Vikram Solar Ltd Q2 FY26 — ₹1,110 Cr Revenue, ₹128 Cr PAT, 1,646% YoY Profit Surge: The Solar IPO That’s Burning Brighter Than the Sun (and Maybe Its Promoters Too)
1. At a Glance
Picture this: a ₹12,000 Cr solar manufacturer that just listed, promised to light up India’s clean-energy dreams, and now reports 1,646% YoY profit growth. Sounds like a fairy tale—until you notice that 30% of promoter shares are pledged harder than an MBA student’s resume during placement season.
Vikram Solar Ltd (BSE: 544488 | NSE: VIKRAMSOLR) closed FY25 with ₹3,423 Cr revenue, ₹140 Cr PAT, and now flexes a ROCE 26.4% and ROE 16.6%, the kind of numbers that make Excel sheets blush. Current price? ₹335, about 4.1× book value, P/E 46.4×, and a zero-dividend yield because who needs cash when you can have hope.
In Q2 FY26, the company reported ₹1,110 Cr revenue, ₹235 Cr operating profit, and ₹128 Cr PAT, riding on an 11.15 GW order book and enough expansion plans to make ISRO jealous.
The market calls it “solar growth”. We auditors call it “Photosynthesis of Expectations.”
2. Introduction
Once upon a time, in 2005, someone in Kolkata looked at the blazing sun and said, “Boss, yeh free hai, iska business banate hain.” Fast-forward to 2025, and that same idea is now Vikram Solar Ltd, one of India’s largest solar-PV manufacturers, exporter to 39 countries, and the newest darling of the capital markets.
But like every Indian startup, it’s following the sacred trinity of modern capitalism: Expand → Raise Money → Pledge → Repeat.
The company’s IPO landed on 26 Aug 2025 with typical Bollywood drama — a mix of fresh issue, OFS, and dreams of 20 GW manufacturing by FY27. Investors rushed in, analysts compared it to Waaree and Premier Energies, and auditors like me started sharpening our pencils.
The fun part? Amidst all that solar glory, exports form only 1% of revenue, meaning 99% still depends on good ol’ Indian government tenders — a land where payments move slower than sunlight in monsoon.
So before we all chant “Solar Bharat”, let’s check if this balance sheet is glowing or just reflecting light.
3. Business Model – WTF Do They Even Do?
Vikram Solar makes solar PV modules, sets up EPC solar projects, and maintains them (O&M). In simple terms, they sell the tiles that capture sunlight, the brains that manage it, and then send engineers with screwdrivers to keep it all alive.
Solar PV Modules (core): Manufactured at Falta SEZ – Kolkata and Oragadam – Chennai with 4.5 GW capacity, expanding toward 15.5 GW by FY26 and 20.5 GW by FY27. Latest modules boast 395–735 Wp power and 23.66% efficiency — that’s almost as efficient as an Indian mom spotting discounts.
EPC Projects: Over 200 projects in 19 states, 1.41 GW cumulative capacity, mostly using its own panels. Translation: “We buy from ourselves to show sales.” Classic.
Backward Integration: Setting up 12 GW solar-cell plant in Tamil Nadu and a battery storage unit (BESS) scaling to 5 GWh by FY27. Basically, they want to be India’s Tesla — without Elon’s tweets.
So, they’re in manufacturing, contracting, and maintenance — basically three businesses where everyone delays payment, but you still have to keep smiling for subsidies.
4. Financials Overview
Source table
Metric
Latest Qtr (Sep ’25)
YoY Qtr (Sep ’24)
Prev Qtr (Jun ’25)
YoY %
QoQ %
Revenue (₹ Cr)
1,110
573
1,134
93.7 %
-2.1 %
EBITDA (₹ Cr)
235
72
242
+226 %
-2.9 %
PAT (₹ Cr)
128
7
133
+1,646 %
-3.8 %
EPS (₹)
3.55
0.23
4.21
+1,443 %
-15.7 %
At an annualised EPS ≈ ₹14.2, the P/E clocks ≈ 23× on annualised earnings — not obscene for a growth-heavy manufacturer, but still sunny enough to need SPF 50.
Auditor’s note: “Revenue doubled, profit exploded — either operational efficiency improved or someone found a shortcut to the sun.”
5. Valuation Discussion – Fair Value Range
Let’s use our holy trinity: P/E, EV/EBITDA, and DCF (aka Dreams, Cash Flows).
(a) P/E Method Industry median ≈ 38×. Vikram’s EPS = ₹4.42 (FY25) → ₹14 (annualised FY26). Fair value range ≈ ₹14 × (30–45) = ₹420–630.
(b) EV/EBITDA Method FY25 EBITDA ₹492 Cr, EV ₹10,596 Cr → EV/EBITDA = 21.5×. Peers average ≈ 18–25× → range ₹370–515.
(c) DCF Method (auditor’s coffee-fuelled guess): Assuming 25% CAGR in cash flows next 5 yrs and terminal growth 5% at 10% discount → Fair value ≈ ₹390–580.
🎯 Fair Value Range: ₹370–630 per share
This fair value range is for educational purposes only and not investment advice. Consult your cat, neighbour, or SEBI-registered advisor before taking it seriously.
6. What’s Cooking – News, Triggers & Drama
Q2 FY26 Results: ₹1,109.9 Cr revenue, ₹128.5 Cr PAT. Order book 11.15 GW. Management claims capacity scaling to 17.5 GW soon.
One Response
love the language you simplified. salute