Premier Energies shares saw a positive sentiment on Friday, closing at Rs 979, an increase of 0.14 percent. This follows a 'Buy' rating assigned by Nuvama Institutional Equities, which highlighted the company's resilient performance in the fourth quarter of FY26 and a promising future outlook.
Nuvama Raises Target Price for Premier Energies
Following a comprehensive analysis of Premier Energies' Q4 FY26 results, Nuvama has revised its target price for the stock upwards to Rs 1,190, from the previous Rs 1,082. The brokerage noted significant growth, with Q4 revenue reaching Rs 2,200 crore and EBITDA at Rs 670 crore, marking year-on-year increases of 38 percent and 28 percent, respectively. The EBITDA margin stood strong at 30 percent, supported by a 17 percent year-on-year module realization and a 59 percent rise in cell output.
Expansion Plans and Robust Order Book
Premier Energies is set for substantial capacity expansion. Nuvama highlighted that the company's 5.6GW module capacity is projected to commence ramping up from July 2026. Furthermore, its 4.8GW and 2.2GW cell capacities are scheduled to come online between June and September 2026. This expansion is underpinned by a robust order book of 9.4GW, valued at approximately Rs 14,000 crore.
Market Demand and Policy Support
The implementation of ALMM-II (Approved List of Models and Manufacturers) is expected to bolster demand from the rooftop and commercial & industrial (C&I) segments, particularly under the domestic content requirement (DCR) framework. Utility-scale demand is anticipated to emerge from FY29 onwards, with a sequential improvement in the DCR mix. These factors are seen as strong tailwinds for Premier Energies' growth trajectory.
Capital Expenditure and Financial Health
Premier Energies has outlined an aggressive capital expenditure plan, guiding for FY27 capex at Rs 5,100 crore, with an estimated total capex of Rs 12,000 crore for FY26–28. While net debt increased 2.7 times quarter-on-quarter due to this high capex cycle, the company aims to maintain a healthy balance sheet, targeting a debt-to-equity (D/E) ratio below 1x and debt-to-EBITDA below 1.5x. The brokerage indicated that strong operating cash flow and internal accruals are expected to fund a significant portion of this capex.
Future Initiatives
The company also anticipates a battery energy storage system (BESS) policy within the next 3–4 months, which could open new avenues for growth. Additionally, plans for inverter manufacturing remain active, with a partner tie-up currently in progress. Nuvama noted that Premier Energies currently trades at 21x FY28E EPS, reinforcing its 'Buy' recommendation.