Home / Business and Economy / Premier Energies Eyes 15GW Solar Capacity by 2031
Premier Energies Eyes 15GW Solar Capacity by 2031
18 Sep
Summary
- Premier Energies targets 12-15GW integrated capacity by FY31.
- Company projects 27% EBITDA CAGR over FY26-29E.
- Stock has corrected 20% in two months; Buy rating given.
Premier Energies is setting its sights on substantial growth in the domestic solar market, aiming for a fully integrated capacity of 12-15GW by FY31. Solar power is expected to constitute 70-75% of the company's overall business. This expansion includes a new cell line starting next month, signaling immediate growth. The company foresees industry consolidation, with only 4-5 major players remaining.
Management anticipates a robust 27% EBITDA CAGR for the period FY26-29E. Emerging growth areas include Battery Energy Storage Systems (BESS), transformers, and overseas manufacturing. A localization policy for BESS, similar to ALMM, is expected soon, driven by the increasing trend of large solar projects being bundled with energy storage solutions.
Premier Energies is also diversifying into non-solar businesses, which could contribute 25-30% of revenue. The company is exploring manufacturing capabilities in Europe and the US. An ongoing capex program of $1.2 billion for FY26-28 is in execution, with approximately 45% already disbursed. Peak debt is projected at ₹5,000 crore, with net debt/EBITDA expected to stay between 1.1-1.2x.
