Widely read:
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
|
Total IPO size (Rs cr)
|
2,079 |
| Offer for sale (Rs cr) | 579 |
| Fresh issue (Rs cr) | 1,500 |
| Price band (Rs) | 315-332 |
| Subscription dates | August 19- 21, 2025 |
| Purpose of issue | To fund capex for capacity addition |
Post-IPO
|
M-cap (Rs cr)
|
12,009.00 |
| Net worth (Rs cr) | 2,742.00 |
| Promoter holding (%) | 63.1 |
| Price/earnings ratio (P/E) | 85.9 |
| Price/book ratio (P/B) | 4.4 |
Financial History
| Key financials | 2Y growth (%pa) | FY25 | FY24 | FY23 |
|---|---|---|---|---|
| Revenue (Rs cr) | 28.5 | 3423 | 2511 | 2073 |
| EBIT (Rs cr) | 65.8 | 336 | 261 | 122 |
| PAT (Rs cr) | 210.6 | 140 | 80 | 14 |
| Net worth (Rs cr) | 84.4 | 1242 | 445 | 365 |
| Total debt | -41.4 | 272 | 854 | 792 |
| EBIT is earnings before interest and taxes PAT is profit after tax |
||||
Ratios
| Key ratios | 3Y average | FY25 | FY24 | FY23 |
|---|---|---|---|---|
| ROE (%) | 13.4 | 16.6 | 19.7 | 4 |
| ROCE (%) | 19.3 | 24.5 | 20.8 | 12.8 |
| EBIT margin (%) | 8.4 | 9.8 | 10.4 | 5.9 |
| Debt-to-equity | 0.2 | 1.9 | 2.2 |
|
| ROE is return on equity ROCE is return on capital employed |
||||
The good
Vikram comes armed with visibility. Its 10.3 GW order book, more than twice its FY25 capacity, is anchored by marquee names, like NTPC RE, NLC, GIPCL and Adani Green, lending credibility and ensuring revenue coverage across multiple quarters. Its two plants, at proximate locations to ports, help lower logistics costs in a business where supply chains are often bulky and margins are tight.
The backward integration into cells is well-timed. With domestic rules tightening under the ALMM framework and PLI incentives flowing, being able to produce both modules and cells could be a decisive edge against import-reliant rivals. Add to this the early bet on battery storage and Vikram is positioning itself as more than just a panel maker.
The bad
Still, several risks warrant caution. Margins remain well behind peers. Vikram’s FY25 EBITDA margin of 14.4 per cent pales against Waaree’s 21 per cent and Premier’s near-29 per cent given the company has been aggressively chasing growth via heavy capex.
Its supplier base is heavily import-dependent. In FY25, all its raw material was sourced from overseas, with more than 80 per cent coming from China and Southeast Asia, leaving Vikram exposed to trade volatility, duties and policy swings.
Customer concentration is another vulnerability. The top 10 customers made up nearly 89 per cent of FY25 revenue, with the top five alone contributing over three-quarters. Such dependence on a handful of counterparties magnifies execution risk. On top of this, contingent liabilities of Rs 258 crore, (21 per cent of total net worth), most of which is tax-related, hover over the balance sheet.
Where will the IPO money go?
Of the fresh proceeds of Rs 1,500 crore, the company aims to use about Rs 770 crore to fund Phase-I capex for a 3 GW cell plus 3 GW module plant in Tamil Nadu and another Rs 595 crore will fund Phase-II expansion of the module line from 3 GW to 6 GW at the same site.
So, should you apply for the Vikram Solar IPO?
Vikram Solar offers investors a play on India’s renewable manufacturing push, with strong order cover, an improving balance sheet and a credible backward-integration plan. Yet execution risks, from margin pressure to customer and supplier concentration, remain significant.
For those convinced about the long-term solar manufacturing story and willing to ride out volatility, this IPO has appeal. But for most investors, patience may be the wiser course: wait for price discovery, monitor Phase-I expansions and track order-to-sales conversion before committing capital.
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