Shares of Vikram Solar witnessed a massive rally in Monday's trading session, surging over 10% on the National Stock Exchange (NSE). The sharp uptick comes as a significant relief to investors, marking a technical rebound after a steep multi-day sell-off triggered by the company's Q1 FY27 earnings report earlier this month. After enduring intense selling pressure that dragged the stock from the Rs 180 levels down to a recent close of Rs 160.15, Vikram Solar saw aggressive value buying today.
Why Is Vikram Solar Share Price Rising In Trade?
The double-digit surge is primarily driven by a combination of value buying at oversold levels and renewed investor optimism regarding the company's long-term strategic plans. Following the Aug. 7 earnings release, the stock recorded a sharp fall for severe margin compression, sliding closer to its 52-week low of Rs 155.38. However, market sentiment appears to be shifting focus from short-term profitability hurdles to Vikram Solar's capacity expansion.
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Investors are reacting positively to the board's approval of a Rs 5,589 crore capital expenditure plan. This investment will upgrade its planned Gangaikondan, Tamil Nadu wafer and ingot plant capacity from 6 GW to 9 GW by FY29, a move crucial for building an integrated, non-China supply chain and restoring future profit margins.
Vikram Solar Q1 FY27 Financial Highlights
The first-quarter results painted a mixed picture. Operational scale was offset by surging input costs. While the company achieved record quarterly dispatches of 1,006 MW, rising cost of goods sold (up 63% YoY) severely hampered the bottom line.
- Revenue from Operations: Rs 1,563 crore (a 38% increase year-over-year from Rs 1,134 crore).
- Net Profit (PAT): Rs 20 crore (a 85% plunge from Rs 133 crore in the year-ago quarter).
- EBITDA: Rs 126 crore (down 48% year-over-year).
- EBITDA Margin: Contracted sharply to 8%, down from 21% in Q1 FY26
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