Premier Energies Ltd Management Discussions

INDIAN ECONOMY

Indias economy demonstrated resilience and sustained momentum during FY 2026, supported by robust domestic demand, sustained public capital expenditure and a broad-based recovery across manufacturing and services. Despite global geopolitical and trade uncertainties, strong macroeconomic fundamentals and continued structural reforms supported economic growth.

Real GDP growth accelerated to 7.7% in FY 2026 from 7.1% in FY 2025, following the rebasing of national accounts to FY 2023. Nominal GDP grew 8.9% to INR 346.36 trillion, reaffirming Indias position as the fastest-growing major economy, according to the World Banks April 2026 Outlook.

GDP Growth Trend

Source: NSO, MoSPI

Economic activity remained broad-based across key sectors, with services continuing to be the primary growth engine. Services GVA grew 8.1%, while construction, manufacturing, utilities and agriculture recorded growth of 9.4%, 4.5%, 5.9% and 4.6%, respectively. Sustained investment activity across infrastructure, manufacturing, energy transition and digital infrastructure, continued to support economic expansion.

Inflation remained subdued in FY 2026, with average CPI inflation easing to approximately 2.1%, from 4.6% in FY 2025. CPI inflation fell to a record low of 0.25% in October 2025, supported by moderating food prices and GST rate rationalisation, before rising to 3.4% in March 2026, while remaining within the RBIs 2-6% tolerance band.

India YoY Inflation - FY 2025-26

(Base Year: 2012 = 100)

3.40%

3.16% 3.21%

Source: National Statistical Office (MoSPI), Ministry of Statistics & Programme Implementation.

Financial environment remained supportive of economic activity, with non-food bank credit growing 15.9% YoY to INR 212.9 trillion, led by lending to services, personal loans, agriculture and industry. Banking-sector asset quality also improved, with Gross NPAs declining to 1.8% and Net NPAs to 0.4% as of March 2026, supporting the investment cycle.

Gross NPA and Net NPA for Scheduled Commercial Banks

Fiscal Year

Source: Reserve Bank of India - Financial Stability Report, June 2026

Outlook

Indias growth outlook remains resilient despite global headwinds, supported by strong domestic demand, investment, manufacturing activity and policy support. As of August 2026, the RBI projects 6.7% GDP growth in FY 2027. CPI inflation is projected at 5.0%, reflecting potential pressures from energy prices, supply-chains disruptions and monsoon uncertainties. Indias medium-term agenda remains focussed on investment, manufacturing and energy transition, including setting up 500 GW of non-fossil fuel power generation capacity by 2030, supporting a favourable outlook for the domestic renewable energy sector.

Renewable Energy Sector Overview - Global

Global renewable energy deployment accelerated in 2025, with renewable capacity additions reaching a record 800 GW, up 16% YoY. Solar PV accounted for 605 GW, nearly three-fourths of global additions, while wind contributed 159 GW. Other renewable technologies, including hydropower, bioenergy, geothermal and marine energy, contributed approximately 33 GW.

The strong capacity build-out translated into higher renewable generation. Solar PV generation increased by a record 600 TWh in 2025, the largest annual increase recorded for any electricity source outside periods of post-crisis recovery, reaching nearly 2,700 TWh and taking solars share of global electricity generation to more than 8%. Total renewable generation grew by approximately 8.5% YoY, taking renewables share of global electricity generation to 34%, up from 32% in 2024.

The acceleration in renewable deployment is driven by a structural shift towards greater electrification. Global energy demand growth accelerated to 2.0% in 2024, well above the 1.3% average recorded during 2013-2023, before moderating to 1.3% in 2025. Electricity demand, continued to grow faster supported by the electrification of transport, industry and buildings, alongside rapid digitalisation and data-centre expansion. In 2025, global electricity demand increased by around 3%, approximately 2.3 times the growth in overall energy demand, further expanding the addressable market for power generation.

Notes: 2025 values are based on both actual and estimated additions for regions where full-year data is not yet available. "Other renewables" include hydropower, bioenergy, geothermal, concentrating solar power and marine energy.

Source: IEA, Global Energy Review 2026

Globally, data centre electricity consumption grew by around 17% in 2025, with the rapid expansion of AI infrastructure emerging as a major driver of new electricity demand. In the United States, data centres accounted for approximately 50% of total electricity demand growth during the year, while the IEA projects their electricity consumption to more than double by 2030. Given their large, continuous and highly creditworthy power requirements, data centres are increasingly becoming key offtakers for long-term renewable power purchase agreements and co-located solar-plus-storage capacity.

Renewables are increasingly central to meeting rising power demand. Low-emissions sources met nearly 60% of global energy demand growth, with solar PV alone accounting for more than 25% of incremental demand, making it the largest single contributor. Natural gas, oil, solid bioenergy and waste, wind and coal contributed 17%, 15%, 13%, 9% and 9%, respectively.

