India’s solar manufacturing space has been getting crowded lately, with new plants coming up every few months and everyone fighting for a bigger slice. Cell making, the harder part of the chain, is where most players want to be now. So whenever a quarterly result lands, investors look past the headline and check if money is really being made, and if the expansion is being paid for properly.
Premier Energies shares closed at ₹910.35, up 0.04% from the previous close of ₹910. Market cap is around ₹41,325 crore, and the stock trades at a P/E of 24.69 on consolidated numbers, which just means investors pay about ₹24.69 for every ₹1 of yearly profit.
Profit Runs Ahead of Sales
For the June 2026 quarter, consolidated revenue from operations came in at ₹2,462.59 crore, up 35.25% from a year ago. EBITDA, which is basically operating profit before interest, tax and the wear-and-tear cost of machines, was ₹759.40 crore, up 27.19%. Net profit was ₹471.92 crore, a jump of 53.32%.
Now look at why profit ran faster than EBITDA. Depreciation fell about 39% to ₹95.63 crore from ₹157.54 crore, and that helped the bottom line quite a lot. Operating margin actually slipped to 29.01% from 30.11%. Net debt also moved from a net cash position of ₹1,057 crore a year back to net debt of ₹1,641.70 crore, while the company keeps building capacity.
Capacity and Order Book
The company made 844 MW of cells and 953 MW of modules in the quarter. Cell capacity is 3.6 GW today (1 GW is 1,000 MW) and is set to reach 10.6 GW, while module capacity stands at 11.1 GW. Module utilisation slid to 63% from 77% a year ago, though that figure leaves out the new Seetharampur plant, so it isn’t the full picture. The 7 GW cell plant at Naidupeta was heading for trial runs by end of August.
Order book stood at ₹15,000 crore on June 30, 2026, with cells making up 58% of it. The transformer arm Transcon added ₹106.47 crore in revenue and ₹18.29 crore in profit, and its new 10 GVA plant (GVA is how transformer capacity is measured) was expected to be ready by September 2026.
What Jefferies Thinks
Jefferies maintained its Buy rating with a target price of ₹1,205, which points to about 32% upside. The brokerage feels India’s push towards locally made solar gear will help, and it expects the company to build 12 GW to 15 GW of fully integrated capacity by FY31, meaning it makes everything from ingots to modules in-house. Solar should stay the main business at around 70% to 75%.
Jefferies also expects consolidation in the industry. Management believes only 4-5 scaled makers will end up controlling 80% of the market, since module-only players are facing negative margins. On the new side, a 12 GWh battery storage facility, where cells are put together into ready-to-use packs, is expected to start from June 2027, and the order book of around ₹15,000 crore gives some visibility.
On valuation, the brokerage uses 13 times its June 2028 EBITDA estimate, with an average EBITDA margin of 27.5% for FY27 to FY29. It sees EBITDA growing at 27% a year (that’s the CAGR, or yearly compounded growth) between FY26 and FY29, and says stronger domestic solar demand could be an upside trigger.
Bottom Line
The numbers look strong on the surface, but a good slice of the profit growth came from lower depreciation, and net debt is climbing. Jefferies sees plenty of room, yet how the cell and transformer plants ramp up will decide how this plays out. Worth watching whether module utilisation picks up once Seetharampur settles in.
About the Company
Premier Energies makes solar cells and modules and has been at it since 1995. It is now adding ingot-wafer capacity, aluminium frames, battery storage and transformers through Transcon, aiming to become a bigger cleantech name by 2028.