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Execution remains strong with expansion ahead

Premier Energies (PREMIERE) reported a healthy operational performance in Q1FY27, supported by robust execution and stable profitability. The company operationalized its 5.6GW fully automated Seetharampur module facility, taking total module capacity to 11.1GW, while the 7GW TOPCon cell facility at Naidupeta is in the advanced stages of commissioning, with trial runs expected later this month and first revenue targeted from Sep'26. Management highlighted that DCR demand remains strong with sales already extending into FY28, while the temporary ALMM-II relaxation has resulted in an influx of non-DCR module orders over the next two to three months. The company reiterated that the demand outlook remains favourable through FY27 and FY28, supported by strong momentum in PM Surya Ghar, KUSUM and C&I projects, while reiterating its confidence in maintaining industry-leading margins, with EBITDA margins expected to remain around 29-30%, supported by operating leverage, scale and ongoing backward integration

Transcon delivered a strong quarter following consolidation, reporting revenue of INR1.1bn with EBITDA margins of 27%. Management expects the transformer business to more than triple revenue over the next three years, supported by capacity expansion, a higher share of HV/EHV products and export opportunities.

We estimate revenue/EBITDA/PAT CAGR of 46.2%/37.4%/25.2% over FY26-28E. We upward revise our FY27E/FY28E earnings estimates by 8.9%/3.8% factoring better execution and earnings visibility, we maintain ‘Accumulate’ rating, with a revised TP of INR1,131 (earlier INR1,138), based on 12x Mar’28E EV/EBITDA with an implying PE of 22x FY28E.

Q1FY27 financial performance:

Revenue grew by 35.3% YoY to Rs24.6bn (PLe: INR24.7bn). EBITDA increased by 30.3% YoY to INR7.1bn (PLe: INR7.0bn). EBITDA margin contracted by 110bps YoY to 29.0% (PLe: 28.5%). PAT grew by 50.4% YoY to INR4.6bn (PLe: INR3.7bn). Module/Cell revenue grew by ~30%/~41% YoY to Rs17.4bn/Rs5.9bn (71%/24% of total revenue), respectively while revenue contribution from Transcon stood at INR985mn (4% of total revenue). Domestic revenue grew by 35.3% YoY to INR24.4bn. Module production stood at 953MW vs 918MW in Q4FY26. Order book as of Jun'26 stood at INR150bn (9.9GW), fully domestic, with Module/Cell/Transformer mix of 40%/58%/2%, while order inflow in Q1FY27 stood at INR33.0bn. Net debt increased to INR16.4bn vs Rs10.4bn as on Q4FY26.

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