Premier Energies Q2 profit rises 30% to ₹458 crore

Premier Energies Limited reported a 30% year-on-year increase in consolidated net profit to ₹458 crore in Q2 FY27, while revenue grew 43.3% to ₹2,632 crore. Operational EBITDA rose 31.2% to ₹736 crore from ₹561 crore in the year-ago quarter. However, EBITDA margin declined to 28% from 30.5%, indicating that profit growth is not fully keeping pace with revenue expansion. PAT margin also moderated to 17.4% from 18.4%. On the operational front, the company produced 916 MW of solar cells and 1,199 MW of modules during the quarter. Its order book stood at 10,729 MW, valued at approximately ₹16,600 crore as of September 30, 2026. Domestic orders contributed 99% of the total. Capacity expansion remains a key growth driver. The upcoming 7 GW TOPCon solar cell facility is expected to begin commercial production shortly. The first phase of its 6 GWh battery storage project is targeted for July 2027, while the aluminium frames facility is expected by September 2027. These projects could support revenue diversification and strengthen its position across the solar value chain. My view: The revenue growth, order book visibility and expansion plans support the long-term growth outlook. However, the decline in EBITDA and PAT margins deserves attention. The key question is whether higher production volumes and new capacity can translate into better margins and cash flows. The debt-to-equity ratio of 0.72 also warrants monitoring as capital expenditure continues. Premier Energies was trading at ₹889.35 on the NSE, down 1.62%. I would watch margin recovery, execution of the 7 GW facility and order book conversion in the coming quarters before taking a stronger positive view.

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