Premier Energies Q4 Results: Strong Margins Compensate For Weak Revenue Growth

India's second largest integrated solar cell and solar module manufacturer – Premier Energies Ltd. – reported a strong set of Q4 earnings. Though revenue was below the consensus estimates, the operating profit and net profit was much ahead of street estimates.

Premier Energies Q4FY25 (Consolidated, QoQ)

• Revenue down 5% to Rs 1621 crore versus Rs 1,713 crore.

• EBITDA up 3% to Rs 529 crore versus Rs 514 crore.

• EBITDA Margin at 32.6% versus 30%.

• Net profit up 9% to Rs 278 crore versus Rs 255 crore.

• Won orders worth Rs 3,100 crore, up 40%.

Lower revenue growth could be on account of weak execution, while the higher EBITDA margins was owing to lower raw material costs. Overall, the net profit was aided by strong operating margin performance, higher other income and lower tax rate.

Order inflow momentum was robust with Premier adding Rs 3100 crore worth of order 40% higher sequentially. Premier Energies won 764 MW worth of orders in Q4. In terms of order wins most of the orders have come in the module market.

Premier generated 6% of revenue from exports from 3% in Q3FY25 potentially indicating a slight pick-up in export market. However, for FY25, Premier generates 3% of revenue from exports a sharp decline from 14% in FY24. This is likely on account of lucrative India market which is helping cell manufacturers like Premier generate supernormal margins. 

Key Announcements:

Premier announced capacity expansion of cell and module plants by 0.8 GW and 1.6 GW respectively. The company will spend a total capex of Rs 475 crore for this expansion which will be met via internal accruals.

Company in its presentation has indicated its intent to setup 12GWh BESS cell to pack and container solutions by FY28. Premier also aims to setup a 3GW capacity by end of FY2026. Quantum of investment hasn't yet been disclosed.

Company also entered into a joint venture with Hyderabad-based Nuevosol Energy Pvt. Ltd to setup a 36,000 MT aluminum frame manufacturing plant. Under the agreement Premier will hold majority stake and the plant is expected to commission by FY27.

It also signed a 74:26 joint venture with Taiwan-based Sino-American Silicon Products Inc. (SAS), whose subsidiary, GlobalWafers Co. Ltd., is the world's third-largest manufacturer of semiconductor silicon wafer. Expected commissioning of the wafer plant is by June 2026.

What To Watch

Premier Energies will hold its conference call on May 19, 2025 at 11 am. The key things to watch will include:

• Clarity on total investment required and timelines for said expansion plans will be key

• Current status and potential timeline of upcoming 4GW integrated cell facility

• Potential impact of increase in competitive intensity for solar cell with commissioning cell capacity by peers

• Clarity on IRA policy change in the US and expected timeline on resolution for the same

• Clarity on US expansion plans given it fines no mention in the current quarter presentation

• Any benefit to Premier from the recently announced anti-dumping and countervailing duties on four south east Asian countries