Vikram Solar carries Rs 201.31 crore contested receivables

Vikram Solar Limited reported Rs 201.31 crore of contested or withheld amounts at September 30, 2026, comprising Rs 148.52 crore of safeguard duty recognised as receivable and Rs 52.79 crore withheld or recovered by customers. The auditor highlighted both matters, while leaving its limited-review conclusion unmodified because their outcomes remain subject to legal and dispute-resolution proceedings.

What receivables did Vikram Solar’s auditor highlight?

Vikram Solar’s auditor highlighted Rs 201.31 crore across two unresolved matters in its review report dated November 14, 2026. The larger item is Rs 148.52 crore paid as safeguard duty, which Vikram Solar continues to recognise as a receivable in its standalone financial statements for the quarter and six months ended September 30, 2026. The auditor said this matter is sub judice, meaning it is under legal consideration.

The second item is Rs 52.79 crore included in trade receivables, which certain customers withheld or recovered under engineering, procurement and construction, or EPC, and other contracts. The auditor cited liquidated damages and generation loss among the reasons for the deductions. Vikram Solar does not acknowledge the claims, and the matters have been referred to dispute resolution, arbitration or court under the respective contracts.

The auditor stated that its conclusion was not modified in respect of either matter. Its report was a limited review of standalone results under Standard on Review Engagements 2410, which it said involves inquiries and analytical procedures and provides less assurance than an audit conducted under the Standards on Auditing.

Why has Vikram Solar not provided for safeguard duty?

Vikram Solar has not made a provision for the Rs 148.52 crore safeguard-duty receivable because management obtained legal advice and considers that it has an arguable case on merits. The auditor said Vikram Solar will make necessary adjustments to its financial statements based on the legal outcome, rather than recording an adjustment in the results for the period ended September 30, 2026.

This treatment leaves the Rs 148.52 crore balance recorded as a receivable while the legal process remains unresolved. The review report did not state when a legal decision may be reached, nor did it quantify any potential adjustment. It said only that necessary financial-statement adjustments will be made once the matter is determined.

The auditor’s unmodified conclusion does not determine the recovery of the safeguard-duty amount. It states that nothing came to the auditor’s attention during the limited review to indicate that the standalone financial results did not disclose information required by the Securities and Exchange Board of India listing regulations or contained a material misstatement.

How large are the disputed amounts within Vikram Solar’s receivables?

The Rs 52.79 crore customer-dispute amount is specifically included in Vikram Solar’s Rs 1,290.40 crore standalone trade receivables at September 30, 2026. Total trade receivables increased from Rs 1,214.01 crore at March 31, 2026, an increase of Rs 76.39 crore over the six-month period. The review report separately describes the safeguard-duty receivable and does not state whether it is included in trade receivables.

The two highlighted balances have different recovery mechanisms. The Rs 148.52 crore safeguard-duty receivable depends on the outcome of the sub judice legal matter. The Rs 52.79 crore customer amount depends on contractual dispute resolution, arbitration or court proceedings, and management said it is hopeful that those matters will be resolved in Vikram Solar’s favour.

The filing gives no date for a judgment, award, settlement or other resolution for either balance. It also does not state how much of the Rs 52.79 crore is linked to liquidated damages, generation loss or other customer claims, leaving the detailed composition of that disputed trade-receivable amount undisclosed.

What do Vikram Solar’s September results show alongside this risk?

Vikram Solar reported standalone profit after tax of Rs 22.46 crore for the six months ended September 30, 2026, compared with Rs 262.65 crore in the corresponding six months of 2025. Revenue from operations rose to Rs 2,609.30 crore from Rs 2,245.07 crore over the same periods. The results therefore show higher half-year revenue alongside lower reported profit.

For the September 2026 quarter, Vikram Solar recorded profit after tax of Rs 3.73 crore, compared with Rs 128.24 crore a year earlier and Rs 18.73 crore in the June 2026 quarter. Profit before tax for the six months was Rs 2.87 crore, compared with Rs 36.60 crore in the prior-year period, while finance costs rose to Rs 9.17 crore from Rs 6.38 crore.

Cash flow from operating activities was an outflow of Rs 16.13 crore in the six months ended September 30, 2026, compared with an inflow of Rs 48.04 crore a year earlier. The cash-flow statement recorded a Rs 27.76 crore increase in financial and non-financial assets and a Rs 20.54 crore decrease in financial and non-financial liabilities. The filing does not attribute these wider working-capital movements specifically to either highlighted receivable.

Standalone current borrowings rose to Rs 581.79 crore at September 30, 2026 from Rs 100.07 crore at March 31, 2026. Cash and cash equivalents were Rs 30.52 crore at September 30, 2026, compared with Rs 9.91 crore at March 31, 2026, while trade receivables increased by Rs 76.39 crore over the same six months.

Conclusion

Vikram Solar carried Rs 201.31 crore in two separately identified contested matters at September 30, 2026, with Rs 148.52 crore tied to safeguard duty and Rs 52.79 crore related to customer deductions. The auditor highlighted both balances without modifying its limited-review conclusion. Trade receivables rose to Rs 1,290.40 crore from Rs 1,214.01 crore at March 31, 2026, while half-year profit after tax declined to Rs 22.46 crore.

The next matters to watch are the legal outcome for the safeguard-duty receivable and the dispute-resolution, arbitration or court proceedings concerning customer deductions. Vikram Solar said it will make financial-statement adjustments when the outcomes are known, while management said it is hopeful of a favourable resolution for the Rs 52.79 crore customer claims. The November 14, 2026 filing does not disclose a timetable for either process.