Vikram Solar hits new low

Vikram Solar is currently among the top losers on the BSE, falling 5.60% to Rs. 164.25. The stock opened weak at Rs. 162.15 and touched a fresh 52-week low of Rs. 156.25, against its previous close of Rs. 174.00. Market depth also showed higher selling pressure, with sell quantity at 1,75,006 against buy quantity of 1,21,858.

Trigger

• Weak Q1 FY27 earnings despite revenue growth.
• Revenue from operations rose 38% YoY to Rs. 1,563 crore.
• Net profit fell 85% YoY to Rs. 20 crore.
• EBITDA dropped 48% YoY to Rs. 126 crore.
• EBITDA margin contracted sharply to 8.06% from 21.36% YoY.
• Raw material and services cost rose 63% YoY to Rs. 1,385 crore.
• EPS fell to Rs. 0.55 from Rs. 4.21 YoY.
• Stock hit a new 52-week low and is sharply below its IPO issue price of Rs. 332.

The main issue is margin compression. Vikram Solar delivered topline growth, but raw material costs rose much faster than revenue, eating into profitability. Total expenses jumped to Rs. 1,550 crore from Rs. 957 crore YoY, leaving very little operating cushion despite higher sales.

Sequentially too, the picture was weak. Revenue improved over Q4 FY26, but profit dropped sharply from Rs. 110 crore to Rs. 20 crore, while PBT fell to Rs. 25 crore from Rs. 139 crore. That indicates the market is not questioning demand, but the company’s ability to protect margins in a cost-heavy solar manufacturing cycle.

The caution is that while the PE now looks optically moderate at around 16.85 times standalone and 12.74 times consolidated, the earnings base has weakened sharply.