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Informist, Friday, May 15, 2026

 

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--Premier Energies: West Asia war may boost long-term demand for renewables
--CONTEXT: Premier Energies mgmt's comments in post-earnings analyst concall
--Premier Energies: Don't see cell prices changing in current environment
--Premier Energies: Looking to keep debt-to-EBITDA ratio at 1.5
--Premier Energies:To finalise JV partner for inverter business next few mos
--Premier Energies:Using operating leverage to shield margin from high costs
--Premier Energies: Raised raw material inventory due to West Asia situation
--Premier Energies: See cell prices rising in China
--Premier Energies: Have reinitiated JV discussions with US co for solar
 

 

By Rajesh Gajra and Shakshi Jain

 

MUMBAI/NEW DELHI – Premier Energies Ltd.'s management Friday dismissed analysts' concerns about a demand slowdown, strong competition, and costs and margin pressures, affecting the company adversely. In a post-earnings call with investors and analysts, a top official of the solar cells and solar modules manufacturer said the company's performance over the last year validated its overall business strategy, management competence, and execution. He said the company was "very positive" on the growth outlook for the sector, "given all the initiatives by the government."

 

The company also sees itself benefitting from the West Asia war. "The Middle East crisis is turning into a moment for renewables as all stakeholders look to rethink energy mix and reduce consumption of fossil fuels. We believe this is going to provide a major boost to long-term demand for the sector," a top official said.

 

Premier Energies is trying to capitalise "on the booming solar opportunity with our expanded module capacity of 11.1 GW, and cell capacity going up to 10.6 GW shortly," the official said. For 2026-27 (Apr-Mar), the company has a capital expenditure plan of INR 51 billion to be deployed across the manufacturing of cells, ingots, batteries and inverters, he said. Through this capital expenditure cycle, the company aims to maintain the debt-to-earnings before interest, tax, depreciation, and amortisation ratio at below 1.5 times.

 

To a question on solar cells realisation, the management said solar price has been "quite stable" currently and the company did not see "any change in pricing in the current environment." But, for non-domestic content requirement solar panels, the management said it has seen cell prices rising in China, by 80-90%. "But since it's a pass-through to the customers, (solar) module prices would go up in line with China prices," a top official said.

 

To a question on the expected margin trajectory for the company in the June quarter in the backdrop of rising copper prices, the management said some input costs were going up. But it was working behind the scenes to reduce the costs, and in the March quarter, it had increased the inventory of raw materials in response to the start of the war in West Asia, according to the management.

 

Premier Energies has reinitiated discussions on its potential joint venture in the US for setting up solar cell factories in the US, as per the management. The company is serious about its US solar cell plans, a top official said. The company was also committed to the inverter business and would finalise in the next few months a strategic partner for a joint venture or finalise through other strategic options, a top official said in response to a question.

 

The company announced its March quarter and FY26 earnings Friday. It reported a consolidated net profit of INR 4.57 billion for the March quarter, up over 64% on year. Its revenue from operations rose nearly 38% on year to INR 22.30 billion. On Friday, shares of Premier Energies closed 0.4% higher at INR 981.60 on the National Stock Exchange.  End

 

Edited by Avishek Dutta

 

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