Premier Energies: Powering Ahead with Record Q2 FY26 Performance and Strategic Expansion

Premier Energies Limited, a prominent player in India's renewable energy sector, has reported a stellar performance for the second quarter and first half of the financial year 2026. The company achieved record revenue and profit numbers, underscoring its robust operational capabilities and strategic foresight in a rapidly expanding market. Total revenue from operations for Q2 FY26 stood at INR 1,836.87 crore, marking a significant 20.28% year-on-year growth. Operational EBITDA surged by 47.39% year-on-year to INR 560.88 crore, with the margin improving to 30.53%. Profit After Tax (PAT) witnessed an impressive 71.62% year-on-year increase, reaching INR 353.44 crore, reflecting a PAT margin of 18.40%.

This strong financial showing is largely attributed to the successful ramp-up of new cell and module lines commissioned in Q1 FY26. The 1.2 gigawatt TOPCon cell line, which began trial runs in August, is expected to reach full utilization by December 2025. The company's strategic focus on high-efficiency products and backward integration continues to yield positive results, despite some temporary headwinds.

Strategic Expansion and Diversification

Premier Energies is not just resting on its laurels; it is actively pursuing an ambitious expansion and diversification strategy. A key highlight is the scaling up of its TOPCon cell project in Naidupeta, Andhra Pradesh, from 4.8 gigawatts to 7 gigawatts. This expansion, funded entirely through internal accruals at a nominal cost, leverages existing design efficiencies and accelerates the company's Mission 2028 target by 18 months. The goal is to achieve a total cell line capacity of 10.6 gigawatts by September 2026, aligning closely with its module capacity.

Further strengthening its vertical integration, the company is planning to expand its ingot-wafer manufacturing plant in Naidupeta from 2 gigawatts to 5 gigawatts, with a target completion by December 2027. This move is critical for self-sufficiency and aligns with the government's ALMM-III draft guidelines, promoting domestic manufacturing.

In a significant step towards diversification, Premier Energies has made two strategic acquisitions. The first is KSolare, a leading Indian inverter manufacturer, through a 51:49 joint venture with Syrma SGS. This acquisition provides an entry into the residential inverter market, enabling bundled product offerings with modules and aiming for INR 1,500 crore in revenues at 1 million inverters capacity by June 2026. The second acquisition is Transcon, a transformer manufacturing company, which will see its production capacity increase from 2.5 GVA to 16.75 GVA by April 2026. These allied businesses, including the upcoming BESS manufacturing plant in Pune (targeting 6 GWh capacity by June 2026), are expected to contribute approximately 30% of the group's total revenue over time.

Market Dynamics and Outlook

The Indian solar market continues to present robust growth opportunities, driven by strong government policy support. Initiatives like the PM Surya Ghar Muft Bijli Yojana, PM Kusum Scheme, and various ALMM policies create clear demand visibility for domestically manufactured solar cells and modules. The company anticipates strong demand growth for ALMM-2 compliant DCR modules from the rooftop solar and C&I segments starting early next year.

Despite the positive outlook, management acknowledged some challenges during the quarter, including a slower revenue ramp-up due to customer site readiness issues caused by unprecedented rains and postponed shipments due to GST rate reductions. An incremental inventory build-up of INR 300 crore was also noted. However, management clarified that sales realizations marginally increased quarter-on-quarter, and the DCR portal data can be misleading due to inter-company sales. The company's healthy cash flows are expected to fund most of its capex, with a long-term goal of becoming debt-free.

Concluding Thoughts: A Future-Ready Enterprise

Premier Energies is positioning itself as a future-ready enterprise, capitalizing on India's clean energy transition. The company's strategic focus on scale, vertical integration, and adoption of the latest technologies, coupled with its diversification into complementary products, underscores its commitment to sustained growth. With a strong order book, expanding capacities, and a clear vision for FY27 as an inflection point, Premier Energies is well-poised to continue its upward trajectory, contributing significantly to India's renewable energy landscape.