Premier Energies Q1 FY27: Growth holds firm as new capacity ramps up

Premier Energies opened FY27 with another strong quarter, backed by scale-up in solar manufacturing and the addition of transformers through Transcon. On a consolidated basis, total income for Q1 FY27 was INR 2,507.6 crore, up 34.1% year on year. EBITDA was INR 759.4 crore, up 27.2%, while PAT rose 53.3% to INR 471.9 crore. Profitability stayed healthy, with EBITDA margin at 30.3% and PAT margin at 18.8%.

The headline performance was supported by high utilisation in cells and a steady order inflow environment. The company reported Q1 production of 844 MW of cells and 953 MW of modules, along with 570 MVA of transformers.

Segment picture: solar remains dominant, transformers add a profitable second leg

The segmental P&L for Q1 FY27 shows that solar cells and modules continue to drive nearly all of the group’s revenue. Revenue from operations in solar (cells and modules combined) was INR 2,356.1 crore, while transformers contributed INR 106.5 crore. The transformer business also delivered solid profitability for the quarter, aided by Transcon’s contribution.

A key point from management commentary is the market bifurcation between DCR and non-DCR modules. While DCR demand remains strong and management said the company is effectively sold out into FY28, the non-DCR market is oversupplied and described as not profitable at present. After the government’s temporary relaxation under ALMM-II until December 2026 for certain categories, the company saw a surge in non-DCR orders, which helped fill near-term module capacity.

Capacity expansion: the real driver for the next few quarters

Execution on new capacity is central to the company’s FY27 trajectory. The 5.6 GW Seetharampur module plant is operational and was showcased as a fully automated facility. On the cell side, the 7 GW TOPCon line at Naidupeta is in advanced commissioning. The company stated that trial runs are expected later in August 2026, with first revenue targeted from September 2026, and ramp-up to 50% to 60% utilisation by November. Management also indicated a target of at least about 70% utilisation by the March quarter.

In parallel, the group continues to build out upstream and allied manufacturing. The investor presentation lists capacities under construction of 10 GW ingot-wafers, 18,000 MT of aluminium frames, and 12 GWh of BESS containers. These projects are aligned with the company’s stated Mission 2028, which aims to build a vertically integrated 10 GW+ chain from ingots to modules and develop allied products such as BESS solutions, inverters, and transformers.

Order book and operating indicators: strong visibility, with timing differences across products

As of 30 June 2026, the company reported an order book of 9,867 MW valued at INR 150 billion, with 100% of the orders from domestic customers. By value, the order book was split into cells (58%), modules (40%), transformers (2%), and EPC (0%). Management clarified that cell orders are often spread across FY28 and FY29, while module deliveries are skewed to nearer timeframes.

Operating metrics show steady execution. Cell utilisation improved to 92% in Q1 FY27, while module utilisation was reported at 63%, with a note that the metric excludes the newly commissioned Seetharampur plant.

On capital allocation, management stated total capex in Q1 was about INR 1,500 crore, with the bulk in solar projects (Seetharampur and Naidupeta) and around INR 250 crore in Transcon.

Balance sheet and cost structure: expansion phase shows up in net debt and expenses

The quarter also reflected the cost of scale-up. Net debt rose to INR 1,641.7 crore in Q1 FY27, up from INR 1,046.4 crore in Q4 FY26. Management attributed rising employee costs and other expenses to advanced hiring and operational build-up for commissioning and ramp-up of new capacity, including Seetharampur.

The company also addressed questions on enabling resolutions and capital raising, stating that there is no concrete plan to raise primary capital in the near future.

Takeaways

Premier Energies’ Q1 FY27 performance reinforces its position as a scaled domestic player in DCR-linked solar manufacturing, with margins holding up despite policy noise and a weak non-DCR environment. The next leg depends on how quickly the Naidupeta 7 GW TOPCon cell line stabilises and ramps, and how effectively the group executes its vertical integration roadmap. With a large domestic order book and incremental contribution from transformers, the company enters the rest of FY27 with strong visibility, while balance sheet leverage and non-DCR pricing remain the key areas to track.