Premier Energies Ltd Management Discussions

Indian Economy

Indias economy expanded by 6.5% in FY 2025, driven by strong domestic demand and steady growth in the services and manufacturing sectors. Increased government expenditure on infrastructure and resilient financial position of banks and corporates also propelled growth. Private consumption, investments and services grew by 7.6%, 6.1% and 7.5% respectively. Operational indicators remained robust with e-way bill generation up 19.4%, GST collections rising 9.9%, and toll collections increasing by 12.5%.

Inflation remained subdued, with CPI inflation falling to 2.10% in June 2025 from 2.82% in May, well within the RBIs 2–6% target range. Average CPI inflation for the year stood at 4.6%, indicating strong monetary policy transmission and supply-side measures. Core inflation remained steady between 3.2–3.8%, while WPI inflation averaged 1.8%, reflecting improved supply chains and stable commodity prices.

India YoY Inflation for FY22 - Q1FY 2026 (Base Year: 2012)

Source: MoSPI

Bank credit remained a key driver of economic growth in FY 2025, supported by a steady monetary policy that kept the repo rate at 6.50%, the Cash Reserve Ratio at 4.50%, and the Statutory Liquidity Ratio at 18.00% to balance growth and inflation. As of March 2025, non-food bank credit grew by 14.4% year-on-year, led by strong demand across sectors: services credit increased by 21.5%, personal loans by 17.2%, and industrial credit by 9.8%. RBIs liquidity management and transmission measures ensured adequate credit flow while maintaining financial stability.

Gross NPA and Net NPA for Scheduled Commercial Banks

Asset quality improved further, with the Gross Non-Performing Assets (NPA) ratio of Scheduled Commercial Banks declining to 2.3% in March 2025 from 2.8% a year earlier, and the Net NPA ratio moderating to 0.5% as reported in the RBIs Financial Stability Report. This was supported by prudent lending, higher provisioning coverage, and strong capital buffers. Overall, the banking sector remains resilient and well-capitalized, positioned to effectively meet credit requirements of a growing economy.

Outlook

India has emerged as the worlds fourth-largest economy, with per capita income doubling since 2014. Despite global headwinds, the outlook remains optimistic, supported by continued domestic and foreign investments, robust manufacturing growth, and improvements in trade and financial services. The countrys resilient domestic demand, diversified economic base, and strategic policy interventions position it to navigate external uncertainties while maintaining growth momentum.

Indian GDP Growth Trend (%)

According to RBI estimates, the economy is projected to grow by 6.5% in FY 2026 and 6.7% in FY 2027. Furthermore, Indias retail inflation measured by CPI is expected to remain stable at approximately 4.0% in FY 2026, aided by affordable crude oil prices, a better supply-demand balance, and supportive government policies.

Indias medium-term economic projections target annual average GDP growth exceeding 7%, supported by investment rate goals of 35% of GDP by 2030 and merchandise export targets of USD 1 trillion by 2030. The manufacturing sector aims to achieve 25% GDP share by FY 2030, underpinned by continued policy support and comprehensive industrial transformation initiatives.

Indias structural transformation goals include reaching 500 GW of renewable energy capacity, 30% of electric vehicles to account for new vehicle sales, and growing the digital economy to USD 1 trillion, all by 2030. The human capital development agenda targets skilling 400 million workers by FY 2030, ensuring effective demographic dividend realization and economic transformation toward higher productivity activities. This comprehensive economic performance reflects Indias emergence as a resilient, growth-oriented economy capable of navigating global challenges while maintaining domestic stability. The nations ambitious objectives position it for sustained prosperity and enhanced global economic leadership in the coming decades, reinforcing its role as a key driver of global growth and economic stability.

Renewable Energy Sector Overview

I. Global

In 2024, global renewable energy capacity addition grew by approximately 25%, reaching 700 GW with solar PV contributing over 75% of new installations. According to the International Energy Agency (IEA), renewable electricity generation increased by 10%, doubling the pace seen in 2023. Solar PV remained the primary driver of this growth, generating nearly 2,000 TWh and accounting for about 7% of total global electricity production.

The surge in renewable deployment reflects both a structural shift in energy consumption patterns and an increasing role of electricity in the energy sector. Global electricity demand surged by 4.3% year-over-year in 2024, up from 2.5% in 2023. This sharp rise was driven by record-breaking global temperatures in 2024, marking the warmest year on record (as per WMO – World Meteorological Organization), alongside growing electrification, digitalization and data centre business worldwide. In all, the power sector made up three-fifths of the total increase in global energy demand. Asia Pacific power demand grew 6% YOY and accounted for nearly 75% of global growth. China and India together accounted for 85% of the regions growth, with their national electricity consumption increasing by 7% and 5.8% respectively, supported by robust economic activity and urbanization.

