Summary: Despite promoter stake sale, mutual funds aggressively accumulated this solar stock in May 2026. Find out why.
During May 2026, almost all the top mutual fund houses bought one particular stock. And most of them bought quite a bit, investing over 1% of their asset under management (AUM).
While many mutual funds bought the stock for the first time, with allocations as high as over 3% of the AUM in one go, other funds increased their holdings.
The stock? Premier Energies Limited.
Mutual Fund Buying in Premier Energies May 2026
| Fund Name | Shares Acquired (May 2026) | Total AUM Allocation | Month-over-Month Trend |
| Quant ELSS Tax Saver | 4,083,769 | 3.32% | New / Major Addition |
| Motilal Oswal Midcap | 2,915,966 | 2.13% | Increased (from 1.25%) |
| Canara Robeco Midcap | 701,570 | 2.57% | Increased |
| Edelweiss Equity Savings | 250,125 | 1.94% | New / Addition |
| Motilal Oswal Flexicap | 1,198,826 | 0.98% | New / Addition |
From Quant Mutual Funds to Motilal Oswal and several others, mutual funds bought the stock of Premier Energies during the month.
Quant ELSS Tax Saver Regular Growth Fund was the top buyer, purchasing 4,083,769 shares during the month, investing 3.32% of its AUM.
The second biggest buyer was Motilal Oswal Midcap Regular Growth Fund, buying 2,915,966 shares, increasing the percentage of its AUM invested in this stock from 1.25% at the end of April 2026 to 2.13% at the end of May 2026.
The third biggest buyer was also a Motilal Oswal fund – Flexicap Regular Growth Fund, which bought 1,198,826 shares during May, investing 0.98% of its AUM.
Amongst other top buyers, with a significant percentage of their AUM invested in this stock were Tata Midcap Regular Growth Fund (1.64% of AUM), Canara Robeco Midcap fund (2.57% of AUM)and Edelweiss Equity Savings Regular Growth Fund (1.94% of AUM).
So, why are these mutual funds buying Premier Energies so aggressively, even as promoters sold some of their holdings?
Let’s find out.
Premier Energies: Powering India’s Solar Ambitions
Premier Energies is one of the leading clean energy solution providers in India, with most of its revenue coming from manufacturing and supply of solar modules or panels.
The company is one of India’s first manufacturers of TOPCon Solar cells. The company also holds almost 100% market share in solar cell exports to the US from India.
Apart from solar cells, the company offers ingots, wafers, and other allied products required in solar inverters, transformers, and BESS solutions.
Industry Tailwinds
India is robustly shifting towards renewable sources for its energy needs. Out of total renewable energy capacity, solar energy contributes the most. In FY26, India added another 44.6 Gigawatt (GW) of alternating current (AC) from solar energy itself. This has been one of the biggest annual surges compared to 23.8 GW added during FY25.
For FY27, the estimated annual demand for solar modules is around 60 GW.
The industry dynamics and the growing demand are perhaps one of the reasons for mutual funds’ growing interest in this stock.
Another industry tailwind that is perhaps helping the company grow is strong demand for Battery Energy Storage System (BESS). The total demand (estimated) for BESS is expected to grow to 321 GW hour (GWh) by 2036.
Premier Energies ventured into manufacturing BESS products and solutions in FY25.
Furthermore, the government announced a capital subsidy of Rs 91.6 billion for 43.8 GWh BESS capacity. As of 31 March 2026, capacity of around 52 GWh was under construction, while 22 GWh of tenders are open for subscription, and 19 GWh tenders are already awarded. Premier Energies stands as a potential solid beneficiary for these initiatives.
Expanding Capacities
Premier Energies has been expanding its manufacturing capacity to align with the growing demand. During FY26, the company commissioned a 5.6 GW module manufacturing facility, which increased the total module manufacturing capacity to 11.1 GW annually.
