Vikram Solar Targets 16–18% Ebitda Margins For FY26 On Strong Order Book

Vikram Solar Ltd. expects sustainable Ebitda margins in the range of 16% to 18% for FY26 and the coming couple of years. While short-term fluctuations are anticipated due to supply chain and pricing dynamics, the company remains confident in maintaining healthy margins, its Chairman and Managing Director, Gyanesh Chaudhary, said on Thursday.

Speaking to NDTV Profit, Chaudhary said, “So in Q1, typically, we saw high margins because there was a lot of carry forward demand from last year……Consistently towards the rest of the year, we will see margins in a similar range, but maybe a couple of percentages down because of stabilising prices as well as supply chain dynamics changing, so anything in the range of 16 to 18% would be okay.”

Highlighting the key drivers of revenue growth, the CMD noted the sector's expansion in recent years.  

He noted, “The way this industry has panned out over the last few years, we've just seen phenomenal growth in the sector. The bids that have come out, private and institutional as well as government projects that have been announced and are in the process of deployment, have really driven this phenomenal growth in the sector,” he said.

These factors have directly contributed to a strong order pipeline for Vikram Solar. According to Chaudhary, the company’s order book stands strong at over 10 gigawatts and it’s still growing. He added that a large part of the bidding and order placement usually happens in the second half of the fiscal.

“So, as I said, we are currently at 10 GW plus order book to be catered over a period of six to eight quarters and then consistently growing..so all of this looks positive. As far as our overall market pipeline is concerned…it's close to 30 to 35 gigawatts…so, also pretty healthy,” Chaudhary added.

To meet the demand, Vikram Solar is planning a significant expansion, aiming to scale its module manufacturing capacity and integrate up to 12 gigawatts of solar cell manufacturing.

On its funding, Chaudhary commented, “Currently, we are looking at what we have received from the markets as far as the IPO proceeds are concerned and I think apart from that we will have debt as well as internal accruals to meet our overall demand.”

Shares of Vikram Solar Ltd. closed at Rs 371.1 apiece, down 2.03%, on the NSE on Thursday. Meanwhile, the benchmark Nifty 50 ended marginally higher at 25,005.5, up 32.4 points, or 0.13%.