Vikram Solar Limited

Vikram Solar delivered strong Q3 FY26 results, with sales volume increasing 34.9% YoY to 796 MW and revenue growing 7.8% YoY to INR 1,106 crores. EBITDA saw a substantial 141.2% YoY jump to INR 205 crores, leading to an EBITDA margin expansion to 18.5% from 8% in Q3 FY25. For the nine-month period (9M FY26), sales volume more than doubled to 2.3 GW, revenue rose 50.2% to INR 3,349 crores, and EBITDA surged 154.5% to INR 682 crores, maintaining a 20% margin. Capacity utilization for Q3 and 9M FY26 stood at 90% and 88% respectively, underscoring operational efficiency.

The company successfully commissioned its 5 GW advanced module manufacturing facility at Vallam, Tamil Nadu, boosting total installed module capacity to 9.5 GW. This facility is designed for high-efficiency N-type TOPCon modules, a technology that will be adopted across all current and future capacities. The Gangaikondan site, planned for 6 GW modules and 12 GW cells, is progressing as scheduled, with module plant commissioning expected in Q1 FY27 and the first cell out by December 2026. This expansion is a key step towards enhancing scale, quality, and operating leverage.

Vikram Solar's order book reached 10.58 GW as of 9M FY26, marking a 28% YoY growth from 8.2 GW in 9M FY25, providing revenue visibility for the next 4-5 quarters. The order book is well-diversified, with IPPs contributing 55%, C&I 21%, Government/EPC 11%, and Distribution 13%. Management projects a robust utility-scale DCR demand of 30-35 GW by FY28, supported by India's strong solar market growth and favorable policy backing for rooftop adoption and renewable consumption obligations.

The company has outlined significant capital expenditure plans, including INR 6,400 crores for the Gangaikondan module and cell facilities and INR 4,300 crores for Battery Energy Storage Systems (BESS), totaling INR 10,700 crores over the next 24-30 months. These investments will be funded through a mix of debt and equity, with INR 1,500 crores from the IPO and the balance from internal accruals. The recently commissioned 5 GW Vallam facility was financed via a INR 400 crore debt lease at 8.5% over 5 years, chosen for its quick commissioning and asset-light approach.

India's clean energy transition is entering a more industrial phase, emphasizing domestic manufacturing and supply chain resilience. Supportive policies include the Renewable Consumption Obligation (RCO) framework, which mandates renewable energy consumption, and increasing minimum module efficiency thresholds. The proposed ALMM LIST-III for ingots and wafers further strengthens the long-term outlook for domestic manufacturers. Vikram Solar is also diversifying its cell sourcing to Southeast Asian countries to reduce China dependence and ensure compliance with UFLPA for exports.

Vikram Solar has focused on improving cost efficiency through higher throughput, increased automation, and tighter control over indirect costs. The weighted average finance cost of debt decreased to 6.5% in 9M FY26 from 7% in H1 FY26, reflecting disciplined cash flow management and improved credit profiles. The company's module supply contracts are designed to pass through the impact of rising input costs for cells and changes in law, providing a degree of insulation against raw material price volatility.