Renewables accounted for the largest share of the increase in global energy supply at 38%, followed by natural gas at 28%. Conventional generation remained critical for grid stability, with natural gas providing flexibility to support renewable integration and coal showing a gradual decline n many markets. i

Global Renewable Capacity Additions by Segment

Share of Energy Demand Growth (2024)

Growth Outlook

As per Bloomberg NEFs Energy Transition Scenario (ETS), global electricity demand is projected to increase by 75% by 2050, driven by economic growth, widespread electrification of transport, increased cooling requirements, and rapid expansion of data centres. Emerging economies in Asia, the Middle East, and Africa are expected to lead this surge, presenting significant opportunities for investment in power infrastructure. While useful energy demand is expected to rise by 32%, primary energy consumption is projected to increase by just 9%, reflecting substantial efficiency gains from renewables and electrification.

Global Data Centers – Power Demand Outlook

High Energy intensity of digital infrastructure is anticipated to be the key contributor to rising electricity demand.

Global Data Centers Capacity

Data centres are projected to consume about 3,700 TWh by 2050, or 8.7% of global electricity demand, surpassing consumption by air conditioning and heat pumps (7.1%), but behind electric vehicles (11.2%).

Complementing this long-term view, the International Energy Agency (IEA) projects renewables to supply over one-third of global electricity in 2025, overtaking coal as the leading source. Between 2025 and 2027, renewables are expected to meet approximately 95% of new electricity demand, with solar PVs contribution rising from 40% in emissions from power generation ^{2024 to 50% by 2027. CO}2 are expected to stabilize between 2025 and 2027, following a 1% rise in 2024. This reflects the ongoing shift toward clean energy and a plateau in fossil fuel-based generation.

II. India

At the end of FY 2025, Indias total installed power capacity stood at 475 GW, with renewable energy constituting 220 GW (46%). Solar energy led this expansion, adding around 24 GW in the last year.

Source-wise Installed Electricity Capacity Trend

The total installed solar capacity was around 105 GW, including 81.01 GW from utility-scale projects, 17.02 GW from rooftop systems, 2.87 GW from hybrid setups, and 4.74 GW from off-grid installations. States such as Rajasthan, Gujarat, and Karnataka account for more than 70% of the utility-scale capacity additions. Rooftop solar capacity grew during the year, a direct outcome of policy interventions such as the PM Surya Ghar Muft Bijli Yojana, which launched in February 2024. Similarly, the PM-KUSUM scheme continued to drive the deployment of solar pumps for agricultural use, with over one million units installed.

On the manufacturing front, India made strategic gains in strengthening its domestic solar supply chain. During FY 2025, solar module manufacturing capacity nearly doubled from 38 GW to 74 GW, while solar cell capacity grew from 9 GW to 25 GW. Notably, the country took its first steps towards deployment of commercial ingot-to-wafer facilities, a critical milestone in upstream integration. These achievements were underpinned by the Production Linked Incentive (PLI) scheme and foreign direct investments aimed at creating resilient, vertically integrated manufacturing ecosystems. Despite these successes, energy transition remains a whole-in-Progress. While renewables now account for about 50% of Indias total installed power capacity, they contributed only around 24% of actual electricity generation in FY 2025. This discrepancy reflects persistent grid integration challenges, curtailment of surplus power, limited energy storage deployment, and a lack of real-time balancing infrastructure. Coal-fired generation still meets approximately 75% of electricity demand, underlining the dual-path strategy where India continues to expand coal output even as it grows its renewable base. In fact, India produced over 1 billion tonnes of coal in FY 2025, highlighting the scale of parallel fossil fuel expansion.

Demand Drivers

Indias solar sector is experiencing robust momentum underpinned by a combination of improving techno-economic viability, strong policy support, fight against climate change, structural sectoral reforms, and evolving market dynamics.

Demand-side support

Renewable Purchase Obligation

Mandates electricity distribution companies, open access consumers, and large captive power users to purchase a certain percentage of their total power consumption from renewable energy sources.

RPO target for DISCOMs and bulk users are set to rise from 29.9% in FY 2025 to 43.3% in FY 2030.

PM Surya Ghar Muft Bijli Yojana (residential rooftop)

Promotes rooftop solar adoption by providing subsidies and incentives to households, enabling up to 300 units of free electricity per month.

25-30 GW residential rooftop installations in 3 years using DCR modules.

PM Kusum Scheme (agri-solar)

Supports the installation of solar pumps and grid-connected solar power plants. Reducing farmers dependence on diesel and grid electricity and enables them to generate additional income by selling surplus power.

34.8 GW capacity addition by March 2026 using domestic modules.

CPSU Scheme - Phase II

Provides Viability Gap Funding (VGF) to Central/State PSUs and government organizations, for setting up grid-connected solar projects.

Targets 12 GW grid-connected solar power capacity with DCR modules.

Green Open Access Rules

Open Access is allowed for all consumers, with a reduced minimum load requirement of 100 kW for non-captive users and no limit for captive consumers. Consumers procuring green energy beyond their RPO obligations will be eligible for Green Certificates.

Supply-side support

Solar park scheme

Over 10 GW solar capacity commissioned across 50+ parks with dedicated infrastructure since 2014.

Provides CFA up to 20 lakh/MW or 30% of project cost to support park development.

Transmission and evacuation system upgrades

2.4 trillion allocated under Green Energy Corridor Phases I & II to boost grid capacity for 500 GW renewable target by 2030.

GEC-I added 10,750 ckm lines and 27,500 MVA; GEC-II targets 20,000 ckm and 45,000 MVA by FY 2026.

