Rs 1234 Cr Orders Propel Premier Energies Stock as BlackRock-Backed Rally Continues
The company Secures Major Orders, Boosting Market Sentiment
The stock of the company, India’s second-largest solar module and cell manufacturer, witnessed a 2% jump in early trade after the company secured two major orders for supplying solar PV modules worth ₹1,234 crore. However, profit booking led to a slight dip, with shares trading at ₹997.90 apiece, down 0.34% from the previous close of ₹1,001.30 per share.
Orders to Strengthen Premier Energies’ Position in the Solar Sector
According to a regulatory filing, Premier Energies has bagged two substantial orders from existing customers. The delivery of these solar PV modules is set to commence in April 2025, reinforcing the company’s stronghold in the renewable energy sector.
The news has sparked enthusiasm among investors, especially as global asset management giant BlackRock and other institutional investors have shown confidence in the company’s growth trajectory.
Strong Q3FY25 Performance Bolsters Investor Sentiment
Premier Energies’ recent Q3FY25 earnings report has been nothing short of spectacular, further fueling investor optimism.
| Metric | Q3FY25 | Q2FY25 | QoQ Growth | Q3FY24 | YoY Growth |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 1,713 | 1,527 | +12% | 712 | +140% |
| Net Profit (₹ Cr) | 255 | 206 | +14% | 43 | +493% |
| EBITDA Margin | 30% | – | – | 17.3% | Expanding |
The company reported a 140% YoY revenue growth, soaring from ₹712 crore in Q3FY24 to ₹1,713 crore in Q3FY25. Its net profit surged by a staggering 493% YoY, demonstrating strong operational efficiency and cost management.
The EBITDA margin also saw a major improvement, expanding to 30% from 17.3% in the previous year. This robust financial performance solidifies Premier Energies’ position as a key player in India’s renewable energy sector.
Market Trends and Growth Prospects
The Indian solar industry is experiencing an unprecedented boom, driven by government incentives, increased corporate adoption, and export growth. Premier Energies is capitalizing on this trend, with exports contributing 3.44% of revenue in Q3FY25 and 2.11% year-to-date.
With the government’s push towards renewable energy and technological advancements, demand for solar PV modules is set to soar, benefitting companies like Premier Energies.
Premier Energies’ Expanding Global Footprint
Premier Energies has an extensive client base, including industry giants such as NTPC, Tata Power Solar, Panasonic Life Solutions, and Luminous, among others.
The company’s global reach spans the United States, Hong Kong, South Africa, Bangladesh, Norway, Canada, Germany, UAE, South Korea, and more. This international presence enhances Premier Energies’ growth potential and revenue diversification.
Order Book and Expansion Plans
As of December 2024, Premier Energies boasts a healthy order book worth ₹6,946 crore, broken down as follows:
- DCR Solar Modules: ₹4,375 crore
- Solar Cells: ₹2,500 crore
- EPC Projects: ₹69.46 crore
To meet rising demand, the company is aggressively expanding its capacity:
- 1 GW TOPCon cell and module line by Q1 FY26
- 4 GW module production line by Q1 FY27
- Targeting 7 GW solar cell and 9.1 GW module capacity by June 2026
- 2 GW wafer facility & 36,000 MT aluminum frame unit by FY26
This expansion plan is expected to boost production efficiency and improve economies of scale, making Premier Energies more competitive in the global market.
BlackRock and Institutional Backing Strengthen Investor Confidence
Premier Energies has attracted investments from top global and domestic institutions, including:
- BlackRock Institutional Trust Company (National Pension Service subscribed 3.5% of anchor shares)
- Nomura, Abu Dhabi Investment Authority, DSP India, Morgan Stanley, BNP Paribas, HDFC, ICICI, and other pension/equity funds
Such high-profile backing signals strong institutional confidence in Premier Energies’ long-term growth prospects.
Capex and Financial Strength
Premier Energies is investing ₹3,400 crore to ramp up its solar manufacturing facilities, partially funded through IPO proceeds and other financial sources.
The company’s financial ratios reflect a strong growth trajectory, as seen below:
| Metric | Value |
|---|---|
| Market Cap | ₹44,180 Cr |
| Current Price | ₹980 |
| High/Low | ₹1,388 / 802 |
| Stock P/E | 191 |
| Book Value | ₹51.0 |
| Dividend Yield | 0.05% |
| ROCE | 25.2% |
| ROE | 43.7% |
| Debt to Equity | 0.55 |
| Industry P/E | 49.6 |
| Debt | ₹1,257 Cr |
| ROIC | 16.3% |
Future Outlook: Bright Prospects for Premier Energies
With aggressive expansion plans, strong institutional backing, and soaring demand in the renewable energy sector, Premier Energies is well-positioned to sustain long-term growth.
The company’s focus on technological advancements, capacity expansion, and global market penetration will drive future revenue and profitability.
As the solar energy market continues to gain traction, Premier Energies is set to play a pivotal role in India’s clean energy transition, offering substantial growth potential for investors and stakeholders alike.
Conclusion
Premier Energies’ recent order win worth ₹1,234 crore, coupled with exceptional financial performance and strategic expansion plans, underscores its strong growth trajectory.
With BlackRock and other global investors backing the company, along with India’s booming solar industry, Premier Energies is well-positioned for long-term success.
Investors eyeing the renewable energy sector should keep a close watch on Premier Energies Ltd, as it continues to emerge as a leading player in India’s solar revolution.
For more market insights, follow our blog.
Stay tuned for more updates and insights on the stock market! For more insights on investing in the Indian stock market, check out resource like ET, NSE India.
Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.