Shares of Premier Energies Ltd. have extended their decline for a third consecutive trading session, falling as much as 4% on Wednesday to ₹1,007.20 and taking total losses over the past three days to 7%. According to NDTV Profit, the stock has remained under pressure since the Ministry of New and Renewable Energy extended the deadline for mandatory domestic solar cell sourcing for eligible solar power projects to December 31, 2026. The domestic sourcing rule, which came into effect on June 1, requires net-metering and open-access solar projects to use solar cells manufactured in India, with the ministry pushing back the implementation deadline by seven months to give developers and manufacturers more time to comply while domestic solar cell manufacturing capacity expands.
The Ministry of New and Renewable Energy (MNRE) has extended the implementation deadline for ALMM List-II (Approved List of Models & Manufacturers for solar cells) for Net Metering and Open Access (OA) solar projects from May 2026 to December 2026. As reported by multiple sources, the extension was granted after industry concerns that India's domestic solar cell manufacturing capacity is still insufficient to meet near-term demand, which could have led to project delays and higher costs. The government said the move will ensure a smoother transition to domestic cell sourcing while allowing developers and module manufacturers to utilize existing inventories. The ministry has now extended this deadline by an additional seven months, providing further relief to the industry.
Speaking to NDTV Profit, Vinay Rustagi, Managing Director at Premier Energies, reiterated that the ALMM-II extension would have no impact on the company's business or margins. As reported by NDTV Profit, Rustagi emphasized that demand momentum is expected to continue in FY27 and that no orders were delayed in anticipation of the policy change. The management's reassurance has helped alleviate investor concerns about increased competition from imported solar cells, with Rustagi clarifying that the extension applies only to the corporate solar segment, while the policy continues to remain in force for the residential rooftop and PM Kusum solar pump markets. Rustagi also noted that the company has started commercial production at its 11 GW manufacturing plant.
According to CNBC TV18, Rustagi reported that Premier Energies' production for the next six months is already sold out, reflecting continued strength in domestic demand. The company's expansion plans remain on track, with 5.6 GW of module capacity already operational, while its 7 GW cell manufacturing facility is expected to be completed within the next two months. As reported by CNBC TV18, Rustagi confirmed that the planned investments are already funded, and the company has no requirement to raise external capital for the ongoing capacity additions. The executive noted that the company has already sold its production for the next six months to the residential rooftop and Kusum segments, where contracts and pricing have already been finalised.
Premier Energies had reported a strong March quarter, with net profit rising 64% year-on-year to ₹456.8 crore, while revenue increased 38% to ₹2,230 crore. As reported by CNBC TV18, the company said strong execution and the ramp-up of its recently expanded 1.6 GW cell capacity, which operated at 84% utilisation, drove the performance. Cells accounted for 58% of the order book, supporting profitability. The company ended FY26 with an order book of 9,383 MW, valued at ₹14,010 crore, with more than two-thirds expected to be executed during FY27.
