Domestic solar equipment manufacturers, Waaree Energies, Premier Energies and Vikram Solar are poised for a quarter characterised by steady top-line expansion alongside gradual margin recovery, according to an earnings preview note by institutional brokerage firm PL Capital.
The brokerage projects a moderate performance in the second quarter of financial year 2026-27 (Q2FY27) across our solar equipment manufacturing coverage, underpinned by strong domestic solar additions, newly commissioned capacities, robust order inflows, and backward integration.
Waaree Energies
For Waaree Energies, PL Capital forecasts revenue to grow 27.6 per cent YoY to ₹7,742.8 crore, compared to the year-ago quarter. However, adjusted profit after tax (PAT) is projected to decline 25.7 per cent YoY to ₹626.4 crore.
Operating profitability is also likely to contract, with EBITDA margin estimated at 15.1 per cent versus 23.2 per cent in the base period. The brokerage noted “higher contribution from the US market and domestic retail & C&I, which offer better realisations than utility-scale projects, is offset by higher raw material costs”.
Premier Energies
Premier Energies is expected to deliver steady growth, with revenue projected to rise 35.6 per cent YoY to ₹2,491.1 crore. Adjusted PAT is estimated to increase 18.9 per cent YoY to ₹420.2 crore, while EBITDA margin is expected at 26.8 per cent compared to 30.5 per cent in the corresponding quarter last year.
PL Capital said that revenue momentum is being driven by improved capacity utilisation and higher contribution from cell revenue. Additionally, the company has commissioned its 7 GW cell manufacturing plant at Naidupeta, expanding aggregate cell capacity to 10.6 GW, which will begin contributing from Q3FY27.
Vikram Solar
Vikram Solar is anticipated to post the strongest top-line growth among the three, with revenue rising 58 per cent YoY to ₹1,754.1 crore. Despite volume growth, profitability remains under pressure; adjusted PAT is projected to contract 69.9 per cent YoY to ₹38.7 crore, with EBITDA margin shrinking to 8.5 per cent from 21.2 per cent in the prior-year period.
PL Capital indicated that volumes are aided by the ramp-up of the Gangaikondan facility and a 1GW domestic cell supply pact with Avaada, though easing cell shortages and a competitive pricing environment could limit margin expansion.
Ratings:
In terms of stock calls, PL Capital has upgraded Premier Energies to a ‘Buy’ rating from ‘Accumulate’ with a target price of ₹1,316. The brokerage maintained its ‘Buy’ rating on Waaree Energies with a target price of ₹3,494, while reiterating an ‘Accumulate’ rating on Vikram Solar with a target price of ₹162.
Disclaimer: This article has been written by the author, who is not a SEBI-registered research analyst or investment adviser. The recommendations, suggestions, views and opinions expressed by experts and brokerages are their own and do not represent the views of ETEnergyWorld. This article should not be construed as investment advice.
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