Premier Energies Set for Upswing, Targeted at Rs 1071: Prabhudas Lilladher Research

Premier Energies Sees Strong Growth in Module Revenue Amid Decline in Cell Revenue

Premier Energies (PREMIERE) has reported a significant 69.1% growth in module revenue, despite a 31.2% decline in cell revenue. The company's overall performance remains supported by its healthy execution, stable margins, and robust domestic solar demand. A key development for the company is the commissioning of its 5.6GW module facility at Sitarampur, which has taken the total module capacity to 11.1GW. Premier Energies is expected to achieve full ramp-up of this facility over the next two months.

The company's ongoing 7GW cell expansion at Naidupeta is also on track, with a target of 4.8GW to be achieved by June 2026 and the remaining 2.2GW by September 2026. In a separate development, Premier Energies has commenced the development of its 10GW ingot-wafer facility at Naidupeta, with Phase 1 of 5GW targeted by December 2027 and Phase 2 of another 5GW by December 2028.

Management Aims to Strengthen Backward Integration

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The company's management has indicated that it continues to evaluate export opportunities in the US and Europe, supported by favorable policy developments and an increasing focus on non-China supply chains. Premier Energies has also re-initiated discussions for its proposed US solar cell manufacturing joint venture. The company expects domestic solar demand momentum to remain strong, driven by initiatives such as PM Surya Ghar, KUSUM, C&I rooftop/open-access projects, and utility-scale installations.

Outlook and Recommendations

We estimate that Premier Energies' revenue, EBITDA, and PAT will grow at a compound annual growth rate (CAGR) of 45.6%, 33.5%, and 19.9%, respectively, over the period of FY26-28E. We have tweaked our earnings estimates for FY27E and FY28E and have upgraded our rating to 'Accumulate' from 'Hold'. Our revised target price is Rs1,071 (earlier Rs905), based on a 12x Mar'28E enterprise value to earnings before interest, taxes, depreciation, and amortization (EV/EBITDA) multiple (earlier 10x). This revised target price implies a price-to-earnings ratio of 21x FY28E.

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Note: The table above compares the estimated compound annual growth rate (CAGR) of Premier Energies' revenue, EBITDA, and PAT over the period of FY26-28E.