Vikram Solar Seen Reaching Rs 226 by Year's End: Prabhudas Lilladher Upgrades Target

Vikram Solar Sees Record Module Sales and Production Growth in Q4FY26

Vikram Solar, a leading player in the solar industry, has reported a significant increase in module sales and production in Q4FY26. The company's module sales grew by 26% quarter-over-quarter (QoQ) and 40.5% year-over-year (YoY) to approximately 999MW in Q4FY26. This growth was driven by stable line performance and the ramp-up of production at the Vallam facility.

In addition to the growth in module sales, Vikram Solar's production also increased to a record 971MW in Q4FY26. The company's order inflows remained strong at 1.9GW during the quarter, taking the order book to 8.2GW. A significant portion of the orders, 69%, came from Independent Power Producers (IPPs). Vikram Solar has achieved 75% effective utilization in FY26, with the Vallam plant ramp-up happening in phases. The company has also crossed the milestone of 10GW cumulative module shipments globally.

Vikram Solar continues to expand its integrated manufacturing footprint. The 6GW Gangaikondan module facility is on track for commissioning by June 26, which will increase the company's total module capacity to 15.5GW. The 9GW TOPCon cell facility remains on track for phased commissioning and initial production from December 26, with sequential commissioning through March 27. An additional 3GW cell expansion is planned subsequently, taking the total cell capacity to 12GW.

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The company has also approved a 6GW wafer/ingot facility at Gangaikondan with a capital expenditure of approximately INR 37 billion. This facility is targeted for commissioning by FY29 as part of Vikram Solar's backward integration roadmap.

Estimates and Outlook

We estimate that Vikram Solar's revenue, EBITDA, and PAT (Profit After Tax) will grow at a compound annual growth rate (CAGR) of 69.9%, 66.9%, and 19.0%, respectively, over FY26-28E. In light of these estimates, we have tweaked our recommendations and downgraded our rating to 'Accumulate', with a revised target price of INR 226 (earlier INR 232) valuing at 5.3x (earlier 5.5x) Enterprise Value of March 28E EBITDA.

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