Standard competitive bidding framework

Provides tariff-based bidding guidelines to ensure transparent and cost-efficient solar project allocation.

Promotes fair competition and timely execution of grid-connected solar and transmission projects.

Liberalised investment regime

Allows 100% FDI under automatic route in solar generation and manufacturing to attract global investment.

Supports domestic manufacturing through incentives and ease-of-doing-business reforms.

Mandatory storage capacity for solar projects

New solar bids from Feb 2025 must include 10% energy storage with 2-hour backup to enhance grid reliability.

Aims to add 14 GW / 28 GWh storage capacity by 2030 for better renewable integration.

Recognizing these issues, the Indian government has taken several forward-looking steps. In July 2025, the Union Cabinet approved a I5,00,000 million package focused on scaling renewable infrastructure, storage solutions, and agricultural solarization. The market is also witnessing increased private sector participation and innovation in digital grid management, forecasting, and time-of-use tariffs. Indias solar power economics continue to be highly favourable. Solar tariffs remain significantly lower than those of new coal-fired plants, with prices dropping to nearly half in many regions. This cost competitiveness, coupled with fiscal incentives, growing domestic manufacturing, and ambitious state-level renewable targets, is expected to continue driving demand over the next few decades. Furthermore, the large pipeline of solar projects, backed by clear policy visibility and capital flows, positions India well to meet its 2030 target of 280 GW Solar Capacity.

Strategic Initiatives to Scale Renewable Infrastructure

Sector Growth Outlook

In 2025, Indias energy landscape is poised for a transformative shift as renewable capacity additions are set to reach 33 GW (AC), a 14% increase over the record set in 2024. This growth is driven primarily by solar installations, which are forecast to rise from 24 GW in 2024 to 29 GW (AC) this year. (Source: BloombergNEF)

Solar and Wind Capacity Additions

Gigawatts (AC)

Rising demand and a sharper focus on clean energy is anticipated to shape the Power sector in India. The National Electricity Plan (NEP) has set an installed capacity target of 609 GW by FY 2032. Solar capacity is projected to reach 364.6 GW, with 36 GW per year planned from FY 2028 onwards. The Central Electricity Authority (CEA) further emissions will ^{projects that the countrys power sector CO}2 peak before 2030 and then decline as renewable capacity expands, potentially avoiding over 1 billion tonnes of ^CO2 emissions annually by 2030 compared to a business-as-usual scenario.

Battery Energy Storage System (BESS) Demand

As Indias renewable energy capacity expands, Battery Energy Storage Systems (BESS) are becoming a key enabler of the clean energy transition. As of 2024, Indias installed capacity for BESS stood at approximately 341 MWh, a sharp increase from ~51 MWh in 2023 (as per CEA, IEA).

By storing excess solar and wind power for use during periods of low generation, BESS improves grid stability, enhances energy security, and facilitates higher renewable penetration. The BESS market is rapidly evolving from policy-driven pilots to commercial-scale adoption, driven by rising renewable integration, grid reliability concerns, and falling battery technology costs.

BESS sector is entering a high-growth phase, supported by falling battery costs and proactive government interventions. The Union Cabinets VGF scheme, approved in September 2023, has expanded its supported capacity from 4,000 MWh to 13,200 MWh within the same H 3,760 crore budget, reflecting the sharp decline in capital costs, from H96 lakh per MWh in FY2023-24 to H46 lakh per MWh, or 30% of project cost, whichever is lower. While no projects achieved financial closure in FY2024-25, the schemes design, with staged disbursements, is expected to accelerate deployment as market conditions improve. Alongside VGF-backed projects, India is witnessing growing momentum in multiple storage and hybrid renewable tenders, positioning BESS as a key enabler for integrating intermittent renewable generation. With the National Electricity Plan 2023 projecting a requirement of 236 GWh BESS capacity by FY 2032 these developments mark a critical step toward ensuring grid stability, reducing peak-hour costs, and achieving the countrys clean energy transition goals.

Installed battery energy storage capacity (MWh)

While utility-scale projects currently dominate this segment, the residential and behind-the-meter segment is emerging as a distinct and promising sub-market. Growth in this segment is fueled by expanding rooftop solar adoption, net metering incentives, and the need for reliable backup power.

Key growth drivers include the rise in rooftop solar capacity, which surpassed 11 GW in 2024, with an additional 2.5–3 GW expected annually (as per MNRE, Bridge to India); the ~85% drop in lithium-ion battery prices over the past decades (as per BloombergNEF); and strong policy support through programs like the PM Surya Ghar Yojana, viability gap funding, and the rollout of Time-of-Day (ToD) tariffs.

However, key challenges remaining a key determinant for the sector are high upfront costs, limited consumer awareness, a lack of standardized financing mechanisms, and dependence on imported battery cells. Domestic cell manufacturing under the PLI scheme for ACC batteries aims to mitigate these issues. By 2030, Indias total BESS market spanning utility, C&I, and residential segments could exceed 160 GWh (as per CEA, NITI Aayog), with 6–8 GWh attributed to residential use. Key success factors for market entrants include hybrid inverter integration, strong EPC partnerships, and accessible consumer financing. BESS will play a critical role in achieving Indias 500 GW non-fossil capacity target by 2030 and ensuring rooftop solar viability.

