Vikram Solar Q2 profit drops to Rs 5.934 crore as costs rise

Vikram Solar Limited reported consolidated profit of Rs 5.934 crore for the quarter ended September 30, 2026, down from Rs 128.488 crore a year earlier, as total expenses rose to Rs 1,084.706 crore against total income of Rs 1,091.31 crore. The resulting profit before tax was Rs 6.604 crore.

Why did Vikram Solar's Q2 profit decline?

Vikram Solar's Q2 profit declined because the difference between total income and total expenses narrowed to Rs 6.604 crore in the quarter ended September 30, 2026, from Rs 184.455 crore in the September 2025 quarter. Profit after tax fell by Rs 122.554 crore year on year, while total tax expense declined to Rs 67 lakh from Rs 55.967 crore.

Total income declined to Rs 1,091.31 crore from Rs 1,125.805 crore, while total expenses increased to Rs 1,084.706 crore from Rs 941.35 crore. Other income was Rs 13.895 crore, compared with Rs 15.899 crore a year earlier, so it did not offset the increase in the reported cost base.

The sequential comparison also shows lower earnings after the June 2026 quarter. Vikram Solar reported profit of Rs 10.777 crore in the June quarter and Rs 5.934 crore in the September quarter, as total income declined from Rs 1,575.716 crore to Rs 1,091.31 crore and total expenses declined from Rs 1,550.496 crore to Rs 1,084.706 crore.

How did Vikram Solar's revenue and costs change in Q2?

Vikram Solar's revenue from operations fell to Rs 1,077.415 crore in Q2 from Rs 1,100.906 crore in the corresponding prior-year quarter, a reduction of Rs 23.491 crore. Total expenses, however, rose by Rs 143.356 crore over the same period, producing the narrower pre-tax result.

Cost of materials and services consumed declined to Rs 698.503 crore from Rs 860.218 crore, but several other expense lines increased. Employee benefits expense rose to Rs 64.985 crore from Rs 40.818 crore, finance costs increased to Rs 42.738 crore from Rs 31.582 crore, and depreciation and amortisation rose to Rs 65.786 crore from Rs 34.884 crore.

Changes in inventories of finished goods and work-in-progress were an expense of Rs 126.828 crore in Q2, compared with Rs 45.531 crore a year earlier. Other expenses declined to Rs 85.665 crore from Rs 89.317 crore, meaning the disclosed increases in inventory movement, employee costs, finance costs and depreciation outweighed that reduction.

What do Vikram Solar's first-half results show?

Vikram Solar reported profit of Rs 25.741 crore for the six months ended September 30, 2026, compared with Rs 261.852 crore in the corresponding six months of 2025. Profit before tax fell to Rs 31.824 crore from Rs 365.07 crore across the two half-year periods.

Revenue from operations increased to Rs 2,640.507 crore from Rs 2,243.483 crore in the first half, but total expenses rose to Rs 2,635.202 crore from Rs 1,698.505 crore. Total income was Rs 2,667.026 crore, compared with Rs 2,263.684 crore, leaving a much smaller gap between income and expenses than in the prior-year period.

Cost of materials and services consumed for the six months rose to Rs 2,083.293 crore from Rs 1,546.596 crore. Employee benefits expense increased to Rs 120.088 crore from Rs 76.227 crore, depreciation and amortisation rose to Rs 129.796 crore from Rs 68.388 crore, and finance costs increased to Rs 92.139 crore from Rs 63.842 crore.

Vikram Solar identifies manufacturing of solar photovoltaic modules, engineering, procurement and construction, or EPC, and operation and maintenance of solar power plants as one primary reportable segment under Indian Accounting Standard 108. The September 30, 2026 filing therefore provides no separate revenue or profit figures for module manufacturing, EPC or operation and maintenance activities.

What do Vikram Solar's balance sheet and cash flow show?

Vikram Solar's total assets were Rs 6,292.055 crore at September 30, 2026, compared with Rs 5,728.479 crore at March 31, 2026, while total equity rose to Rs 3,200.224 crore from Rs 3,167.76 crore. Property, plant and equipment increased to Rs 1,130.253 crore from Rs 540.194 crore, and capital work in progress rose to Rs 691.04 crore from Rs 418.083 crore.

Current borrowings increased to Rs 631.788 crore at September 30 from Rs 100.073 crore at March 31. Trade receivables rose to Rs 1,296.326 crore from Rs 1,214.353 crore, while inventories declined to Rs 775.382 crore from Rs 823.134 crore and bank balances other than cash equivalents declined to Rs 419.147 crore from Rs 1,221.041 crore.

Net cash used in operating activities was Rs 190.371 crore in the six months ended September 30, 2026, compared with net cash generated from operating activities of Rs 513.056 crore in the prior-year period. Payments to acquire property, plant and equipment, capital work in progress and intangible assets were Rs 981.565 crore, while cash and cash equivalents ended the period at Rs 84.479 crore.

What receivables and IPO matters has Vikram Solar disclosed?

Vikram Solar has recorded Rs 148.52 crore of safeguard duty paid through July 29, 2021 as a receivable because the related matter remains pending before the Supreme Court and the Orissa High Court. Management says it obtained legal opinion and considers that it has an arguable case on merits; any adjustment will depend on the legal outcome.

The company also reported Rs 52.79 crore within trade receivables at September 30, 2026 that certain customers withheld or recovered in relation to EPC and other contracts. The claims concern liquidated damages, generation loss and other matters, which Vikram Solar has not acknowledged and has referred to dispute resolution, arbitration or court proceedings.

The statutory auditor drew attention to both matters without modifying its review conclusion. The auditor also said the consolidated results included unaudited interim financial information for five subsidiaries with total assets of Rs 2.688 crore at September 30, 2026, which it described as not material to the group.

Vikram Solar's initial public offer generated net proceeds of Rs 1,414.487 crore after issue expenses. Of this amount, Rs 1,237.576 crore had been utilised by September 30, 2026, leaving Rs 176.911 crore unutilised and temporarily invested in deposits and held in current accounts with scheduled commercial banks.

Conclusion

Vikram Solar's September-quarter results show that a Rs 23.491 crore year-on-year decline in revenue from operations was accompanied by a Rs 143.356 crore increase in total expenses. That movement reduced profit before tax to Rs 6.604 crore and profit after tax to Rs 5.934 crore, despite first-half revenue from operations increasing to Rs 2,640.507 crore.

The next disclosures to watch are the use of Rs 176.911 crore of unutilised IPO proceeds, which the filing says is temporarily held in deposits and current accounts, and the outcomes of the Rs 148.52 crore safeguard-duty receivable and Rs 52.79 crore of disputed customer receivables. Current borrowings, which rose to Rs 631.788 crore at September 30, 2026, also remain a reported balance-sheet item to track.