💰 Financial Performance

Revenue Growth by Segment

The company reported a consolidated revenue of INR 3,430.57 Cr in FY2025, representing a 40% YoY growth from INR 2,444.20 Cr in FY2024. For H1 FY2026, revenue reached INR 2,244 Cr, an 86.4% increase YoY, driven primarily by a 119% increase in sales volume of solar PV modules.

Geographic Revenue Split

While specific percentage splits by region are not provided, the company operates corporate offices in Kolkata, Gurugram, and Chennai, with international presence in Massachusetts (USA), Berlin (Germany), and Shanghai (China) to support global sales of solar modules.

Profitability Margins

Net Profit ratio improved from 3.17% in FY2024 to 4.08% in FY2025 due to higher turnover. In Q2 FY2026, PAT margins expanded significantly to 11.58% compared to 1.29% in Q2 FY2025, driven by operational efficiencies and scale.

EBITDA Margin

EBITDA margin for Q2 FY2026 stood at 21.2%, a substantial increase from 12.59% in the same quarter previous year. EBITDA grew 3x YoY to INR 235 Cr in Q2 FY2026, reflecting improved core profitability through better cost management and higher capacity utilization.

Capital Expenditure

The company has planned a massive backward integration project involving an investment of INR 1,400 Cr into its subsidiary, VSL Green Power Private Limited. This is part of a broader strategy to reach 17.5 GW module and 12 GW cell capacity by FY2027.

Credit Rating & Borrowing

The company's credit rating was upgraded from A to A+ in Q2 FY2026, reflecting a strong liquidity profile and prudent leverage. Gross debt stands at a low INR 80 Cr against a net worth of INR 2,950 Cr, resulting in a Debt/Equity ratio of 0.03x.

⚙️ Operational Drivers

Raw Materials

Key raw materials include solar photovoltaic cells, wafers, and critical minerals. Solar cells and wafers represent the most significant portion of the cost structure, though specific percentage breakdowns per material are not disclosed.

Import Sources

Raw materials are sourced from international markets, with the company monitoring global price volatility and regulatory changes regarding imports to ensure supply chain resilience.

Capacity Expansion

Current capacity is being expanded to reach a target of 17.5 GW for solar modules and 12 GW for solar cells by FY2027, aiming for 75% backward integration to secure the supply chain.

Raw Material Costs

Raw material costs are subject to market volatility; however, the company utilizes pass-through clauses in contracts and order-backed procurement to mitigate the impact of price fluctuations on its 14.74% operating margin.

Manufacturing Efficiency

The company reported an effective Capacity Utilization Factor (CUF) of 84% as of September 30, 2025, indicating high operational efficiency across its manufacturing facilities.

📈 Strategic Growth

Expected Growth Rate

86%

Growth Strategy

Growth will be achieved through a massive capacity ramp-up to 17.5 GW modules by FY2027, 75% backward integration into cell manufacturing to capture more value chain margin, and the execution of a robust 11.15 GW order book. The company also raised INR 704.02 Cr via private placement and completed an IPO to fund these expansions.

Products & Services

The company primarily manufactures and sells Solar Photovoltaic (PV) Modules and provides related project execution and manufacturing services.

Brand Portfolio

Vikram Solar

New Products/Services

The company is focusing on high-efficiency technical and R&D roles to drive innovation in module technology, though specific new product revenue contributions are not yet quantified.

Market Expansion

Expansion plans focus on domestic Indian markets supported by policy tailwinds and international markets where the company already maintains a presence (USA, Germany, China).

Market Share & Ranking

The company identifies as one of the leading solar PV module manufacturers in India, leveraging 20 years of industry experience.

Strategic Alliances

The company entered into a Shareholder’s Agreement on June 10, 2024, for private placement investments and maintains wholly-owned subsidiaries like VSL Green Power and VSL Powerhive for specialized operations.

🌍 External Factors

Industry Trends

The solar industry is a central pillar of India's energy transition. Trends include rapid build-out of domestic manufacturing and policy support (like ALMM), which favors established players like Vikram Solar.

Competitive Landscape

The company faces rising competition from both domestic Indian manufacturers and large international entities in the solar PV space.

Competitive Moat

The moat is built on a 20-year brand reputation, strong product certifications, and a massive 11.15 GW order book which provides long-term revenue visibility. This is sustained by moving toward 75% backward integration, making the company less vulnerable to supply shocks.

Macro Economic Sensitivity

The business is sensitive to the Indian economy's energy transition policies and global shifts toward renewable energy, which drive the demand for its 11.15 GW order book.

Consumer Behavior

There is a growing adoption of solar energy across various segments in India, shifting demand toward high-efficiency modules.

Geopolitical Risks

Trade barriers or changes in import duties on solar cells and wafers from international markets pose a risk to the cost structure of module manufacturing.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the Factories Act 1948, Solar PV manufacturing standards, and various Legal Metrology Rules. The company must also adhere to the Environment (Protection) Act and Trade Marks Act.

Environmental Compliance

The company spent INR 7.22 million on CSR activities in FY2025, including projects like 'Swachh Urja Ujjwal Bhavishya'. It complies with the Environment (Protection) Act, 1986.

Taxation Policy Impact

The company paid INR 103 Cr in taxes for H1 FY2026, compared to INR 17 Cr in H1 FY2025, reflecting the massive jump in taxable profits.

Legal Contingencies

The Secretarial Audit Report for FY2025 indicates compliance with the Companies Act and other applicable laws, with no major dissenting views or pending material litigation values disclosed.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the 'Diversification Risk,' as the majority of revenue comes from solar PV modules; a decline in solar demand could significantly impact the business.

Geographic Concentration Risk

The company has a strong concentration in India but is diversifying through international offices in the US, Europe, and China.

Third Party Dependencies

There is a high dependency on third-party suppliers for solar cells and wafers, which the company is addressing through a INR 1,400 Cr backward integration capex.

Technology Obsolescence Risk

The company manages technology risk by investing in R&D and technical hiring to ensure its modules remain competitive against evolving solar technologies.

Credit & Counterparty Risk

Trade Receivable Turnover Ratio improved from 2.34 to 2.84, indicating better collection efficiency and lower counterparty credit risk.