This transition is also reshaping the global power mix. Renewable power generation now nearly matches coal-fired generation globally, while coal-fired electricity generation declined in China and India for the first time in five decades, despite increasing in the United States. Meanwhile, more than 80 GW of coal capacity was completed in 2025, largely reflecting projects permitted in 2022-23. In contrast, cumulative solar capacity crossed 2,800 GW, making solar the worlds largest installed generation technology.

Growth outlook

As per BloombergNEFs New Energy Outlook 2026, global electricity demand is projected to increase by 69% by 2050, driven by economic and demographic growth, widespread electrification, higher cooling requirements and rapid expansion of data centres. Electricity demand is expected to rise 29% by 2035 alone, with developing economies continuing to account for a significant share of growth. BloombergNEF further estimates that annual energy-transition investment will average approximately USD 3.1 trillion between 2026 and 2030, 34% above 2025 levels, with investment required across renewable energy, power grids, battery storage and other enabling infrastructure to support the increasingly electrified energy system.

Solar and wind power are expected to remain at the forefront of this transition, their combined share of global electricity generation is projected to increase from 18% in 2025 to 56% by 2050, while the share of fossil fuels declines from 56% to 26%. Continued cost reductions and rising electricity demand are expected to further accelerate the shift towards renewable power.

Source: BloombergNEF

The evolving global energy landscape is reshaping solar manufacturing, with localisation, technology advancement and supply-chain concentration emerging as key industry dynamics. China accounts for around 85% of global solar PV manufacturing capacity and 95% of wafer production, making supply-chain diversification a strategic priority for key markets globally. The United States, European Union, India and Southeast Asia are increasingly promoting domestic manufacturing through tariffs, content requirements and production incentives.

With global solar module manufacturing capacity exceeding 1,500 GW annually against global installations of 605 GW in 2025, the industry remains structurally oversupplied, shifting the competitive battleground from capacity expansion towards cost position, cell- level technology and backward integration. As per BloombergNEFs Energy Transition Supply Chains 2026, India is emerging as the worlds second-largest module manufacturing base. Rapid expansion of its cell manufacturing capabilities positions it among the key beneficiaries of the global diversification of solar supply chains.

Renewable Energy Sector Overview - India

FY 2026 marked a significant inflection point in Indias energy transition, as three key structural milestones converged. First, scale: total installed power capacity crossed approximately 533 GW, with non-fossil sources accounting for 283.46 GW (approximately 53%), comprising 274.68 GW of renewables and 8.78 GW of nuclear capacity. Second, pace: non-fossil capacity additions in FY 2026 reached 55.29 GW, nearly double the previous record of 29.5 GW set a year earlier, led by 44.61 GW of solar additions. Third, commitment: India crossed the 50% nonfossil capacity milestone in June 2025, five years ahead of its 2030 Nationally Determined Contribution (NDC) target, prompting the Union Cabinet in March 2026 to raise the ambition to a 60% non-fossil share by 2035 under the updated NDC (2031-2035), alongside a 47% reduction in GDP emissions intensity from 2005 levels. India now ranks third globally in installed renewable energy capacity, having overtaken Brazil, according to IRENAs Renewable Energy Statistics 2026 (Source: PIB/MNRE, 10 April 2026; PIB Cabinet release, 25 March 2026; CEA)

Source: CEA

Indias total solar capacity reached 150.26 GW as on 31 March 2026, a 53-fold increase since 2014, alongside 56.09 GW of wind, 51.41 GW of large hydro, 11.75 GW of bioenergy and 5.17 GW of small hydro. Solar remained at the forefront of Indias capacity expansion, with annual additions spanning utility-scale, open-access, rooftop and off-grid applications increasing from 10.9 GW in 2021 to 37.9 GW in 2025, driven primarily by utility-scale and open-access projects.

Distributed renewable energy emerged as a significant component of the years growth, contributing 16.31 GW, approximately 36% of solar additions, including 7.67 GW under PM-KUSUM and 8.71 GW of rooftop solar, of which 6.72 GW was attributable to PMSGY. During 2025, India also overtook the United States to become the worlds second-largest solar market by annual additions, behind only China.

