Premier Energies Q2 FY27 Revenue Up 38.2% YoY

Consolidated Revenue: INR 2,656 crores, representing 38.2% year-on-year growth.
EBITDA: INR 760 crores, with 17.8% YoY growth. EBITDA margin for solar manufacturing business was 29.3%.
PAT: INR 462 crores, with 30.8% YoY growth. PAT margin for solar manufacturing business was 17.9%.
Subsidiary Performance: Transcon reported revenue of INR 122 crores and PAT of INR 18 crores, with EBITDA margin of 15% and PAT margin of 8%.
The moderation in PAT margin was attributed to increased depreciation and reduction in other income.

7 GW TOPCon Cell Line: Successfully commissioned with trial runs underway. Commercial production expected to start later in November 2026.
Capacity Utilization: Operational cell plants delivered record capacity utilization during the quarter.
New Order Wins: Secured new orders totaling INR 4,001 crores for cells and modules, increasing total order book to INR 16,260 crores.
Transformer Business: Healthy order intake with total order book at INR 330 crores.
Expansion Initiatives: All expansion projects, including battery energy storage, are on track.

Solar Capacity Addition: Steady growth throughout the year with PM Surya Ghar Yojana compensating for slight weakness in utility scale segment.
Annual Capacity Projection: Expected to reach around 50 GW AC territory, surpassing previous year's numbers.
Long-term Outlook: Compelling sector outlook with government initiatives to reduce fossil fuel dependence and combat climate change.
Policy Impact: Recent announcements on transmission and storage capacity additions expected to unlock next growth cycle.
Commodity Price Impact: Middle East war has caused material increases in raw material prices and delivery timeline delays.

Battery Energy Storage System: Expected operationalization in Q2 FY27 (Q2 of fiscal year 2027).
Localization Efforts: Working to localize container manufacturing and fire suppression systems to achieve 40% localization requirement for subsidy programs.
Ingot-Wafer Plant:
Phase 1 (5 GW): Expected commissioning by December 2027
Phase 2 (additional 5 GW): Expected commissioning by June 2028, taking total capacity to 10 GW
Land procured, permits and licenses in place, water allocation completed, electricity power approval obtained

BESS Partnership with RCT: German company with CE and UL-certified products in Europe and U.S.
Partnership provides access to European and U.S. markets, EMS solutions, and existing customer base
Technology transfer and market access for Indian-manufactured BESS solutions

Total Order Book: INR 16,260 crores
Business Mix: Approximately 48% each for cell and module business
DCR vs Non-DCR: Within module business, approximately 20% is DCR business
Overall DCR Exposure: Approximately 68-70% of total order book is for domestic manufacturing (DCR) business

DCR Module Pricing:
Retail segment: INR 23-24 per watt
KUSUM C & C&I market: INR 21-21.5 per watt
IPP segment: INR 20-20.5 per watt (for deliveries up to March 2027)
Average realization: INR 21.5-22 per watt
Cell Pricing:
Mono PERC: $0.12-0.125
TOPCon: $0.14-0.145
Non-DCR Module Pricing: INR 12.75-13 per watt with price premium due to high-quality BOM and automated manufacturing lines

Inventory Buildup: Primarily on raw material side, not finished goods
Reasons for Increase:
Ramp-up of Seetharampur and Naidupeta plants requiring advance inventory positioning
War-related delivery timeline impacts and port congestion
Maintenance of extra buffer inventory due to supply chain uncertainties
Normalization Expected: By March 2027 quarter as new plants stabilize and revenue increases

FY27 Capex Guidance: Approximately INR 2,400 crores for the financial year
Q3-Q4 FY27 Capex: Approximately INR 700 crores for next two quarters
Capex Components: Marginal payments for Naidupeta cell plant, battery and aluminum plant, open access captive projects

Chinese Export Controls: Draft policy under consultation, final outcome expected in 3-4 weeks
Current Status: High-technology equipment already imported for Naidupeta cell line
Ingot-Wafer Equipment: Orders not yet placed, small deposit with vendor for wafer equipment
Pre-existing Agreements: Equipment agreements being registered with Chinese government for export control considerations

Geographies of Interest: U.S. and Europe markets
U.S. Plans: Advanced stages to finalize factory location with JV partner, cell manufacturing planned
Timeline: 12-18 months for finalization
Strategy: Focus on markets with strong policy push for domestic manufacturing

Solar Manufacturing: Margins expected to be maintained subject to cost environment volatility
Transformer Business: Normalized margins expected at 15% (compared to 22% in previous quarter and 12% in current quarter)
Margin Drivers: High-quality automated lines and operational experience supporting premium pricing

Credit Rating: A+ rating reflecting strong financial position
CWIP: INR 2,900 crores as of September 30, primarily for cell line not yet commercialized
Depreciation: Expected to be around INR 600 crores for the full year
Funding: Sufficient cash flow from operations to fund capex plans, no QIP planned in near future

Policy Initiatives: Surya Ghar Yojana 2.0 and KUSUM 2.0 expected to be announced in next 1-2 months
Demand Segments: Retail demand strong, C&I demand expected to pick up with DCR regulation implementation
Industry Structure: Backward integration (ingot-wafer) becoming critical differentiator, scale players with financial bandwidth expected to lead consolidation

Block Deal Rumors: No block deal from promoters planned in next couple of years
GEF Stake: No appointment of Citi as banker, no block deal planned
QIP Plans: Only enabling resolution, no near-term plans due to sufficient operational cash flows