Premier Energies Q1 Profit Soars 50%, Brokerages Boost Targets

Premier Energies Ltd. recorded a significant 50% year-on-year increase in its Q1 profit, driven by strong execution and robust domestic demand. This performance has led Jefferies to reaffirm its ‘Buy’ rating and raise its target price on the stock.

Brokerage Targets Revised

Following the Q1 results, Jefferies updated its stance on Premier Energies. The brokerage cited strong operational performance and an expanding order book as key factors.

• Jefferies raised its target price from Rs 1,135 to Rs 1,205.
• The firm maintains a ‘Buy’ rating, projecting clear earnings visibility through FY27 and the first half of FY28.
• Jefferies revised its FY27 and FY28 EBITDA estimates upwards, anticipating a 27% EBITDA CAGR between FY26 and FY29.

JPMorgan maintained its ‘Overweight’ rating, setting a target price of Rs 1,095 for Premier Energies. The brokerage noted that the Q1 results were largely in line with expectations.

JPMorgan highlighted the company’s strategic focus on the domestic market, which has effectively shielded it from volatility in export markets and ensured stability during the quarter.

Q1 Financial Highlights

Premier Energies showcased robust financial growth across key metrics in the first quarter on a year-on-year basis.

• Net profit surged 50% to Rs 463 crore.
• Revenue climbed 35% to Rs 2,463 crore.
• EBITDA grew 30%, reaching Rs 715 crore.
• EBITDA margin stood at 29%, a slight decrease from 30% in the previous year.
• Tax expenses increased to Rs 148 crore from Rs 95 crore.

Corporate Governance and Future Plans

In corporate governance updates, the board reappointed Surenderpal Saluja as Chairman and Chiranjeev Saluja as Managing Director. Their new five-year terms begin on December 19.

Premier Energies also announced its intent to explore raising up to Rs 5,000 crore. This potential capital raise would be conducted through a Qualified Institutions Placement (QIP), with a board meeting scheduled for September 21 to discuss the matter.

The solar equipment manufacturer’s strong Q1 performance and positive brokerage outlook continue to fuel investor confidence, underpinned by a solid order book and strategic domestic market focus.