Premier Energies Q2 FY27 Results (NSE: PREMIERENE)
Signal: Margin pressure
The read
The growth trajectory remains strong with consolidated revenue up 43.3% YoY to 26318.52 million, but the margin arc has inflected down for a second consecutive quarter: EBITDA margin fell to 28.0% from 32.7% a year ago after 29.0% in Q1FY27, while PAT growth slowed to 30.8% from the prior quarter's 53.6% context figure; the key thesis issue is whether the 470bps YoY margin compression is transient or structural as the group expands.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,631.85 Cr | +43.3% | +6.9% |
| EBIT | ₹619.13 Cr | +37.3% | |
| Net profit | ₹462.39 Cr | +30.8% | |
| EPS | ₹10.19 | +30.6% | |
| EBIT margin | 28.0% |
P&L walk
Consolidated revenue increased to 26318.52 million, +43.3% YoY and +6.9% QoQ, while EBITDA rose to 7357.61 million but EBITDA margin contracted to 28.0% from 32.7% as material and operating costs absorbed part of the growth; PAT still increased 30.8% to 4623.86 million.
Segments
The consolidated result materially outperformed the parent: consolidated Q2 PAT was 4623.86 million versus standalone PAT of 359.70 million, reflecting earnings contributed by subsidiaries including the newly consolidated Transcon Ind Limited.
Key positives
- Consolidated revenue reached 26318.52 million, up 43.3% YoY and 6.9% QoQ, accelerating from the prior-year base.
- EBITDA increased 23.7% YoY to 7357.61 million despite a 470bps margin contraction, keeping operating profitability positive at 28.0%.
- PAT rose 30.8% YoY to 4623.86 million and EPS rose 30.6% to ₹10.19, with the PAT-to-EPS cross-check clean.
- The group approved a 5947 crore budget for a 10 GW ingot and wafer facility, with 5 GW Phase I targeted for completion by December 31, 2027.
- An interim dividend of ₹0.50 per share was declared, payable by December 3, 2026.
Key concerns
- Consolidated EBITDA margin declined 470bps YoY to 28.0% and 270bps QoQ, extending the margin contraction seen in Q1FY27.
- Gross margin compressed 324bps YoY to 37.7%; the filing does not disclose whether the pressure came from input costs, pricing or mix.
- Standalone finance costs increased 1781.9% YoY to 172.56 million, while standalone PAT fell 34.7% YoY to 359.70 million despite 31.2% revenue growth.
- Standalone operating cash flow declined 31.5% YoY to 283.27 million in H1FY27 while trade receivables rose to 2722.05 million from 1715.76 million.
- The 5947 crore ingot and wafer project adds significant execution and capital-allocation exposure alongside ongoing cell, module and battery expansion.
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