₹4,371 Cr Capex: Can Vikram Solar’s BESS expansion drive the company’s next growth phase?

Synopsis:- A renewable energy manufacturer announced a ₹4,371 crore battery storage expansion, including 5 GWh BESS by FY27 and 30 GWh long-term capacity. Strong execution drove 94% revenue growth and a 1,700% profit surge, supported by rising capacity, integration, and sector tailwinds.

India’s Other Electrical Equipment sector is booming, fueled by rising power demand and infrastructure push. Recent data shows the market set to grow by USD 95.3 billion from 2025-2029 at a robust 15.6% CAGR. Projections indicate the industry hitting USD 130 billion by FY30, driven by urbanization and exports. This growth underscores its vital role in the economy.

With a market capitalization of Rs 8,543.75 crore, the shares of Vikram Solar Ltd closed at Rs 235.80 per share, increased at 0.17 percent as compared to the previous closing price of Rs 235.40 apiece.

Expansion

The board has approved a capital expenditure of around  Rs 4,371 crore for Phase 1 of its Battery Energy Storage System roadmap through its wholly owned subsidiary. This includes setting up a 5 GWh BESS manufacturing facility in Tamil Nadu by FY27, strengthening its presence in energy storage solutions.

Over the long term, the company plans to build 30 GWh of battery and BESS capacity in phases, along with 7.5 GWh of battery cell manufacturing by FY29. Backward integration, a dedicated R&D lab, and a balanced debt-equity funding approach enhance technology leadership and long-term growth visibility.

Financial & Order Book Highlights

The company delivered an exceptional performance in Q2FY26, with revenue surging 94% to  Rs 1,110 crore. Net profit jumped sharply by 1,728% to  Rs 128 crore, reflecting a low base effect, strong operating leverage, and improved execution, marking a significant turnaround in profitability and earnings momentum.

The company has built a strong pan-India presence across 19 states and 2 union territories, supported by 100+ distributors, 375+ dealers, and 75+ system integrators. Manufacturing capacity totals 4.5 GW, spread across West Bengal (3.2 GW) and Tamil Nadu (1.3 GW), backed by large facilities, advanced certifications, and modern mono-PERC, N-type capable production lines.

The company is scaling aggressively, targeting 17.5 GW module and 12 GW cell capacity by FY27. Capacity rises from 2.5 GW in FY23 to 15.5 GW by FY26, supported by 75% backward integration. A single-location giga factory and phased cell additions enhance cost efficiency, supply security, and long-term competitiveness.

Vikram Solar is a leading Indian solar energy solutions provider with strong capabilities in solar module manufacturing and EPC services. Backed by advanced technology and global certifications, the company serves domestic and international markets, supporting India’s clean energy transition through large-scale, reliable, and efficient solar solutions.

Written by Abhishek Singh

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