Premier Energies FY26: Scale, Margins, and a Heavy Capex Runway

Premier Energies closed FY26 with record revenue and profits, backed by strong manufacturing volumes and a rising domestic order book. For FY26, the company reported total income of INR 8,026 crore, up 20.7% year on year. EBITDA was INR 2,579 crore, up 34.7%, with a 32.1% margin. PAT rose 61.1% to INR 1,510 crore, translating to an 18.8% PAT margin.

The March quarter continued the same trend. Q4 FY26 total income was INR 2,269 crore, up 15.4% quarter on quarter, with EBITDA of INR 713 crore and PAT of INR 457 crore. PAT margin in the quarter was 20.1%. Management highlighted that these numbers were delivered despite a challenging cost environment, including higher commodity and freight costs.

Operations: volumes stayed strong, but mix moved

In FY26, Premier Energies produced 3,570 MW of modules and 2,268 MW of cells. In Q4 FY26, module production was 918 MW and cell production 722 MW. Effective utilisation in Q4 FY26 was disclosed at 84% for cells and 73% for modules.

The presentation also showed quarterly revenue mix by business for Q4 FY26: modules contributed 86%, cells 12%, and others 2%. Geography-wise, Q4 FY26 revenue was 100% domestic.

Financial snapshot

Capacity build-out: module ramp-up and cell expansion drive FY27 focus

The company commissioned a 5.6 GW module manufacturing facility, taking total module capacity to 11.1 GW. Management described the new plant as highly automated with AI-enabled defect detection and said it is expected to achieve full ramp-up in the next two months from the May 15, 2026 earnings call.

The next near-term lever is the 7 GW cell plant at Naidupeta, Andhra Pradesh. The company disclosed phased commissioning timelines: 4.8 GW by June 2026 and 2.2 GW by September 2026. Management also stated that stabilising new lines typically takes four to six months.

Beyond cells, Premier Energies is moving upstream. The company is developing a 10 GW ingot-wafer plant at Naidupeta, with a target of 5 GW by December 2027 and 5 GW by December 2028. This aligns with its view that policy is pushing solar manufacturing upstream, and that scale and balance sheet strength could drive consolidation.

Order book visibility: largely FY27 execution

As of March 31, 2026, Premier Energies disclosed an order book of INR 14,010 crore (INR 140.1 billion) corresponding to 9,383 MW. The order book was entirely domestic and was split by value as 58% cells and 42% modules, with EPC shown as 0%.

In the earnings call, management indicated that most of this order book is expected to be executed in FY27, more than two-thirds, though it did not provide a precise revenue guidance.

New engines: allied products and Transcon

The company’s Mission 2028 positioning is built around a portfolio beyond cells and modules, including solar inverters, BESS solutions, and transformers. The presentation states that allied products are expected to contribute about 25% of group revenues, but this is framed as an expectation rather than a current mix.

On manufacturing initiatives, the company disclosed:

• BESS containers: first phase of 6 GWh by March 2027, with land acquired and civil work started
• Aluminium frames: 18,000 MTPA by March 2027, with land acquired, civil work started, and equipment orders placed
• Inverters: 3 GW by December 2026, with technology partner tie-up in progress

Management also discussed its pacing strategy on BESS. It pointed out that localisation requirements are likely to become meaningful only around FY28, while near-term demand is still largely met by imports.

Transformers are the most visible allied business today due to Transcon. Premier Energies completed the 51% acquisition of Transcon after the FY26 year-end. In the presentation, Transcon’s FY26 unaudited performance was shown as revenue of INR 423 crore, EBITDA of INR 81 crore, and PAT of INR 45 crore. Transcon’s order book was disclosed at INR 231 crore with 22% exports.

The company also highlighted that Transcon’s new Neotrafo plant, with 10 GVA capacity for HV and EHV transformers up to 400 kV, is expected to achieve COD in July 2026.

Balance sheet and capital allocation signals

The capex cycle is visible in the cash flow. FY26 operating cash inflow was INR 1,261 crore, while investing cash outflow was INR 2,156 crore.

Net debt rose over the year, and the presentation showed net debt of INR 1,046 crore at Q4 FY26. Management linked this to the expansion program and reiterated that debt will rise as capex scales.

On leverage guardrails, management stated it aims to maintain its A+ credit rating and keep debt-to-equity around 1 and debt-to-EBITDA at about 1.5 or below during the capex cycle.

The board also approved an enabling resolution to raise up to INR 5,000 crore through permissible routes including QIP. Management clarified there was no immediate plan to raise funds and described it as an enabling approval.

Takeaways

Premier Energies’ FY26 results underline a rare combination: strong growth, high margins, and a large domestic order book. The next phase is execution heavy. The company has laid out clear commissioning timelines for the cell expansion and is adding significant module capacity. At the same time, it is building upstream integration and allied products, while absorbing higher working capital and rising net debt.

For investors tracking the story into FY27, the focus will likely remain on three things: how quickly new module and cell capacities ramp, how order book converts into revenue, and how leverage behaves through a capex-intensive period.