Residential Solar Inverter Market

Indias residential solar inverter market is gaining momentum as rooftop solar installations scale up, driven by rising grid power costs, supportive policies, and growing consumer interest in energy self-sufficiency.

Rooftop Solar Market Segments

As of 2024, Indias rooftop solar capacity reached around 17 GW (MNRE, CEA), with 3.2 GW added during the year which is about 74% from residential consumers and inverter penetration at nearly 90%. The solar inverter market, valued at USD 210–280 million in 2024, is projected to grow at a CAGR of 18–20%, driven by rising household installations and technological upgrades. String inverters dominate with 65–70% share, while microinverters and power optimizers gain traction for complex rooftops. Demand is concentrated in states like Gujarat, Maharashtra, Uttar Pradesh, Kerala, Rajasthan and Madhya Pradesh, with about 80% from metro and Tier 1/2 cities. Growth is supported by policies such as ALMM, rooftop solar subsidies, net metering and schemes like PM Surya Ghar Muft Bijli Yojana. Advancements include inverter efficiencies up to 98%, smart grid-support features and integration with home energy management and EV charging systems.

Installations under PMSG Yojna (FY2025)

Source: MNRE

Challenges in Indias residential solar inverter sector include sensitivity to upfront costs, inconsistent state-level policies and gaps in consumer awareness. These issues are being addressed through innovative financing options such as EMIs and leasing, focused educational campaigns and enhanced after-sales services. Domestic manufacturing of solar inverters is growing, supported by import duties and production-linked incentives, which help lower costs and strengthen supply chains. While advanced solar cells and inverter cores are primarily imported from China, Taiwan and Korea, local production handles module assembly, battery packing and inverter assembly. The sectors value chain includes manufacturing (importing cells and locally assembling modules), distribution through solar EPCs, retailers and e-commerce, installation by solar contractors and ongoing service with warranties and maintenance. Some companies offer comprehensive end-to-end solutions. With strategic investments targeting urban middle- and high-income consumers, advanced product offerings and strong partnerships, the residential solar inverter market presents a promising opportunity aligned with Indias clean energy goals.

Policy and regulatory initiatives such as the PM Surya Ghar: Muft Bijli Yojana, PM-KUSUM, the PLI scheme, and the broader Atmanirbhar Bharat vision are playing a pivotal role in accelerating clean energy adoption in India. These programs are not only expanding access to solar power across residential, agricultural, and commercial sectors but are also encouraging innovation and building a supportive ecosystem for renewable energy deployment.

Make in India policy

Complementing these demand-side and deployment efforts, the Make in India initiative launched in 2014, remains Indias flagship program to transform the country into a global manufacturing hub. The policy framework encompasses strategic interventions aimed at boosting domestic manufacturing, reducing import dependence, and creating employment opportunities while enhancing Indias position in global value chains. Below are key policy measures that support this goal: a. PLI Scheme for High-Efficiency Solar PV Modules, implemented by MNRE, continues to play a pivotal role in strengthening Indias domestic solar manufacturing ecosystem. Under Tranche-II, awarded in FY 2025, a total of 39,600 MW of manufacturing capacity was allocated to 11 companies, with a committed investment of I9,30,410 million. b. In the recent budget, India has cut the Basic Customs Duty on solar cells and modules to 20%. On top of this, theres an extra 7.5% AIDC on cells and 20% AIDC on modules. Further, 10% duty on solar glass import has also been introduced, duties on key production equipment are waived to support local manufacturing while keeping import costs balanced. c. Approved List of Models and Manufacturers (ALMM)-cells ensures quality control in solar PV modules by mandating that only approved models and manufacturers can supply to government-sponsored or subsidized solar projects. After a temporary suspension in FY 2023-24 due to supply constraints, ALMM-cells was reinstated in June 2024 to promote domestic solar manufacturing while maintaining quality standards in renewable energy projects.

ALMM policy impact

Future direction

Indias future solar growth will be driven by a strategic focus on advanced technologies, clean manufacturing, and innovation-led industrial policy. The National Manufacturing Mission, announced in Budget 2025, aims to boost cleantech manufacturing in line with the countrys net-zero goals. Complementary initiatives such as the IndiaAI Mission (I1,03,710 million) and dedicated support for semiconductor fabrication signal a shift from basic assembly to high-value, tech-driven production. In the solar sector, the adoption of next-generation technologies like TOPCon, HJT, and tandem solar cells—offering conversion efficiencies of 25% to 30% is unlocking new investment opportunities and enhancing Indias competitive edge in global markets. These advancements, alongside policy support and a maturing domestic supply chain, are expected to significantly expand solar capacity and drive long-term growth.

Company overview

Leading the way in Indias clean energy transition, Premier Energies Limited (hereafter referred to as "Premier Energies", "Premier" or "the Company") one of Indias largest fully integrated solar cell and module manufacturer, with an annual installed capacity of 2.0 GW for solar cells and 5.1 GW for modules spread across three factories in Telangana.

