Vikram Solar Limited — Q3 FY26 earnings call

Call held 28 Jan 2026

Management summary

Vikram Solar reported strong Q3 FY26 results, driven by increased sales volume and significant margin expansion, alongside the commissioning of a new 5 GW module facility. The order book grew 28% YoY, providing good revenue visibility. The company is actively pursuing backward integration with new cell and module facilities and entering the BESS segment, while navigating short-term input cost pressures and policy developments.

Highlights

  • Q3 FY26 Revenue from operations increased to ₹1,106 crores, up 7.8% YoY from ₹1,026 crores in Q3 FY25.

  • Q3 FY26 EBITDA stood at ₹205 crores, a 141.2% YoY jump from ₹85 crores in Q3 FY25, with EBITDA margin expanding to 18.5% from 8%.

  • Successfully commissioned a 5 GW advanced module manufacturing facility at Vallam, increasing total installed module capacity to 9.5 GW.

  • The order book reached 10.58 GW as of 9M FY26, representing a significant 28% YoY growth compared to 8.2 GW in 9M FY25.

  • Weighted average finance cost of debt declined to 6.5% during 9M FY26, down from 7% in H1 FY26.

Concerns

  • The company is navigating a short-term tightening input cost environment, driven by shifts in the Chinese supply chain and polysilicon production controls.

  • Q3 FY26 saw a sequential drop in realization for non-DCR modules, impacting Q3 EBITDA margin compared to Q2 FY26.

  • The 90-day period for the Ministry of Finance to act on DGTR's recommendation for anti-dumping duty on cells imported from China lapsed on December 29, 2025, without any development.

Key financials

2 periods

Q3

  • Sales Volume
    796 MW
    YoY +34.9%
  • Revenue
    ₹1,106 Cr
    YoY +7.8%
  • EBITDA
    ₹205 Cr
    YoY +141.2%
  • EBITDA Margin
    18.5%
  • PAT
    ₹98 Cr
    YoY +415.8%
  • Capacity Utilization
    90%

9M

  • Sales Volume
    2.3 GW
    YoY +109.1%
  • Revenue
    ₹3,349 Cr
    YoY +50.2%
  • EBITDA
    ₹682 Cr
    YoY +154.5%
  • EBITDA Margin
    20%
  • PAT
    ₹360 Cr
    YoY +634.7%
  • Capacity Utilization
    88%

What they filed

Q1 FY27: revenue up 37.8%, net profit down 85.0% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue573 1,026 1,194 1,134 1,110 +94%1,106 +8%1,453 +22%1,563 +38%
EBITDA72 85 224 242 235 +226%205 +141%234 +4%126 −48%
Net profit7 19 91 133 128 +1729%98 +416%110 +21%20 −85%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Order book

high confidence

Total value

10.58 GW

as of 2025-12-31 quantified

28% YoY

Execution

enough and adequate to carry us through the next 5 quarters, next 4 quarters

Composition

Mix 4 client types
  • IPPs 55%
  • C&I 21%
  • Government and EPC 11%
  • Distribution 13%

Share of order book by client type

Pipeline

other

Addressable market of tendered capacity: 104 GW (non-DCR) + 15 GW (DCR); Utility scale DCR demand: 30-35 GW by FY28.

The domestic order book is sufficient to carry the company through the next 4-5 quarters, and there is no foreseen deferment in module uptake.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex ₹300 Cr this quarter · ₹1,200 Cr (FY26) planned For Gangaikondan (module & cell): Debt of ₹3,800 crores, Equity (₹1,500 crores from IPO + internal accruals). For BESS: Debt of ₹2,800 crores (65:35 D:E) and Equity of ₹1,300 crores from internal accruals over 30 months.
    • 5 GW advanced module manufacturing facility at Vallam
    • 6 GW module and 12 GW cell facility at Gangaikondan ₹6,400 Cr
    • Battery Energy Storage Systems (BESS) ₹4,300 Cr
    So both this unit collectively, which is a 6 GW module and a 12GW cell, the overall funding would be for INR6,400 crores, which would require a debt of 3,800. Balance to come in the form of equity, of which part of the funds about 1,500 has come in from the IPO. Balance will be taken care through the internal accruals... On the BESS front, the overall capex is at INR4,300 crores, which on a debt equity of 65:35, the financial closure for which is underway, would fetch some INR2,800 crores on the debt part, balance INR1,300 crores over the next 30 months as of now is planned to be funded from the internal accruals of the company.
  • Debt Debt disclosed Cost 6.5%
    Consequently, the weighted average finance cost of debt declined to 6.5% during 9MFY '26, from 7% in H1 FY '26.