Manufacturing has emerged as a key engine of Indias energy transition, with increasing emphasis on domestic and upstream integration. As per Mercom India, as of 31 March 2026, India had approximately 172 GW of solar module manufacturing capacity (from 2.3 GW in 2014) and 31 GW of operational solar cell manufacturing capacity. Cell capacity continues to trail behind module capacity due to higher capital intensity and more complex technology, making upstream cell manufacturing a key opportunity for domestic value addition and pricing power. Domestic manufacturers exported approximately 5 GW of solar modules during 2025, with the United States accounting

for 96.8% of module exports, underscoring the countrys importance as a key export market for Indian manufacturers. However, high dependence on the US also exposed exporters to evolving trade and tariff policies. In February 2026, the US announced a preliminary countervailing duty of 125.87% on Indian crystalline silicon photovoltaic cells, while concurrent anti-dumping investigations added further uncertainty to market access.

As per CEA, coal-fired generation in India declined by 3.8% in FY 2026, supported by rapid renewable capacity additions and favourable monsoon conditions. Renewables, including large hydro, accounted for 25.62% of total generation, while thermal generation accounted for 71.36%. Solar contributed 9.46% of national generation, followed by wind at 5.57%. Solar generation grew by 20.2%, while wind generation increased by 22.3% during the year. With the growing share of variable renewable generation - grid integration, storage deployment and transmission availability are emerging as key near-term constraints for the sector.

Going forward, three structural demand engines are increasingly shaping Indias energy transition. First, end- use electrification is accelerating across transport, industry and buildings. Indias broad-gauge railway network was 99.6% electrified as of July 2026, while the IEA identifies rising EV adoption, industrial activity and cooling needs as key drivers of electricity demand. Green hydrogen is emerging as another electricity-intensive application, with electrolysis-based production requiring substantial amounts of renewable electricity. Indias National Green Hydrogen Mission targets 5 MMT of annual green hydrogen production by 2032, supported by about 125 GW of associated renewable energy capacity.

Second, digital infrastructure: rapid growth in AI-enabled computing is making data centres an increasingly important source of electricity demand. In India, datacentre capacity reached approximately 1.9 GW in FY 2026, with approximately 4.5 GW development pipeline, creating approximately 24 GW of potential solar demand by 2030.

Growth is also being supported by state-level data-centre policies and investment incentives. Gujarats Viksit Gujarat Data Centre Policy 2026-29 targets 7.5 GW data-centre capacity and INR 6 trillion of investment, with a requirement for at least 51% of electricity supply coming from green and renewable sources. Rajasthans Data Centre Policy 2025 offers fiscal and operational incentives, including support for captive renewable energy, while Andhra Pradeshs Data Centre Policy 2024-29 targets 200 MW additional capacity and provides incentives for large-scale and AI- enabled data-centre projects. Together, rising data-centre loads and policy-led renewable requirements are creating a significant opportunity for solar, storage and power- infrastructure providers.

Third, energy security: geopolitical volatility and fossil-fuel price uncertainty have strengthened the role of renewables as an energy-security solution alongside decarbonisation, with solar and wind reducing exposure to global commodity price cycles. For fuel-importing economies such as India, domestically generated renewable power can therefore support both energy independence and long-term cost stability.

Policy support

Indias solar growth is supported by a robust policy framework alongside strong underlying demand drivers. Policy measures are designed to address both the demand and supply sides.

FY 2026 marked a shift in policy support, with two key developments. First, policy focus broadened from capacity addition to system integration, encompassing grid management, energy storage and agricultural solarisation, alongside private-sector innovation in digital grid management, forecasting generation output and time-of-use tariffs. Second, and particularly relevant for manufacturers, policy increasingly focused on market access, with ALMM mandates, DCR requirements and duty structures shaping eligibility and competitiveness. These measures favour players with greater domestic integration and in-house cell manufacturing capabilities. The sectors economic competitiveness continues to reinforce demand, with solar tariffs remaining below those of new coal-fired generation. Budget 2026-2027 further supported the ecosystem through approximately INR 10,000 million of viability gap funding for BESS and pumped storage projects, INR 1,80,000 million for the Revamped Distribution Sector Scheme and customs duty relief for clean-energy manufacturing inputs.

Battery Energy Storage System Demand

Battery energy storage has evolved from an optional add-on to a key requirement for renewable energy integration. In 2025, BESS was the worlds fastest-growing power technology, with installations rising approximately 40% to nearly 110 GW. BloombergNEF projects global stationary storage capacity to increase from approximately 223 GW in 2025 to nearly 3.8 TW by 2050. This shift is accelerating the move towards firm and dispatchable renewable power, including solar-plus-storage, round-the-clock and hybrid projects.

In India, the rapid expansion of renewable capacity is placing increasing pressure on grid integration and transmission infrastructure. Approximately 470 GWh of renewable generation was curtailed across inter-state projects in Q4 FY 2026, of which approximately 300 GWh was attributed to transmission constraints, particularly in the Northern and Western grids. Renewable-rich states such as Rajasthan and Gujarat face the most acute evacuation bottlenecks. Ember report 2025 estimates that 3-4 GW of two-hour battery storage could absorb much of the currently curtailed generation. India has missed its annual transmission targets by about 20% over the past five years, while one in four major transmission schemes is delayed by at least a year. This is expected to drive INR 5-6 trillion of new transmission capital expenditure between FY 2026-27 and FY 203132, with approximately 107 GW of inter-state connectivity already granted through FY 2030-31.

