Q4 Results Beat Expectations; Strong Order Book Supports Revenue Visibility

Overview

Nomura published an earnings commentary on Premier Energies’ Q4 results, noting that operational performance exceeded expectations and the robust order book provides strong revenue visibility. However, most of the growth outlook is already reflected in the valuation, leading to a maintained neutral rating.

Core views

In terms of performance, Q4 revenue reached INR 22.3 billion, up 38% YoY, while EBITDA was INR 6.7 billion, up 28% YoY, with a margin of 30.3%, beating Nomura’s and consensus estimates by 4%-7%. As of March 2026, the order book stood at INR 140 billion, up 66% YoY, with two-thirds expected to be executed in FY27, ensuring strong revenue visibility. On the new business front, the company is expanding into energy storage, aluminum frames, and transformers. Although the acquisition of KSolare was canceled, it still plans to build 3 GW of inverter capacity. In terms of valuation, the current share price implies FY27F/FY28F EV/EBITDA multiples of 13x/11x, and the institution believes that growth expectations are largely priced in.

Analysis framework

The institution employs an EV/EBITDA multiple-based valuation approach, comparing implied multiples from the current share price against FY27F/FY28F forward multiples, while also factoring in the execution pace of the order book and progress in new business expansion to assess growth visibility and associated risks.

Methodology notes

• Valuation MethodEV/EBITDA valuation

  EV/EBITDA Valuation

  Assesses company value using the ratio of enterprise value to earnings before interest, taxes, depreciation, and amortization, commonly applied in capital-intensive industries.

• Industry/Sector Analysis FrameworkSupply-demand framework

  Order Book and Revenue Visibility

  Evaluates the certainty of future revenues based on the size and execution timeline of the existing order book.

Asset mapping & comparison

Structured mapping from thesis to named assets (strengths, weaknesses, peers, risks).

• Premier Energies (PEME.NS)

  Covered Security

  Strengths

  Strong order book, healthy margins

  Weaknesses

  Growth expectations already priced in

  Risks

  Slower-than-expected capacity ramp-up, intensifying competition

Key data

• Q4 FY26 RevenueINR 22.3 billionUp 38% YoY
• Q4 FY26 EBITDAINR 6.7 billionUp 28% YoY; beat expectations by 4%-7%
• Order BookINR 140 billionUp 66% YoY
• Target PriceINR 1,120Neutral rating maintained

Impact & implications

A robust order book secures near- to medium-term revenue growth, and diversification into new businesses enhances earnings sources. However, current valuation levels limit upside potential, and investors should monitor the pace of capacity ramp-up and evolving competitive dynamics.

Risks

• Capacity ramp-up slower than expected
• Intensifying industry competition

What to watch

• Progress in overseas business expansion
• BESS capacity commissioning timeline
• DCR order inflows