Here is the strong Q3 show that premiere slipped into energy business

In the third quarter of the current financial year, the net profit of Premier Energy Limited increased by 5.9 times on an annual basis to Rs 255 crore. Solar module and cell manufacturer’s margin expanded 1,260 base points to 29.9%.

But despite this strong growth, the company fell nearly 7% on Intrade after initially acquired and remained under pressure on Tuesday. This was due to the factors that were revealed in the earnings conference call.

Decline in gross margin

While the Ebitda margin of the premiere energy saw a significant improvement due to high -capacity use and favorable revenue mixture, the company’s gross margin reduced 160 base points on a sequential basis, a surprise for Kotak Securities.

Capacity addition delay

The company indicated a slight delay in the commission for the additional 1 GW Topcon Sale and Module Line, until a quarter Q1 FY26. This delay hinders the revenue growth for the company’s cell segment with current capacity in extreme use. Therefore, the company’s next leg growth will be likely from Q2Fy26 when the new capacity line stabilizes.

On the other hand, the company’s 4 GW is on the track to be commissioned by Topcon cell and module line Q1Fy27. However Kotak notes that progress on this line is a significant monitoring and any delay can potentially affect profitability and cash flow creation in the medium period.

Almum for solar cells

While the management is confident that the approved list of models and manufacturers for solar cells may be applicable from June 2026, the company also stated that there is a possibility of further delays. This puts an opportunity in the domestic content requirement market as a key monitorable.

Increase in debt

Premier Energy also reported an increase of Rs 1,917.7 crore in a year-on-year 61% and 89% in net loan.

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