Premier Energies Ltd. reported a strong set of June quarter earnings, with profit rising 50% year-on-year as robust execution and healthy domestic demand supported growth. Brokerages remained constructive on the solar equipment maker, citing its expanding order book and stable domestic business outlook.
Following the results, Jefferies maintained its Buy rating and raised its target price to Rs 1,205 from Rs 1,135. The brokerage described the quarter as a strong operational performance and highlighted the company's growing order book, which provides earnings visibility through FY27 and the first half of FY28. It also upgraded its FY27 and FY28 EBITDA estimates and expects Premier Energies to deliver a 27% EBITDA CAGR between FY26 and FY29.
JPMorgan retained its Overweight rating with a target price of Rs 1,095, calling the results largely in line with expectations. The brokerage said Premier Energies' focus on the domestic market helped shield it from volatility in export markets, providing greater stability during the quarter.
Premier Energies Q1 (YoY)
- Net profit up 50% to Rs. 463 crore versus Rs. 308 crore
- Revenue up 35% to Rs. 2,463 crore versus Rs. 1,821 crore
- Ebitda up 30% to Rs. 715 crore versus Rs. 548 crore
- Ebitda margin at 29% versus 30%
- Tax expense at Rs. 148 crore versus Rs. 95 crore
- Re-appointed Surenderpal Saluja as Chairman for five years from December 19
- Re-appointed Chiranjeev Saluja as Managing Director from December 19
- To consider raising Rs. 5,000 crore via QIP on September 21
The board also reappointed Surenderpal Saluja as Chairman and Chiranjeev Saluja as Managing Director for another five-year term beginning Dec. 19. Separately, the company said it will consider raising up to Rs 5,000 crore through a Qualified Institutions Placement (QIP) at its board meeting on Sept. 21.
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