Premier Energies: On Track Expansion
Premier Energies is progressing steadily with its expansion plans. The company is expected to operate 5.6GW of module capacity by March 2026. Additionally, its 7GW cell facility will be commissioned in two phases, raising total capacities to 11.1GW for modules and 10.6GW for cells. Nuvama highlighted that these developments align with the company’s strategic roadmap, supporting long-term growth.
Waaree Energies: Strong Q3 Performance
Waaree Energies reported a strong Q3, potentially surpassing its full-year FY26 EBITDA guidance. Analysts noted that the company’s integrated approach, combining backward and forward integration, is helping de-risk earnings concentration. This structure positions Waaree favorably amid evolving solar sector dynamics and competitive pressures.
Solar IPOs Signal Weak Demand
Recent solar IPOs, including Saatvik Green Energy Ltd and Emmvee Photovoltaic Power Ltd, witnessed weak investor demand, indicating challenges in raising capital for capacity expansion. Nuvama cautioned that many solar companies may face difficulties in funding new projects and backward integration initiatives, as investor appetite remains muted.
Sector Outlook
Despite short-term funding hurdles, the Indian solar sector continues to show long-term promise. Expansion projects, integrated operations, and government incentives provide growth tailwinds. Companies like Premier and Waaree, with strong balance sheets and operational discipline, are expected to capitalize on increasing domestic and export demand for solar modules and cells.
Market Implications
Investors may view Q3 results as a benchmark for evaluating solar companies’ execution capabilities. Nuvama’s recommendations suggest selective stock picking in companies with strong integration, operational efficiency, and a proven track record of project delivery. Market participants are advised to monitor IPO trends, as weak subscription rates may impact sector financing dynamics.
