Premier Energies shares gain 3% after Q4 results, fund raise; check revised price targets

Shares of Premier Energies Ltd. are trading over 3% higher on Monday, May 18, after the company continued to report strong operational momentum in the March quarter.

The company witnessed a sharp scale-up in its recently expanded 1.6 GW solar cell capacity, with utilisation levels reaching 84% during the quarter.

Higher-margin solar cells continued to contribute significantly, accounting for 58% of the overall order book mix.

Premier Energies has guided for FY27 capital expenditure of ₹5,100 crore as part of its broader multi-year investment programme worth ₹12,000 crore planned between FY26 and FY28.

The company also highlighted strong demand trends across domestic content requirement (DCR) modules and solar cells.

Management expects over two-thirds of the current order book to be executed during FY27.

During the quarter, module production increased 37% year-on-year to 918 MW from 670 MW, while cell production rose nearly 40% to 722 MW from 453 MW in the year-ago period.

As of March 31, 2026, the company’s order book stood at 9,383 MW, valued at ₹14,010 crore.

Premier Energies has also outlined an aggressive expansion roadmap. The company plans to add 7 GW of cell capacity by September 2026 and around 10 GW of ingot-wafer capacity by December 2028.

It is also targeting battery energy storage system (BESS) container capacity of nearly 6 GWh by March 2027.

Additionally, the company plans transformer capacity expansion of around 10 GVA in the HV and EHV segments by July 2026, inverter capacity expansion of 3 GW by December 2026, and aluminium frame manufacturing capacity of 18,000 MTPA by March 2027.

What brokerages recommend on Premier Energies

Jefferies has a 'Buy' rating on Premier Energies with a price target of ₹1,135.

The brokerage said that Premier Energies reported EBITDA and PAT were 5% and 21% ahead of its estimates, respectively.

Jefferies said that silver price hedging supported margins during the quarter.

The order book remained flat sequentially, but the brokerage highlighted strong visibility for revenue and EBITDA growth through FY27 and the first half of FY28.

Working capital expanded during the quarter, weighing on operating cash flow. However, Jefferies believes a recovery in power demand in FY27 could support renewable energy demand.

The brokerage projects a 33% CAGR over FY26-28E and noted that the stock’s valuation is currently trading one standard deviation below its historical mean.

UBS has maintained a 'Buy' rating on Premier Energies with a price target of ₹1,340.

UBS said the company’s Q4 margin beat was driven by a favourable product mix and added that Premier Energies remains strategically well-positioned.

The brokerage highlighted that the company’s order book stood at 9.4 GW, up 77% year-on-year and flat quarter-on-quarter, translating into an order value of ₹14,000 crore. Order inflows during Q4FY26 stood at ₹2,500 crore, up 8% YoY.

UBS also said that the ramp-up in cell production remained strong, with Q4 output rising to 722 MW from 590 MW in Q3, helping the company maintain resilient margins despite broader sector pressure.

For FY26, total cell production stood at 2.26 GW compared to 1.6 GW a year ago, with effective capacity utilisation at 84%.

The brokerage added that Premier Energies remains on track to expand cell capacity to 4.8 GW by June 2026, with an additional 2.2 GW expected by September 2026.

On backward integration, UBS said execution remains on track, with 5 GW ingot-wafer capacity targeted by December 2027 and the remaining 5 GW by December 2028.

Management remains optimistic on demand visibility backed by the ₹14,000 crore order book and expects momentum to continue in FY27, aided by favourable policy support.

Kotak Institutional Equities has maintained a 'Sell' rating on Premier Energies, while raising its price target to ₹900.

The brokerage said the company reported weaker-than-expected revenue of ₹2,230 crore, up 38% YoY, which was 10.9% below its estimates. However, EBITDA margins remained steady despite commodity cost pressures.

Kotak said that the company achieved its module capacity target of 11.1 GW on schedule and remains on track to achieve cell capacity of 10.6 GW by the first half of FY27.

While the acquisition of Transcon Transformers has been completed and expansion plans remain on track, Kotak said the KSolare inverter acquisition did not materialise and commissioning of the BESS segment has been delayed, which it viewed negatively.

Factoring in adjustments in module and cell volumes due to on-track commissioning, partly offset by delays in the BESS business, the brokerage raised its FY27 and FY28 EPS estimates by 3.5% and 2%, respectively.

Shares of Premier Energies ended 0.57% higher at ₹983 on Friday. The stock has gained 16% so far in 2026.