Motilal Oswal Financial Services has initiated coverage on Premier Energies with a ‘Buy’ rating and a target price of Rs 1,000. Based on the current share price, this implies an upside of about 27%. In its 11 February report, the brokerage said its positive view is driven by capacity ramp-up, strong backward integration, margin profile, and earnings growth visibility.
The brokerage expects EBITDA and adjusted profit after tax to grow at a 30% CAGR over FY25–FY28. It has valued the stock at around 10x FY28 EV/EBITDA and arrived at its target price using a sum-of-the-parts method.
Here are six reasons Motilal Oswal Financial Services has initiated coverage with a ‘Buy’ call.
Motilal Oswal a leading domestic brokerage, has initiated coverage on Premier Energies with a ‘Buy’ rating and a target price of Rs 1,000, implying a 27% upside from the current price of Rs 786.10. The brokerage said, “We like Premier Energies for its strong capacity ramp-up, industry-leading backward integration and margins, and a robust order book.”
The brokerage believes the company is well placed in India’s solar manufacturing opportunity, supported by a policy push towards renewable energy and domestic manufacturing of cells and modules.
It also noted that valuations are reasonable given the expected earnings growth. “At ~10x FY28 EV/EBITDA, we believe valuations are reasonable, given the 30% EBITDA CAGR over FY25-28,” the report said.
The target price has been derived using a sum-of-the-parts valuation, valuing the domestic module business at 13x FY28E EBITDA and new businesses at 10x FY28E EBITDA, resulting in a target of Rs 1,000 per share.
Motilal Oswal Financial Services said capacity expansion is a key growth driver. As of January 2026, Premier Energies had module and cell manufacturing capacities of 5.4 GW and 3.6 GW, respectively.
These capacities are set to scale up to 11.1 GW for modules and 10.6 GW for cells by the end of FY27, according to the brokerage.
The report said this ramp-up will support revenue and earnings growth over the next few years, especially as domestic demand remains strong.
The brokerage expects the entire 10.6 GW cell manufacturing capacity to be operational by FY27.
Motilal Oswalhighlighted the company’s strong backward integration as a differentiator.
“PEL’s superior backward integration (cell-to-module ratio of 67% at Jan’26-end) vs other listed players has been key to delivering an industry-leading EBITDA margin of over 30%,” the report said.
The brokerage believes integrated capacity is crucial at a time when the government is pushing for localization across wafers, ingots and cells.
It noted that cell capacity in the industry continues to lag module capacity, which could keep integrated players better positioned.
The brokerage expects strong earnings growth over FY25–FY28.
“We estimate both EBITDA/APAT to grow at 30% FY25-FY28 annually on a compunded basis , driven by the ramp-up of its capacities,” Motilal Oswal Financial Services said.
It expects consolidated EBITDA margin to expand to 28% in FY26 from 27% in FY25, before moderating to 20% by FY28 due to increasing competition and contribution from new businesses.
Even with margin moderation, the brokerage sees earnings compounding supported by scale and capacity utilisation.
Motilal Oswal Financial Services expects new business verticals to add to growth from FY27 onwards.
The brokerage said, “Capacity expansion and new business scale-up to drive 30% EBITDA and APAT growth annually on a compounded basis between FY25-FY28).”
Premier Energies is diversifying into battery energy storage systems, inverters and transformers. These segments fall within the power capital goods space and benefit from similar policy support.
According to the report, new businesses are expected to contribute 15% of revenue in FY27 and 23% in FY28.
The brokerage flagged the importance of integrated capacity as the government pushes for backward integration.
“Integrated capacity key amid backward integration push,” the report said.
It added that while module capacity has expanded sharply in recent years, integrated capacity is the true supply indicator.
With continued policy support and potential wafer and ingot localization mandates from June 2028, the brokerage believes integrated players could sustain better utilization.
Motilal Oswal Financial Services also pointed to potential external triggers.
“Clarity on a US-India trade deal could act as a key catalyst for PEL by: 1) accelerating export growth, 2) enabling the company to set up a manufacturing base overseas,” the report said.
The brokerage noted that exports currently form a small part of revenue, but clarity on trade arrangements could open up additional opportunities.
Motilal Oswal’s recommendation on Premier Energies is based on targetted capacity expansion to 11.1 GW modules and 10.6 GW cells by FY27 and strong backward integration. They believe that 30% EBITDA growth projection an dnew business contribution will support the share price.
The 2nd edition of the D Awards was held at Korea University in Seoul on February 11, 2026. The event was hosted by Myung Jaehyun and Lee Jong Won, with actress Shin Ye Eun. It was broadcasted live on Channel A Plus and delayed on Channel A. The lineup included 16 artists and 21 presenters, with awards given in categories such as “Delight” and “Dream.”