BESS can store surplus solar and wind generation for periods of low output, thereby improving grid stability, energy security and renewable utilisation. Government support is accelerating deployment, including the Ministry of Powers additional VGF scheme for 30 GWh of BESS with INR 54,000 million outlay, following the earlier 13.2 GWh scheme. The Electricity (Amendment) Rules, 2025 have also clarified the ownership, deployment and legal status of energy storage systems, enabling standalone and co-located deployment as well as leasing and sale of storage capacity.

The National Electricity Plan estimates Indias total energy storage requirement at approximately 411 GWh by FY 203132, comprising 236 GWh of BESS and 175 GWh of pumped storage. (Source: CEA, National Electricity Plan). With the levelised cost of storage at approximately INR 4.0-4.5/kWh and solar at approximately INR 2.5/kWh, solar-plus-storage

at INR 7-8/kWh is increasingly competitive with peak power costs in several states. Alongside VGF-backed projects, growing storage and hybrid tenders are accelerating demand for storage-integrated and grid-forming solutions.

While utility-scale projects currently dominate deployment, residential and behind-the-meter storage is emerging as a distinct growth segment, supported by rooftop solar adoption under PMSGY, net-metering and the need for reliable backup power. Indias BESS market across utility, C&I and residential segments could exceed 160 GWh by 2030, including an estimated 6-8 GWh of residential demand.

Transformers

Indias transformer market is entering a strong growth phase, supported by rising electricity demand, renewable-capacity additions and the resulting need for grid infrastructure upgrades. As per Deloittes 2025 industry assessment, Indias electricity demand is growing at a CAGR of 5.5% and is expected to double over the next 10-12 years. Generation capacity is projected to grow by 40-50 GW annually, largely led by renewables, driving demand for Inverter Duty (IDT), High Voltage (HV) and Extra High Voltage (EHV) transformers for reliable grid integration and transmission stability.

Beyond the power sector, emerging applications such as data centres, metro rail and railway infrastructure are expected to provide additional sources of transformer demand, with 5 GW of data-centre capacity and 1,900 km of metro lines targeted by 2030. As per the National Electricity Plan (NEP), transformation capacity is expected to increase from 1,251 GVA to 2,342 GVA, while the transmission network is projected to expand from 4.85 lakh circuit km to 6.48 lakh circuit km.

Generation and transmission-side power-transformer demand is estimated at 170 GVA in FY 2026, increasing to 280 GVA by FY 2030, implying a 13% CAGR. The industry has approximately 250 GVA of effective annual production capacity against 280 GVA of FY 2027E demand, with capacity constraints and raw-material shortages contributing to lead times of up to 18-24 months in HV and EHV segments.

Growth outlook

Indias solar sector is positioned for continued expansion, with approximately 48-50 GW of new solar capacity expected to be added in FY 2027. The medium-term outlook is supported by a substantial renewable-energy project pipeline and long-term capacity targets. As of March 2026, 138.32 GW of renewable-energy capacity was under construction, comprising 90.04 GW of solar, 29.28 GW of wind and 19.00

GW of hybrid projects according to the Central Electricity Authority (CEA). The CEAs National Electricity Plan projects Indias installed generating capacity to reach approximately 900 GW by 2031-32, including 364.6 GW of solar capacity, 2.4 times the March 2026 installed solar base of 150.26 GW, implying an indicative CAGR of 15.9%.

Accelerating domestic demand, supportive policies, manufacturing incentives, storage integration and global supply-chain diversification are creating a favourable environment for Indias solar manufacturing industry. As the market shifts towards higher-efficiency technologies and greater localisation, integrated manufacturers are well positioned to capture opportunities across domestic and international markets.

Company overview

With over three decades of experience in the photovoltaic industry, Premier Energies has established itself as one of Indias leading integrated solar manufacturers. Headquartered in Hyderabad, Telangana. The Company is advancing towards its vision of becoming an integrated clean technology solutions provider, with capabilities spanning ingots, wafers, solar cells and modules, alongside an expanding portfolio across BESS, power transformers, aluminium frames and EPC services.

