Vikram Solar Ltd Q3 FY26 Earnings Analysis

- Strong demand outlook supported by a 38 GW pipeline in advanced discussions, providing visibility for the next 24-36 months. - Order book at 11.15 GW as of September 30, 2025, up 36% YoY, with 85% domestic orders, indicating a robust growth runway. - Full utilization of the expanded 15.5 GW capacity expected in FY27, with projected annual production of ~10.5 GW at 65% capacity utilization. - Sales volumes in Q2 FY26 rose 189% YoY to 784 MW; H1 FY26 volumes up 159% to 1,548 MW, showing strong volume momentum. - Revenue growth of 94% YoY in Q2 FY26 to INR 1,110 crores; H1 FY26 revenues increased 86% YoY to INR 2,244 crores. - Emerging demand from green hydrogen, ammonia, data centers expected to further drive volume growth beyond tenders. - The management expects sustained volume and revenue growth fueled by expanding capacity, strong order book, and diversified sectors.

- Strong growth in revenues with 94% YoY increase in Q2 FY26, reaching INR 1,110 crores. - PAT rose 16x YoY in Q2 FY26 to INR 129 crores; H1 FY26 PAT grew nearly 9x to INR 262 crores. - EBITDA margins steady around 21% in recent quarters despite input cost pressures. - EPS increased significantly from INR 0.95 (H1 FY25) to INR 8.02 (H1 FY26) on a fully diluted basis. - Robust order book of 11.15 GW (36% YoY growth) providing strong visibility. - Pipeline of 38 GW domestic orders expected to sustain volume growth over next 24-36 months. - Planned capacity expansions (from 4.5 GW to 15.5 GW by FY27) to drive volume and revenue growth. - Continued focus on profitability and cost efficiency amid growing demand. - Overall, optimistic outlook for strong earnings and EPS growth supported by scaling operations and rising demand.

- Ongoing capex of INR 6,200 crores for expansion projects: - 5 GW module manufacturing facility at Vallam, Tamil Nadu, commissioning in Q3 FY26. - 6 GW module capacity and 12 GW cell capacity Greenfield project at Gangaikondan, commissioning planned for Q4 FY26. - The 12 GW cell capacity split into two phases: - Phase 1: 3 GW (part of IPO objective). - Phase 2: additional 9 GW cell lines. - Capex funding mix: ~70% debt, ~30% equity/internal accruals; INR 900 crores expected from internal accruals in next 18 months. - Debt expected around INR 3,400-3,500 crores by FY27-end with debt-to-equity below 1. - Strategic focus on backward integration with cell manufacturing to tap DCR market. - No immediate announcement on wafer capacity; plans will be aligned with government regulations related to ALMM-III implementation due June 2028.

- Total capex requirement is about INR 6,200 crores over the next 18 months. - Funding mix expected: approximately 70% debt (~INR 3,500 crores) and 30% equity (~INR 1,500 crores). - Around INR 900 crores of the equity portion is planned to be raised from internal accruals. - IPO proceeds have already contributed a significant part of the equity funding. - Management is mindful of leverage, targeting a debt-equity ratio below 1 post-capex completion by FY27. - Current net debt is low (net debt-free at close of Q2 FY26), with some term loan prepayment already done. - No immediate new debt or equity fundraising announced; future changes will be communicated if needed.

- As of September 30, 2025, Vikram Solar's order book stands at 11.15 GW, marking a 36% growth compared to 8.21 GW a year ago. - The order book comprises 85% domestic orders and 15% export orders. - The company has a robust pipeline with approximately 38 GW of prospective orders, providing strong visibility for upcoming quarters. - The 38 GW pipeline is largely domestic, split across IPP, C&I, distribution, and KUSUM-related inquiries. - Beyond the current order book, there is a runway of 104 GW of orders that have been tendered, awarded, and are in advanced execution stages, unfolding in the next 24-36 months. - The current order book provides a proper runway for 24-30 months. - Demand drivers include new segments like green hydrogen, green ammonia, and data centers, which will increase future solar demand.