Premier Energies currently manufactures high-efficiency bifacial monocrystalline PERC solar cells using the M10 (182 mm) wafer format, with typical efficiencies of around 23.2%. In line with its transition to next-generation technologies, the company has commissioned an additional 1.2 GW TOPCon solar cell manufacturing line in H12025, entering advanced cell architecture with targeted efficiencies of up to 25%. This milestone aligns with Mission 2028, Premier Energies strategic roadmap to expand to 8.4 GW of TOPCon cell and 11.1 GW of module manufacturing capacity by FY 2027. As one of the early adopters of TOPCon in India, Premier is reinforcing its commitment to indigenous solar manufacturing and cutting-edge technology adoption.

To further support Indias decarbonization goals, Mission 2028 focuses on expanding Premier Energies integrated capabilities across both upstream and downstream operations. This includes localized wafer production, aluminium frame manufacturing, Battery Energy Storage Systems (BESS), and inverter production, alongside the deployment of advanced bifacial and n-type TOPCon modules.

Module manufacturing Capacity under Mission 2028

Premier Energies is actively strengthening its supply chain through strategic backward integration, aiming to reduce reliance on imports and enhance cost efficiency. The Company has significantly lowered supplier concentration, with 60% of the equipment for its new 1.2 GW TOPCon cell line sourced from India and Europe. To further bolster domestic manufacturing, Premier Energies Limited has entered a 74:26 joint venture with Taiwan-based Sino-American Silicon Products Inc. (SAS, the worlds third-largest producer of semiconductor-grade silicon wafers to establish a 2 GW wafer facility by June 2026. Additionally, it is setting up a 36,000 MT per annum aluminium frame plant in partnership with Nuevosol, for captive consumption.

Project Execution Capabilities

To support its strategic growth plans, Premier Energies has secured over 500 acres of resource-rich land, aligning with its Mission 2028 objectives. Key allocations include 150 acres in Seetharampur, Telangana for a 6 GW solar module facility, 269 acres in Naidupeta, Andhra Pradesh for an 8 GW TOPCon solar cell plant and a 5 GW ingot and wafer manufacturing unit. The Companys integrated approach across design, engineering, procurement, and supply chain management enables swift and cost-efficient execution. Backed by strong vendor networks and long-standing supplier partnerships, Premier ensures timely project delivery and optimized costs, creating a robust foundation for scaling large, high-value projects.

Resilient Capital Management

Premier Energies follows a disciplined and structured approach to capital allocation, supported by a broad funding base comprising leading domestic banks and financial institutions. As part of its Mission 2028 roadmap, the Company plans to invest I125 billion to establish a fully integrated 10 GW solar manufacturing ecosystem, encompassing wafer, cell, module, and aluminum-frame production. These investments will be financed through a balanced mix of internal accruals and incremental debt, with a prudent goal of maintaining a debt-to-EBITDA ratio near 1.5x.

The Risk Management Committee continues to monitor actual leverage, debt serviceability, and sensitivity to interest rate movements, particularly in the context of global financing trends.

Product Portfolio

The companys business operations include

(i) the manufacturing of solar photovoltaic ("PV") cells,

(ii) the manufacturing of solar modules including custom made panels for specific applications,

(iii) the execution of EPC projects,

(iv) independent power production,

(v) O&M services. As of FY 2025, Premier Energies product portfolio comprised primarily solar modules, which accounted for 73%, followed by solar cells at 27%, and EPC services at 0.6%.

I. Solar Cell

The company currently produces solar cells using monocrystalline PERC technology, which outperforms traditional n polycrystalline solar cells. These solar cells are regarded as high-end solar products, which are space efficient, long lasting, and have streamlined appearance. The two types of solar cells produced are: Mono PERC Bifacial Solar Cell (182mm x 182mm) and G12R Monocrystalline Bifacial Topcon Solar Cell (182.2mm x 210mm)

a. Mono PERC Bifacial Solar Cell (182mm x 182mm)

Premier Energies was the first to produce bifacial Mono PERC cells using M10 wafers in the 182mm x 182mm format. With an average efficiency of 23.5% and a bifaciality factor of 75%, these cells feature a specially etched surface for enhanced light absorption and are known for their space efficiency and robust performance.

b. G12R Monocrystalline Bifacial Topcon Solar Cell (182.2mm x 210mm)

The G12R TOPCon solar cell is a bifacial monocrystalline cell measuring 182.2mm x 210mm, leveraging advanced TOPCon technology to deliver high power output from both sides. With an average efficiency of 24.5% and a bifaciality factor of 85%, it offers exceptional energy generation. The cell is durable, versatile, and ensures consistent performance across varied operating conditions.

