Vikram Solar IPO: Can India's photovoltaic module maker outshine its peers?
This is a reflection of India's commitment to cleaner energy, driven by supportive government policies, bold renewable targets, and massive investments.
For investors, the sector's growth has already rewarded early movers, but the expansion story is far from over. Rising demand, global supply chain shifts, and policy support are paving the way for new leaders.
Amid this focus on solar space, the much-awaited Vikram Solar IPO has grabbed significant attention.
Vikram Solar is a solar photovoltaic module manufacturer with 16 years of experience.
Its primary business is to manufacture solar PV modules for use by customers across a range of industries. The company also provide EPC and O&M services.
Solar PV Modules
The company's product line features three main types of solar PV modules:
They are marketed under the Suryava, Paradea, and Hypersol brands to cater to different applications and customer requirements.
EPC
With over a decade of EPC experience, Vikram Solar has completed or is currently executing more than 200 solar projects across 19 states and two union territories, delivering a cumulative installed capacity of 1.41 GW as of 31 March 2025.
The EPC team oversees the entire project journey—from concept and design to commissioning, often using Vikram Solar's own modules to ensure quality and efficiency.
Rooftop
The company has delivered or is working on 214rooftop solar projects for both public and private sector clients. Spread across multiple geographies and industries, these projects have a combined capacity of 114 MW.
O&M Services
Vikram Solar has built a strong O&M division dedicated to helping customers maximise the performance and lifespan of their solar assets.
These services, often bundled with EPC projects are provided through its affiliate, VSL Renewable Services Private Limited (formerly VP Utilities & Services Private Ltd), and cover the complete lifecycle of a solar installation.
What's behind the hype for this IPO?
The distribution strategy focuses on high-demand regions—Western, Northern, and Southern India—managed by regional cluster heads and territory managers to ensure deep market penetration.
IPO Details and Structure
For small non-institutional investors applicants, the minimum investment is ₹209,160 (14 lots). For big non-institutional investors, it is ₹1,000,980 (67 lots).
The IPO comprises a fresh issue of ₹2,080 crore, comprising an issuance of 4.5 crore shares, to raise ₹1,500 crore, along with an offer for sale of 1.75 crore shares, totaling ₹580 crore.
JM Financial is serving as the book running lead manager, while MUFG Intime India Pvt. Ltd. is the registrar for the issue.
A Look at Financials
Vikram Solar's financial performance over the last three financial years shows a strong upward trajectory. Revenue has grown to ₹3,423.4 crore in FY25 at a CAGR of 28.5%.
The Ebitda has more than doubled in this period, from ₹1,86.1 crore in FY23 to ₹492 crore in FY25.
The profit after tax (PAT) has surged from ₹14.49 crore in FY23 to ₹139.8 crore in FY25, a CAGR of 210.6%, driven by improved operational efficiency and scale.
The PAT margin improved from 0.7% to 4.1%, indicating stronger profitability and cost management.
Particulars ( ₹million)FY23FY24FY25Revenue20,732.325,109.934,234.5EBITDA1,861.83,985.84,920.1Profit After Tax144.9797.21,398.3PAT Margin0.73.24.1Order book Quantity (MW)2,786.94,376.210,340.8
Source: RHP Filing 12 August 2025
The company's order book has also ballooned from 2,786.9 MW to 10,340.8 MW, underscoring a robust demand pipeline.
Competitive Advantage
Vikram Solar benefits from strategically located facilities in the port cities of Tamil Nadu and West Bengal, providing significant cost and time efficiencies.
These locations facilitate smoother exports to international markets, helping the company expand its reach and attract a broader customer base.
Domestically, the company serves key customers directly for large-volume orders from 10 MW to 500 MW and above. Smaller retail orders are fulfilled through an extensive distribution network.
Under exclusive arrangements, distributors resell Vikram Solar's products to end customers, ensuring wide market coverage. Internationally, the company exports its solar PV modules to key global clients, further strengthening its presence and competitiveness in the global solar market.
Peer Comparison
This peer group is based on companies currently listed on the stock exchanges…
NameRevenue ( ₹million)PE ratioBasic EPS (Rs)Return on Equity (%)Net Asset Value per Equity Share (Rs) For FY25Vikram Solar34,595.3-4.611.339.2Waaree Energies148,460.645.868.220.1334Premier Energies66,520.94721.433.262.6Websol Energy Systems5,774.34036.655.665.9
Data Source: RHP
Vikram Solar operates at a much smaller scale compared to its peers. On the earnings too, Vikram Solar's basic EPS stands at ₹4.6, far below its peers.
The net asset value per share is ₹39.2. This indicates that Vikram's balance sheet is smaller in per-share value terms, but it also points to potential room for expansion if the IPO proceeds are effectively deployed.
Overall, while Vikram Solar currently trails its larger and more profitable peers in scale and per-share earnings, its growing order book and expanding manufacturing capacity could help it close the gap in the coming years.
Strong Expansion Plan
At a pre-IPO event, Vikram Solar said it will move forward with its plan to establish a 3-gigawatt (GW) solar module manufacturing facility in Colorado, USA.
This decision comes despite proposed regulatory measures from the Donald Trump administration that could weigh heavily on clean energy companies.
Earlier in 2025, the company had considered shelving the project after Trump's initial executive orders took effect.
But with US courts starting to strike down portions of those directives, Vikram Solar now sees a clearer path to making the Colorado facility a reality.
It also has plans for further expansion in the US.
Risk Factors
Vikram Solar IPO GMP
Vikram Solar 's shares were trading at a premium of ₹70 in the grey market as on 13 August, as per media reports.
Based on the upper end of the IPO price band and the prevailing grey market premium, the estimated listing price – ₹402 per share — is about 21.08% higher than the IPO price of ₹332.
The grey market premium reflects investors' willingness to pay above the issue price. It offers no guarantee of profits.
Conclusion
India is poised for a massive solar expansion, with 25–27 GW of new projects planned in FY26.
Between 2026 and 2030, an additional 28–30 GW of rooftop installations and substantial capacity additions across industrial, commercial, and residential segments are expected, making the sector's growth momentum undeniable.
Rising consumer awareness, improved financing options, and better grid access are set to further fuel demand, creating a strong tailwind for Vikram Solar.
Leveraging its extensive domestic distribution network and expanding manufacturing capacity, the company appears well-positioned to capture these opportunities.
It's always prudent to conduct thorough research before making any investment decisions. Ensure that the investment aligns with your financial objectives and matches your risk tolerance level.
Happy Investing.
Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such.
This article is syndicated fromEquitymaster.com
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