During FY 2026, Premier Energies scaled up its manufacturing footprint, with solar cell capacity reaching 3.6 GW and module capacity 11.1 GW. The year witnessed the commissioning of a 1.4 GW TOPCon module facility in Hyderabad, Telangana in May 2025 and a 1.2 GW TOPCon cell facility in July 2025, followed by 400 MW of brownfield cell and 350 MW of brownfield module expansion in January 2026. A key milestone during the year was the commissioning of the 5.6 GW module manufacturing facility at Seetharampur, Telangana. Equipped with fully automated production lines capable of producing four modules every 16 seconds, the facility integrates TOPCon technology with Zero Busbar architecture and AI-enabled real-time defect detection for enhanced quality control. The facility has created more than 2,000 jobs, contributing to local economic development.

Under Mission 2028, Premier Energies is scaling its vertically integrated manufacturing ecosystem through focused investments across Telangana and Andhra Pradesh. The Naidupeta facility in Andhra Pradesh, comprising 7 GW TOPCon solar cell capacity and 10 GW ingot-wafer capacity, is at the heart of this expansion. At Seetharampur, Telangana, construction is underway for the 12 GWh BESS and 18,000 MT aluminium frame manufacturing facilities, with completion targeted as outlined below.

7 GW

TOPCon Solar Cell Facility

by September 2026

10 GW

Ingot-Wafer

Facility

5 GW by December

2027

5 GW by December

2028

12 GWh

BESS

Container

Manufacturing

6 GWh by June 2027

6 GWh by June 2028

18,000

MT

Aluminium

Frame

Facility

by June 2027

10.75

GVA

Transformer

Manufacturing

by September 2026

The Company has incorporated HeliosAnthos Energies Private Limited, a 51:49 joint venture with BA Prerna Renewables Private Limited for undertaking EPC work for solar, wind and BESS projects. It also acquired a 34.21% (in FY 2026) and balance16.79% (in Apr 2026) stake in Transcon Ind Limited with 6.75 GVA of operational transformer manufacturing capacity These strategic investments support the Companys diversification strategy, deepen cross-sell opportunities and create avenues for sustainable, profitable growth.

Product portfolio

In FY 2026, Premier Energies revenue was primarily driven by solar cells, solar modules and EPC services.

II. Solar Modules

Premier Energies manufactures a range of P-type Mono PERC and N-type TOPCon bifacial solar modules across multiple glass backsheet configurations using M10, M10R and G12R cells with power outputs of up to 630 W. All modules carry a 30-year linear power warranty and a 12- year product warranty.

P-Type M10 HC Mono PERC Bifacial Transparent Back Sheet Module

This module offers bifaciality of up to 70 ± 10% and is available in 380-410 W, 420-450 W and 525-555 W power ranges.

I. Solar Cells

Premier Energies manufactures P-type Mono PERC and N-type TOPCon photovoltaic cells including M10R 10BB Mono PERC solar cell, G12R 16BB N-Type Bifacial solar cell and G12R 0BB N-Type Bifacial solar cell.

M10R 10BB Mono PERC Bifacial Solar Cell

The M10R Mono PERC solar cell measures 182.2 mm x 183.75 mm and has an average conversion efficiency of 23.5%. It features an anisotropically etched surface, a halfcut design, anti-PID and LID performance and a narrow rear-busbar design to reduce shading and improve bifacial performance.

G12R 16BB N-Type Bifacial Solar Cell

The G12R 16BB solar cell measures 182.3 mm x 210 mm and is based on N-type technology. It has an average conversion efficiency of 25.5% at mass-production scale, with a low temperature coefficient of -0.29%/°C and bifaciality of 80 ± 5%.

G12R 0BB N-Type Bifacial Solar Cell

The G12R 0BB solar cell measures 182.3 mm x 210 mm and is based on N-type technology. It targets an average conversion efficiency of 25.8% at mass-production scale, with a low temperature coefficient of -0.29%/°C and bifaciality of 80 ± 5%.

P-Type M10 Mono PERC Bifacial Dual Glass Module

This module delivers up to 30% additional power generation compared with conventional P-type modules and is available in 380-555 W sizes.

N-Type M10R & G12R Bifacial Dual Glass Module

The N-type bifacial dual-glass module is available with M10R and G12R cells. The M10R configuration offers 570590 W, while the G12R configuration offers 600-630 W. The modules offer up to 30% additional power generation compared with conventional P-type modules.

N-Type G12R HC Bifacial Dual Glass Module Neo Black

This module delivers 600-630 W with up to 30% additional power generation compared with conventional P-type modules alongside enhanced aesthetics.

III. EPC Solutions

Premier Energies has over 12 years of solar EPC experience, delivering turnkey solutions across ground- mounted, rooftop, floating, canal-top and hybrid projects. The 51% stake in HeliosAnthos Energies Private Limited enhances the Companys project execution capabilities across wind and BESS projects.

IV. Operations and Maintenance (O&M) Solutions

Premier Energies provides operations and maintenance solutions to its EPC customers across ground-mounted, rooftop solar and solar water-pump installations.

