Vikram Solar reports a 38% jump in revenue for the June quarter, but a sharp decline in margins and profits due to rising production costs highlights the volatility in solar manufacturing economics.
Vikram Solar said its consolidated revenue rose sharply in the June quarter, but the surge in sales was not enough to protect profitability as higher production costs squeezed margins. The company reported revenue from operations of ₹15.63 billion in the first quarter of FY2027, up 38% from a year earlier, according to figures released by the company and reported by Mercom India.
That top-line growth came alongside a steep deterioration in earnings. Earnings before interest, tax, depreciation and amortisation fell 48% to ₹1.26 billion, while profit after tax dropped 85% to ₹200 million. Mercom India said the EBITDA margin narrowed to 8% from 21% a year earlier, with the PAT margin falling to 1% from 12%.
The pressure on profit was driven largely by a 63% increase in the cost of goods sold, which climbed to ₹12.68 billion. Vikram Solar also recorded module sales volume of 1,006 MW, up 31.7% from the same quarter last year. