Premier Energies Q1 preview: Shares up 30% in six months; here's what to expect

Premier Energies Ltd, whose shares are up 30 per cent in the past six months, is expected to report a 22-42 per cent year-on-year (YoY) rise in net profit for the June quarter on 23-60 per cent YoY jump in net sales. Margin is seen contracting YoY. All eyes would be on competitive intensity, progress on capex plans and update on new business verticals.

Analysts noted that higher commodity prices, particularly in silver, along with increased competition, are set to put pressure on margin for renewables equipment manufacturers. While robust capacity additions should support strong revenue growth across the sector, margin compression is likely in Q1, they said.

Foreign brokerage Nomura expects Premier Energies to report 37.90 per cent YoY rise in net profit at Rs 424.40 crore for the June quarter compared with Rs 307.80 crore in the year-ago quarter. Revenue is seen growing 23.6 per cent YoY to Rs 2,250 crore from Rs 1,820.70 crore YoY, led by higher volumes due to execution of the healthy order book. Ebitda is expected to rise 19.1 per cent YoY to Rs 653.30 crore but Ebitda margin is seen falling 108 bps YoY on account of higher raw material prices and less favorable mix between sale of modules and cells.

Ahead of its Q1 earnings, there are 13 'Buy' recommendations on the stock, two 'Hold' ratings and four 'Sell' recommendations, with the Bloomberg consensus target of Rs 1,122 implying at 7.5 per cent potential upside on the stock. Bernstein has 'Underperform on the stock, it said on August 3, with a target of Rs 814. MOFSL and Axis Capital Have 'Buy' call with a target of Rs 1,240 each.

PL Capital expects Premier Energies' revenue to may 36.1 per cent YoY, aided by increased production volumes following improved utilization of manufacturing facilities. Cell and module production are estimated at 0.84GW and 0.93GW in Q1FY27, with cell revenue expected to contribute a higher share of overall revenue.

This brokerage noted that Premier Energies secured orders worth Rs 3,010 crore (up 17 per cent QoQ) for 1.8GW of solar cells and modules from IPP, module manufacturers, EPC companies and other customers in Q1FY27. We upgrade the stock to ‘Accumulate’ from ‘HOLD’ due to recent movement in the stock price.

This brokerage sees net profit for Premier Energies rising 22.6 per cent YoY to Rs 377.5O crore on 36 per cent rise in sales at Rs 2,477.60 crore. YES Securities said it expects Premier
Energies to report 42.8 per cent jump in revenue at Rs 2,599 crore and 60 per cent jump in PAT at Rs 491 crore for the quarter.