V. Transformers

Transcon offers a comprehensive portfolio of power solutions spanning inverter duty, power, distribution, LV dry-type, compact substation and BESS transformers. Its product range extends up to 765 kV, supported by in-house engineering and advanced manufacturing capabilities. The business also offers customised solutions for solar and storage applications, enabling Premier Energies to address a broader range of customer requirements across the renewable energy value chain.

VI. Battery Energy Storage Systems

Premier Energies is developing manufacturing capabilities for cell-pack and pack-container solutions. 6 GWh capacity is planned in the first phase by June 2027. Land has already been acquired; civil works have commenced and discussions with technology partners are underway.

OUR EXPANSION ROADMAP

I CORE SOLAR MANUFACTURING

Solar Cells

High-efficiency cells for superior performance

Solar Modules

Reliable & durable modules for utility, commercial & rooftop applications

PROJECT & LIFECYCLE SOLUTIONS

EPC Solutions ?€?

End-to-end engineering, procurement & construction solutions

O&M Solutions ?€?

Efficient operations & maintenance for longterm asset performance

EMERGING SEGMENTS

BESS

Battery energy storage systems for grid & commercial use

Aluminium

High-quality aluminium products for industrial & energy applications

TRANSFORMERS

Inverter Duty N Transformers

?€? Up to 20 MVA, 34.5 kV class

?€? Optimized design for solar load

?€? Conservator / hermetically sealed

Power

Transformers

?€? Up to 500 MVA, 765 kV class

?€? Lightning impulse and temperature rise tested

?€? Designed for high performance and reliability

Distribution

Transformers

?€? Up to 167 kVA, 34.5 kV

?€? Compliance with DOEs latest efficiency standards

?€? Low losses, high efficiency

BESS Transformers

?€? Up to 12.5 MVA, 69 kV

?€? Secondary voltage - 0.690 kV

?€? Oil-immersed cooling

Compact

Substations

?€? Up to 3 MVA, 34.5 kV

?€? Dry type / oil immersed

?€? 80% lower footprint

LV Dry

Transformers

?€? Up to 750 kVA

?€? DOE Compliant

?€? Efficiency up to 99.6%

In FY 2026, the Company continued to strengthen its manufacturing capabilities increasing cell capacity from 2.0 GW to 3.6 GW and module capacity from 5.1 GW to 11.1 GW. The increase in manufacturing capacity, supported by sustained utilisation levels reflects the Companys continued focus on scaling production and maintaining operational efficiency.

Financial performance

Particulars	FY 2026	FY 2025
Revenue from operations (INR million)	78,244	65,187
Other Income (INR million)	2,015	1,333
Total Income (INR million)	80,259	66,521
PAT (INR million)	15,097	9,371
EBITDA (INR million)	25,788	19,142
Cash flow from operations (INR million)	12,611	13,480
ROE	42%	54%
ROCE	34%	42%
Total debt to equity	0.86	0.69
Net Worth (INR million)	42,811.23	27,928.67
Net Asset Value per Equity Share (INR)	94.51	61.96
Basic Earnings Per Share (INR)	33.63	21.35
Diluted Earnings Per Share (INR)	33.63	21.35

In FY 2026, the Company delivered strong growth across key financial parameters, supported by higher operating revenue and improved profitability. Revenue from operations increased by 20.0% YoY to INR 78,244 million, while total income grew by 20.7% YoY to INR 80,259 million. EBITDA increased by 34.7% annually to INR 25,788 million, with EBITDA margin improving to 32.13% from 28.7% in FY 2025. PAT increased by 61.1% annually to INR 15,097 million,

With PAT margin improving to 18.81% from 14.09% in the previous year. ROE moderated to 42% in FY 2026 from 54% in FY 2025, while ROCE declined to 34% from 42%, as the Company continued to deploy capital towards capacity expansion and vertical integration. The total debt-to-equity ratio increased from 0.69 to 0.86, in line with the Company\u2019s ongoing investment and expansion cycle.

Risk Management

The renewable energy industry is undergoing rapid capacity expansion, technology change and supply-chain realignment, while the Company is scaling its manufacturing capacity and expanding into adjacent businesses. These developments present significant opportunities for growth, while also introducing several operational and financial risks.

Premier Energies follows an enterprise-wide risk management framework to identify, assess and mitigate material risks through defined ownership, operating controls and periodic management review. The framework is designed to support business continuity, protect capital and assets and enable the Companys growth plans while maintaining financial and operational resilience.

Risk Area	Risk Overview	Potential Impact	Mitigation Strategy
Production Risk	Rapid scaling of manufacturing across multiple facilities increases exposure to process instability and ramp-up challenges at newly commissioned lines	Low-capacity utilisation, production losses, delivery delays and high operating costs	Operational resilience is being strengthened through standardised processes, automation, real-time monitoring, preventive maintenance and robust quality controls, supported by phased commissioning, in-house engineering capabilities and experienced operating teams
Supply Chain Risk	Dependence on imported raw materials, components and manufacturing equipment exposes the Company to price volatility, logistic disruptions, trade restrictions and geopolitical developments	Input-cost inflation, procurement delays and production disruption resulting in margin pressure	Supplier diversification, focus on longterm sourcing contracts, increased domestic sourcing and backward integration
Technology Obsolescence	Rapid evolution in cell and module technologies may reduce the competitiveness of existing manufacturing facilities and product range	Poor customer acceptance, reduced product competitiveness and higher technology-related capital expenditure requirements	Scaling of high-efficiency TOPCon and Zero Busbar technologies, technology tie-ups with RENA, Germany for process innovation in N-Type and next-generation tandem technologies and R&D collaboration
Industry Overcapacity	Module oversupply and aggressive pricing	Lower price realisations, margin compression and reduced profitability	Upstream integration diversification across market segments including transformers and BESS focus on higher- value DCR-modules, differentiated offerings including Zero Busbar and All-Black modules to maintain industry leadership and competitiveness
Foreign Exchange Volatility	Lower revenues and / or higher costs to currency fluctuations	Earnings volatility, higher input costs and reduced export competitiveness	Effective currency hedging, minimal export exposure, sharing risk with consumers
Project Execution Risk	Large-scale investments in manufacturing capacity and entry into adjacent businesses involve high execution, commissioning and technology risks	Project delays, cost overruns, delayed ramp- up and lower-than- expected returns on invested capital	Partnership with experienced technology providers, milestone-based monitoring, comprehensive project insurances
New Business Risk	Expansion into new businesses introduces new product, technology, execution and market risks	Slower-than-planned commercialisation, execution challenges and lower returns from new investments	Low upfront capital expenditure, leveraging existing capabilities and relationships with respective market leaders
Delay in customer payments	Exposure to EPC contractors, developers, distributors and institutional customers creates counterparty and collection risks	Higher receivables, increased working capital requirements and potential credit losses	Diversified customer base, advance- payment mechanisms, letters of credit and defined credit limits

Technology and Product Innovation

The solar industry is rapidly transitioning towards higher- efficiency cell technologies to improve energy yields, reduce degradation and enhance cost competitiveness. TOPCon has emerged as a leading mainstream architecture, offering higher conversion efficiency and greater bifaciality, while innovations such as Zero Busbar, advanced metallisation and larger wafer formats are enabling higher power density and manufacturing efficiency.

Against this backdrop, Premier Energies is advancing its technology leadership through scale-up of TOPCon manufacturing, product innovation and continuous R&D. During the year, the Company achieved TOPCon cell efficiencies of up to 25.5% and introduced the NeoBlack Series, an all-black G12R DCR TOPCon module rated at up to 630 Wp, strengthening its portfolio of high-performance solar solutions.

Premier Energies is also building capabilities in next- generation cell architectures including tandem technologies. Its collaboration with RENA Technologies GmbH, Germany, focuses on advanced wet-chemical processes for N-type, TOPCon and silicon-perovskite tandem technologies, complemented by its R&D collaboration with BITS Pilani, Hyderabad. Advanced automation, AI-enabled defect detection and process optimisation further support manufacturing quality and efficiency.

The Company is also strengthening its technology and engineering capabilities in power infrastructure through Transcon. Its technology platform incorporates in-house amorphous metal core manufacturing, vacuum drying, precision foil winding and impulse and partial discharge testing, supported by in-house engineering for customised power solutions. These capabilities, together with compliance with global standards including UL, ANSI, IEEE and IEC, support the delivery of reliable and application- specific transformer solutions. These initiatives support Premier Energies evolution towards a broader, technology- led clean energy platform.

People

Premier Energies growth and expansion during FY 2026 were supported by a continued focus on building a skilled, agile and future-ready workforce. As the Company ramped up new manufacturing facilities and expanded its R&D capabilities, it strengthened talent acquisition, skill training and leadership development initiatives across the organisation. The introduction of PMS 2.0 established a more structured performance-management framework, aligning individual objectives with business priorities through measurable KRAs, biannual reviews and digitised, evidence-based assessments. The CXO Leadership Programme further supported the development of high-potential talent and strengthened the Companys leadership pipeline.

Learning and development remained a key priority during the year, with more than 40,000 hours of employee training undertaken across the organisation, supporting technical, functional and future-oriented capabilities. The Company continued to expand employment opportunities associated with the clean energy transition, supporting 9,220 green jobs during FY 2026. The Company also established a Skill Development Centre at Naidupeta to equip local youth and women with industry-relevant skills and strengthen the local talent ecosystem.

