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Informist, Monday, Jul. 28, 2025

By Gopika Balasubramanium

MUMBAI – Demand for domestic content requirement modules is expected to rise significantly in early 2027 when the entire market will shift to using such modules, Premier Energies Ltd.'s management said in a post-earnings conference call with sectoral analysts. This shift in the market is likely to be reflected in the company's sales mix, the management said. "...early 2027, the entire market, which is about 40-45 gigawatts, will shift towards DCR (domestic content requirement)," the solar power company said. "And our sales mix will basically largely reflect the changing mix of the market."

The demand for such modules is currently at 15 gigawatts per annum, the company said. This is mainly due to the boost given by the government through the introduction of an approved list of models and manufacturers. Only manufacturers and their products included in the approved list of models and manufacturers can be used in government-funded, government-assisted, and open-access solar power projects in India.

The company said the current demand for its domestic content requirement modules is mainly through government schemes such as PM Surya Ghar Muft Bijli Yojana, PM Kusum Scheme, and Central Public Sector Undertaking Scheme – Phase II. "But from early next year, we will see the open access demand coming through because projects commissioned by June 2026 will have to procure cells and modules made in India," the company said. "And so thereon, early 2026 onward, we expect the demand run rate to increase to about 25 gigawatts."

As for the pricing of the modules, the company said it is "fairly constant". Premier Energies sees a slight increase in prices of non-domestic content requirement cells due to a rise in prices in China. The prices of such solar cells have risen 30% in China in the past few weeks. However, the rise in prices will not affect its orders with customers, the company said. This is because contracts from the company are generally passed at variable prices. "So prices in the market are fairly stable, and our order book is going into almost 12-15 months, for which our contracts are signed, so we don't see any significant change in prices."

The management also said it had signed "significantly large orders" after Jun. 30. "We have a very strong pipeline going into FY27," the company said but declined to comment on the quantum of orders. "The number is fairly large, but we generally refrain from giving numbers as future guidance," Premier Energies said.

The company aims to establish a 6 gigawatt-hour cell-pack and container solutions for the battery energy storage system which it expects to commission by June. It said it has just hired an experienced team for further operations and is in the process of identifying technology partners and vendors. "We are talking to various technology suppliers on the cell side, that is the battery cell which we are going to import from China," the company said. "So, we have not concluded on the technology partner as we speak today (Monday)."

The company also said these products are not expected to come out for another 8–9 months. "So, given that our first product is not expected to come out for another 8-9 months, we would expect order conversion somewhere towards the end of the year," the company said.

The company said it does not see much potential for exports to the US due to macroeconomic uncertainties, especially the delay in the outcome of trade negotiations between New Delhi and Washington. There is no clarity on opportunities in the US market as the Donald Trump administration is still proposing levies, including duties, on countries buying Russian crude oil.

Meanwhile, Premier Energies plans to foray into new businesses such as batteries, inverters, and even the manufacture of ancillary products such as aluminium frames. So while the module business will continue to grow, "there will be additional revenue streams coming from all these new businesses", it said.

Saturday, Premier Energies had reported a consolidated net profit of INR 3.08 billion for the June quarter on a revenue of INR 18.21 billion. As of Jun. 30, its order book was INR 86.03 billion. Monday, shares of the company closed 3.3% lower at INR 1,053.40 on the National Stock Exchange.  End 

Edited by Akul Nishant Akhoury and Rajeev Pai

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