Vikram Solar
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Vikram Solar is currently navigating a challenging transition marked by significant margin pressure and execution delays, primarily due to rising input costs and a competitive pricing environment. Management's focus on backward integration and entry into the Battery Energy Storage Systems (BESS) market is promising, with ambitious capacity expansions planned across the solar value chain. However, the delay in commissioning the 9GW cell plant and scaling back of wafer/ingot capacity plans reflect a cautious capital allocation approach, which may hinder immediate earnings recovery. Despite a robust order book and supportive government policies, the company's heavy reliance on debt for its INR 100bn capex cycle introduces execution risks. Vista's financial outlook anticipates accelerating revenue growth, supported by these strategic initiatives, although margins are expected to remain under pressure. The current valuation reflects long-term growth expectations, but recent trading indicates cautious investor sentiment. Over the next 12-24 months, key opportunities include the successful commissioning of new plants and expansion into the BESS market, while watchpoints include execution risks and potential impacts from US trade actions on exports
Why We Like This Stock
- Ambitious capacity expansions across the solar value chain, targeting significant growth in module and cell production
- Strategic entry into the Battery Energy Storage Systems market, capitalizing on long-term demand for solar and storage solutions
- Supportive government policies enhancing domestic demand for solar technologies
Things To Watch Out For
- Significant margin pressure due to rising input costs and a competitive pricing environment
- Delays in commissioning key production facilities, impacting near-term earnings visibility
- Heavy reliance on debt for capital expenditures introduces execution and balance sheet risks
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 2,511 | 3,423 | 4,802 | 7,367 | 10,697 |
| Profit Before Tax (Cr.) | 119 | 217 | 653 | 286 | 697 |
| PBT Margin | 4.7% | 6.3% | 1359.9% | 3.9% | 6.5% |
| Net Profit (Cr.) | 97 | 188 | 474 | 209 | 509 |
| Earnings Per Share | 2.7 | 5.2 | 13.1 | 5.8 | 14.1 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Elara Capital | ► Accumulate | 202 | 08-May-2026 |
| JMFinancials | ▼ Reduce | 205 | 09-Jun-2026 |
| Prabhudas Liladhar | ► Accumulate | 173 | 11-Aug-2026 |
Company Overview
Show Company Profile
Vikram Solar Limited manufactures and sells solar photovoltaic modules/systems in India and internationally. It also offers engineering, procurements, and construction solutions, such as risk analysis, site survey, design and engineering, procurement, civil construction, erection and commissioning, project management and control, and quality assurance. In addition, it provides solar operations and maintenance solutions, comprising preventive and corrective maintenance, performance monitoring and analysis, equipment upgrades and retrofits, spare parts management, troubleshooting and fault resolution, and data management and reporting. It sells its products under the Suryava, Hypersol, Paradea, SOMERA, and PREXOS brand names. It also involved in rooftop projects. The company was incorporated in 2005 and is based in Kolkata, India.