Vikram Solar has announced strategic financial targets and provided updates on its major manufacturing expansion, signaling strong growth prospects in India's solar energy sector. The company has set clear expectations for its non-DCR business performance while advancing its ambitious manufacturing capabilities at the Gangakondan facility.

Financial Performance Targets

The company has established specific profitability benchmarks for its business operations, particularly focusing on its non-DCR segment performance.

Vikram Solar expects its non-DCR business to achieve steady EBITDA margins within this range, demonstrating the company's confidence in maintaining consistent profitability across its diversified product portfolio. This target reflects the company's strategic focus on optimizing operational efficiency while expanding market presence.

Gangakondan Manufacturing Expansion

The company has reported positive progress at its Gangakondan manufacturing site, where significant capacity additions are underway. This facility represents a cornerstone of Vikram Solar's expansion strategy, incorporating both module and cell manufacturing capabilities.

The 6 GW module facility is progressing according to schedule, with commissioning planned for Q1 FY27. This substantial manufacturing capacity will significantly enhance the company's ability to meet growing domestic and international demand for solar modules.

Cell Manufacturing Milestone

The 12 GW cell manufacturing plant at Gangakondan represents an even more ambitious component of the expansion project. The facility is targeting production of its first cell by December 2026, marking a critical milestone in the company's vertical integration strategy. This cell manufacturing capability will provide Vikram Solar with greater control over its supply chain and manufacturing processes.

Strategic Implications

These developments position Vikram Solar for substantial capacity expansion while maintaining focus on profitability metrics. The combination of targeted EBITDA margins and significant manufacturing capacity additions demonstrates the company's balanced approach to growth and financial performance. The Gangakondan facility's dual focus on both module and cell manufacturing creates opportunities for enhanced operational synergies and cost optimization across the production value chain.

Vikram Solar Limited has submitted its quarterly monitoring agency report for the quarter ended December 31, 2025, providing detailed insights into the utilization of proceeds from its Initial Public Offer. The report, prepared by India Ratings & Research Private Limited as the monitoring agency, was filed with stock exchanges on January 20, 2026, in compliance with SEBI regulations.

IPO Proceeds Utilization Overview

The company's IPO raised ₹15,000.00 crores through fresh issue, with the monitoring report showing cumulative utilization of ₹2,952.15 crores by the end of Q3 FY26. This leaves ₹12,047.85 crores unutilized from the total proceeds.

Project-wise Fund Deployment

The IPO proceeds are allocated across three main objectives, with the majority focused on expanding solar manufacturing capabilities through the company's wholly-owned subsidiary, VSL Green Power Private Limited.

Phase-I Manufacturing Project

The largest allocation of ₹7,697.30 crores is designated for partial funding of capital expenditure to establish an integrated 3,000 MW solar cell and 3,000 MW solar module manufacturing facility at SIPCOT Industrial Complex, Gangaikondan, District Tirunelveli, Tamil Nadu. As of December 31, 2025, ₹1,296.88 crores has been utilized for this project, with ₹6,400.42 crores remaining unutilized.

Phase-II Expansion Project

The second major allocation involves ₹5,952.08 crores for expanding the manufacturing capacity from 3,000 MW to 6,000 MW at the same project site. During Q3 FY26, ₹433.99 crores was utilized for this expansion, bringing the total utilization to ₹433.99 crores, with ₹5,518.09 crores remaining unutilized.

Deployment of Unutilized Funds

The company has deployed the unutilized IPO proceeds of ₹12,169.14 crores across multiple fixed deposits with various banks, earning returns ranging from 4.50% to 6.50% annually. The major deployments include ₹4,750.00 crores with Union Bank of India, ₹3,100.00 crores with Axis Bank, and smaller amounts distributed across Punjab National Bank, ICICI Bank, and Canara Bank.

Project Timeline and Progress

Both Phase-I and Phase-II projects are progressing as planned, with completion targeted for fiscal 2026. The monitoring agency reported no deviation from the stated objectives and confirmed that requisite approvals needed for the current stage of projects have been secured. The indicative timeline for trial runs and commercial production shows module line operations beginning in March 2026 for Phase-I, with cell line operations commencing in September 2026.

Regulatory Compliance

India Ratings & Research Private Limited, serving as the monitoring agency, confirmed no deviation from the disclosed objects of the IPO. The report was prepared based on management representations, statutory auditor certificates, and relevant bank statements, ensuring compliance with SEBI regulations for monitoring IPO proceeds utilization.