Summary
Premier Energies Limited - Q3 FY26 Earnings Call Summary Friday, January 23, 2026 11:00 AM IST
Event Participants
Executives 4 Chiranjeev Singh Saluja (MD), Nand Kishore Khandelwal (Group CFO), Sudhir Moola (CSO & Whole-time Director), Vinay Rustagi (CBO)
Analysts 12 Aashish (InvesQ PMS), Amit Mahawar (UBS), Balasubramanian (Arihant Capital), Bharani (Avendus Spark), Chandan (Rajgadhia Industries), Deepak (Svan Investments), Dhruv (HDFC AMC), Kunal Shah (DAM Capital), Nidhi Shah (ICICI Securities), Nitin Arora (Axis Mutual Fund), Prakhar (Ambit), Raman KV (Sequent Investments)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Revenue | ₹1,550 crores (approx.) | +5% QoQ; Growth driven by steady utilization and higher non-DCR sales mix during the quarter. |
| Order Book | ₹13,723 crores | Includes 9.4 GW of signed contracts: ₹6,800 cr in cells and ₹7,000 cr in modules; nearly 90% of FY27 cell capacity sold out. |
| Cell Capacity | 3.6 GW | Includes 400 MW brownfield expansion completed at low capex of ₹101 crores. |
| Module Capacity | 4.35 GW | Includes 350 MW brownfield expansion; utilization maintained at 75-80% levels. |
| Cell Utilization | 90% | Sustained high utilization; new 1.2 GW TOPCon line reached 80% utilization within months of commissioning. |
| Transformer Order Book | ₹190 crores | Represents 5 months of sales; segment expected to reach ₹1,000 cr revenue by FY28. |
| Capex (9M FY26) | ₹750 crores | Primarily for new cell/module lines in Sitarampur and Naidupeta; excludes ₹250 cr for Transcon acquisition. |
Geographic & Segment Commentary
- Solar Cells: Focus on G12R TOPCon technology with efficiency targets of 25.8% by year-end. Management noted that 90% of cell capacity is pre-booked through FY27, with the segment benefiting from ALMM-2/3 implementation which shifts profit pools upstream.
- Solar Modules: Mix of Domestic Content Requirement (DCR) and non-DCR products. While non-DCR realizations are lower (~₹1.4-1.5 cr/MW), DCR modules command a premium (~₹2.2-2.3 cr/MW) driven by PM-Surya Ghar and KUSUM schemes.
- Transformers (Transcon): Acquisition completed in Dec 2025 with plans to expand capacity to 16.75 GVA by July 2026. Strategic shift toward high-value MVHV and EHV segments is expected to drive higher margins as certifications are obtained.
Company-Specific & Strategic Commentary
- Backward Integration: Commenced construction of 10 GW Ingot/Wafer line in Andhra Pradesh to mitigate supply chain risks and capture ALMM-3 benefits; Phase 1 (5 GW) target is Dec 2026.
- Silver Cost Mitigation: Managing 68% reduction in silver consumption through technology shifts (Multicrystalline to TOPCon) and 6-month hedging policy; evaluating copper-based alternatives with suppliers.
- BESS & Ancillaries: Investing ₹280 cr in a 6 GWh cell-to-pack assembly line and ₹260 cr in an aluminum frame plant with anodizing capabilities (target Dec 2026) to improve self-sufficiency.
- Acquisitions: Transcon (Transformers) closed; KSolare (Inverters) expected to close by Feb 2026 to offer a more holistic product suite.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Total Cell Capacity | 10.6 GW by Sept 2026 | Phased rollout: 4.8 GW in June 2026 and 2.2 GW in September 2026. |
| Total Module Capacity | 11.1 GW by March 2026 | Expansion to be driven by the completion of a 5.6 GW line. |
| Revenue Execution | 70-75% of Order Book | Expected conversion of current ₹13,723 cr order book over the next 12 months. |
| DCR Market Demand | 30 GW+ in FY27 | Driven by Residential Rooftop (10 GW), KUSUM (5-7 GW), and Open Access demand. |
Risks & Constraints
| Risk | Context |
|---|---|
| Raw Material Volatility | Silver costs rose from 1 cent to 2.7 cents/watt over the last year; mitigation depends on successful hedging and BOM optimization. |
| Technology Obsolescence | Rapid shift from M10 to G12R and TOPCon requires continuous capex; Mono PERC lines are being fully depreciated to manage this transition. |
| Regulatory Uncertainty | Heavy reliance on ALMM-2 and ALMM-3 implementation timelines; any delays in government enforcement could impact DCR premiums. |
Q&A Highlights
Cost & Margins
- Question: How are you managing the sharp increase in silver prices? (Nitin Arora)
- Answer: We have 6 months of silver consumption hedged and utilize accelerated depreciation to keep the balance sheet light; technology shifts have reduced silver intensity by 68% over five years (Chiranjeev Saluja).
Utilization & Tech
- Question: What is the ramp-up timeline for the new 7 GW line? (Puneet)
- Answer: Historically, Premier ramps to full utilization within 4-6 months; the new G12R lines should reach peak production by Dec 2026 (Chiranjeev Saluja).
Order Book Mix
- Question: Why was revenue growth only 5% despite a larger order book? (Chandan)
- Answer: Revenue is sensitive to product mix; Q3 saw higher non-DCR sales (lower realization per MW) vs DCR, though margins remained protected via earlier contract terms (Chiranjeev Saluja).
Supply-Demand Balance
- Question: Is there a risk of oversupply in the domestic cell market? (Aashish)
- Answer: Market estimates of 54 GW capacity are inflated; actual production is closer to 20-21 GW. We expect the market to remain in deficit for high-efficiency DCR cells through FY27 (Vinay Rustagi).
Key Takeaway
Premier Energies delivered a stable Q3 FY26, characterized by high cell utilization (90%) and the successful completion of brownfield expansions. The company is approaching a strategic inflection point as it moves toward 10.6 GW of cell capacity by Q2 FY27, backed by a massive ₹13,723 crore order book that is roughly 85% dollar-linked. Strategically, the firm is insulating itself from volatility through backward integration into ingots/wafers (10 GW) and diversifying into BESS, inverters, and transformers. While silver price inflation remains a monitorable, management’s 6-month hedging and 68% reduction in silver intensity provide a cushion. With ALMM-2/3 expected to restrict imports, Premier is positioned as a primary beneficiary of India’s 30 GW+ annual DCR demand. Forward growth remains contingent on the timely commissioning of the Naidupeta and Sitarampur facilities over the next four quarters.
Want more insights like this?
Subscribe to get deep dives delivered to your inbox.
More Earnings Summaries
Explore more Q3 FY26 earnings call analyses: