Management

• Gyanesh Chaudhary (Chairman and Managing Director)
• Krishna Kumar Maskara (Whole-time Director, Interim Chief Executive Officer and President – Corporate)
• Neha Agrawal (Whole-time Director and Head – Corporate Strategy)
• Subramanya Krishnappa (Independent Director)
• Ratnabali Kakkar (Independent Director)
• Sumit Binani (Additional Independent Director)
• Sudipta Bhowal (Company Secretary and Compliance Officer)
• Ranjan Kumar Jindal (Chief Financial Officer)

Use of Proceeds

The total issue size is Rs. 2,079.37cr, which comprises of fresh issue of Rs. 1,500cr and offer for sale (OFS) component of Rs. 579.37cr. The company intends to utilize net proceeds for partial funding of capex through investment in wholly owned subsidiary, VSL Green Power for the phase-I project (769.73cr), funding of capex through investment in wholly owned subsidiary, VSL Green Power for the phase-II project (595.21cr) and general corporate purposes.

Competitive Strengths

Strong R&D and Quality Control as a Competitive Advantage Vikram Solar’s strength lies in its strong R&D focus and robust quality control systems, which underpin its technological leadership in solar PV manufacturing. The company has consistently invested in advanced product development, leveraging digital tools such as machine learning, robotic automation, and value engineering to introduce high-efficiency modules like N-Type (Hypersol) and HJT (Suryava), along with innovations such as composite frames and hail-ready modules. Its 20-member R&D team and 142-member QC team have driven measurable improvements, including reduced cost of poor quality (down 53.3% in FY25), higher yields, and lower energy and water usage. The NABL-accredited R&D lab in Falta enhances credibility, while its SAP-based traceability system ensures 30-year product record tracking, supporting transparency and reliability. Multiple global certifications (IEC, UL, BIS, CSA) further validate its quality standards, making Vikram Solar a trusted supplier globally and reinforcing its competitive edge.

Strong Brand Recognition and Deep Customer Relationships Vikram Solar’s strong brand equity and diversified customer base are key competitive strengths, underpinned by its reputation for high-quality products and reliable execution. The company has been repeatedly listed as a Tier 1 solar PV module manufacturer by Bloomberg NEF since 2014, most recently in Q1 2025, and was awarded the EUPD Top Brand PV Seal in 2025. Its portfolio spans advanced technologies including Mono PERC, N-Type, and HJT modules, backed by 12-year product and 27–30-year performance warranties. A consultative marketing approach enables customized solutions for marquee clients, such as NTPC, Adani Green, Azure Power, JSW Energy, and international players like PureSky Development. Strategic campaigns—ranging from digital promotions to IPL sponsorship with Kolkata Knight Riders and a national TV commercial—further enhance brand visibility. With strong government and IPP relationships, market-driven strategies, and effective digital outreach, Vikram Solar continues to strengthen customer trust and expand its global footprint.

Technical Excellence and Proven Manufacturing Capabilities Vikram Solar’s strong technical proficiency in solar PV module manufacturing is a key differentiator, supported by advanced automation and global-standard equipment sourced from technology leaders in Japan, Germany, the U.S., Switzerland, and China. The company employs SAP/BI-based control algorithms, digitalized supply chain management, and enterprise applications such as Ariba integrated with SAP ERP, ensuring precision and operational efficiency. Continuous innovation has enabled wattage improvements to 395–735 Wp with efficiencies of 20.23–23.66%, aligned with leading global benchmarks. Its modules have consistently earned recognition for reliability, being the first Indian company featured in PVEL’s global report in 2017 and a “Top Performer” for seven consecutive years across multiple stress tests. In the 2024 PVEL report, Vikram Solar’s M10 PERC module ranked among the top 1% globally across five categories, underscoring its technological edge. Such recognition reinforces its credibility as a high-quality, globally competitive solar manufacturer.

Strong Domestic Network and Expanding Global Footprint Vikram Solar’s extensive domestic and international presence is a key competitive strength, supported by its wide distribution network and export reach. In India, the company operates across 19 states and two union territories, with distributors growing from 41 in September 2024 to 83 as of today, and dealers expanding from 64 to over 250 in the same period. This structured network, managed regionally for high market penetration, positions the company to benefit from India’s strong solar demand outlook of 25–27 GW annual additions and significant rooftop growth through 2030. Globally, Vikram Solar has shipped 7.12 GW of modules across 39 countries, with the U.S. emerging as a major growth market (587.88 MW in FY25). With offices in the U.S. and China, an upcoming proprietary e-commerce platform, and planned diversification into inverters, cables, and solar kits, the company is well-placed to strengthen both domestic and international market presence.

Peer Comparison

Key Risks & Concerns

High Customer Concentration Risk A key risk for Vikram Solar is its high dependence on a limited customer base, with 77.50% and 88.72% of FY25 revenues derived from its top five and top ten customers, respectively. Such concentration exposes the company to significant vulnerability in case of customer attrition, contract non-renewals, financial distress, or strategic shifts by key clients. Any loss or reduction of business from these customers may materially impact revenues and profitability, while the ability to offset such risks through diversification remains uncertain.

Execution and Expansion Risk Vikram Solar’s growth strategy hinges on timely execution of its large-scale expansion in Tamil Nadu under VSL Green Power, involving a Rs.25,386.87 million Phase-I solar cell and module facility and a Rs.6,105.67 million Phase-II module capacity expansion. Delays in approvals, cost overruns, financing challenges, equipment supply issues, or ramp-up inefficiencies could materially impact timelines, costs, and profitability. Past delays, such as the Oragadam facility’s six-month setback, highlight execution risks. Any failure to complete expansions as planned could impair scale, competitiveness, and long-term financial performance.

Raw Material Import Dependency Risk Vikram Solar remains heavily dependent on imports, with 80.68% of raw material costs in FY25 sourced from China, East Asia, and Southeast Asia. This reliance exposes the company to risks from trade restrictions, export duties, anti-dumping tariffs, and policy changes. While some contracts allow pass-through of duty hikes, government projects, and select customers transfer this risk to the company, pressuring margins. Past safeguard duties and basic customs duty hikes illustrate vulnerability. Any future supply disruption or cost escalation could materially impact operations, profitability, and cash flows.

Outlook and Valuation

Vikram Solar Limited is one of India’s largest pure-play solar photovoltaic (PV) module manufacturers, with over 17 years of industry experience and an installed capacity of 4.5 GW as of FY25. Headquartered in Kolkata, the company operates manufacturing facilities in West Bengal and Tamil Nadu, supported by a strong R&D and quality focus. Its diversified portfolio includes advanced technologies such as Mono PERC, N-Type, and HJT modules. With pan-India presence and global exports to 39 countries, Vikram Solar is well-positioned to benefit from rising solar adoption. Vikram Solar has delivered strong financial performance over FY23–25, with revenue from operations rising at a 28.5% CAGR to Rs. 3,423.5 cr in FY25, supported by robust volume growth and an expanding customer base. EBITDA grew sharply at a 62.6% CAGR, reaching Rs. 492.0 cr in FY25, while margins improved steadily to 14.4% (vs. 9.0% in FY23), reflecting better operating leverage and cost efficiencies. Profitability also strengthened, with PAT margins improving to 4.1% in FY25 from 0.7% in FY23. The company’s order book has expanded at a 92.6% CAGR, reaching 10.34 GW in FY25, led by strong traction in the domestic market (101.6% CAGR). The export order book also grew at a healthy 60.8% CAGR, reflecting Vikram Solar’s improving global footprint. The sustained growth in orders provides strong revenue visibility, positioning the company for continued scale-up in both domestic and international markets.

Vikram Solar has steadily expanded its installed capacity from 1.00 GW in 2017 to 4.50 GW in FY25 and is pursuing aggressive growth plans. Capacity is projected to rise to 15.50 GW by FY26 and 20.50 GW by FY27, including 12.00 GW of backward-integrated solar cell manufacturing at Gangaikondan, Tamil Nadu. The company has also qualified under the Government of India’s Production Linked Incentive (PLI) scheme for high-efficiency solar PV modules, further supporting cost competitiveness and scale. Additionally, Vikram Solar is diversifying into battery energy storage (BESS) with a 1.00 GWh facility, expandable to 5.00 GWh by FY27, and is setting up a 3.00 GW solar PV module manufacturing facility in the United States by FY27, enhancing global reach and strengthening its ability to capitalize on MNRE-backed demand and international market opportunities.

Vikram Solar is strategically positioned to benefit from strong domestic and global renewable energy tailwinds. The company is diversifying into Battery Energy Storage Systems (BESS), enabling round-the-clock clean energy solutions. Its expanding retail and distribution network across India, supported by government programs like PM Surya Ghar and KUSUM, strengthens its domestic foothold. Internationally, rising U.S. and EU demand for non-Chinese modules provides a growth runway, complemented by planned U.S. manufacturing capacity. Additionally, Vikram Solar is targeting captive C&I projects, supported by financing partnerships, and pioneering solar PV waste recycling, aligning with global ESG priorities. With government policies, PLI benefits, and rising solar adoption, the company is well-positioned for sustained long-term growth and margin expansion. The Indian solar sector is witnessing a swift increase in solar module manufacturing capacity, which has nearly doubled over the past year. Consequently, profitability may come under pressure due to an oversupply in the market and intensified competition. At the upper price band, Vikram Solar is currently valued at a FY25 PE multiple of 85.9x. Hence, an aggressive investor can SUBSCRIBE to the issue.