Vikram Solar IPO: Should you apply or avoid?

Summary: Considering applying for Vikram Solar IPO? The company is pitching itself as a key player in India’s solar manufacturing push, with aggressive capacity expansion, backward integration into cells and entry into battery storage. But execution risks and thin profitability versus peers mean investors need to weigh the promise against the pitfalls. Check them below in the full story. Vikram Solar, a solar-module maker, is hitting the primary market with a Rs 2,079-crore IPO that opens on August 19, 2025 and closes on August 21, 2025. The issue comprises a fresh issue of Rs 1,500 crore and an offer for sale of 1.74 crore shares. We break down the company’s business, financials, strengths, risks and valuation to help you make an informed decision. What the company does Vikram Solar is a pure-play solar PV module manufacturer with an installed capacity of 4.5 GW across two plants in West Bengal and Tamil Nadu. Its ambitions are sweeping: a planned scale-up to 15.5 GW in FY26 and 20.5 GW in FY27, alongside a 12 GW backward integration into solar cells.  The company makes high-efficiency solar modules, with warranties of 12 years and performance guarantees lasting up to 30 years. As of June 2025, it had 2.85 GW listed under the government’s approved list of models and manufacturers (ALMM), a prerequisite for state-linked projects. To broaden its energy-solutions stack, Vikram is also entering battery-energy storage (BESS), with a greenfield 1 GWh plant in Tamil Nadu, with plans to scale to 5 GWh by FY27. This diversification reflects its aim to move beyond modules into full-stack energy solutions. Track record and valuation Financially, Vikram Solar has been improving. Rising volumes helped revenue grow 28.5 per cent annually between FY23 and FY25, while cost control aided profits, which rose 210 per cent annually from a low base of Rs 14 crore in FY23. Margins have also improved with scale, though they remain thin compared with industry leaders. It has also pared debt sharply, from Rs 854 crore in FY24 to Rs 272 crore in FY25, strengthening its balance sheet. Valuation-wise, at the upper price band of Rs 332, the company is valued at 4.4 times its book value and 86 times its FY25 earnings. For comparison, listed peers trade at a median P/E of 38.5 times and an average P/B of 13.3 times. Vikram Solar IPO details