Nuvama Institutional Equities has assigned a 'Buy' call on Premier Energies shares post 'resilient' fourth quarter (Q4 FY26) results and 'bright' outlook. The domestic brokerage also raised its target price on the stock.

"Q4 revenue/EBITDA at Rs 2,200 crore/670 crore grew 38 per cent/28 per cent YoY on 17 per cent YoY (year-on-year) module realisation and (+59 per cent YoY) cell output; EBITDA margin at 30 per cent," Nuvama said.

Nuvama highlighted that Premier Energies' 5.6GW module capacity is expected to start ramping up from Jul-26, while its 4.8GW and 2.2GW cell capacities are slated to come onstream by Jun-Sep-26. The brokerage also noted the company's strong order book position of 9.4GW, valued at nearly Rs 14,000 crore.

The brokerage further said the implementation of ALMM-II is likely to support demand from the rooftop and commercial & industrial (C&I) segments under the domestic content requirement (DCR) framework. It added that utility-scale demand is expected to emerge from FY29 onwards, with the DCR mix likely to improve on a sequential (quarter-on-quarter) basis.

On the expansion front, the brokerage noted that Premier Energies has guided for FY27 capex at Rs 5,100 crore, while FY26–28 estimated capex stands at Rs 12,000 crore.

It added that net debt increased 2.7 times QoQ amid the ongoing high capex cycle. However, the company aims to maintain debt-to-equity (D/E) below 1x and debt-to-EBITDA below 1.5x.

Nuvama further stated that the company expects a battery energy storage system (BESS) policy in the next 3–4 months. It also mentioned that inverter plans remain active and a partner tie-up is in progress.

"Strong OCF, internal accruals shall fund capex; balance sheet healthy. Trades at 21x FY28E EPS. 'BUY'; TP: Rs 1,190 (from Rs 1,082)," the brokerage stated.

Meanwhile, Premier Energies shares edged up 0.14 per cent to close at Rs 979 on Friday.