Vikram Solar: Data-Backed Analysis of India's Leading PV Module Manufacturer
01 Jul, 2025
1. Business Model of Vikram Solar
Vikram Solar Limited is a vertically integrated solar energy company specializing in high-efficiency photovoltaic (PV) modules. As of March 2024, it boasts an installed capacity of 3.50 GW but Currently expanded to 4.5GW as of Apr 2025.
with an ambitious roadmap to expand to 15.50 GW by FY27.
Key Business Verticals:
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Solar PV Module Manufacturing: Focus on high-efficiency mono PERC and bifacial panels.
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OEM & Private Label Contracts: Manufactures solar modules for third-party brands.
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Turnkey Project Execution: Executes large-scale solar projects including floating solar plants and airport installations.
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Operations & Maintenance (O&M): Offers asset lifecycle management and extended service warranties.
Clients & Markets:
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Government agencies (SECI, NTPC, etc.)
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Private developers in India and abroad
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Export markets: USA, Europe, Africa, and Southeast Asia
The company’s strategic location near ports allows it to efficiently manage domestic and international logistics.
2. How Vikram Solar Makes Money
Revenue Streams:
| Segment | FY22 (₹ Cr) | FY23 (₹ Cr) | FY24 (₹ Cr) | % Revenue (FY24) |
|---|---|---|---|---|
| PV Module Sales | 669.02 | 971.15 | 2,444.11 | 97.34% |
| EPC & Others | 1,061.29 | 1,102.08 | 66.88 | 2.66% |
| Total Revenue | 1,730.31 | 2,073.23 | 2,510.99 | 100% |
✔️ Sharp transition to a module-centric model, with 97% of FY24 revenue from PV module sales.
Export Contribution:
| Region | FY24 Export Revenue (₹ Cr) | % of Export Revenue |
| USA | 1,534.19 | 99.22% |
| Rest of World | 12.07 | 0.78% |
| Total | 1,546.26 | 100% |
✔️ The U.S. remains Vikram Solar’s dominant export destination, contributing over 99% of export revenue in FY24.
Client Concentration:
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Top 5 clients: 76.13% of total revenue
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Top 10 clients: 89.38% of total revenue
3. Company Financials (FY22–FY24)
| Metric | FY22 | FY23 | FY24 |
| Revenue (₹ Cr) | 1,730.31 | 2,073.23 | 2,510.99 |
| EBITDA (₹ Cr) | 58.68 | 186.18 | 398.58 |
| EBITDA Margin (%) | 3.39% | 8.98% | 15.87% |
| PAT (₹ Cr) | (62.94) | 14.49 | 79.72 |
| PAT Margin (%) | (3.64%) | 0.70% | 3.17% |
| EPS (₹) | (2.43) | 0.56 | 3.08 |
| Net Debt (₹ Cr) | 567.15 | 633.59 | 692.60 |
| Debt-Equity Ratio | 2.00x | 2.02x | 1.81x |
| ROE (%) | (16.44%) | 4.05% | 19.67% |
| ROCE (%) | 2.22% | 12.78% | 20.76% |
Profit turnaround with improving margins and returns; strong EBITDA growth by over 6.8x in two years.
4. Industry Analysis – Porter’s Five Forces Framework
| Force | Analysis | Impact |
| 1. Threat of New Entrants | High capital investment & regulatory compliance, though PLI schemes offer support. | Moderate |
| 2. Supplier Power | Raw materials like polysilicon are concentrated in a few global suppliers. | High |
| 3. Buyer Power | Large institutional buyers & government tenders create price pressure. | Very High |
| 4. Threat of Substitutes | Solar remains the most cost-effective renewable energy solution. | Low |
| 5. Industry Rivalry | Highly competitive with players like Adani Solar, Waaree, Premier Energies. | Very High |
Government & Sectoral Tailwinds:
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India's 2030 renewable energy target: 500 GW
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MNRE’s ALMM policy gives preference to domestic manufacturers
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PLI scheme boosts capex capacity of players like Vikram Solar
5. Unlisted Market Performance (2023–2025)
| Period | Price Range (₹) | Return vs. Base (₹150) |
| Early 2024 | ₹150–₹180 | Base price |
| Mid-2024 | ₹250–₹280 | +55% |
| Late 2024 | ₹465 | +210% |
| June 2025 | ₹475 | ~3x |
Most current investors (entry ~₹150) are sitting on 3x returns in the unlisted market.
6. IPO Valuation & Peer Comparison
Expected Valuation
| Parameter | Value |
| Unlisted Market Cap | ₹12,592 Cr |
| Expected IPO Valuation | ₹13,360 Cr |
| P/E (FY24) | ~157x |
If IPO lists above ₹420, short-term listing risk may arise due to high valuation multiples.
Competitive Benchmarking
| Metric | Vikram Solar(FY24) | Premier Energies(FY25) | Waaree Energies (FY25) |
| Revenue (₹ Cr) | 2,511 | 6,519 | 14,444 |
| EBITDA Margin (%) | 10.39% | 27% | 19% |
| PAT Margin (%) | 3.19% | 14.40% | 13.4% |
| Debt/Equity | 1.82x | 0.69x | 0.13x |
| Market Cap (₹ Cr) | 12,592 | 47,732 | 87,766 |
| P/E Ratio (current) | 157x | 51x | 46.9x |
Final Verdict: Should You Invest?
Strengths:
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15.5 GW module & 5 GW solar cell capacity planned by FY27
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Robust export business (₹1,534 Cr to US in FY24)
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Turnaround in profitability with 6.8x EBITDA growth in two years
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Leading position in PV module efficiency (up to 23.34%)
Risks:
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High client concentration (Top 5 = 76%)
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Debt levels remain elevated (D/E = 1.81x)
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IPO may be overvalued at a P/E of 157x based on Fy24 numbers.
