Brokerage Firm Prabhudas Lilladher Recommends Buying Vikram Solar, Sets Target Price at Rs 226

Vikram Solar (VIKRAMSO) Research Report

Company Overview Prabhudas Lilladher attended the analyst meet of Vikram Solar (VIKRAMSO), where the company outlined its medium-term growth roadmap. The strategy includes capacity expansion, backward integration, and expanding into global markets.

Industry Outlook India solar demand visibility remains robust, with utility scaling to 181GW by FY30E and annual module demand of 75GW. However, near-term industry overcapacity remains a concern due to elevated capacities under ALMM-I/II.

Business Strategy Vikram Solar is executing an aggressive capacity build-out, including modules, cells, and wafer/ingot, to achieve full integration by FY30E. This is expected to support margin expansion. Additionally, the company is building a diversified growth engine through BESS (Battery Energy Storage Systems), targeting 15GWh over 5 years, and expanding its global presence with a US entry from Q2FY27 and opportunity pipeline across the US, Europe, and APAC.

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Financial Projections We estimate revenue/EBITDA/PAT CAGR of 65.1% / 60.5% / 19.7% over FY26-28E. We cut our FY27/28E EBITDA by 4.9%/7.0% considering low EBITDA/Wp as the cell manufacturing plant is expected to stabilize by FY28.

Recommendation We maintain a 'BUY' recommendation with a target price of Rs226, valuing the company at 5.0x EV of Mar'28E EBITDA (earlier Rs326).