Synopsis: Shares rose 2% after strong Q2 results, with a 71% YoY profit increase. Revenue grew 20% YoY, and operating margins expanded. The company plans a Rs 502 crore capex for a new solar manufacturing facility and secured significant contracts in India and Africa. JPMorgan maintained a Neutral rating with a Rs 1,100 target.
The shares of the prominent solar module manufacturer gained up to 2 percent from the intraday low following strong results, while JPMorgan maintains a Neutral rating, indicating cautious optimism despite solid performance.
With a market capitalization of Rs 49,317.50 crore, the shares of Premier Energies Ltd were trading at Rs 1,088.70 per share, decreasing around 0.06 percent as compared to the previous closing price of Rs 1,089.30 apiece.
Q2FY26 Highlights
According to the exchange filing, Premier Energies Ltd announced its financial performance in Q2FY26, in which revenue increased by 20 percent on a year-on-year basis from Rs 1,527 crore in Q2FY25 to Rs 1,837 crore in Q2FY26. However, on a Quarter-on-Quarter basis, revenue zoomed by 1 percent from Rs 1,821 crore in Q1FY26 to Rs 1,837 crore in Q2FY26.
Moreover, net profit increased by 71 percent on a yearly basis from Rs 206 crore in Q2FY25 to Rs 353 crore in Q2FY26, meanwhile, on a quarter-on-quarter basis, net profit jumped by 15 percent from Rs 308 crore in Q1FY26 to Rs 353 crore in Q2FY26.
Further, operating margins expanded to 30.53% from 25% a year earlier, reflecting improved operational efficiency and demand momentum in the renewable energy sector.
Moreover, the company said it plans to expand its upcoming Solar PV Topcon Cell manufacturing facility at Naidupeta, Andhra Pradesh, to 7 GW with an additional investment of Rs 502 crore through its wholly owned subsidiary, Premier Energies Global Environment Pvt Ltd. The capex, to be financed through internal accruals, will be spread over FY26–27.
Brokerage Recommendations
JPMorgan maintained a Neutral rating on Premier Energies with a Rs 1,100 target after a strong Q2. Profit rose 15% QoQ to Rs 3.5 billion, beating estimates on record 30.5% EBITDA margins and higher other income. Revenues were slightly below forecasts, and rising inventories led to weaker cash flows. JPMorgan raised FY26–27 PAT estimates by 6–9%.
Order Book & Acquisitions
As of September 30, 2025, Premier Energies holds an order book of 9,114 MW valued at Rs 132,496 million. The order book is primarily focused on domestic projects (100%), with 59% of the value coming from cell production and 40% from modules. The company’s strong order book shows significant new bookings, up from Rs 64,838 million in June.
During this quarter, Premier Energies secured contracts worth Rs 1,749 million from the Republic of Benin, Africa, for 750 rooftop solar systems, 4,400 solar streetlights, and 650 solar water heaters. Additionally, the company won Rs 583 million in orders from Maharashtra and Madhya Pradesh for 2,630 solar pump systems under the PM-KUSUM scheme, further expanding its solar footprint.
Recently, Premier Energies has formed a 51:49 joint venture with Transcon Industries, which will expand its transformer capacity to 4.25 GVA by January 2026, with a Rs 400 million capex. Additionally, a 72:28 JV with Neotrafo Limited targets 10 GVA by April 2026, with a Rs 2,000 million capex. The company expects strong growth in both LV and HV transformers.
Premier Energies is a leading player in the renewable energy sector, specializing in solar modules, transformers, and related technologies. The company offers end-to-end solutions, including manufacturing, EPC services, and turnkey projects.
Written by Abhishek Singh
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