Vikram Solar Shines Bright: A Deep Dive into Q2 FY26 Performance

Vikram Solar Limited, a prominent player in India's rapidly expanding solar energy sector, has reported a stellar performance for the second quarter of Fiscal Year 2026. The company's financial results underscore a period of robust growth, operational efficiency, and strategic expansion, positioning it strongly within the clean energy landscape. For Q2 FY26, Vikram Solar recorded a substantial 94% year-on-year increase in revenue from operations, reaching INR 1,110 crores, up from INR 573 crores in the same period last year. This impressive top-line growth translated into exceptional profitability, with Profit After Tax (PAT) soaring by 1,636.5% to INR 128 crores, compared to INR 7 crores previously. The EBITDA also saw a remarkable 225.9% surge, settling at INR 235 crores, with EBITDA margins improving significantly from 13% to 21% year-on-year.

The company's half-yearly performance for H1 FY26 further reinforces this positive trajectory. Revenue from operations for the first half stood at INR 2,243 crores, an 86.4% increase from H1 FY25. PAT for H1 FY26 reached INR 262 crores, growing by 767.2% from INR 30 crores in H1 FY25, while EBITDA grew by 160% to INR 477 crores. These figures highlight Vikram Solar's ability to capitalize on the burgeoning demand for solar solutions and execute its growth strategy effectively.

Strategic Expansion and Market Tailwinds

Vikram Solar's robust performance is underpinned by strategic capacity expansions and favorable market conditions. The company's order book as of September 30, 2025, stood at an impressive 11.15 GW, marking a 36% year-on-year growth from 8.21 GW. This strong order book provides significant revenue visibility for the coming quarters. The customer-wise split of the order book shows a diversified base, with 52% from Independent Power Producers (IPPs), 20% from Commercial & Industrial (C&I) projects, 13% from distribution, 8% from government projects, and 7% from Engineering, Procurement, and Construction (EPC). Notably, the C&I segment has seen a remarkable surge, growing from 4% to 20% of the order book, reflecting a strategic shift towards high-profitability segments.

To meet this escalating demand, Vikram Solar is aggressively expanding its manufacturing capabilities. The company is on track to increase its module manufacturing capacity to 17.5 GW and cell manufacturing capacity to 12 GW by FY27. A 5 GW module manufacturing facility at Vallam, Tamil Nadu, is expected to be commissioned in the current quarter, boosting total module capacity to 9.5 GW. Additionally, a Greenfield project in Gangaikondan will add another 6 GW of modules and 12 GW of cells, with the module facility slated for commissioning in Q4 FY26. These expansions are crucial for achieving 75% backward integration and establishing one of the largest cell giga factories in a single location.

Policy Support and Financial Discipline

The Indian solar industry is experiencing significant tailwinds from government policies. The GST Council's decision to reduce the GST rate on renewable energy components from 12% to 5%, effective September 22, 2025, is expected to boost demand and domestic manufacturing. Furthermore, the Ministry of New and Renewable Energy (MNRE)'s ALMM-III mandate, effective from June 1, 2028, will require domestic wafer/ingot listing, promoting upstream manufacturing and self-reliance. While the Directorate General of Trade Remedies (DGTR) has recommended anti-dumping duties on solar cells from China, Vikram Solar noted that most of its orders include a pass-through clause, mitigating potential cost impacts.

Financially, the company remains disciplined. Despite the substantial capital expenditure of approximately INR 6,200 crores for its expansion projects, Vikram Solar aims to maintain a debt-to-equity ratio below 1 by March 2027. The funding strategy involves INR 3,500 crores from debt, INR 1,500 crores from equity, and INR 1,200 crores from internal accruals. The company's credit rating was upgraded from A to A+, reflecting its steady financial performance, strong liquidity, and prudent leverage management. This disciplined approach ensures that growth is sustainable and value-accretive for all stakeholders.

Outlook and Future Prospects

Vikram Solar's Q2 FY26 results demonstrate a company in a strong growth phase, effectively leveraging market opportunities and executing its strategic vision. The combination of robust demand, significant capacity expansions, favorable government policies, and disciplined financial management positions Vikram Solar for continued success. The company's focus on backward integration and technological advancement ensures its competitiveness and ability to meet India's ambitious clean energy targets. With a clear roadmap and strong operational metrics, Vikram Solar is well-prepared to capitalize on the evolving landscape of the global solar industry, creating climate for change and sustained shareholder value.