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We expect moderate performance in Q2FY27 across our solar equipment manufacturing coverage, supported by (1) strong domestic solar capacity additions, (2) rising contribution from newly commissioned cell and module capacities, (3) healthy order inflows and execution, and (4) capacity expansion and backward integration, which should support volume growth and improve capacity utilization. For PREMIERE, we expect revenue growth of 35.6% YoY, driven by improved capacity utilization and higher contribution from cell revenue. For WAAREE, we forecast robust revenue growth of 27.6% YoY, +2.1% QoQ, and EBITDA margin at 15.1%, supported by higher contribution from the US market and domestic retail & C&I, partly offset by higher raw material costs. For VIKRAMSO, we expect revenue to grow 58% YoY, with EBITDA margin at 8.5%, supported by DCR module contribution and ramp-up of the Gangaikondan facility, though a competitive pricing environment could limit margin expansion. We expect our coverage universe to register sales growth of 33.0% and decline in EBITDA/PAT of 9.8%/18.1% YoY in Q2FY27 we roll forward our TP to Sep’28E and introduce FY29 estimates.

Healthy solar capacity addition continues: India’s solar capacity additions in FY26 reached a record 45GW, surpassing FY25 additions of 23.8GW and 18GW till YTD Aug’26 taking cumulative installed solar capacity to 168GW. ALMM-I approved module capacity has been scaled up to ~173GW as of Mar’26 against 75GW of annual domestic DC demand, while ALMM-approved cell capacity has reached 42.3GW as of Oct’26. With 17.9GW of installed capacity under PM Surya Ghar: Muft Bijli Yojana as of Oct’26, along with 2.4GW installed under PM-KUSUM against 10GW sanctioned capacity along with utility and C&I, we expect the ongoing scale-up of government-led solar programs to drive sustained demand for domestic modules and related solar equipment.

Premier Energies – New cell plant to drive growth: The company has commissioned its 7GW cell manufacturing plant at Naidupeta, taking total cell capacity to 10.6GW. The new capacity is expected to start contributing from Q3FY27, while we estimate cell production of 0.88GW and module production of 1GW in Q2FY27. We expect revenue to grow 35.6% YoY, supported by improved utilization of manufacturing facilities. DCR realizations remained stable, while Non-DCR realizations declined QoQ. We upgrade the stock to ‘BUY’ from ‘Accumulate’ due to recent movement in the stock price.

Waaree Energies – Sequential margin improvement: We forecast robust revenue growth of 27.6% YoY. EBITDA margin is expected at 15.1%, vs 14.4% QoQ, as higher contribution from the US market and domestic retail & C&I, which offer better realizations than utility-scale projects, is offset by higher raw material costs. Module sales are estimated at 3.7GW vs 3.6GW in Q1FY27, though the benefit of higher volumes is not fully reflected in sequential margins. We maintain our ‘BUY’ rating.

Vikram Solar – margin recovery remains gradual: We expect revenue to grow 58% YoY, with EBITDA margin contracting to 8.5% (vs 8.1% in Q1FY27), supported by DCR module contribution and ramp-up of the 6GW Gangaikondan facility. The 1GW domestic cell supply agreement with Avaada and recent order wins should support DCR volumes, while the commissioning of Gangaikondan provides additional capacity for volume growth. However, easing cell shortages and a competitive pricing environment could limit margin expansion. We maintain our ‘Accumulate’ rating.

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