On the other hand, the company is building a 7 GW cell manufacturing plant in Andhra Pradesh, expected to be completed by September 2026.
The company is also building a 10 GW ingot-water manufacturing plant in Andhra Pradesh. The first 5 GW is expected to be completed by December 2027, and in the next phase, another 5 GW of capacity will be added, which is expected to be completed by December 2028.
For BESS containers, Premier Energies has planned a 6 GWh capacity expansion whose first phase is due by March 2027.
As the company has now ventured into inverters as well, it has planned a 3 GW inverter manufacturing capacity by the end of December 2026.
Premier Energies is also venturing into aluminium frame manufacturing and has already planned an 18,000 million tonne per annum (MTPA) capacity, which is anticipated to be completed by March 2027.
Transcon Acquisition
In April 2026, Premier Energies acquired 51% stake in Transcon Ind Limited. This acquisition is expected to boost manufacturing and sales of a wide range of transformers.
In March 2026, 4.25 Gigavolt-amperes (GVA) capacity was commissioned, which took the total operational capacity of Transcon to 6.75 GVA.
Furthermore, Transcon has been building a manufacturing plant for high voltage and extra high voltage transformers with a total capacity of 10 GVA. It is expected to be completed by July 2026.
This could be another reason for the mutual funds buying this stock aggressively.
Solid order book and order inflow
The order book of the company stood at Rs 14,010 crore as of 31 March 2026, growing at 66% YoY.
During Q4FY26, the company received new orders worth Rs 2,577 crore for supply of 1,600 MW solar cells and modules.
Out of the total orders, 58% orders were for solar cells, and the other 42% orders were for solar modules.
61% jump in Profits
Premier Energies announced its Q4 and FY26 results in May, which was perhaps another trigger for the mutual funds and institutional investors.
During FY26, the company’s total income increased to ₹8,026 crore, from ₹6,652 crore in FY25, logging a 20.7% YoY growth. Profit during the period jumped from ₹937 crore to Rs 1,509.7 crore during the period, growing at 61.1% YoY.
The company delivered a return on capital employed (ROCE) of 33.3%, while the industry median stood at 20.3%.
The return on equity (ROE) was also higher than the industry median at 42.4%, while the industry median was only 17.7%.
Valuation Cross-Examination: Price vs. Growth Track
| Financial Metric | Premier Energies | Industry Median | Variance / Insight |
| Return on Equity (ROE) | 42.4% | 17.7% | Significant Outperformance |
| Return on Capital (ROCE) | 33.3% | 20.3% | High Capital Efficiency |
| Price-to-Earnings (P/E) | 31.4x | 30.9x | Marginally Expensive |
| PEG Ratio | 0.08x | 0.50x | Relatively Undervalued to Growth |
The stock is trading at a price-to-earnings (PE) of 31.4x, which is slightly higher than the industry median of 30.9x. However, the price-earnings to growth (PEG) ratio is 0.08x, lower than the industry median of 0.5x, indicating that the stock might be relatively undervalued if adjusted for growth.
1-Year Share Price Chart of Premier Energies Ltd.
Final Thoughts
Mutual funds buying this solar cell manufacturer at such a pace even as the promoters sold stock, perhaps indicates their focus on the long-term potential of the business given the solid fundamentals, earnings, robust order book, and multiple expansion projects and the industry tailwinds. Having said that, a lot depends on the successful execution of the expansion plans and projects that the company has invested in. Thus, it may be a good idea to add this stock to your watchlist to track how it performs in time to come.
We have relied on data from www.Screener.in throughout this article. Only in cases where the data was not available have we used an alternate, but widely used and accepted source of information.
The purpose of this article is only to share interesting charts, data points, and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educational purposes only.
Maumita Mitra is a seasoned writer specializing in demystifying the world of investment for a broad audience. She has a keen eye for detail and a knack for explaining complex financial concepts in the simplest manner possible.
Disclosure: The writer and her dependents do not hold the stocks discussed in this article.
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