Vikram Solar Targets Full Backward Integration, 15 GWh BESS Capacity by FY30; Reports Record FY26 Performance

Vikram Solar Targets Full Backward Integration, 15 GWh BESS Capacity by FY30; Reports Record FY26 Performance

The Electrical Post

Vikram Solar Limited reported a record-breaking FY26 performance while outlining an ambitious roadmap for backward integration and energy storage expansion during its Q4 FY26 conference call. Chairman and Managing Director Mr. Gyanesh Chaudhary said FY26 had been a year of great significance for the company, driven by changing global energy dynamics, increasing emphasis on energy security, and the rapid growth of the solar sector.

Vikram Solar Limited is one of India’s largest module manufacturers, in terms of operational capacity, producing solar photo-voltaic modules, and is also an integrated solar energy solutions provider offering engineering, procurement and construction services, and operations and maintenance services.

He noted that geopolitical disruptions over the past two years, particularly in West Asia, have reinforced the risks associated with energy dependence for import-led economies such as India. According to him, solar energy is no longer being driven solely by incentives but is now supported by policy, supply chain realignment, and energy security considerations, placing it at the center of the global energy transition.

Highlighting India's growing role in the solar sector, the CMD said the country is currently the world’s third-largest solar market by annual additions and is projected to become the second largest within the calendar year. He also welcomed Sameer Nagpal as the company’s Chief Executive Officer, citing his extensive leadership experience and his mandate to strengthen operational discipline and execution.

A major focus of the company’s strategy is backward integration. Chaudhary said India currently imports nearly all of its wafer and ingot requirements from China, creating supply chain vulnerabilities for domestic manufacturers. Vikram Solar plans to address this through a phased integration strategy covering modules, cells, wafers, and ingots. By the completion of this roadmap, the company aims to become fully integrated from ingot to module manufacturing.

The company is also betting heavily on Battery Energy Storage Systems (BESS), which Chaudhary described as the next major growth frontier. Vikram Solar has set a target of achieving 15 GWh of BESS capacity by FY30, positioning itself as an integrated energy solutions provider offering solar-plus-storage solutions.

On the financial front, FY26 marked the strongest year in the company’s history. Vikram Solar achieved its highest-ever quarterly production of approximately 1 GW, secured record quarterly order bookings of about 1.9 GW, and reported its highest-ever quarterly revenue of over Rs. 1,450 crore during Q4 FY26. The company stated that these milestones reflect accelerating demand, strong execution capabilities, and improving operating leverage.

Discussing industry trends, the management highlighted that India added 45 GW of solar capacity in FY26, significantly exceeding the 24 GW target and representing an 87% increase over FY25. Cumulative solar installations in the country have reached 150 GW, accounting for 53% of India’s 283 GW non-fossil fuel capacity base. The Central Electricity Authority’s National Grid Action Plan projects peak demand rising from 289 GW to 459 GW by FY36, requiring solar capacity to expand to 509 GW and battery storage to grow from less than 1 GWh today to 320 GWh by FY35.

The company also provided updates on its manufacturing expansion plans. Its 5 GW Vallam module facility was commissioned in under nine months and has delivered operational efficiencies through lower manpower intensity, faster throughput, and reduced defect rates. Vikram Solar is now replicating the model at its 6 GW Gangaikondan module facility, where first module output is expected in June 2026. The 9 GW TOPCon cell facility remains on track, with first cell production anticipated by the end of December 2026 or early January 2027.

Regarding capital expenditure, the company said the overall cell manufacturing capex for 12 GW capacity has increased by around 10% to Rs. 5,400 crore. Most of the investment is expected to be deployed during the current financial year. The company also plans to invest about Rs. 150 crore in a 5 GWh BESS assembly facility. Construction of wafer and ingot facilities is expected to begin in FY27, with initial spending estimated at less than Rs. 100 crore due to existing land availability.

Commenting on raw material costs during Q4, management noted that rising crude oil prices increased EVA costs, while aluminium frame costs rose as aluminium prices increased from $3,100 per tonne to $3,600 per tonne. However, the impact was largely offset by declining cell prices. The company also highlighted that its overall working capital cycle has been reduced to 44 days.

On BESS, Vikram Solar expressed optimism regarding policy support, citing government initiatives including Rs. 18,000 crore of viability gap funding and an emerging pipeline of around 100 GWh of BESS tenders at various stages of bidding and request-for-proposal processes.

Looking ahead to FY27, the company expects total module production capacity to reach around 8 GW, supported by the addition of the 6 GW facility. As of March 31, 2026, Vikram Solar had an order book of 8.2 GW, including 7.2 GW of domestic orders, providing strong visibility for the upcoming financial year.
 

Published at : Sep 04, 2026 12:55 PM (IST)

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