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    VIKRAMSOLR

    VIKRAMSOLR
    Capital Goods·8 May 2026
    Management Summary

    Vikram Solar reported a blockbuster FY26 with record revenue, EBITDA, and PAT, driven by strong demand in the Indian solar sector. The company achieved its highest-ever quarterly revenue and order booking in Q4, while significantly improving its working capital cycle and maintaining a strong balance sheet with no long-term debt. Management outlined ambitious backward integration and BESS expansion plans, positioning the company for long-term leadership in a policy-supported market, despite some near-term margin pressures from raw material costs and shifts in order book composition.

    Highlights

    9

    • FY26 Revenue: INR 4,800 crores, up 40% YoY.

    • FY26 Sales Volume: 3.3 gigawatts, up 76% from 1.9 gigawatts in FY25.

    • FY26 EBITDA: INR 917 crores, margins expanded to 19% (up 500 bps from 14% in FY25).

    • FY26 PAT: INR 470 crores, achieving a 10% PAT margin.

    • Q4 Revenue: INR 1,450 crores, up 31% sequentially.

    • Q4 Order Booking: 1.9 gigawatts, highest ever.

    • Order Book (as of March 31, 2026): 8.2 gigawatts, with 80% having cell price pass-through clauses.

    • No long-term debt, working capital net debt at INR 64 crores, and net-to-debt equity ratio of 0.03.

    • Cumulative global module deployment crossed 10 gigawatts, scaling from 5 GW to 10 GW in two years.

    Concerns

    3

    • Q4 EBITDA margin at 16% (vs FY26 average of 19%) due to INR 0.20 incremental cost per watt-peak from raw material price increases (crude oil, aluminium) partly offset by falling cell prices.

    • US export orders have 'slimmed to negligible levels' since November, raising concerns about the security of existing 1 gigawatt of US orders.

    • A 0.6 gigawatt US order was deemed unviable and removed from the order book due to sunset of incentives.

    Key financials

    Metrics

    9

    Periods

    3

    Headline

    1
    • Working Capital Cycle
      44 days

    Q4

    3
    • Revenue
      ₹1,450 Cr
      QoQ+31%
    • EBITDA
      ₹235 Cr
    • EBITDA Margin
      16%

    FY26

    5
    • Revenue
      ₹4,800 Cr
      YoY+40%
    • Sales Volume
      3.3 gigawatts
      YoY+76%
    • EBITDA
      ₹917 Cr
    • EBITDA Margin
      19%
      YoY+5%
    • PAT
      ₹470 Cr

    Order Book

    high confidence

    Total Value

    ₹ 8.2 gigawatts

    as of 2026-03-31

    quantified

    Inflow this qtr

    ₹ 1.9 gigawatts

    Execution

    Provides revenue visibility for the next fiscal year.

    Composition

    Mix3 client types
    • IPPs69.0%
    • C&I13.0%
    • Government and EPC18.0%

    Share of order book by client type

    Cancellations / Deferrals

    • other:0.6 gigawatt US order deemed unviable by IPP due to sunset of incentives in the US market.
    • other:Non-DCR distribution order book removed as the market shifts to DCR and company moves to spot buying.
    • renegotiated:Large C&I order book switching to DCR is under renegotiation to optimize margins.

    "The order book provides strong revenue visibility, with a balanced composition across client types and a significant portion protected by cell price pass-through clauses. However, some non-DCR and US orders have been removed or are under renegotiation due to market shifts and policy changes."

    Source:
    Prepared remarks

    Capital allocation

    3
    high confidence
    CategoryHeadline
    Capex

    ₹3,700 crores

    Disciplined mix of debt and equity, with internal accruals. Committed to operate within firm guardrails (interest and debt service coverage ratios above 2.5, net-debt-to-equity below 1.5).

    Debt

    Net ₹64 crores · 0.0x EBITDA

    Liquidity

    Liquidity disclosed

    Working capital cycle compressed from 82 days in FY25 to 44 days in FY26, reflecting tighter receivable management, more disciplined inventory deployment, and timely cash generation. Strong balance sheet.

    Guidance & targets

    16
    CategoryTargetPriority
    Capacity
    Non-fossil fuel capacity
    1,500 gigawatts
    		High
    Capacity
    Installed solar base
    509 gigawatts
    		High
    Capacity
    Battery Energy Storage System (BESS)
    15 gigawatt-hours
    		High
    Capacity
    Battery Energy Storage System (BESS)
    320 gigawatt-hours
    		High
    Capacity
    Module manufacturing capacity
    15.5 gigawatts
    		High
    Capacity
    Wafer-ingot facility capacity
    6 gigawatts
    		High
    Capacity
    Wafer-ingot facility capacity
    12 gigawatts
    		High
    Capacity
    Cell facility capacity
    12 gigawatts
    		High
    Production Volume
    Total production
    7.5-8 gigawatts
    		High
    Profitability
    EBITDA
    1500-1600 crores
    		High
    Profitability
    EBITDA per watt peak
    INR 5
    		High
    Profitability
    EBITDA per watt peak (with more capex)
    INR 4
    		Medium
    Utilization
    Module utilization (nameplate basis)
    65-70%
    		Medium
    Utilization
    Cell utilization (nameplate basis)
    70-75%
    		Medium
    Debt
    Closing debt
    INR 3,200 crores
    		High
    Debt
    Closing debt
    INR 6,500 - 6,600 crores
    		High

    Gangaikondan 6 GW module facility commissioning

    June 2026
    CurrentIn final stretch of completion
    TargetFirst module output

    Why it matters

    This is a key capacity expansion project, and its successful commissioning will contribute to increased production volumes and revenue.

