Vikram Solar: Riding the Solar Wave
From Sunshine to Bottom Line – Unpacking India’s Solar Manufacturing Leader
Company Overview
Vikram Solar Limited, founded in 2005 and headquartered in Kolkata, is one of India’s leading solar photovoltaic (PV) module manufacturers. With a manufacturing capacity of 4.5 GW across Kolkata and Chennai, the company offers integrated solutions across module manufacturing, EPC services, and O&M support. It operates in 39 countries across six continents with a market capitalization of ₹11,800 crores and promoter holding of 63.12%.
Growth Track Record
Over the last five years, Vikram Solar has delivered a 16% sales CAGR and 46% profit CAGR, while maintaining a debt-to-equity ratio of 0.22. Borrowings have steadily declined, improving financial resilience.
Recent Performance Highlights
Vikram Solar delivered a stellar performance in Q1 FY26, marking its strongest quarter to date. Revenue surged 79% year-on-year to ₹1,134 crore, while EBITDA more than doubled to ₹242 crore, with margins expanding to a healthy 21%. Net profit rose sharply to ₹133 crore, reflecting an impressive 484% YoY growth, as PAT margins improved to 12%. Earnings per share jumped to ₹4.42 from ₹0.72 in the previous year, underscoring robust profitability. The company also achieved a capacity utilization rate of 89%, demonstrating efficient operations and high demand.
With an order book of 10.96 GW, anchored by marquee clients like L&T, GIPCL, and Bondada Group, Vikram Solar enjoys strong revenue visibility for the next 12–18 months.
Growth Drivers & Outlook
Government initiatives like Atmanirbhar Bharat and PLI Schemes, import duties on modules, and the Green Hydrogen Mission are key tailwinds. India’s renewable energy target of 500 GW by 2030 (vs 75 GW current solar capacity) presents a vast opportunity of 85 GW/year.
Investment Strategy & Key Risks
Aggressive investors may consider accumulating near current levels, targeting a potential upside of 20–5%, with a downside risk limited to around –13%. Conservative investors can await minor corrections for an entry, aiming for gains of 15–40% while maintaining a similar protective stop level. Long-term investors adopting a staggered buying approach over a 2–3-year horizon could potentially achieve 85–140% returns, supported by strong fundamentals and sectoral growth tailwinds.
Investors should remain cautious of key risks such as promoter pledging and the stock’s premium valuation requires consistent execution and earnings growth to sustain investor confidence. Moreover, challenges like interest and working capital pressures, potential policy rollbacks, competition from Chinese imports, raw material or forex volatility could weigh on near-term performance.
Conclusion – A Bright Outlook with Measured Optimism
Vikram Solar stands out as a high-growth player in India’s clean-energy transition. With a 10.96 GW order book, 21% EBITDA margin, and five-year profit CAGR of 46%, it combines operational strength with policy-backed growth potential.
While the valuation remains rich, consistent execution, declining debt and strategic expansion into solar cells strengthen its long-term outlook. Any correction toward lower levels offers a solid entry point for investors with a 12–24-month horizon.
Disclaimer
This analysis is intended solely for educational and informational purposes and does not constitute any investment or financial advice. Past performance is not indicative of future results. All information is sourced from public company filings, and third-party sources believed to be reliable. In accordance with SEBI guidelines, market data is presented with a three-month lag. Investors should conduct independent research, perform due diligence, and consult qualified financial advisors before making any investment decisions. The views expressed are personal and may be subject to errors or bias.
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