Premier Energies (PREMIERENE) Q2 25/26 earnings summary

Executive summary

• Achieved record revenue and profit for Q2 FY2026, with revenue at INR 18,369 Mn and PAT up 71.6% year-over-year to INR 3,534 Mn, driven by strong production ramp-up and new capacity additions.

• Major capacity expansion underway: cell lines to reach 10.6 GW by September 2026, including a 7 GW single-location TOPCon line at Naidupeta, Andhra Pradesh, with ₹502 crore investment funded by internal accruals.

• Completed strategic acquisitions in inverter (KSolare) and transformer (Transcon) businesses, enhancing product portfolio and value addition.

• Order book stood at INR 132,496 Mn as of September 30, 2025, with 100% domestic orders and order wins of INR 6,511 crore this quarter.

• Diversification into BESS, inverters, and allied products expected to contribute up to 30% of future revenue.

Financial highlights

• Revenue and profit reached record levels in Q2 FY2026, with consolidated revenue for H1 FY2026 at ₹36,576.07 million and net profit at ₹6,612.32 million.

• EBITDA rose 58.6% year-over-year to INR 6,454 Mn, with EBITDA margin improving to 33.6%.

• Marginal increase in cell sales realization quarter-on-quarter, despite misleading DCR portal data.

• Gross margin improved due to higher cell sales proportion and operational efficiencies.

• Other income benefited from favorable forex gains due to INR depreciation.

Outlook and guidance

• FY2027 projected as an inflection point with more than doubling of cell and module capacity and new revenue streams from BESS, inverters, and ingot wafer.

• CapEx of INR 4,000 crore planned for 7 GW cell and 5.6 GW module lines in the next 12 months; additional INR 6,000 crore for ingot wafer project post-12 months.

• BESS CapEx of INR 600 crore split over two phases by 2028.

• Ingot-wafer plant (5 GW) and BESS manufacturing plant targeted for completion by December 2027 and June 2026, respectively.

• All major CapEx funded through internal accruals, with no new debt planned.