    At Gangaikondan, the 6-gigawatt module facility is in the final stretch of completion, with the first module output on track for June 2026.

    How to verify

    detailed_narrative[title='Capacity Expansion and Project Execution']

    Risks & concerns

    5
    RiskSeverity

    Geopolitical disruptions and energy dependence

    Geopolitical disruptions reinforce energy dependence as a structural risk for import-led economies like India, making solar critical for energy security. — Management acknowledged

    medium

    Supply chain vulnerability due to import dependence

    India imports nearly all wafer and ingot from China, creating vulnerability; Vikram Solar's backward integration roadmap aims to mitigate this. — Management acknowledged

    medium

    Rising cell costs and competitive pricing dynamics

    Cell costs increased due to higher silver prices and removal of China's export VAT rebate, leading to competitive pricing; managed through pass-through clauses and operational efficiency. — Management acknowledged

    medium

    Unviability of US export orders due to incentive sunset

    A 0.6 GW US order was removed from the order book as it became unviable for the IPP due to the sunset of US market incentives. — Management acknowledged

    high

    Slimmed US exports and security of existing US orders

    Indian exports to the US have become negligible, but the company believes existing long-term orders with reputed IPPs will be executed by sourcing from compliant supply chains (e.g., North Africa). — Analyst acknowledged

    medium

    Q&A highlights

    7

    “So, the agreement we have signed for the procurement of cell has been phased in a manner to take care of the DCR demand which will take off post the June 2026 deadline, and within FY27 the entire offtake, with a ballooned offtake in the H2, is going to pan out.”

    Clarifies the timeline for DCR-compliant module availability, crucial for market participation post June 2026 mandate.

    asked by Sahil Sheth

    3 min read6 chapters

    Detailed Narrative

    01

    Record Performance in FY26 and Q4 Momentum

    Vikram Solar achieved a blockbuster FY26, with all key metrics reaching all-time highs. Revenue grew 40% YoY to INR 4,800 crores, supported by a 76% increase in sales volume to 3.3 gigawatts. EBITDA expanded by 500 basis points to 19%, reaching INR 917 crores, and PAT stood at INR 470 crores (10% margin). The momentum carried into Q4, which saw the highest-ever quarterly revenue of over INR 1,450 crores and order booking of 1.9 gigawatts, indicating strong operational execution and market demand.

    02

    Strategic Backward Integration Roadmap

    The company is executing a comprehensive backward integration strategy, moving from modules to cells, then wafer and ingot. The 6-gigawatt module facility at Gangaikondan is on track for first output by June 2026. The 9-gigawatt TOPCon cell facility is scheduled for phased commissioning through Q4 FY27, with the first cell expected by end December 2026. Furthermore, the board has approved the first phase of a 6-gigawatt wafer and ingot facility at Gangaikondan with an outlay of approximately INR 3,700 crores, targeting commissioning by FY29, with plans to scale to 12 gigawatts by FY30.

    03

    Battery Energy Storage System (BESS) Expansion

    Vikram Solar views BESS as a major growth frontier, targeting 15 gigawatt-hours of capacity by FY30. The company has kick-started its BESS journey with a 5 gigawatt-hour cell-to-pack assembly facility scheduled for commissioning by March 2027. This will be followed by the first phase of 7.5 gigawatt-hour battery cell manufacturing by FY29 and a second phase by FY30, positioning Vikram Solar as a complete energy solution provider.

    04

    Strong Balance Sheet and Capital Prudence

    The company maintains a strong balance sheet with no long-term debt and a working capital net debt of only INR 64 crores, resulting in a net-to-debt equity ratio of 0.03. The working capital cycle has significantly compressed from 82 days in FY25 to 44 days in FY26. Capex programs are funded through a disciplined mix of debt and equity, with internal accruals, adhering to guardrails of interest and debt service coverage ratios above 2.5 and net-debt-to-equity below 1.5, ensuring growth without compromising financial discipline.

    05

    Market Dynamics and DCR Transition

    India's solar market is experiencing unprecedented🌐 growth, with 45 gigawatts added in FY26 and cumulative installations reaching 150 gigawatts. The policy framework is decisively shifting towards Domestic Content Requirement (DCR), with a cell-level mandate effective June 2026. Vikram Solar is proactively positioning for the DCR opportunity, including a 2-gigawatt procurement agreement, and expects DCR demand to be 20-25 gigawatts this year, despite some near-term challenges in US exports and renegotiation of C&I orders.

    06

    FY27 Outlook and Profitability

    For FY27, Vikram Solar plans to deliver approximately 7.5-8 gigawatts of production, which is expected to result in an EBITDA of INR 1,500-1,600 crores, representing a 74% increase over FY26. The company anticipates its EBITDA per watt peak to improve to INR 5 by FY28, from INR 2.35 in Q4 FY26, further trimming down to INR 4 with additional capex. Module utilization is projected at 65-70% and cell utilization at 70-75% on a nameplate basis.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.