Vikram Solar , a leading solar energy solutions provider, has set its sights on maintaining EBITDA margins between 16-18% for FY26 and subsequent years, according to Chairman and Managing Director Gyanesh Chaudhary. The company's financial outlook comes amid a robust order book and ambitious expansion plans in the solar manufacturing sector.

Q1 Performance and Future Expectations

The company reported high margins in the first quarter, attributed to carry-forward demand from the previous year. However, Chaudhary expects margins to stabilize in the 16-18% range for the rest of the year, citing pricing and supply chain dynamics as key factors.

Impressive Order Book and Market Pipeline

Vikram Solar's order book currently stands at an impressive 10+ gigawatts, which the company anticipates fulfilling over the next six to eight quarters. This strong order book is complemented by a substantial market pipeline of 30-35 gigawatts, indicating significant growth potential in the coming years.

Expansion Plans and Funding

The solar solutions provider has outlined ambitious expansion plans for its manufacturing capabilities:

1. Significant increase in module manufacturing capacity
2. Integration of up to 12 gigawatts of solar cell manufacturing

To fund these expansion initiatives, Vikram Solar plans to utilize a combination of:

• IPO proceeds
• Debt
• Internal accruals

Market Performance

On Thursday, Vikram Solar's shares closed at Rs 371.10, experiencing a 2.03% decline. Despite this short-term fluctuation, the company's strong order book and expansion plans suggest a focus on long-term growth and market positioning.

The solar energy sector continues to be a key area of growth in India's renewable energy landscape, and Vikram Solar's strategic moves indicate its intent to capitalize on this expanding market. As the company progresses with its expansion plans and works towards its targeted EBITDA margins, investors and industry observers will be keenly watching its performance in the coming quarters.

Vikram Solar Limited, one of India's largest solar PV module manufacturers, has reported exceptional financial results for the first quarter, with significant growth across key metrics.

Strong Revenue Growth

The company's revenue from operations surged by 79.7% year-on-year to ₹1,133.60 crore in Q1, compared to ₹630.90 crore in the same quarter last year. This robust growth reflects the increasing demand for solar solutions and Vikram Solar's strong market position.

Impressive Profit Surge

Vikram Solar's net profit witnessed a remarkable jump of 484% to ₹133.40 crore, up from ₹22.80 crore in Q1 of the previous year. This substantial increase in profitability underscores the company's operational efficiency and cost management strategies.

Enhanced Operational Performance

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) grew by an impressive 117.3% to ₹242.20 crore, with EBITDA margins expanding by 370 basis points to 21.4%. This improvement in operational performance indicates Vikram Solar's ability to optimize its resources and capitalize on market opportunities.

Healthy Order Book

As of the end of the quarter, Vikram Solar maintains a robust order book of 10.96 GW, showcasing strong market demand for its products and services. The company's capacity utilization stood at 89.2% during the quarter, indicating efficient use of its manufacturing capabilities.

Key Business Developments

Vikram Solar secured several significant orders during the quarter, including:

• A 250 MW solar module supply order from Bondada Group in Maharashtra
• A 326 MW solar module supply order from Gujarat Industries Power Company Limited (GIPCL)
• A 336 MW solar module supply order from Larsen & Toubro for deployment in Khavda, Gujarat

These orders further strengthen the company's market position and contribute to its growing order book.

Industry Recognition

The company continues to receive recognition for its product quality and sustainability efforts:

• Recognized as a Top Brand PV India by EUPD Research
• Achieved "Top Performer" status in Kiwa PVEL's PV Module Reliability Scorecard for the 8th time
• Received an EcoVadis Platinum Medal, ranking in the top 1% worldwide for sustainability performance

Management Commentary

Gyanesh Chaudhary, Chairman & Managing Director of Vikram Solar Limited, commented on the results: "We are proud to share that this fiscal year has begun on a strong note, with Q1 reflecting robust growth across revenue, profitability, and margins. Our expanding capacities and faster turnaround times position us well to execute our healthy order book pipeline of 10.96 GW."

Chaudhary also highlighted the company's strategic growth initiatives, including a planned 4x scaling of manufacturing capacities and backward integration into solar cell manufacturing. He expressed confidence in sustaining the growth momentum, supported by industry tailwinds such as the focus on Atmanirbhar Bharat and policy support like PLI schemes and custom duties.

Outlook

With its strong financial performance, growing order book, and strategic expansion plans, Vikram Solar appears well-positioned to capitalize on the increasing demand for solar energy solutions in India and globally. The company's focus on capacity expansion and backward integration is expected to further enhance its competitiveness and market share in the coming quarters.