Premier Energies Limited — Credit Ratings, 23-06-2025: Credit Rating

Crisil Ratings has upgraded the long-term and short-term bank facility ratings of Premier Energies Limited to 'Crisil A/Positive' and 'Crisil A1' from 'Crisil A-/Positive' and 'Crisil A2+', respectively. This reflects a marked improvement in the group’s credit profile driven by increased scale of operations, higher capacity utilisation (~88% for cells, ~74% for modules in FY25), and enhanced operational efficiency. Consolidated operating income rose sharply to Rs 6,518 crore with a strong EBITDA margin of 27.3%. The group’s net leverage improved to a negative 0.2x with a healthy interest coverage ratio of around 10x, supported by robust cash accruals and a Rs 2,200 crore cash balance. This upgrade should lower borrowing costs and strengthen investor confidence, while the sizeable capex plan (~Rs 4,500 crore) is cushioned by solid liquidity and limited reliance on external debt.