Premier Energies: Growing Financials but a Declining Order Book; What’s the Future of This Solar Stock?

Synopsis: Mid cap company in the solar segment has given a result with a quarterly profit growth of 53 percent, and has a profit CAGR of 297 percent for the past 3 years. Even after such a robust result the stock fell by 9  percent on the result day.

A solar equipment stock that has specialised in manufacturing integrated solar cells and solar panels has given out its Q3FY26’s result that included a YoY profit growth of 53 percent and 9MFY26 profit growth of 60 percent but but the question remains, are these results enough to sustain long-term growth in the sector for this company? 

Premier Energies Ltd, currently has a market capitalization of over Rs 35,100 Cr percent. Interestingly, this stock on its result day, had hit a low of Rs  676, marking a 9 percent decline from that day’s previous close. In this article, we aim to analyze the reasons behind the post-result dip and assess the stock’s potential for future growth.

The Q3FY26 result

In the latest quarterly result Premier Energies Ltd has seen its revenue from operations increase by 13 percent YoY, from Rs 1,713 Cr in Q3FY25 to Rs 1,936 Cr in Q3FY26, while the QoQ increased by 5 percent from Rs 1,837 Cr. The net profits grew by 53 percent going from Rs 255 Cr in Q3FY25 to Rs 392 Cr in Q3FY26, while the QoQ increased by 11 percent from Q2FY26’s Rs 353 Cr.

In 9M numbers of the fiscal year, the company saw its revenue from operations increase by 14 percent YoY, from Rs 4897 Cr in 9MFY25 to Rs 5594 Cr in 9MFY26. The net profits for the same period grew by 60 percent going from Rs 659 Cr to Rs 1052 Cr.

The company has a 3 year sales CAGR of 106 percent, while the TTM is at 20 percent. The company’s 3 year profit CAGR is at 297 percent, while the TTM number is at 74 percent.

The Order Book Growth

The company currently has its order book at Rs 13723 Cr, which is a growth of only 3 percent from the previous quarter’s Rs 13249 Cr, and the new orders received by the company for the quarter stood at Rs 2410 Cr, while this number was significantly higher in the previous quarter as it stood at Rs 6483 Cr in Q2FY26. 

According to the company conference call, the order book of Q2FY26 spans for the next one year or a little more since that quarter, and if you look at the current order book numbers you don’t see a significant growth as well. Therefore, the slower growth in the order book value may have caught investors’ attention, as order book numbers are a key indicator used to gauge a company’s potential revenue visibility in the coming periods.

It is also important to keep in mind that although the company witnessed only a 3 percent order book growth in Q3FY26, the same company did witness a 54 percent growth in order book in Q2FY26. Moreover, the new orders received also were quite significant in Q2FY26 with the already stated number of Rs 6483 Cr in the above paragraph, this number was 227 percent higher than Q1FY26’s Rs 1977 Cr.

The 54 percent order book growth and Rs 6483 Cr new orders in Q2FY26 could have occurred due to various positive reasons the company witnessed specifically in that quarter, this list includes- the company clearly staging in the Q2FY26 conference call that they have been ramping up their new manufacturing capacity specifically the TOPCon cell project, while the other reason could be the Q2FY26 order book mix with top tier independent power producers, and the reason company then gave for the presence of these producers was due to strong validation of the company’s ability to offer cutting-edge products at competitive prices along with attractive margins.

Coming back to Q3, we could tell the investor expected a similar growth in the order book that was witnessed in Q2FY26, but as this was missing we could tell this could have been the reason why the share price plunged on the Q3FY26 result day.

Capacity 

The company’s total ALMM-approved module capacity stands at 144,801 MW, while the ALMM-approved cell capacity is at 23733 MW. The company’s industry has seen a solar capacity addition of 37945 MW AC in 2025, which is a 54 percent growth from the previous year number, while the the new installations in retail schemes for the industry stood at 686 MW AC for PM Surya Ghar, while PM KUSUM’s stood at 219 MW AC.

Expansion & Growth Prospects

Premier Energies Ltd is scaling up through brownfield expansion at existing sites, adding 400 MW of cell capacity (taking total to 3.6 GW) and 350 MW of module capacity (total 5.4 GW), using existing utilities for faster execution. 

Growth visibility remains strong, as the industry is backed by 61 GW of solar and 20 GW of hybrid projects under signed PPAs, ensuring demand for at least three years. Policy support from Surya Ghar and KUSUM schemes, rising corporate decarbonisation initiatives, and green hydrogen ambitions potentially driving 100 GW solar demand by 2032 further strengthen long-term prospects.

Conclusion 

Despite strong Q3FY26 and 9MFY26 profit growth, Premier Energies’ stock corrected as investors focused on weaker future visibility. The order book rose just 3  percent QoQ to Rs 13,723 crore, while new order inflows fell sharply to Rs 2,410 crore in Q3FY26 versus Rs 6,483 crore in Q2FY26, disappointing markets that expected a repeat of the earlier surge. 

However, the long-term outlook remains intact. The company is executing brownfield expansion, adding 400 MW of cell capacity (total 3.6 GW) and 350 MW of module capacity (total 5.4 GW). Backed by strong policy support and multi-year demand visibility, growth prospects remain healthy despite near-term order inflow softness.

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