Premier Energies is committed to fostering a workplace built on diversity, equal opportunity and employee wellbeing. Women accounted for 25% of the Board and 30% of the shopfloor workforce. The Company continues to promote womens participation in manufacturing, supported by maternity benefits, nursing and childcare facilities and grievance redressal mechanisms, while remaining committed to accessibility and non-discrimination for persons with disabilities. Reflecting the strength of its people practices and workplace culture, Premier Energies was recognised as a Great Place to Work for the fifth consecutive year.

Employee health and safety remain core priorities, supported by an ISO 45001:2018-certified Occupational Health and Safety Management System, hazard and risk assessments, safety training and regular monitoring. In FY 2026, the Company recorded zero fatalities and zero Lost Time Injury Frequency Rate. Employee wellbeing is supported through regular health camps, medical support, insurance coverage, occupational health centres and affordable rental housing near manufacturing facilities. Rewards and recognition programmes, including Stars of the Month and Teams of the Month, along with ESOP participation and comprehensive social security benefits reinforce a culture of recognition, inclusion and shared success.

As Premier Energies enters its next phase of expansion, it remains focused on building a future-ready workforce, strengthening leadership capabilities and fostering an inclusive environment that enables employees to perform, develop and thrive.

ESG and Sustainability

During FY 2026, Premier Energies continued to embed sustainability across its operations, products and communities, guided by its internal ESG framework - Planet Positive, People Centric and Product Leadership. The

Company advanced its ESG journey with the publication of its first Sustainability Report in January 2026 and several key initiatives, including a sustainability maturity assessment, double materiality assessment and GHG inventory measurement.

Planet Positive

Safeguarding natural resources and ecosystems

Scope: Internal & External

Integrate climate resilience, energy efficiency, water conservation, circularity, and clean technologies into its operations

People Centric

Empowering people across the value chain

Scope: Internal & External

Create a safe, inclusive, and future- ready workplace while upholding human rights and supporting community development

Product Leadership

Driving innovation, responsible value creation, and robust governance

Scope: Internal & External

Embed sustainability across the product lifecycle-from design and sourcing to manufacturing, customer engagement, and digital transformation

The Company continued to strengthen its environmental priorities through Zero Liquid Discharge, 100% water recycling and 35 million litres of rainwater harvesting capacity. Its solar products contributed to approximately 100 MMTCO 2 e of avoided emissions during FY 2026, while 11.6 MW rooftop solar project reduced Scope 2 emissions by 8% during the year. GHG accounting for Scope 1 and Scope 2 emissions was implemented across its operations, further strengthening its approach to emissions management and measurement.

During the year, Premier Energies further aligned its ESG reporting and management practices with the GRI Standards and BRSR requirements, while adopting the IFC Environmental and Social Performance Standards as a reference for managing environmental and social risks. Building on this foundation, the Company is progressing on a decarbonisation roadmap and undertaking lifecycle emissions assessments across its products, climate risk assessment and human rights benchmarking.

The Company remains committed to advancing UN Sustainable Development Goals 5, 6, 7, 8, 9, 12 and 13, reflecting its focus on people, clean energy, responsible growth and climate action. During the year, Premier Energies joined the United

Nations Global Compact as a participant, further reinforcing these commitments.

Community engagement remained integral to the Companys sustainability agenda with INR 66 million invested in CSR initiatives during FY 2026. The initiatives focused on healthcare, education, clean energy access, water and rural development. Key interventions included medical and NICU care, 100 smart classrooms, school and hostel infrastructure and rooftop solar installations at healthcare and public facilities and homes in Telangana. The Company also supported community-based drinking water and water management initiatives, bicycle distribution for students and cultural programmes, including the 53rd Pandit Jasraj Hyderabad Sangeet Samaroh.

Internal Control System

Premier Energies Limited maintains robust systems and processes to support operational efficiency, compliance and reliable financial reporting with regular internal audits and adherence to policies and legal requirements. The Company leverages SAP HANA, HRONE, ADP and inhouse business-control platforms including Zion, LEAF, CertifyPro, CCAS and SPOT to strengthen controls across HR, procurement, manufacturing, sales and finance.

These systems are continuously enhanced based on audit findings and business requirements with measures in place to safeguard financial reporting and mitigate fraud risk. No internal audit findings or material remediation actions have been reported in relation to these controls. The Audit Committee oversees the effectiveness of the internal control and risk-management framework including risks arising from human error and high-risk areas such as anticorruption.

Cautionary Statement

The Management Discussion and Analysis (MDA) section includes the Companys plans, strategies and 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 considering new developments unless required by law.