A leading solar cell manufacturing stock has come into the spotlight after ICICI Securities projected a potential upside of 26 percent, driven by the company’s strong quarterly performance. The bullish outlook reflects growing investor confidence amid rising demand for renewable energy solutions and sustained momentum in the solar sector.
During Tuesday’s trading session, the shares of Premier Energies Ltd opened at Rs.1,107.4 apiece and then fell to an intraday low of Rs.1,048.10 per share, down 3.8 percent from the previous close of Rs.1,090.10 per share.
Brokerage Recommendation
Premier Energies reported strong Q4FY25 results, with revenue rising 45 percent year-on-year, EBITDA growing 2.75 times, and net profit increasing 2.5 times to Rs.2.8 crores. The company stands out as one of India’s most integrated solar manufacturers, with a 4GW module and 2GW cell capacity.
Riding on favorable policy support for solar manufacturing, Premier has revised its capacity expansion plans. It now aims for 10GW each of ingot, wafer, and cell, along with 11GW of module capacity by FY28, up from its earlier FY27 targets.
The company also plans to diversify into battery energy storage systems and solar inverters, with a total capex of Rs.12,500 crores. These initiatives are expected to strengthen its integrated offerings and support long-term growth.
With strong execution, sectoral tailwinds, and an ambitious growth roadmap, ICICI Securities sees Premier as a key beneficiary of India’s solar push. The brokerage reiterates a ‘BUY’ rating with a target price of Rs.1,320, valuing it at 35x FY27E EPS and depicting an upside potential of 26 percent from the current price levels.
Financial Performance
In Q4 FY25, the company reported revenue of Rs.1,680.32 crore, marking a 47.55 percent increase compared to Rs.1,138.5 crore in Q4 FY24. Sequentially, however, revenue declined by 3.95 percent from Rs.1,749.38 crore in Q3 FY25, though overall operational momentum remains strong.
Net profit for the quarter stood at Rs.277.8 crore, marking a sharp 167.34 percent increase from Rs.103.9 crore in the same period last year. On a sequential basis, it rose by 8.86 percent from Rs.255.2 crore in Q3 FY25.
Furthermore, the Board of Directors of the Company at its meeting held on 17 May 2025, recommended the final dividend of Rs 0.5 per equity Share (50 percent dividend payout), subject to the approval of the shareholders.
Joint Ventures
Premier Energies Limited, Nuevosol Energy Private Limited, and Premier-Green Aluminium Private Limited have entered into a joint venture to manufacture aluminium frames for solar photovoltaic modules in India. Premier-Green Aluminium, currently a wholly owned subsidiary of PEL, will serve as the JV entity, with PEL holding 80 percent and Nuevosol’s 20 percent stake. The JV will establish a state-of-the-art manufacturing facility to meet domestic and captive demand. The authorized share capital of the JV is Rs.10 lakh.
Additionally, in another agreement, Premier Energies entered into a joint venture with Sino-American Silicon Products Inc. (SAS) to manufacture and sell solar silicon wafers. The operations will be based in India with a focus on serving global markets. Premier Energies GWC Private Limited, currently a wholly owned subsidiary of PEL, will act as the JV entity, with PEL holding a 74 percent stake and SAS holding 26 percent.
Written by – Siddesh S Raskar
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