ICICI Securities reaffirmed its Buy rating on Premier Energies, setting a target price of INR 1,320, representing an estimated 35% upside from its current market price of INR 976. The brokerage’s outlook underscores confidence in Premier’s large-scale integration strategy, financial prudence, and leadership in India’s fast-expanding solar manufacturing ecosystem.
Expanding Capacity at Scale
Premier Energies, one of India’s largest solar cell manufacturers, has demonstrated a remarkable ability to scale operations. The company’s recently commissioned 1.2GW TOPCon cell facility has stabilized with over 60% utilization and cell efficiency of 25.2%, with a near-term target of 25.6%.
The company is executing an ambitious capacity expansion plan across multiple facilities:
- Seetharampur, Telangana: 5.6GW TOPCon module facility, trial runs expected by March 2026.
- Naidupeta, Andhra Pradesh: 7GW TOPCon cell plant, with 4.8GW expected by June 2026 and full completion by Q2 FY27.
- Ingot and wafer plant: 10GW capacity at Naidupeta, trial runs expected by December 2027.
Premier has chosen Naidupeta for its strategic advantages — lower power costs, port proximity (Krishnapatnam and Chennai), and strong industrial infrastructure.
A Fully Integrated Solar Ecosystem
The Hyderabad-based company is pursuing a 10GW integrated manufacturing ecosystem, encompassing ingots, wafers, cells, and modules. This vertical integration is designed to optimize cost, improve efficiencies, and secure supply chain resilience.
Beyond its core manufacturing, Premier is also diversifying into ancillary products — transformers, battery energy storage systems (BESS), inverters, and aluminum frames — positioning itself as a comprehensive clean-energy solutions provider. Notably, it has entered two new joint ventures:
- With Transcon (51% stake) for transformers, expanding capacity from 2.5GVA to 16.5GVA in the next 8 months.
- With Syrma through KSolare (51% stake) to triple inverter production capacity.
The company is also exploring entry into the U.S. market, driven by favorable incentives and improved project economics.
Funding Strength and Capital Efficiency
Premier Energies’ management has highlighted a planned capital expenditure of INR 112 billion (~INR 10 lakh crore) by FY28, largely financed through operating cash flows of approximately INR 80 billion (~INR 7 lakh crore) and existing cash reserves exceeding INR 20 billion (~INR 2 lakh crore). Importantly, ICICI Securities notes that the company is likely to meet its capex needs with minimal external borrowing.
Additionally, Premier anticipates a 25% capital subsidy under India’s government incentive programs, with further benefits expected for ingot and wafer facilities. The company has also reduced estimated capex per GW for cell capacity to INR 4.5 billion (~INR 40,206 crore), aided by lower Chinese equipment costs and economies of scale.
Demand Outlook and Competitive Advantage
Despite short-term industry challenges — including delays in power purchase agreements and subdued H1 FY26 power demand — Premier Energies expects solar installations to remain robust. The company anticipates ~40GW solar capacity additions in FY26, driven by rooftop, commercial & industrial, and agricultural (KUSUM) segments.
ICICI Securities emphasizes Premier’s first-mover advantage in operating high-efficiency solar cell lines and its scale-driven cost leadership as key differentiators in a market facing execution hurdles for new entrants.
Financial Highlights
| Metric | FY24A | FY25A | FY26E | FY27E |
| Net Revenue | 3,143.8 | 6,518.7 | 8,062.8 | 13,940.5 |
| EBITDA | 477.8 | 1,780.9 | 2,206.4 | 2,921.1 |
| EBITDA Margin (%) | 15.2 | 27.3 | 27.4 | 21.0 |
| Net Profit | 231.9 | 937.1 | 1,278.4 | 1,700.1 |
| EPS | 5.5 | 20.8 | 28.4 | 37.7 |
| P/E (x) | 180.1 | 47.6 | 34.9 | 26.2 |
| RoE (%) | 43.8 | 54.2 | 36.9 | 34.3 |
ICICI Securities projects ~33% EPS growth in FY27, driven by operating leverage and the ramp-up of new facilities.
Strategic Context: Riding India’s Solar Wave
India’s renewable energy push targets 200–210GW solar capacity by 2030, up from roughly 80GW today. Domestic policies — including PLI incentives, Approved List of Models and Manufacturers (ALMM) mandates, and import duties of 40% on modules and 25% on cells — have bolstered the prospects of domestic manufacturers like Premier Energies.
ICICI Securities positions Premier as a key beneficiary of these favorable tailwinds, citing its operational experience, integration depth, and strong financial discipline as decisive factors for sustained growth.
Premier Energies Target Price: Valuation and Risks
Using a FY27E EPS of INR 37.7 and a valuation multiple of 35x, ICICI Securities arrives at Premier Energies target price of INR 1,320. The report identifies key risks, including:
- Delay in ALMM-1 applicability;
- Reduction in import duties on Chinese solar equipment;
- Non-execution or delays in domestic content requirement (DCR) schemes;
- Slower-than-expected capacity additions.
Despite these risks, the firm concludes that Premier’s execution capability and balance sheet strength position it for outperformance in India’s solar manufacturing landscape.
Conclusion
ICICI Securities’ reaffirmed Buy rating reflects confidence in Premier Energies’ strategy to emerge as a fully integrated, large-scale solar powerhouse. With strong capital discipline, strategic capacity expansion, and favorable policy winds, the brokerage foresees a 35% upside potential, underscoring Premier’s growing stature in India’s clean energy transition.
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