Analyst Concall
Premier Energies sees domestic content solar demand up Q3, Q4
This story was originally published at 14:01 IST on 7 August 2026
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--Premier Energies: Trail run at 7GW cell unit in Andhra Pradesh to start Aug
--CONTEXT: Premier Energies mgmt comments in post-earnings analyst concall
--Premier Energies: No concrete plan to raise capital in near future
--Premier Energies: See 6-8 GW capacity add under PM-Kusum scheme over 9 mos
--Premier Energies: Incurred capex of INR 15 bln in Apr-Jun
--Premier Energies: Order booking in Apr-Jun was mostly for solar modules
--Premier Energies: Will be able to protect co's margins going ahead
--Premier Energies: Will maintain margins around 29-30%
--Premier Energies: Target 70% utilisation from new 7GW cell unit by Jan-Mar
--Premier Energies: Current module orders are for FY27, cell orders till FY29
--Premier Energies:See depreciation cost INR 2.4 bln-INR 2.5 bln Q3, Q4 each
--Premier Energies: To set up cell mfg unit in US, see output in 24-30 mos
--Premier Energies: Will execute 40-45% of current order book in FY28
By Ashutosh Pati and Ruchira Kagita
MUMBAI – Premier Energies Ltd. continues to see good demand for domestic content requirement solar projects and expects a surge in demand in December and March quarters as a couple of government schemes are getting over in March while there are talks of more coming. Most of the company's domestic content requirement orders for 2026-27 (Apr-Mar) are booked and it is currently selling only for FY28, it said Friday in the post-earnings conference call with analysts and investors. Government schemes such as the PM-KUSUM and PM-Surya Ghar will be over in March and there is chatter of PM KUSUM 2.0 and PM Surya Ghar 2.0 coming, a top official said.
Domestic content requirement solar products are entirely manufactured in India with strict local sourcing compliances. Realisations for both domestic content requirement solar modules and cells were stable for the June quarter. The company does not expect much change in realisations in the coming quarters. The company expects 6-8 gigawatts, or possibly higher, of installed capactity addition under the PM-KUSUM scheme in the next nine months.
However, there was "some softening" in non-domestic content requirement products due to a fall in prices amid oversupply in the market. "...most of the order book is already in place, particularly for DCR (domestic content requirement) modules as well as for cells. And those are all booked at the current prices. There is no change (in realisation) that we see, I would say, even over the next 12 to 15 months kind of trajectory," a top official said.
The company has made significant progress on its 7 gigawatts solar cell manufacturing facility at Naidupeta, Andhra Pradesh. Machinery installation is underway and trial runs are expected to begin towards the end of August, it said. The company is aiming for 70% utilisation from this unit by the March quarter. This cell line will also help to protect the margins of the company as it is "going to get us a lot of operational leverage," the official said.
The recent acquisition of Transcon Ind Ltd. is also expected to support margins. Premier Energies remains confident in maintaining margin at 29-30% in the coming quarters. The company's consolidated operating earnings before interest, tax, depreciation, and amortisation rose over 30% on year to INR 7.14 billion in the June quarter. However, its operating EBITDA margin fell to 29.0% for the June quarter from 30.1% a year ago.
Premier Energies is finalising the location to set up a solar cell manufacturing unit in the US and expects production to start there in 24-30 months. "...we have been a little slow and cautious looking at the regime there. But we have concrete plans to set up cell manufacturing in the US," the official said.
The company expects its depreciation expenses to rise in the coming quarters, and sees this at INR 2.4 billion-INR 2.5 billion each in the December and March quarters. The rise is mainly because of the recently inaugurated 5.6 GW module manufacturing facility at Sitarampur, Telangana, and the new cell unit in Andhra Pradesh. "So, I would expect a small increase in depreciation in the next quarter and then full effect coming in through Q3 and Q4," the official said.
ORDER BOOK
Premier Energies' expects to execute around 40-45% of its current order book of INR 150 billion in FY28. Most of its solar module orders are for delivery in FY27 while solar cell orders go up to FY29. For the June quarter, most of its orders were for solar modules. "...we will decide depending on the mix of orders that are coming our way as to how much sales should be sold in the external market. We still have a pretty good pipeline of orders for cell sales over the next 18 months," the official said. He expects the share of domestic content requirement orders to steadily rise over the next 18 to 24 months.
The company also saw a sudden influx of large orders for non-domestic content requirement solar modules during the June quarter. It incurred a capital expenditure of INR 15 billion for the June quarter. The company does not have any concrete plan to raise capital in the near future, it said. Premier Energies reported a consolidated net profit of INR 4.63 billion for the June quarter on revenues of INR 24.63 billion.
At 1302 IST, shares of the company traded 0.7% higher at INR 1,049 on the National Stock Exchange. End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Deepshikha Bhardwaj
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