Vikram Solar IPO

Vikram Solar is one of India's largest pure-play solar PV module manufacturers, with an operational capacity of 4.50 GW as of March 31, 2025. Its enlisted capacity in the MNRE's ALMM as of June 30, 2025, is 2.85 GW, representing a 3.14% market share among enlisted manufacturers.

The company holds a significant Order Book of 10,340.82 MW as of March 31, 2025, which is 2.30 times its total rated capacity for FY25. This figure indicates secured orders, with 6,424.93 MW under execution and 3,915.89 MW yet to be executed, showing a strong pipeline.

Vikram Solar's PV modules offer high efficiencies, ranging from 20.23% to 23.66%, which are in line with products using similar technology available in the market. Its R&D lab in Falta, West Bengal, received NABL accreditation in 2023, making it the second solar company in India and first in Eastern India to achieve this recognition.

It is setting up an integrated 3.00 GW solar cell and 3.00 GW module manufacturing facility and plans for Battery Energy Storage Systems (BESS) with an initial capacity of 1.00 GWh, expanding to 5.00 GWh by FY27. This broadens its product offerings.

Debt-to-Equity ratio, which shows how much debt a company uses to finance its assets compared to the value of shareholders' equity, is at 0.19 times. This is significantly lower than Premier Energies' 0.69 times and Websol Energy’s 0.55 times.

The company is guided by experienced promoters and management, including its Chairman and Managing Director, Gyanesh Chaudhary, who has two decades of experience in the solar industry.

A large portion of its money earned comes from a few customers. In FY25, 77.50% of its revenue came from its top five customers and 88.72% from the top 10 customers. Losing these key customers could seriously hurt its financial standing.

It relies heavily on raw materials from China and East/Southeast Asian countries, with 80.68% of its imported raw material costs in FY25 coming from these areas. Any limits or price hikes on these imports could increase costs and hurt business.

The company's revenue heavily relies on solar PV modules (98.23% in FY25). Reduced government support, including potential PLI benefits of ₹528.54 crore, could significantly impact income.

The company needs significant working capital, evident in its inventory of ₹428.63 crore in FY25. This is due to the time lag involved in turning raw materials into sold products. Failure to meet these cash needs could necessitate increased borrowings.

Auditors highlighted significant issues: a ₹148.52 crore disputed safeguard duty payment, and trade receivables of ₹84.39 crore in FY25 (similar in prior years) withheld by customers for liquidated damages.

The company's large order book, 10,340.82 MW as of March 31, 2025, can be subject to delays, changes, or cancellations. This uncertainty could affect its expected money and profits.