Waaree Energies, Premier Energies: What Nuvama says post Q1 results

Nuvama Institutional Equities in a report on the June quarter results of solar module producers Waaree Energies and Premier Energies said the growth for the two companies was strong and that outlook too is positive. The report highlighted the robust year-on-year growth in Ebitda for both companies, driven by increased demand and operational efficiencies.

Waaree Energies experienced an 81 per cent growth in Ebitda over the previous year, boosted by strong demand and enhanced operational efficiencies. This resulted in a significant surge in their Ebitda margin by 633 basis points. Premier Energies saw a 53 per cent increase in Ebitda, with its margin climbing 849 basis points year-on-year. The positive performance reflects the companies' strategic positioning within the expanding solar industry.

Waaree Energies continued to demonstrate strong operational momentum with a 64 per cent year-on-year increase in module production. The company achieved 80 per cent utilisation at its 1.4 GW cell plant, contributing to its ambitious FY26 Ebitda guidance of Rs 5,500–6,000 crore. This target is double the previous year's figure, indicating strong growth prospects.

Premier Energies is advancing with its expansion plans, aiming to boost its module, cell, ingot, and wafer capacities by FY27. The company recently started a 1.4 GW module plant and a 1.2 GW TOPCon cell plant, both of which are expected to start generating revenue from September 2025. These strategic moves underline Premier's commitment to scaling its operations and capturing a larger market share.

Nuvama has recommended a 'Buy' rating for Waaree Energies, reflecting its confidence in the company's forward-looking growth strategies and financial health. In contrast, Nuvama has not provided a rating for Premier Energies, though the company's strategic expansion and operational improvements continue to draw attention. Premier's focus on domestic growth aligns with its broader mission to enhance market presence.

The report indicates that Waaree's ability to pass on US tariffs to its customers and its plans to double its US capacity to 3.2 GW could mitigate the impact of international trade barriers. Meanwhile, Premier Energies' 'Mission 2028' includes increasing module capacity to 11 GW and its focus on domestic market growth.

Both companies are set to benefit from policy tailwinds and the rising demand for solar energy solutions. Waaree's integration of backward and forward processes is expected to reduce earnings concentration risks, while Premier Energies remains optimistic about capitalising on the favourable market conditions.

The prospects for India's solar sector remain promising, with ongoing government support and technological advancements further enhancing growth opportunities. As both Waaree and Premier Energies continue to expand their operations, the solar module industry is set for sustained development in the coming years.