II. Solar Module

Premier Energies currently manufactures solar modules using monocrystalline PERC solar cells, along with TOPCon solar cells sourced from third parties. The products include both monofacial and bifacial modules, differentiated by module technology, cell size, and quantity, and are offered across various power output ranges.

a. P-Type: Monofacial Module M-10 HC

A high-quality solar panel using Indias first M10 (182mm) cells, available in configurations delivering 385W–555W output. Backed by a 25-year power warranty for reliable performance.

b. P-Type: Bifacial Transparent Back Sheet Module M-10 HC

Built with M10 (182mm) cells, this bifacial panel captures sunlight from both sides for higher energy yield. Available in various configurations, it offers a 30-year power and 12-year product warranty.

c. P-Type, Bifacial Dual Glass Module M-10 & G-12 HC

Featuring M10 (182mm) or G12 (210mm) cells, this dual glass bifacial panel captures sunlight from both sides for enhanced output. Backed by a 30-year power and 12-year product warranty.

d. N-TYPE, Bifacial Dual Glass Module M-10 HC

Made with M10 and G12 cells, this dual glass bifacial panel offers up to 30% more output than P-type modules. With up to 80 ? 10% bifaciality, it performs well in reflective settings and includes a 30-year power and 12-year product warranty.

e. N-TYPE, Bifacial Transparent Back Sheet Module M-10 HC

Equipped with N-Type cells and bifacial design, this panel captures power from both sides. Its 3.2 mm tempered glass and up to 80 ? 10% bifaciality ensure strong performance, backed by 30-year power and 12-year product warranties.

III. EPC Solutions

PremierEnergieshasover12yearsofengineering,procurement, and construction (EPC) expertise through both the Company and its subsidiary, PSPPL. Its portfolio spans a wide range of solar solutions including ground-mounted, rooftop, floating, canal-top, canal-bank, and hybrid systems. It also supplies solar water pumps combining in-house manufactured modules with third-party pumps, offering clean, low-maintenance solutions suited for off-grid and remote locations.

Premiers strong EPC credentials and order book include module and cell supply contracts linked to EPC from multiple independent power producers (IPPs). With a proven track record of delivering turnkey solar projects from design to commissioning, Premier Energies continues to strengthen its market position and drive growth in the EPC segment.

IV. Operations and Maintenance (O&M) Solutions

Premier Energies also has a presence in the O&M segment by providing operations and maintenance solutions to its EPC solution customers. The company currently manages O&M services for ground-mounted and rooftop solar installations, as well as for the solar water pumps it has deployed.

V. Battery Energy Storage Systems (BESS)

Backed by a strong policy push, declining battery costs, and rising industrial demand, Premier Energies believes Indias BESS market is poised for exponential growth. The company under its Mission 2028, will enter the energy storage sector with a 12 GWh battery storage capacity rollout in two phases starting FY 2026. The plan includes setting up a cell-to-pack manufacturing line and offering EPC solutions for IPP clients. The company will invest around INR 6000 million by FY 2027, marking a strategic shift toward energy storage, supporting Indias low-carbon goals while leveraging its strengths in solar and EPC services.

VI. Solar Inverters

The company plans to enter the inverter manufacturing segment as part of its Mission 2028 roadmap. It will invest between INR 1500–2000 million to establish a 3 GW solar inverter production line by FY 2027. This move complements its existing capabilities in solar cells, modules, and EPC services, creating a more integrated clean energy portfolio. In-house inverter manufacturing will allow Premier to capture greater value within the solar supply chain, offer customized EPC solutions with integrated DC-to-AC systems, and enhance technical efficiency and control across its large-scale solar and BESS projects.

During FY 2025, the Companys manufacturing operations demonstrated strong operational efficiency. The solar cell facility operated near full capacities, achieving capacity utilization of approximately 95%, while the module line reported a utilization rate of around 75%. This elevated level of throughput reflects stable demand conditions and effective production planning across the Companys integrated manufacturing value chain.

Challenges and Risk Management

Indias solar sector, while growing rapidly, faces key hurdles including supply chain dependence, seasonality, among others. Tackling these challenges is vital to sustain momentum and achieve long-term clean energy goals.

I. Import Dependence for Key Materials

Despite increasing solar module production, India is still heavily reliant on imports for key components like polysilicon, wafers and high-efficiency solar cells. This can adversely impact the industry, resulting in unprecedented surges due to global supply chain disruptions. Furthermore, there is limited local sourcing of ancillary components such as glass, junction boxes and back sheets which are still imported from other countries. Only 30–40% of materials used in solar module production are sourced locally in India, with the rest still imported. This reliance on imports, combined with high domestic production costs, limits the cost and strategic benefits of local manufacturing.

II. Managing Variability in Solar Power Generation

Solar energy generation is inherently variable, influenced by factors such as time of day and seasonal shifts, which leads to fluctuations in output. This variability creates challenges in maintaining grid stability and ensuring a consistent power supply, highlighting the need for solutions that can balance supply with demand during non-generation periods.

Risk Mitigation Strategy

Effective risk management is crucial for ensuring the steady growth and resilience of Premier Energies in a dynamic and competitive business environment. The company faces a variety of operational, financial, and technological risks that could impact its production and market position. To proactively address these challenges, Premier Energies has put in place comprehensive mitigation strategies aimed at minimizing disruptions, safeguarding assets, and supporting sustainable business operations. The table below outlines the key risks identified by the company, along with the measures adopted to mitigate their impact.

