) players.

⚖️ Regulatory & Governance

Industry Regulations

Operations are heavily influenced by the Approved List of Models and Manufacturers (ALMM) and Domestic Content Requirement (DCR) policies which protect domestic manufacturers.