Premier Energies Ltd
(BOM:544238)
₹
1,008
-7 (-0.69%)
Market Cap: 452.35 Bil
Enterprise Value: 463.74 Bil
PE Ratio: 27.13
PB Ratio: 10.58
GF Score: 45/100 
Q1 2027 Premier Energies Ltd Earnings Call Transcript
Aug 07, 2026 / 04:30AM GMT
Release Date Price:
₹1046
(+0.10%)
Key Points
Positve
- Record quarterly revenue and profit growth, with total revenue up 34% YoY to INR2,508 crores and PAT up 53% to INR472 crores.
- Strong order book of INR15,000 crores, including transformers, with new orders worth INR3,011 crores for cells and modules.
- Operational excellence demonstrated by record capacity utilization of 92% at Telangana cell plants.
- New 5.6 GW fully automated module plant at Chitrakoot is operational, and the 7 GW TOPCon cell line is in advanced commissioning stages, expected to start trial runs soon.
- Positive demand outlook driven by strong solar capacity additions, PM-Suryodaya Yojana, and PM-KUSUM schemes, with expectations of significant growth in DCR module demand.
- Transformer business (Transcon) performing well with healthy margins, and capacity expansion from 4 GVA to 16.25 GVA expected to treble revenue over three years.
- Backward integration into ingot-wafer and cell manufacturing, along with scale, is expected to protect industry-leading margins.
- Strategic moves into BESS and U.S. cell manufacturing JV, with plans to expand into European markets.
- Management confident in maintaining EBITDA margins of 29-30% plus/minus 100-150 bps, supported by operating leverage and cost optimization.
- Strong talent retention with 'Great Place to Work' certification and successful ESOP scheme, mitigating industry-wide attrition challenges.
Negative
- Non-DCR module business is currently unprofitable due to oversupply, with margins nearly vanished at the module manufacturing end.
- High capital expenditure of INR1,500 crores in the quarter, with significant ongoing investments in new capacities, leading to increased depreciation and finance costs.
- Employee and other expenses increased significantly (70% and 50% respectively) due to advanced hiring and operational costs for new plants, impacting near-term profitability.
- DCR cell supply is constrained, and the company is sold out for FY2027, limiting near-term revenue growth from DCR modules.
- Uncertainty in policy environment, such as ALMM extensions and BESS guidelines, creates market volatility and requires cautious planning.
- New cell line ramp-up will take time, with first revenue expected in September and 50-60% utilization only by November, delaying full contribution.
- Industry consolidation is inevitable, with smaller players shutting down, which could lead to pricing pressure and market disruption.
- The company has no concrete plan for primary capital raise, but enabling resolutions for potential dilution may concern investors.
- Grid constraints and curtailment risks in solar generation could impact demand, though mitigated by storage and distributed solar growth.
- Margin pressure in non-DCR segment and potential softening in cell prices due to oversupply could affect overall profitability.
Operator
Ladies and gentlemen, good day. Welcome to Premier Energies Limited Q1 FY 2027 earnings call. (Operator Instructions) I now hand the conference over to Mr. Mohit Kumar. Thank you, and over to you, sir.
Mohit Kumar
ICICI Securities Ltd - Analyst
Thank you, Atharva. Good morning. On behalf of ICICI Securities, I welcome you all to the Q1 FY 2027 earnings call of Premier Energies Limited. Today, we have with us from the management, Mr. Chiranjeev Singh Saluja, Managing Director, Mr. Nand Kishore Khandelwal, Chief Financial Officer, and Mr. Vinay Rustagi, Chief Business Officer. Weâll begin with the opening remarks from the management, which will be followed by Q&A. Thank you, and over to you, sir.
Chiranjeev Singh Saluja
Premier Energies Limited - Managing Director
Thank you, Mohit. Am I audible?
Operator
Yes, sir. You may go ahead.
Chiranjeev Singh Saluja
Premier Energies Limited - Managing Director
All right. Good morning,
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