Risk	Description	Mitigation Strategy
Production Process Risk	Manufacturing can be disrupted by unprecedented power outages, equipment malfunctions or natural events, thereby negatively affecting production output.	The Company operates with insurance coverage and enforces safety practices while deploying a dedicated safety team to minimise downtime.
Key input cost Risk	Dependence on imported raw materials and machinery increases exposure to policy and supply chain disruptions.	The Company aims to significantly reduce external dependence through backward integration into ingot and wafer manufacturing. It also maintains a well-diversified supplier mix without reliance on any single region.
		The company continues to evaluate opportunities to reduce cost volatility and geopolitical exposure
Technology Obsolescence Risk	Rapid technological advancements could render existing products or processes outdated.	The Company is deeply focused on technological advancement to address this risk. It is rapidly scaling up deployment of high-efficiency TOPCon technology and has partnered with RENA, Germany, for process innovation in n-type solar cells and next-generation tandem technologies. Additionally, an MoU has been signed with BITS Pilani, Hyderabad, to collaborate on R&D in cutting-edge solar technologies.
Low demand Risk	Primary reliance on solar cells and modules along with limited product portfolio diversification poses significant risk.	The Company has expanded its production capacity and implemented upstream integration. It is also diversifying across market segments including solar inverters and Battery Energy Storage Systems (BESS).
Foreign exchange exposure	Export-import activities expose the Company to foreign exchange fluctuations.	The Company adheres to a structured hedging policy and utilises forward contracts to manage forex exposure.
Customer Default Risk	Risk of non-payment by buyers— typically EPC contractors, project developers, distributors, or government agencies, after placing orders for solar modules or cells.	The Company has a well-diversified customer base spread across 23 Indian states and other geographies coupled with advance payments, LCs and shorter credit cycles in place.

Financial Performance

The table below outlines the financial performance of the Company for FY 2025.

Key Financials Metrics

Particulars	FY 2025	FY 2024
Revenue from operations (Rs. million)	65,187	31,438
Other Income (Rs. million)	1,333	275
Total Income (Rs. million)	66,521	31,713
PAT ( H million)	9,371	2,314
EBITDA (Rs. million)	19,142	5,053
Cash flow from operations (Rs. million)	13,480	902
Net Worth (Rs. million)	27,764.02	6,117.54
Net Asset value per Equity Share (H )	61.59	23.22
Basic Earnings Per Share	21.35	6.93
Diluted Earnings Per Share	21.35	5.48

As per the data shown by the above table, EBITDA for the company stood at I 19,142 million with EBITDA and PAT margins at 29.3% and 14.38% respectively, reflecting strong performance both YoY and QoQ. These robust margins were sustained due to favourable market dynamics, including rising demand for DCR modules and a constrained supply environment, enabling the Company to maintain healthy pricing power.

Key Financial Ratios

In FY 2025, the Company demonstrated improved capital efficiency and financial prudence. ROE rose to 54.03%, up from 43.73% in FY 2024, driven by higher net profitability and better asset utilization. Similarly, ROCE improved to 42.04% from 25.65%, reflecting enhanced operating performance and effective capital allocation.

The debt-equity ratio stood at 0.69 in FY 2025, compared to 2.18 in the previous year, indicating a balanced capital structure and a prudent approach to leveraging. The Company continues to maintain a healthy mix of equity and debt to support its growth initiatives while preserving financial stability.

Technology

The solar cell industry has undergone a remarkable transformation over the last few years, driven by the pursuit of higher efficiency and cost-effectiveness. The landscape continues to evolve with next-generation panels featuring advanced photovoltaic designs that enhance efficiency, reduce degradation, and improve overall reliability. Following the breakthrough of Passivated Emitter and Rear Cell (PERC) technology, newer technologies like TOPCon have emerged as strong contenders. Traditional PERC technology offers module efficiencies ranging between 23.2% and 23.7%, with a bifaciality rate of 70% to 75%. In contrast, TOPCon technology delivers significantly enhanced performance, with module efficiencies between 24.5% and 25.2%, and a higher bifaciality rate of 80% to 85%. This superior rear-side energy capture makes TOPCon modules particularly well-suited for large-scale, ground-mounted utility projects. These advancements not only boost overall energy output but also enable more efficient land utilization.

Premier Energies currently operates a 3,200 MW solar cell manufacturing capacity, comprising 2,000 MW of PERC and 1,200 MW of TOPCon cells, the latter added in June 2025. While monocrystalline PERC is expected to maintain a key presence in the near term, the company views TOPCon as the next frontier in solar technology. In line with this vision, Premier is expanding its TOPCon capacity by an additional 8.4 GW at its Nadidupeta, Andhra Pradesh facility by FY 2028. Given the compatibility between PERC and TOPCon technologies, the company aims to gradually transition from a monocrystalline passivated emitter and rear cell line to a TOPCon cell line, which requires cleanroom enhancements and the addition of specialized equipment to existing infrastructure. As market demand for TOPCon grows and operational stability is achieved, Premier plans to fully convert its entire PERC capacity to TOPCon over the next five years.

