SYNOPSIS:
Recently listed Vikram Solar Limited, one of India’s largest solar module makers, plans to expand capacity to 20.5 GW by FY27, diversify into solar cells and BESS, while delivering strong financial growth.
One of India’s largest module manufacturers, in terms of operational capacity, produces solar photovoltaic (PV) modules. This company is recently listed and is worth keeping an eye on. Can you guess which one?
We’re talking about Vikram Solar Limited, an integrated solar energy solutions provider engaged in the business of offering engineering, procurement and construction (EPC) services, and operations and maintenance (O&M) services. In this article, we’ll take a closer look at the company’s financial performance, key ratios, management guidance, and more.
Stock Performance
With a market cap of Rs. 11,419.4 crores, shares of Vikram Solar Limited hit an intraday high at Rs. 323.95 on Friday morning, up by around 1 percent on BSE, as against its previous closing price of Rs. 321.85.
The company’s IPO, with an issue size of Rs. 2,079.37 crore, witnessed strong investor participation with an overall subscription of 54.63 times. The issue comprised a fresh equity sale of 4.52 crore shares worth Rs. 1,500 crore and an offer for sale of 1.75 crore shares amounting to Rs. 579.37 crore. The price band was fixed between Rs. 315 and Rs. 332 per share.
Following the robust demand, the shares of Vikram Solar made a modest stock market debut. On the BSE, the stock was listed at Rs. 340 per share, reflecting a 2.41 percent premium over the issue price of Rs. 332, while on the NSE, it opened at Rs. 338 per share, a 1.81 percent premium.
Management Guidance
Vikram Solar is scaling up its solar PV module manufacturing capacity to 15.5 GW by FY26 and 20.5 GW by FY27 through a mix of greenfield and brownfield expansions. The company is also diversifying into solar cell production, with two facilities in Tamil Nadu adding up to 12 GW of capacity by FY27.
In parallel, it is setting up a greenfield battery energy storage system (BESS) project, starting with 1 GWh capacity and expandable to 5 GWh by FY27, marking its entry into energy storage to drive long-term growth and profitability. As of March 2025, Vikram Solar held an executable order book of 10.34 GW, ensuring strong visibility for capacity utilisation and revenue momentum.
Financial Performance
Vikram Solar reported a significant growth in its revenue from operations, showing a year-on-year increase of around 36 percent from Rs. 2,511 crores in FY24 to Rs. 3,423 crores in FY25. Similarly, its net profit increased during the same period from Rs. 80 crores to Rs. 140 crores, representing an impressive rise of about 75 percent YoY. Between FY20 and FY25, Vikram Solar revenue grew at a 5-year CAGR of around 16 percent, while net profit surged at a CAGR of about 45 percent.
In terms of key financial metrics, the company has a Return on Equity (RoE) of 16.6 percent and a return on capital employed (RoCE) of 26.4 percent, with a debt-to-equity ratio of 0.22.
Written by Shivani Singh
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