Premier Energies (PREMIERE IN) – Q4FY26 Result Update – Scaling capacities amid strong domestic solar demand – Upgrade to ‘ACCUMULATE’

Premier Energies (PREMIERE) reported strong module revenue growth of 69.1%, partially offset by a 31.2% decline in cell revenue, while overall performance remained supported by healthy execution, stable margins and robust domestic solar demand. The company commissioned its 5.6GW module facility at Sitarampur, taking total module capacity to 11.1GW and is expected to achieve full ramp-up over the next two months, while the ongoing 7GW cell expansion at Naidupeta remains on track with 4.8GW targeted by Jun’26 and the balance 2.2GW by Sep’26. The company has also commenced development of its 10GW ingot-wafer facility at Naidupeta, with Phase 1 5GW targeted by Dec’27 and Phase 2 of another 5GW by Dec’28, strengthening backward integration. Management indicated that the company continues to evaluate export opportunities in the US & Europe, supported by favorable policy developments and increasing focus on non-China supply chains, while also re-initiating discussions for its proposed US solar cell manufacturing JV. The company expects domestic solar demand momentum to remain strong, driven by PM Surya Ghar, KUSUM, C&I rooftop/open-access projects and utility-scale installations. We estimate revenue/EBITDA/PAT CAGR of 45.6%/33.5%/19.9% over FY26-28E. We tweak our FY27E/FY28E earnings estimates and upgrade the rating to ‘Accumulate’ from ‘Hold’, with a revised TP of Rs1,071 (earlier Rs905), based on 12x Mar’28E EV/EBITDA (earlier 10x), supported by strong delivery and a healthy execution track record with an implying PE of 21x FY28E.