Synopsis:
Shares of a leading solar cell and module maker dipped 4% despite strong Q1 results, with profit surging 56% YoY and revenue rising 10%. Analysts remained cautious due to limited export exposure and a modest downside target.
The shares of a prominent manufacturer of solar cells and modules plummeted by up to 4 percent despite the company’s net profit and revenue zoom 56 percent and 10 percent, respectively, in Q1FY25.
With a market capitalization of Rs 47,860.97 crore, the shares of Premier Energies Ltd were trading at Rs 1,058.80 per share, decreasing around 3.04 percent as compared to the previous closing price of Rs 1,092.05 apiece.
The shares of Premier Energies Ltd have seen negative movement despite reporting positive results in Q1FY26. Revenue increased by 12 percent on a quarter-on-quarter basis from Rs. 1,621 crore in Q4FY25 to Rs. 1,821 crore in Q1FY26. Further, revenue increased by 10 percent year on year, from Rs 1,657 crore in Q1FY25 to Rs 1,821 crore in Q1FY26.
The company’s net profit increased by 11 percent on a quarter-on-quarter basis, from Rs.278 crore in Q4FY25 to Rs. 308 crore in Q1FY26. Further, net profit increased significantly by 56 percent year on year from Rs 198 crore in Q1FY25 to Rs 308 crore in Q1FY26.
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Moreover, Premier Energies’ revenue mix reveals a concerning lack of diversification. The company is almost entirely dependent on the domestic market, with export revenues collapsing from 9% to just 1% over the past quarters. This creates significant vulnerability to local market shifts. The business is also heavily skewed towards a single product segment, which exposes the company to sector-specific downturns
Additionally, J.P. Morgan has maintained a Neutral rating on this solar stock, with a target price of Rs 1,019, implying a downside of approximately 7 percent from the previous closing price of Rs 1,092.05 apiece.
By fiscal year 2028, Premier Energies aims for a major expansion in its annual production capacity. The company is targeting 10 GW in cells and 11 GW in modules. This ambitious plan also includes significant capacity growth for ingots and wafers (10 GW), aluminum frames (36,000 MT), and energy storage solutions (12 GWh), signaling a move towards comprehensive vertical integration.
As of June 30, 2025, Premier Energies reported a robust order book of Rs 86,027 Mn, equivalent to 5,545 MW. The business is entirely domestic, with no exports. By value, orders are dominated by modules (60%) and cells (39%). The order book saw a net increase from March 2025, driven by new bookings worth Rs 19,778 Mn.
Premier Energies is a manufacturer of solar cells and modules, with its core operations centred around the production of solar photovoltaic (PV) cells, specifically bifacial monocrystalline PERC cells using the M10 wafer size in a 182mm x 182mm format which could be assembled into solar modules.
Written by Abhishek Singh
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