Analyst Concall
Premier Energies to protect margins, pass on cost increases
This story was originally published at 13:58 IST on 23 January 2026
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--Premier Energies:Completed brownfield expansion of 400 MW solar cell unit
--CONTEXT: Premier Energies' mgmt comments at post-earnings analyst concall
--Premier Energies: Will see consistent depreciation trend going forward
--Premier Energies: Saw an increase in depreciation in last 3 quarters
--Premier Energies: See revenue of INR 10 bln in 2-2.5 yrs from transformers
--Premier Energies: Got 9.4 GW of cells, modules' orders deliverable by FY28
--Premier Energies: Will incur capex of INR 30 bln in 2026
--Premier Energies: Have hedged rise in silver prices up to 6 months
--Premier Energies: Working on reduction in consumption of silver
--Premier Energies:See minimal impact of high commodity rate on profitability
--Premier Energies:Will protect our margins, pass on higher cost to customers
By Ashutosh Pati and Prateem Rohanekar
MUMBAI – With the significant rise in prices of silver in the last few months, Premier Energies Ltd. aims to protect its margins and will pass on the increase in cost to its customers for new orders, the company's management said in a post-earnings conference call with analysts on Friday. The company has already reduced the consumption of the metal in producing cells and modules, and hedge whenever required, they said.
The company's management is confident that it will be able to compensate for any cost increases without increasing scale and operating efficiencies. "...we are trying to maintain our margins and pass on the cost of increase, any increases in cost to our customers for new orders wherever possible, and the intent is to maintain the profitability and overall margins," the management said.
The company has reduced its consumption of silver by 68% in five years and aims to bring it down by another 30% by 2030. It has also hedged the rise in silver prices for up to six months, the management said. Premier Energies expects the rise in prices of commodities such as silver and aluminium to have minimal impact on its profitability. "...we expect a very minimal, if any, impact on profitability because of increases in any of these (raw) material costs," the management said.
Premier Energies will incur a capital expenditure of INR 30 billion in 2026. Answering a question on the progress in capacity addition of aluminium frames, the company's management said land has already been acquired for the project and the order for equipments placed. This project will incur a capex of INR 2.6 billion and will be commissioned by December, they said.
The company's 5.6 gigawatts module manufacturing plant at Seetharampur in Telangana is expected to be completed by March. Its 7 gigawatt cell manufacturing plant at Naidupeta in Andhra Pradesh is expected to be completed in two tranches--4.8 gigawatts by June and remaining 2.2 gigawatt by September. Premier Energies has incurred a capex of INR 7.5 billion for these projects, the management said. It has also completed brownfield expansion of a 400 megawatt solar photovoltaic cell manufacturing facility at its E-city plant in Maheshwaram, Telangana.
The usual manufacturing and order turnaround time for transformers is around 4-5 months but this is going to increase as the company is venturing into large high value transformers from low voltage and inverter duty transformers, the management said. They expect the top line to grow to around INR 10 billion from this segment the next 2.0-2.5 years.
Premier Energies has received orders worth INR 137.23 billion for 9.4 gigawatts of solar cells and modules to be delivered by FY28. This includes around INR 68 billion for cells and INR 70 billion for modules, the management said. The company's depreciation expenses have risen in the last three quarters but it expects these to be more consistent in the coming months. "...we did see an increase in depreciation over the last three quarters because of accelerated depreciation on our old selling module lines, now that came to an end in the last quarter," the management said. The company's depreciation and amortisation expenses for the nine months ended December rose over 16% on year to INR 3.73 billion.
It reported a net profit of INR 3.92 billion in the December quarter on revenues of INR 19.36 billion. Its net profit topped the Street's expectations but its revenue missed. The company's consolidated net profit rose over 53% on year while its revenue grew around 13% on year. At 1337 IST, shares of the company were 4.6% lower at INR 705.5 on the National Stock Exchange. It had declared its December quarter results post market hours on Thursday. End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Akul Nishant Akhoury
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