Premier Energies has advanced its plan to scale up solar manufacturing capacity to 11 GW by nearly two years, according to recent brokerage reports, a move analysts say strengthens growth visibility even as input costs remain elevated. This is backed by faster-than-guided commissioning and steady domestic demand.
Despite record-high silver prices impacting the solar manufacturing chain, analysts continue to maintain positive ratings on the stock, citing execution progress, order book visibility and cost controls.
Expansion timeline pulled forward sharply
Premier Energies’ manufacturing expansion has progressed materially ahead of earlier timelines, based on disclosures made to stock exchanges and discussed in brokerage result updates. As per the company’s Q3 FY26 investor presentation, the 5.6 GW module manufacturing line is scheduled to be commissioned by March 2026. In addition, a 7 GW TOPCon solar cell facility is planned to be commissioned in two phases, with 4.8 GW expected by June 2026 and the remaining 2.2 GW by September 2026. Once fully commissioned, total module capacity is expected to rise to about 11.1 GW, while cell capacity is projected to reach around 10.6 GW.
Nuvama Institutional Equities, in its January 24, 2026 report, said, “Premier’s expansion is on track with 5.6GW of module capacity to be operational by Mar-26 and a 7GW cell facility to be commissioned in two phases.” The brokerage added that this would take total capacities to “11.1/10.6GW for modules/cells.”
The brokerage also highlighted that , “Low-cost brownfield expansion increased module/cell capacity by 350/400MW,” helping Premier Energies limit capital intensity even as scale increased.
Separately, Premier Energies informed exchanges that it has commissioned a 400 MW mono PERC solar photovoltaic cell manufacturing facility at its E-City plant in Maheshwaram, Telangana, through its wholly owned subsidiary. The company said the expansion was executed by installing additional equipment while leveraging existing infrastructure and utilities, taking operational cell capacity to 3.6 GW at the time of commissioning.
Demand visibility remains strong, say analysts
Brokerages attribute the accelerated expansion to sustained demand visibility in the domestic solar market. Nuvama Institutional Equities said demand for both DCR and non-DCR modules remains robust, driven by government programmes and private sector participation.
In its report, Nuvama said, “DCR demand is expected to exceed 30GW in FY27, driven by PM Surya Ghar, PM KUSUM and open access/private rooftop,” while adding that “Non-DCR market is expected to reach 50GW+.”
The brokerage further said concerns around industry overcapacity have reduced due to changes in technology. According to Nuvama, “Shift in technology upgrades shall further affect production supporting demand,” as newer technologies absorb capacity and alter effective supply dynamics.
Premier Energies’ own disclosures show an order book of 9.4 GW, valued at about Rs 13,700 crore, offering near-term revenue visibility. During Q3 FY26, the company reported module production of 956 MW and cell production of 593 MW, reflecting year-on-year growth of 44% and 29%, respectively.
Nuvama on Premier Energies: ‘Buy’
Nuvama Institutional Equities has reiterated a ‘Buy’ rating on Premier Energies with a 12-month target price of Rs 952. Based on the current market price of Rs 706.75, this implies an upside of about 34.7%.
The brokerage said its positive stance is underpinned by scale-up visibility, profitability and balance sheet strength. In its report, Nuvama said, “With a 43% EBITDA CAGR over FY25–28, strong operating cash flows and a healthy balance sheet, we expect Premier to manage high capex needs over the next two to three years.”
Nuvama added that internal accruals are expected to fund a large part of the planned capex of about Rs 12,500 crore, reducing pressure on leverage. The brokerage also raised its PAT estimates for FY26, FY27 and FY28 by 6%, 8% and 8%, respectively.
Nuvama on Premier Energies: Tackling silver price movement
On silver prices, Nuvama said cost pressures have been managed effectively. “Silver prices rose sharply, but Premier navigated silver price volatility through hedging, inventory and declining silver intensity, limiting margin impact,” the brokerage added..
Nuvama also identified non-core businesses as growth drivers, stating that the Transcon acquisition was completed in December 2025 and that the KSolare acquisition is expected to be closed shortly.
Anand Rathi retains ‘Buy’, highlights near-term execution risks
Anand Rathi Research has also maintained a ‘Buy’ rating on Premier Energies, with a revised target price of Rs 928. At the current market price, this implies an upside of about 31.3%.
In its January 24, 2026 note, Anand Rathi said, “While commissioning of cell and module lines has been advanced versus guidance, stabilisation has taken longer-than-expected time,” leading to lower contribution from DCR modules and higher depreciation projected for FY27 and FY28.
The brokerage said Q3 FY26 revenue, EBITDA and adjusted PAT grew 13%, 16% and 54% year-on-year, respectively. It noted that “lower-than-expected third-party cell sales” weighed on the quarter, even as module revenue grew strongly.
Anand Rathi also flagged pricing pressure in the DCR segment, stating, “DCR pricing saw sharper compression amid rising domestic competition,” while adding that non-DCR prices are expected to firm up as higher Chinese cell costs enable better cost pass-through.
Silver prices rise, but margin impact seen as contained
Silver prices remain a key monitorable for solar manufacturers, given their role in cell production. Anand Rathi Research said management has flagged the recent rise in silver prices as a cost risk but believes the impact will be limited.
The brokerage said, “Silver’s share of total manufacturing cost is structurally declining due to technology upgrades and gradual copper substitution.” It added that a six-month hedging policy, improved supplier negotiations and partial cost pass-throughs should “limit near-term impact on margins.”
Nuvama echoed this view, stating that hedged exposure, adequate inventory and declining silver intensity have helped Premier Energies manage volatility without material disruption.
Q3 performance steady
Premier Energies reported Q3 FY26 revenue of about Rs 1,936 crore and EBITDA of about Rs 593 crore, marking year-on-year growth of 13% and 16%, respectively. Thr Q3 Adjusted PAT rose 53% year-on-year to about Rs 392 crore, aided by lower depreciation during the quarter. Gross margin stood at about 40%, while EBITDA margin was around 31%.
As of December 2025, the company reported net debt of about Rs 387 crore, with a total debt-to-equity ratio of 0.78x. Brokerages said this balance sheet position provides headroom to support the ongoing capex cycle.
Conclusion
Premier Energies’ decision to pull forward its manufacturing expansion has altered its near-term growth profile, with both Nuvama Institutional Equities and Anand Rathi Research pointing to faster capacity additions and strong demand visibility. While rising silver prices, DCR pricing pressure and execution stabilisation remain key risks, brokerages continue to see upside potential of over 30% from current levels.