Premier Energies Aims for 50% Revenue Growth by FY27
By ThePip Desk
Premier Energies targets Rs 12,000-13,000 crore revenue by FY27, a 50% surge driven by new capacities and strategic expansion. Learn more about their growth plans.
Premier Energies projects a substantial revenue increase of nearly 50% in the current financial year, targeting between Rs 12,000 and Rs 13,000 crore by FY27. This ambitious growth is set to be fueled by the phased commissioning of new cell and module capacities, following a robust first quarter that already surpassed a Rs 10,000 crore run rate.
Chief Business Officer Vinay Rustagi emphasized the company’s strong financial position, which underpins this expansion. Premier Energies maintains a healthy balance sheet and sufficient liquidity, supported by an A+ credit rating.
Key Financial Indicators & Growth Drivers
- Revenue Target FY27: Rs 12,000 to Rs 13,000 crore (nearly 50% increase).
- Current Order Book: Approximately Rs 15,000 crore, with sustained healthy intake.
- EBITDA Margin Goal: 29-30% over the coming years, leveraging upstream capacities.
- Debt-to-Equity Ratio: Less than one, reflecting financial prudence.
- Return on Capital Employed (ROCE): Currently above 30%, with a long-term sustainable target of 25%.
Despite aggressive expansion plans, including backward integration into ingots and wafers, Premier Energies has ruled out a fresh equity raise. The company confirmed that its entire capital expenditure program is already fully funded.
Diversification and Future Ventures
Beyond its core solar operations, Premier Energies is actively diversifying its business portfolio. This strategic pivot includes scaling up its presence in the battery storage and transformer sectors.
- Battery Storage Business: Expanding operations to capture new market segments.
- Transformer Business: Increasing capacity and market reach in this critical infrastructure area.
- US Cell Manufacturing Joint Venture: Developing a new venture to establish a manufacturing footprint in the United States.
The company’s focus remains on maintaining a profitable growth trajectory, even as capital-intensive investments may temporarily moderate its high return on capital employed.