Mar-26 Review: Marginally ahead; Strong FY27 Outlook

Research evidence excerpt

Mar-26 Review: Marginally ahead; Strong FY27 Outlook

of the expanded capacity in the next couple of months. 125100

Working Capital cycle expands, OCF lower y/y: Working capital days rose from 66 to 88 y/y 75

as Premier built inventories to lock in COGS to protect margins. Operating cash flow declined 5025

6% y/y to Rs 126bn. 0

. FY23 FY24 FY25 FY26

Net debt rising, return ratios strong: Company ended FY26 with a net debt of Rs 12bn. Source: Company reports, Jefferies

Company plans to invest ~Rs 100bn in FY27-28 spread evenly. We expect net debt to equity

Exhibit 2 - Premier 1-yr fwd EV/EBITDA band

to rise from 0.28x in FY26 to 0.8x in FY28E. FY26 RoCE is at 25%. chart

Renewable to benefit from energy security demand, power demand recovery: We see 3833 Premier 1-yr fwd EV/EBITDA

geopolitical developments in the Middle East accelerating renewable deployment to ensure 28

energy security. A favorable base and a likely El Nino is expected to boost power demand 2318

growth in FY27 aiding renewable demand. 13

Oct-24 Nov-24 Jan-25 Feb-25 Apr-25 May-25 Jun-25 Aug-25 Sep-25 Nov-25 Dec-25 Feb-26 Mar-26 May-26

Strong growth and favorable valuation, maintain Buy: We have left FY27/28E Ebitda 1-yr fwd EV/EBITDA Avg +1 SD -1 SD

estimates broadly unchanged. We project 33% Ebitda Cagr over FY26-28E on the back of rising .Source: Bloomberg, Jefferies

volumes from the 9.4GW order book even as we build a compression in Ebitda/Wp. Valuation

is 1 SD below mean. Maintain Buy with new PT of Rs 1,135 - at 13x FY28E EV/Ebitda.

Key risks: Upside risks - less solar PV capacity addition than expected, fall in BESS price and

upside from BESS venture. Downside risks - weak domestic solar demand, rise in silver price

and all announced capacities materializing.

FY (Mar) 2025A 2026A 2027E 2028E

Rev.