Vikram Solar’s FY26: Record Profits, Bigger Capacity, and a Clear Integration Bet

Vikram Solar closed FY26 with its strongest financial performance to date and used the quarter to sharpen a longer-term message: scale will matter, but integration and technology choices will decide who survives in Indian solar manufacturing.

For FY26, the company reported consolidated revenue of INR 4,802 crore, EBITDA of INR 917 crore, and PAT of INR 470 crore. In Q4 FY26, revenue rose to INR 1,453 crore, EBITDA came in at INR 235 crore, and PAT was INR 110 crore. The quarter also saw a new operating benchmark, with production at 971 MW and sales at 999 MW.

FY26 performance: growth with operating leverage

Management linked the FY26 step-up to higher volumes and improving operating leverage. FY26 sales volumes increased to 3,342 MW from 1,900 MW in FY25, while production rose to 3,220 MW from 1,286 MW.

The profit and loss table in the presentation shows margin expansion at the full-year level, even though Q4 margins were lower than Q3. For FY26, EBITDA margin improved to 19% from 14% in FY25, and PAT margin increased to 10% from 4%.

Management also pointed to working capital improvement, stating the net working capital cycle reduced to 44 days in FY26 from 82 days in FY25.

Order book: strong headline, with important exclusions

The order book stood at 8.2 GW as on 31 March 2026. The segment mix was led by IPPs at 69%, followed by C&I at 13%, Government at 7% and EPC at 11%. Geographically, the mix was 87% domestic and 13% exports.

The company highlighted that customer concentration reduced materially: top-5 client share declined to 47% in FY26 from 80% in FY25, and top-10 client share to 65% from 86%.

However, the company also clarified what it is no longer counting. The order book does not include more than 1 GW of distribution order book, 1.5 GW of C&I non-DCR orders under renegotiation for DCR modules, and a 0.6 GW US order where the project was shelved.

This matters because it sets expectations for reported order book movements in FY27. In the concall, management explained that distribution orders were removed from the reporting format as the channel shifts toward spot buying under the DCR transition.

The strategic pivot: integration across the value chain

The core strategic narrative is backward integration, moving from module assembly into cell manufacturing and then into wafer and ingot. The investor presentation lays out a target of 12 GW full-stack solar manufacturing by FY30, alongside 15.5 GW module capacity.

The near-term milestones discussed in the concall were:

• A 6 GW module facility at Gangaikondan, Tamil Nadu, with first module output targeted for June 2026.
• A 9 GW TOPCon cell plant, with first cell out expected around end-Dec 2026 or early-Jan, sequential commissioning through March 2027, and ramp-up during Q2 FY28.

On 7 May 2026, the Board also approved a new project that moves further upstream. The company approved capex of up to INR 3,726 crore to establish a 6 GW wafer and ingot facility at the Gangaikondan site in Tamil Nadu by FY29. The disclosure ties the rationale to ALMM-III becoming effective from June 2028.

Management also described why co-locating upstream and downstream capacity matters: a single campus model reduces transport cost between fabs, lowers transit damage risk, and reduces inventory buffers between stages.

Storage as the second platform: BESS roadmap

Beyond solar modules, Vikram Solar is building a battery energy storage systems platform. The investor presentation targets 15 GWh BESS capacity by FY30. Management described a phased approach, starting with BESS assembly and then backward integrating into battery cell manufacturing.

The concall referenced an initial BESS assembly capex of around INR 150 crore and mentioned discussions with technology licensors and manufacturing partners. The presentation also mentions a 100 MWh order secured in the order pipeline.

Policy is a key underpinning of this ambition. The investor deck cites India’s expected BESS market of 321 GWh by FY35 and notes that 40+ GWh has already been incentivized via viability gap funding.

Risks and watchpoints highlighted in the filings

The audited financial statements carry emphasis-of-matter points that investors should track. The auditor highlighted INR 148.52 crore of safeguard duty treated as receivable as the matter is sub-judice. Another INR 52.81 crore in trade receivables is described as withheld or recovered by certain customers related to EPC and other contracts, with disputes referred to arbitration or courts.

On the operating side, management acknowledged cost pressures in Q4. EVA costs rose with crude oil, aluminium frame costs increased as aluminium prices moved higher, and the quarter’s cost increase was partly compensated by a fall in cell prices. The company also highlighted that around 80% of the order book carries cell price pass-through clauses.

Exports remain a mixed picture. The presentation notes US trade actions including high AD/CVD duties on Indian solar cells and modules, and management said exports from India to the US have slimmed to negligible levels. The company stated it is exploring markets in the EU, Australia, and the Middle East.

What to take away

Vikram Solar is using a record FY26 to set up a multi-year investment cycle. The near-term story is higher module volumes as new capacity comes online. The longer-term story is deeper integration into cells and upstream wafer and ingot, combined with an entry into storage.

The company has provided several time-bound milestones, including June 2026 for first output from the Gangaikondan module plant and December 2026 for first output from the TOPCon cell plant. The next year should show whether execution stays on schedule and whether the transition into DCR-linked demand plays out as planned.