Guidance & targets

Margin

  • EBITDA Margin (Non-DCR) Margin · sustained basis · High confidence 18-20%
    And going forward, we expect the Non-DCR business to deliver 18% to 20% on a sustained basis.

    — Ranjan Jindal

Capacity

  • Total Module Capacity Goal Capacity · long-term · High confidence 15.5 GW

    Previously 17.5 GW → 15.5 GW

    No, we have not cancelled that. So, we have retained it at 15.5 for the time being to ensure 75% backward integration with the 12 GW capacities planned.

    — Ranjan Jindal

  • Gangaikondan Module Plant Commissioning Capacity · Q1 FY27 · High confidence Q1 FY27
    Construction activities at the module plant are underway, with structural works and roofing in progress, and the facility remains on track for commissioning in Q1 FY '27.

    — Ranjan Jindal

  • Gangaikondan Cell Plant First Cell Out Capacity · December 2026 · High confidence December 2026
    Overall, execution remains aligned with defined milestones, and our focus continues to be on timely delivery and smooth ramp-up of these facilities... on track for a phased commissioning with the first cell out in December 2026.

    — Ranjan Jindal

  • BESS Battery Pack Commissioning Capacity · fiscal '27 · High confidence 5 GWh
    So, we will begin with the battery pack. That is the first plan of setting up 5 GWh, which will be commissioned in fiscal '27.

    — Rinal Shah

  • BESS Integrated Cell & Pack Capacity Capacity · post FY27 · High confidence 7.5 GWh
    And parallelly, we will begin work for 7.5 GWh of integrated cell as well as battery pack facility.

    — Rinal Shah

Order Book

  • Order Book to Scheduled Deliveries Ratio Order Book · rolling basis for next four quarters · High confidence 1.2x - 1.3x
    So, the target for us is always on a rolling basis, having a 1.2x or 1.3x our scheduled deliveries for the next four quarters.

    — Rinal Shah

Demand

  • Utility Scale DCR Demand Demand · Fiscal '28 · Medium confidence 30-35 GW
    But looking and mapping each and every tender and its bid submission and results timeline, we believe that about 30 - 35 GW plus kind of a utility scale DCR demand will come through in Fiscal ‘28.

    — Rinal Shah

What to watch in Q4 FY26

Gangaikondan Module Plant Commissioning

Q1 FY27
Current Construction activities underway, structural works and roofing in progress
Target Commissioned

Why it matters

This is a key milestone for the company's planned capacity expansion and will contribute significantly to future revenue growth.

Construction activities at the module plant are underway, with structural works and roofing in progress, and the facility remains on track for commissioning in Q1 FY '27.

Risks & concerns

  • Tightening Input Cost Environment

    medium

    Short-term tightening input cost environment driven by shifts in Chinese supply chain, polysilicon production controls, and removal of 9% VAT export rebate from April 2026, which will raise raw material costs. However, contracts are cost-plus.

    Management acknowledged

  • Lapse of Anti-Dumping Duty on Cells

    medium

    The 90-day period for the Ministry of Finance to act on DGTR's recommendation for anti-dumping duty on cells imported from China lapsed on December 29, 2025, with no development, potentially impacting domestic cell manufacturers.

    Management acknowledged

  • Short-term Demand Volatility

    low

    While quarterly demand trends can vary, the broader environment for solar in India remains structurally very strong, with adoption expanding beyond utility scale projects.

    Management downplayed

  • Overcapacity in Legacy Systems

    low

    Overcrowding and aggressive pricing exist mainly in less efficient legacy systems, not among top players like Vikram Solar who serve repeat customers with advanced technology.

    Management downplayed

Q&A highlights

8 direct
Pass-through mechanism for raw material costs and forex Direct
The cell cost and the change in law is part of the contract... On the pass-through concept, the pass-through actually is only for the cell, not the BORM always... the forex deviation since the INR has depreciated towards USD. So, are all of these pass-through? Does the client pay you the difference in the raw material cost at the time of ordering and at the time of delivery? And how does the payment mechanism work with the client?