People

At Premier Energies, people have always been at the core of everything the Company strives for. The Companys ethos is rooted in nurturing a culture of trust, inclusivity, and continuous learning supported by transparent communication through employee feedback mechanisms, leadership engagement sessions, and collaborative team-building initiatives such as off-sites and recreational activities like cricket matches. The structured talent management framework, including annual performance reviews and assessment centres, enables the Company to identify high-potential individuals and provide targeted upskilling and succession planning opportunities. Premier Energies actively fosters diversity and inclusion through focused hiring and engagement initiatives that promote equity across all levels of the organization. Together with this, employee well-being and safety remain paramount, supported by a range of initiatives including expert-led health sessions, regular medical check-ups, yoga, lifestyle management workshops, and robust safety training at both project and O&M sites.

As of FY 2025, Premier supports over 6,000 green jobs including partnerships with third-party contractors across project sites. Furthering its commitment to employee empowerment, the Company introduced the ESOP 2.0 policy in FY 2025, aimed at driving long-term wealth creation for all stakeholders. Premiers commitment extends beyond its workforce to the broader community, in FY 2025, its CSR efforts included support for a diagnostic centre and specialized facility for the Swarg Vatika Trust, contributions to the Paediatric Neurology and Epilepsy Centre at the Nizam Institute of Medical Sciences, electrification of 405 homes in Kondareddypalli village through 3 kW rooftop solar systems, and the installation of a 45 kW rooftop solar plant at an orphanage in Hyderabad.

Sustainability and ESG

Premier Energies is firmly committed to advancing towards a sustainable energy future, serving as a key enabler in Indias clean energy transition. As the country accelerates towards its ambitious climate goals of 2030, Premier is aligning its operations with long-term environmental stewardship, inclusive growth, and responsible innovation. With a key focus on integrated clean energy solutions and resource-efficient manufacturing of solar modules and battery energy storage systems (BESS), the Company is building a resilient platform that not only supports national decarbonization objectives but also contributes meaningfully to the global renewable energy landscape.

In line with this vision, the Company has aligned its ESG initiatives with Indias climate priorities and global frameworks such as the UN Sustainable Development Goals (SDGs). The ESG strategy is anchored across key SDG pillars, with notable progress in FY 2025:

a. SDG 5 – Gender Equality: Women comprised 34% of the shopfloor workforce and 25% of the board, with the Companys long-term goal of achieving gender parity in the traditionally male-dominated manufacturing sector.

b. SDG 6 – Clean Water and Sanitation: Acknowledging that water is one of the planets most scarce and vital resources, Premier Energies has adopted a comprehensive water conservation and management approach across its operations. The Company has invested in zero liquid discharge at all manufacturing sites, achieving 75% water recycling and 80% reuse of treated and harvested water. Additionally, an on-site rainwater harvesting infrastructure with a capacity of 35 million litters reinforces its commitment to responsible and sustainable water management.

c. SDG 7 – Affordable and Clean Energy: As a core contributor to the clean energy transition, Premier enabled 49.7 million ^{metric tonnes of CO}2^{e avoided emissions through its module} supplies in FY 2025.

d. SDG 8 – Decent Work and Economic Growth: Recognized as a Great Place to Work for four consecutive years, Premier Energies supports over 6,000 green jobs, delivers 20,000+ hours of annual employee training, and offers an active ESOP scheme. The Company is ISO 45001 certified and prioritizes health and safety through a comprehensive contractor safety manual, incident management systems, and regular training on high-risk areas.

e. SDG 9 – Industry, Innovation and Infrastructure: Premier Energies operates Indias first LEED Gold-certified solar manufacturing facility, has been recognized as a Kiwa Top Performer for three consecutive years, and remains committed to advancing technology-driven automation and innovation across its operations.

f. SDG 12 – Responsible Consumption and Production: All Premier Energies facilities are zero waste to landfill, with regular audits by reputed firms like CEA, KPMG, and others ensuring compliance.

g. SDG 13 – Climate Action: The Company adopted 9.74 acres for greenbelt development, implemented absolute GHG accounting for Scope 1 and 2 emissions, and installed a 6.6 MW rooftop solar plant that reduced Scope 2 emissions by ^{10,765 tCO}2^{e demonstrating tangible progress toward} Indias climate goals. The Company remains deeply committed to supporting Indias national climate action agenda leading up to 2030.

Internal Control System

Premier Energies Limited makes sure it has proper systems in place to manage its operations and follow rules. The Company regularly checks these systems through internal audits to see if they are working well and meeting all policies and legal requirements. It takes steps to ensure its financial reporting is accurate and protected from fraud. The Company uses strong IT systems, including tools like SAP HANA and HRONE, to help manage areas like human resources, buying materials, making products, sales and handling money. These systems are updated regularly based on feedback and audits to make them better. So far, there have been no internal audit findings or material remediation actions with these internal controls, but the Company understands that keeping these systems effective depends on people and can sometimes involve mistakes or issues, especially in areas with high risk like anti-corruption rules in Indias solar sector. The Audit Committee helps by reviewing how well these controls and risk systems are working.

Cautionary Statement

The Management Discussion and Analysis (MDA) section includes the Companys plans, strategies and future outlook. These forward-looking statements are based on current expectations, estimates and projections, as well as certain assumptions made by the Company. However, actual results may differ due to various risks, uncertainties and changes in market or regulatory conditions. These statements reflect the Companys views as of the date they are made and may change over time. The Company is not obligated to revise or update them in light of new developments unless required by law.