Why Is Vikram Solar Emerging as a Strong Domestic Solar Player?
About Vikram Solar
Vikram Solar is one of India’s leading photovoltaic module manufacturers, with a growing presence across domestic utility-scale, rooftop, and export markets. The company has steadily expanded capacity and upgraded technology to align with India’s renewable energy push and the global shift toward high-efficiency solar modules.
The December quarter highlighted a sharp improvement in operating performance, supported by strong execution, healthy order inflows, and high capacity utilisation across manufacturing facilities.
Q3 FY26 Key Highlights
🔹 Revenue grew ~8% YoY to ~₹1,106 Cr on higher volumes and better execution.
🔹 EBITDA surged ~142% YoY to ~₹205 Cr, with margins expanding to ~19%.
🔹 PAT increased ~416% YoY to ₹98 Cr, driven by operating leverage.
🔹 Module sales rose ~35% YoY to ~796 MW, with ~90% capacity utilisation.
The sharp improvement in profitability underscores the benefits of scale, operating leverage, and a favourable demand environment for domestic solar manufacturing.
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Operational Snapshot
| Metric | Current Status | Investor Take |
|---|---|---|
| Order Book | ~10.6 GW | Strong visibility |
| Capacity Utilisation | ~90% | Efficient operations |
| Module Mix | High-efficiency N-Type | Margin supportive |
The company’s shift toward high-efficiency N-Type modules and backward integration initiatives enhances cost competitiveness and pricing resilience.
|
Strengths
🔹 Strong order book visibility 🔹 High capacity utilisation 🔹 Focus on high-efficiency modules |
Weaknesses
🔹 Dependence on policy-driven demand 🔹 Exposure to module price cycles 🔹 Capital intensity of expansion |
The first SWOT box highlights Vikram Solar’s operating strength, while acknowledging cyclicality and policy sensitivity.
|
Opportunities
🔹 India’s renewable energy expansion 🔹 Import substitution under Make in India 🔹 Export growth opportunities |
Threats
🔻 Global module oversupply risk 🔻 Policy or incentive changes 🔻 Technology obsolescence risk |
The opportunity-risk framework supports a constructive medium-term view, subject to execution discipline and policy continuity.
Valuation and Investment View
Strong order visibility, rising margins, and technology upgrades position Vikram Solar favourably within India’s solar manufacturing ecosystem. Valuation comfort will depend on sustained execution and margin stability as capacity expands.
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Investor Takeaway
Derivative Pro & Nifty Expert Gulshan Khera, CFP®, believes Vikram Solar’s execution strength, order visibility, and technology focus position it well for India’s renewable energy transition. Investors should monitor capacity ramp-up, margin sustainability, and policy developments to assess long-term compounding potential. More sectoral insights are available at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
Related Queries on Vikram Solar and Renewable Sector
Why is Vikram Solar margins expanding?
What is Vikram Solar order book size?
Is Vikram Solar benefiting from Make in India?
How competitive is Vikram Solar globally?
Is Vikram Solar a long-term renewable play?
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
