Premier Energies shares down 18% in 2025; what Nuvama, others say on Q4 results

Premier Energies reported a 167 per cent year-on-year (YoY) jump in net profit at Rs 278 crore for the March quarter on a 43.8 per cent jump in sales at Rs 1,621 crore. Yet its shares fell 3.24 per cent following the results.

Nuvama noted that Ebitda for Premier Energies at about Rs 500 crore grew 1.9 times YoY due to an improved product mix and operational efficiencies, beating consensus by 9 per cent. Ebitda margin at 33 per cent was also up 1,623 basis points YoY. 

Nuvama did not rate the stock, but noted that Premier Energies remained optimistic about solar sector growth prospects in India, citing rising demand, favourable government policies and improving technology. 

Premier Energies is set to benefit from India’s demand for solar, said ICICI Securities as it reiterated 'Buy' with target price of Rs 1,320 on the stock. The target reflects the brokerage's positive view on the strong industry tailwinds and a substantial capex plan by the company laying out backward integration. 

Premier Energies, Nuvama explained, has plans to focus on the domestic market, given further push for demand post-implementation of ALMM for cells June 2026 onwards. 

"Demand push from policies such as PM Surya Ghar Muft Bijli (25–30GW), PM Kusum Scheme (35GW) and CPSU Scheme–Phase II (12GW) shall aid growth over next 2–3 years," it said.

Nuvama said Premier Energies is targeting an increase in module capacity to 11GW from 5.1GW currently, 10GW cells from 2GW currently, 10GW ingots and wafers from nil currently, 12GWh cell-to-pack and containers, 3GW solar inverters and 36kt aluminium frames. 

Premier Energies has entered into a 74:26 JV with Taiwan-based SAS for a 2GW wafer facility and an 80:20 JV with Nuevosol Energy for setting up 36kt aluminium frames. 

"Budgeted capex stands at Rs 12,500 crore; the company currently has 6.4GW of cells and 6GW of module capacity under construction. In Q4, Premier executed orders worth Rs 1,600 crore and secured new bookings of Rs 3,100 crore," Nuvama said.

Overall, Premier Energies' order book stood at 5.3GW valued at Rs 8,400 crore of which 73 per cent is for modules, 27 per cent is for cells and 0.6 per cent for EPC.

Nuvama said the current order book has 12–15 months cycle. It noted that Premier Energies continued to focus on the domestic market due to better pricing and said the management expects ALMM for cells from June 2026 to expand DCR market size.

The stock is down 18 per cent year-to-date.