Premier Energies posted record revenue and profits in Q1 FY26, reporting revenues of INR 18.7 billion and EBITDA growth of 61%
Sharp fall in Chinese wafer prices impacted its margins due to inventory value markdown
It commissioned 1.2 GW TOPCon cell and 1.4 GW module lines during the quarter; cell line ran at 94% capacity
Domestic market demand drives growth; US expansion paused due to unclear trade policy outlook
Indian solar cell and module manufacturer Premier Energies Limited (PEL) reported strong financial results for Q1 FY2026 (period ending June 30, 2025), with a 12.3% quarter-on-quarter (QoQ) and 9.9% year-on-year (YoY) growth in revenues of INR 18.7 billion ($225.8 million).
The management called it the company’s ‘best-ever’ performance in terms of revenue and profit. Its EBITDA of INR 5.97 billion ($68.7 million) rose 61% YoY, with the profit after tax totaling INR 3.07 billion ($35 million). However, PEL’s EBITDA margin dropped QoQ mainly due to inventory writedowns resulting from the fall in cell and wafer prices in China, with the company’s significant inventory position amplifying the impact.
Overall, the company registered growth despite planned annual maintenance on its cell lines during the reporting quarter.
PEL operated its solar module production lines at 77% capacity utilization, while cell lines ran at 94%. During the quarter, the company commissioned a 1.2 GW TOPCon solar cell manufacturing line at Fab City, in Hyderabad, Telangana, touting a cell efficiency of over 25%, and also brought a 1.4 GW module line online.
By June 2026, PEL targets to expand its cell and module production capacity to 8.4 GW and 11.1 GW, respectively. The company believes it is on track – both in terms of timelines and budget – to build an inverter-to-module manufacturing ecosystem, 12 GWh of battery energy storage systems (BESS), and 3 GW of inverter capacity by the end of FY28.
PEL had also been planning a 1.2 GW solar cell manufacturing plant in the US, but put it on hold with the change of guard in the country. The plan remains on the back burner for the time being, ‘pending greater clarity’ on the US policy and tariffs (see North America Solar PV News Snippets: EDPR Commissions 400 MW Solar Projects For Microsoft & More).
Providing an update of its solar manufacturing projects, PEL said that it targets a completion timeline of June 2026 for the 2 GW wafer manufacturing plant in Naidupeta, Andhra Pradesh, which it is developing under a joint venture agreement with Taiwan-based Sino-American Silicon Products.
Another 4.8 GW cell manufacturing plant at the same location in Andhra Pradesh is also to be completed by June 2026. Its 5.6 GW module manufacturing plant in Seetharampur in Telangana is targeted to be completed by March 2026.
Land acquisition is complete for all the above 3 projects, and machinery orders are being placed.
PEL’s order book as of June 30, 2025 reached 5.54 GW, worth INR 86,027 million, representing 100% of domestic demand, split between 60% modules, 39% cells, and 0.6% EPC.
On its earnings call discussing its financial results for the quarter, the management shared that less than 1% of its total order book currently comes from the US. Its focus remains on the Indian market, which is seeing a surge in demand for locally manufactured solar cells and modules. While there is strong demand from the export market, PEL stressed that it doesn’t have the capacity as of now to cater to that. “Our capacities are all sold out for the Indian market,” stressed the company.
Speaking at the TaiyangNews Solar Technology Conference.India 2025 in April this year, PEL’s Chief Strategy Officer, Sudhir M Reddy, shared that while the company’s focus remains on TOPCon, it sees strong future potential in HJT (see TaiyangNews STC.I 2025 Day 1: Innovation & Strategic Collaborations Key To India’s Solar Manufacturing Success Story).