Clarifies how the company manages input cost and currency volatility, crucial for margin stability, indicating that cell costs and legal changes are passed through, while BORM is sometimes absorbed.

Asked by Ketan Jain, Avendus

Sequential Margin Reduction Direct
Yes, there was some drop in realization in Q3. If you're talking about non-DCR modules, there was an impact of about 30% to 40%. So, that overall has kept the Q3 EBITDA lower than what Q2 was. But on a 9 monthly basis, it continued to remain at 20%

Explains the short-term margin pressure in Q3 due to lower realizations in non-DCR modules, while reassuring that the 9-month margin remains strong.

Asked by Ketan Jain, Avendus

Current Capacity Split (TOPCon vs Mono PERC) Direct
I'm glad to inform that the entire 9.5 GW is TOPCon. And all our additions going forward, including the 6 GW, would be TOPCon.

Highlights the company's complete transition to advanced N-type TOPCon technology, aligning with higher efficiency requirements and future industry trends.

Asked by Shivam Patel, PL Capital

Total Module Capacity Goal Revision Direct
No, we have not cancelled that. So, we have retained it at 15.5 for the time being to ensure 75% backward integration with the 12 GW capacities planned. And going forward, since there is – the country is moving towards ALMM-II cells being mandatory, we will have to revisit the decision of expansion of the 2 GW, which we had planned in our existing facility in Falta.

Provides clarity on the revised total module capacity goal, linking it to strategic backward integration and future regulatory changes (ALMM-II cells).

Asked by Sahil Sheth, Anand Rathi

Rationale for Leasing 5 GW Line Direct
We could have done that, but at the time when we conceived this project, somewhere in Feb '25 with a target to commission in October, projects would have taken a bit longer time. So, this was a quicker deal for us to trigger. That was one. And second, we intended to keep the asset light as well. So, with the right of use coming in the books of accounts, you do not directly add to the fixed assets. And third, with this structure also there was no compromise or sacrifice on the income tax front as I told you in the previous statement. So, all the three factors basically motivated us to go for the lease concept.

Explains the strategic and financial benefits of leasing the 5 GW module manufacturing line, including speed of commissioning, asset-light approach, and tax efficiency.

Asked by Nidhi Shah, ICICI Securities

Export Market and FEOC Restrictions Direct
Indian cells are unviable to use for exports because of the reciprocal tariff imposed on India as a country. And hence, a UFLPA compliant and FEOC compliant supply chain from other Southeast Asian countries needs to be worked out and have a pre-approval from the CBP for us to be able to export to the US.

Details the complexities and strategies for accessing international markets, particularly the US, given trade regulations and the need for compliant supply chains.

Asked by Nidhi Shah, ICICI Securities

Industry Overcapacity and Pricing Pressure Direct
I wouldn't call a few basis points swing in the margin as a decline. You have to understand that quarter-to-quarter, our realizations depend on a particular set of execution that we have committed to... 7 out of 10 are repeat customers and are repeatedly granting their patronage to a credible name like Vikram Solar. We do not see that fight. And most of your overcrowding exists in the lesser efficient legacy systems.

Provides management's perspective on competitive intensity and margin sustainability, distinguishing between different market segments and emphasizing customer loyalty and focus on efficient systems.

Asked by Sarang Joglekar, Vimana Capital

BESS Capex and Technology Direct
So, we will begin with the battery pack. That is the first plan of setting up 5 GWh, which will be commissioned in fiscal '27. And parallelly, we will begin work for 7.5 GWh of integrated cell as well as battery pack facility... Yes, we will be announcing it soon once it reaches a point of an update. So battery pack unit getting cell supply is not at all a challenge. Technology partnership is also in advanced stages, and we'll make an announcement soon.

Outlines the company's entry into the battery energy storage segment, including initial capacity, future expansion plans, and the status of technology partnerships.

Asked by Sagar Parekh, Renaissance Asset Managers

3 min read 6 chapters

Detailed narrative

Q3 FY26 Performance Overview

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.

Capacity Expansion & Technology Upgrade

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.

Order Book & Market Outlook

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.

Capital Expenditure & Funding Strategy

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.

Industry Trends & Policy Support

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.

Cost Management & Financial Health

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.

This is an AI-generated summary of a publicly available earnings call transcript.
View original transcript

More Capital Goods earnings calls