Solar Stock Jumps 5% After Launching Lithium-Ion Brand Targeting 7.5 GWh Cell Capacity by FY29

Synopsis: A small-cap solar stock trading at a P/E 15, significantly below the industry average, entered distributed battery storage and plans to scale capacity to 7.5 GWh by FY29.

A small-cap renewable energy stock engaged in solar module manufacturing and EPC solutions rose nearly 5 percent after announcing its entry into the distributed battery storage segment through the launch of a lithium-ion battery brand for residential and e-mobility applications.

With a market cap of more than Rs 6,700 Cr, Vikram Solar Ltd saw its stock hit an intraday high of Rs 188.9 which is 5 percent higher than the previous close of Rs 180.2. The stock is currently trading around the PE of 15, which is significantly lower than its industry PE of 24.

News

Vikram Solar’s subsidiary VSL PowerHive launched its lithium-ion battery brand VION, marking the company’s entry into distributed battery storage for e-mobility and residential power backup. The portfolio includes inverter batteries, integrated inverter-battery systems, and e-rickshaw batteries designed for safety, long life, high efficiency, and reliable performance in Indian operating conditions.

The home backup batteries range from 1.2 kWh to 15 kWh, offering up to 12 hours of backup, 97 percent efficiency, and up to 3,000 life cycles with warranties up to 60 months. The company also introduced PowerStack 1.0 integrated systems and e-rickshaw batteries, while already securing a 100 MWh BESS order supporting its energy storage expansion.

BESS Strategic Expansion

Vikram Solar has launched its Battery Energy Storage Systems (BESS) expansion through VSL Powerhive Private Limited, appointing Mr. Arun Mittal as CEO. The board approved a Phase-1 capital expenditure of Rs 4,371 crore. The company aims to develop a total integrated manufacturing capacity of 30 GWh for batteries and energy solutions.

Manufacturing Roadmap and Targets

The company’s strategic roadmap targets 5 GWh of storage capacity by March 2027, scaling to 7.5 GWh by September 2028. This expansion follows the acquisition of an initial 100 MWh BESS order. Vikram Solar is positioning itself to address the growing Indian energy storage market, which is expected to reach 250+ GWh by FY30 and 1000+ GWh by FY40.

Business and Financial Overview

Vikram Solar Limited is a leading Indian renewable energy company founded in 2005. It specializes in manufacturing high-efficiency solar photovoltaic (PV) modules, with a 9.5 GW capacity. Additionally, it provides comprehensive solar energy solutions, including Engineering, Procurement, and Construction (EPC) services and long-term operations and maintenance for power plants globally.

In the latest quarter, the company recorded an 8 percent YoY revenue growth, increasing from Rs 1,026 Cr in Q3 FY25 to Rs 1,106 Cr in Q3 FY26. On a sequential basis, revenue saw a minor decline of 0.4 percent from Rs 1,110 Cr in Q2 FY26. 

The YoY Net Profit surged by 416 percent YoY, rising from Rs 19 Cr in Q3 FY25 to Rs 98 Cr in Q3 FY26. Sequentially, profits decreased by 23 percent from the Rs 128 Cr reported in Q2 FY26. The company also has a ROCE of 26 percent and a ROE of 17 percent.

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