Synopsis:
Vikram Solar Ltd reported a stellar Q2FY26 with net profit growth of over 1,700 percent year-on-year, strong operational performance, and a robust order book.
A leading solar energy stock witnessed mixed movement today post-results, with quarterly sales largely steady on a quarter-on-quarter basis but surging sharply year-on-year. Despite slight sequential moderation in net profit, investors were encouraged by the company’s low debt position, strong EBITDA expansion, and ambitious capacity expansion plans.
Vikram Solar Ltd, with a market capitalisation of Rs. 12,057.84 crore, opened at Rs. 348.50, touched a high of Rs. 354.80, and had a previous close of Rs. 342, registering an intraday high move of 3.78 percent.
What’s the News?
Vikram Solar Ltd announced its Q2FY26 results, recording robust growth in revenue and profitability, driven by strong module sales and operational efficiencies.
Quarter-on-Quarter (QOQ) Performance: Vikram Solar’s Q2FY26 revenue declined slightly to Rs. 1,110 crore from Rs. 1,134 crore in Q1FY26, a decrease of 2.12 percent. Operating profit fell from Rs. 242 crore to Rs. 235 crore, a decline of 2.90 percent, while the operating margin remained stable at 21 percent. Profit before tax rose modestly from Rs. 181 crore to Rs. 184 crore, up 1.66 percent, but net profit declined from Rs. 133 crore to Rs. 128 crore, down 3.76 percent. Earnings per share decreased from Rs. 4.21 to Rs. 3.55, a fall of 15.68 percent.
Year-on-Year (YOY) Performance: Vikram Solar demonstrated exceptional growth. Revenue more than doubled from Rs. 573 crore in Q2FY25 to Rs. 1,110 crore, an increase of 93.70 percent. Operating profit surged from Rs. 72 crore to Rs. 235 crore, up 226.39 percent, with operating margins expanding from 12.59 percent to 21 percent. PBT jumped from Rs. 11 crore to Rs. 184 crore and net profit skyrocketed from Rs. 7 crore to Rs. 128 crore, growing 1,728.57 percent. EPS rose from Rs. 0.23 to Rs. 3.55. EBITDA margin improved from 12.59 percent to 21.17 percent, and PAT margin expanded from 1.29 percent to 11.58 percent.
The company’s net debt stood at Rs. 12 crore, excluding IPO proceeds and restricted cash, reflecting a very low leverage position, with a debt-to-equity ratio of 0.03x.
Operational Highlights
Module sales in Q2FY26 reached 784 MW, up 189 percent from 271 MW in Q2FY25. For H1FY26, module sales were 1,548 MW versus 598 MW in H1FY25, a 159 percent increase. Capacity utilisation for the quarter stood at 84 percent. The order book strengthened to 11.15 GW, a 36 percent increase from 8.21 GW as of 30th September 2024. Vikram Solar aims to scale module manufacturing capacity to 17.5 GW and cell manufacturing to 12 GW by FY27.
During Q2FY26, Vikram Solar derived 85 percent of its revenue from domestic markets and 15 percent from exports. By customer segment, 52 percent came from independent power producers, 20 percent from commercial and industrial clients, 13 percent from distribution companies, 8 percent from government projects, and the remaining 7 percent from EPC contracts.
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Comments from Management
Commenting on the performance Mr. Gyanesh Chaudhary, Chairman & Managing Director, Vikram Solar Limited said, “Building on the growth momentum from Q1, we are pleased to report another strong performance this quarter as well. Despite the temporary slowdown caused by monsoon-related logistical challenges, we delivered a strong revenue growth of 93.7 percent compared to the same period last year.
This remarkable growth demonstrates the strength and resilience of our operations. With improved operating leverage and enhanced internal efficiencies, our margins also witnessed a significant uptick standing at 21.17 percent, as against 12.59 percent in the corresponding quarter of the previous year. Moving forward, we remain committed to strengthening our foundation across technology, governance, and execution, with a sharp focus on profitability and timely project delivery.
On the operational front, module sales during the quarter stood at 784 MW, compared to 271 MW in the same period last year, reflecting a healthy year-on-year growth of 189 percent. This consistent performance was driven by strong industry tailwinds, deep customer relationships, and our proven execution capabilities. We continue to work across end user segments and strengthen our order book, which stands at 11.15 GW as on 30th September 2025, along with a rapidly growing order pipeline, providing us strong revenue visibility for the coming quarters.
To support this growing demand, we are expanding our capacities and are on track to scale up our module manufacturing capacity from 4.5 GW to 17.5 GW. Additionally, we plan to backward integrate by entering cell manufacturing, targeting a capacity of 12 GW by FY27. In tandem with our capacity expansion, we are also ramping up our workforce to support our growth ambitions and enhance operational excellence.”
About the Company
Vikram Solar Limited is a leading Indian manufacturer of solar photovoltaic modules with a global footprint spanning 39 countries. Headquartered in Kolkata, West Bengal, the company operates one of India’s largest PV module manufacturing facilities, with a cumulative production capacity of 4.5 GW.
Recognised as a ‘Top Performer’ in PVEL’s PV Module Reliability scorecard 2025 and listed in Bloomberg NEF’s Tier 1 solar PV manufacturers, Vikram Solar maintains a strong pan-India presence through over 100 authorised distributors, more than 375 dealers, and 75 system integrators.
Written by – Manan Gangwar
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