Vikram Solar Limited Earnings Summary — Q1 FY2027
Vikram Solar Expands Backward Integration Plans to 9 GW Despite Quarterly Margin Compression
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue has increased for 3 consecutive quarters.
- Revenue of ₹1,563 Cr is 37.9% higher year-on-year.
- Revenue has compounded at 57.4% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit of ₹20 Cr is 85.2% below the same quarter last year.
- Profit growth is trailing revenue growth this quarter.
- Net profit has compounded at -6.9% annualised across the period.
- Operating margin stands at 8.1% in Q1 FY2027.
- Operating margin compressed by 1331 bps year-on-year.
- Over the last two years operating margin has contracted by 960 bps.
- PBT margin is 1.6%.
- Expenses grew 61.2% against revenue growth of 37.9%.
- Operating profit of ₹126 Cr is 48.0% lower year-on-year.
- Operating leverage has been under pressure recently.
- 5 of the last 5 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 39/100 (Weak) on the latest 10 quarters.
- Business momentum has softened and warrants monitoring.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2018 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Improving | 1,563 | 1,453 | 1,106 | 1,110 | 1,134 | 1,194 | 1,026 | 573 | 631 | — |
| Expenses | Improving | 1,437 | 1,218 | 901 | 875 | 891 | 970 | 941 | 501 | 519 | — |
| Operating Profit | Volatile | 126 | 235 | 205 | 235 | 242 | 224 | 85 | 72 | 111 | — |
| Operating Margin | Volatile | 8.1% | 16.1% | 18.5% | 21.2% | 21.4% | 18.7% | 8.3% | 12.6% | 17.7% | — |
| Other Income | Volatile | 13 | 18 | 15 | 16 | 4 | 8 | 12 | 11 | 6 | — |
| Interest | Accelerating | 49 | 57 | 40 | 32 | 32 | 48 | 28 | 34 | 45 | — |
| Depreciation | Accelerating | 64 | 57 | 37 | 35 | 34 | 42 | 39 | 37 | 37 | — |
| Profit Before Tax | Volatile | 25 | 139 | 143 | 184 | 181 | 141 | 30 | 11 | 36 | — |
| Tax | Volatile | 5 | 29 | 45 | 56 | 47 | 50 | 11 | 4 | 13 | — |
| Net Profit | Volatile | 20 | 110 | 98 | 128 | 133 | 91 | 19 | 7 | 23 | — |
| Net Margin | Volatile | 1.3% | 7.6% | 8.9% | 11.6% | 11.8% | 7.6% | 1.9% | 1.3% | 3.6% | — |
Key Takeaways
- Revenue grew by 38% YoY to ₹15,631 million, showing strong topline momentum in the solar PV and EPC segments.
- Net profit saw a sharp decline of over 80% both YoY and QoQ, primarily due to a substantial increase in raw material costs and depreciation.
- Board approved an enhancement of the proposed backward-integrated wafer and ingot facility in Tamil Nadu from 6 GW to 9 GW.
- The 9 GW integrated facility is scheduled for commissioning by FY29 with an investment requirement of up to ₹5,589 crore.
- Auditors highlighted a pending dispute regarding ₹1,485.20 million in safeguard duty payments treated as receivables.
- The company is currently involved in arbitration/litigation over ₹528.09 million in trade receivables withheld by EPC customers for liquidated damages.
- IPO proceeds utilization remains on track, with ₹7,303.80 million utilized as of June 30, 2026, primarily for capital expenditure.
- Operational expenses rose significantly, with cost of materials and services consumed jumping from ₹8,474 million to ₹13,848 million YoY.
Management Guidance
Management is focusing on strategic backward integration to capitalize on the ALMM-3 regulatory shift starting June 2028, aiming to maximize operational synergies through its Tamil Nadu industrial hub.
Sentiment Shift
Deteriorating
While revenue growth remains robust, the significant contraction in bottom-line profitability and massive capex requirements for the 9 GW facility suggest near-term margin pressure and execution risk.
Outlook
The company is pivoting toward massive scale and backward integration to secure its supply chain against global volatility, though financial performance in the near term is being weighed down by rising input costs and higher interest/depreciation loads.
From the Annual Report (Key Quotes)
“The strategic move is timed to capitalize on a transformative shift in the regulatory landscape with the enforcement of ALMM-3 from June 2028.”
“The Board has considered and approved the enhancement of the Company's proposed backward-integrated wafer and ingot manufacturing facility from 6 GW to 9 GW.”
“The management is hopeful of resolution of the matter in favour of the Company regarding ₹528.09 million withheld by certain customers.”
Official Quarterly Documents
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This summary is AI-generated from Vikram Solar Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.