The shares of Solar stock, which specializes in the manufacturing of integrated solar cells and solar modules, are in focus after leading Indian Brokerage firm ICICI Securities initiated a Buy Target with an upside potential of 27 percent.
With a market capitalization of 46,948.15 Crores on Thursday, the shares of Premier Energies Ltd declined by upto 3.5 percent, making a low of Rs. 1030.35 compared to its previous close of Rs. 1068.80.
Premier Energies Ltd, engaged in the manufacturing of integrated solar cells and solar modules, is in focus after a leading Indian brokerage firm, ICICI Securities, initiated a Buy Target of Rs. 1,320 on it with an upto 27 percent Upside Potential from the day’s current price.
The reasons for the “Buy” target
Strong Volume and EBITDA Growth: Premier started FY26 on a strong note, with estimated module volumes growing by ~10% YoY to 800 MW. EBITDA rose sharply by 50% YoY to ₹18.2 billion, indicating strong operational performance, better cost absorption, and margin expansion.
Capacity Utilization and Expansion Momentum: The company operated its 2 GW cell manufacturing line at a healthy 77% utilization, reflecting steady demand and efficient asset use. Recently, Premier expanded module capacity by 1.4 GW and cell capacity by 1.2 GW, boosting cell capacity by 60%.
Integrated Expansion Pipeline: Premier is on track to scale up its fully integrated solar manufacturing capacity (wafer, cell, and module) by 10 GW each by FY28. This vertical integration positions it competitively to reduce input dependency and improve margins over the long term.
Stable and Large Order Book: The company maintained a solid order book of ₹86 billion QoQ, providing high revenue visibility and stability in future earnings. This reflects sustained demand and strong client confidence in Premier’s execution.
Favorable Policy Support for Domestic Manufacturers: The government’s introduction of an approved list of solar cells favors integrated domestic manufacturers like Premier. This policy shift provides a regulatory moat and supports long-term market share gains amid rising import restrictions.
Positive Sector Outlook Despite Rising Competition: While expansion by other players poses a challenge, the overall demand for solar energy in India remains robust due to energy transition goals. Premier’s integrated strategy, execution history, and expansion timeline place it well to capture a larger share of the growing market.
Financials & Others
The company’s revenue rose by 12 percent from Rs. 1,668.79 crores to Rs. 1,869.52 crores in Q1FY25-26. Meanwhile, Net profit rose from Rs. 198.16 crores to Rs. 307.79 crores in the same period.
The company has a healthy financial position with a low debt-to-equity ratio of 0.69, indicating manageable leverage. The company also maintains a strong liquidity position, with current assets exceeding current liabilities. Additionally, it has delivered impressive growth, achieving an average revenue increase of 61.75% over the past three years.
Premier Energies Ltd is a leading Indian manufacturer of solar products, specializing in the production of solar cells, modules, and related components. The company is known for its vertically integrated operations, ranging from raw material processing to final module production, ensuring high quality and cost efficiency. As of June 30, 2025, Premier Energies had an order book of 5,545 MW, with 60% in modules, 39% in cells, and 0.6% in EPC projects.
By FY28, Premier Energies aims to achieve an integrated annual manufacturing capacity of 10 GW each for ingots, wafers, and cells, 11 GW for modules, 3 GW for inverters, 36,000 MT of aluminum frames, and 12 GWh for battery energy storage (BESS) solutions, including cell packs and container systems.
Industry Power generation between FY2025 and FY2032, India plans to add a total of 432 GW of power generation capacity, with the majority coming from solar (283 GW) and wind (76 GW). Other additions include coal (42 GW), large hydro (15 GW), nuclear (12 GW), and biomass (5 GW).
Written by Sridhar J
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