Vikram Solar Ltd., one of India’s leading solar PV module manufacturers, has set an ambitious target of achieving 16–18% EBITDA margins for the financial year 2025–26 (FY26), driven by a record-breaking order book and aggressive capacity expansion. The company’s Q1 FY26 performance has already laid a strong foundation, with EBITDA margins touching 21.4%, signaling operational efficiency and market momentum.
Chairman and Managing Director Gyanesh Chaudhary expressed confidence in sustaining profitability, citing disciplined execution, backward integration, and a buoyant demand environment. Vikram Solar’s strategic roadmap includes scaling manufacturing capacity nearly fourfold and entering solar cell production, positioning the company as a vertically integrated player in India’s renewable energy ecosystem.
Q1 FY26 Performance Highlights
Vikram Solar’s unaudited financial results for the quarter ended June 30, 2025, showcased exceptional growth across all key metrics. Revenue from operations surged 79.7% year-on-year to ₹1,133.6 crore, while EBITDA more than doubled to ₹242.2 crore. Profit after tax (PAT) soared 483.9% to ₹133.4 crore, reflecting strong cost control and margin expansion.
| Metric | Q1 FY25 (₹ Cr) | Q1 FY26 (₹ Cr) | YoY Growth (%) |
|---|---|---|---|
| Revenue from Operations | 630.9 | 1,133.6 | +79.7% |
| Gross Profit | 182.3 | 355.8 | +95.2% |
| EBITDA | 111.5 | 242.2 | +117.3% |
| EBITDA Margin (%) | 17.7% | 21.4% | +370 bps |
| PAT | 22.8 | 133.4 | +483.9% |
| PAT Margin (%) | 3.6% | 11.7% | +810 bps |
| EPS (Basic) | 0.75 | 4.21 | +461% |
The company’s capacity utilization stood at 89.2%, underscoring efficient operations and high demand fulfillment. Vikram Solar’s performance in Q1 FY26 has already exceeded its full-year FY25 EBITDA margin of 14.4%, reinforcing the feasibility of its FY26 target range.
Order Book Strength and Capacity Expansion
As of June 30, 2025, Vikram Solar’s order book stood at 10.96 GW—more than double its current rated module capacity of 4.5 GW. This robust pipeline includes marquee orders from Bondada Group (250 MW), Gujarat Industries Power Company Ltd. (326 MW), and Larsen & Toubro (336 MW), reflecting the company’s Tier-1 bankability and trusted supplier status.
| Client Name | Order Size (MW) | Region |
|---|---|---|
| Bondada Group | 250 | Maharashtra |
| GIPCL | 326 | Gujarat |
| Larsen & Toubro (L&T) | 336 | Pan-India |
To meet rising demand, Vikram Solar is executing one of the most aggressive expansion plans in India’s solar sector. By FY27, the company aims to scale its module manufacturing capacity to 17.5 GW and solar cell capacity to 12 GW. Additionally, it plans to establish a 5 GWh battery energy storage system (BESS) facility, diversifying its clean energy portfolio.
| Capacity Segment | FY25 Capacity | FY27 Target | Growth Multiple |
|---|---|---|---|
| Module Manufacturing | 4.5 GW | 17.5 GW | ~4x |
| Solar Cell Manufacturing | 0 GW | 12 GW | New Addition |
| BESS | 0 GWh | 5 GWh | New Addition |
The Vallam facility in Tamil Nadu is central to this expansion, with engineering and procurement already completed and construction underway.
Strategic Backward Integration and Cost Competitiveness
Vikram Solar’s entry into solar cell manufacturing marks a strategic backward integration move, aimed at securing supply chains and enhancing cost competitiveness. This initiative is expected to reduce dependency on imports, mitigate price volatility, and improve margin stability.
The company’s integrated value chain will span from solar cells to modules and storage systems, enabling it to offer end-to-end solutions to utility-scale and commercial clients. This positions Vikram Solar as a key contributor to India’s self-reliant solar manufacturing ecosystem, aligned with government initiatives such as the Production Linked Incentive (PLI) scheme and green hydrogen ambitions.
Sustainability and Brand Recognition
Vikram Solar’s commitment to sustainability and quality has earned it multiple accolades. It was named “Top Brand PV India 2025” by EUPD Research and achieved “Top Performer” status for the eighth time in Kiwa PVEL’s Product Qualification Program. The company also received an EcoVadis Platinum Medal, placing it among the top 1% of global companies for sustainability performance.
In a bid to enhance brand visibility, Vikram Solar launched its first-ever television commercial campaign titled “Khushiyon Wali Sunshine,” aimed at promoting solar adoption among residential and SME customers.
Financial Snapshot and Market Sentiment
Vikram Solar’s strong financial performance has translated into positive market sentiment. Following the Q1 FY26 results, the company’s stock surged 13%, reaching an intraday high of ₹407.85 per share. Analysts have revised their EBITDA margin forecasts upward, citing operational efficiency and order book strength.
| Financial Metric | FY24 (₹ Cr) | FY25 (₹ Cr) | YoY Growth (%) |
|---|---|---|---|
| Revenue from Operations | 2,511 | 3,423.5 | +36.3% |
| EBITDA | 398.6 | 492.0 | +23.4% |
| EBITDA Margin (%) | 15.9% | 14.4% | -150 bps |
| PAT | 79.7 | 139.8 | +75.4% |
| PAT Margin (%) | 3.2% | 4.1% | +90 bps |
| EPS (Basic) | 3.08 | 4.61 | +49.7% |
The dip in EBITDA margin in FY25 was attributed to capacity ramp-up costs and supply chain adjustments. However, Q1 FY26 results suggest a strong rebound, with margins already exceeding the upper end of the FY26 target range.
Outlook: FY26 and Beyond
Vikram Solar’s outlook for FY26 remains bullish. The company expects continued momentum across revenue, profitability, and margins, supported by:
- Execution of high-value orders
- Operational leverage from expanded capacities
- Cost savings from backward integration
- Policy tailwinds from government incentives
The company’s disciplined execution and strategic investments position it to capitalize on India’s solar boom, with the potential to emerge as a global leader in clean energy manufacturing.
Disclaimer: This article is based on publicly available financial disclosures, company statements, and industry analysis. It is intended for informational purposes only and does not constitute investment advice. All projections are subject to change based on market conditions and regulatory developments.
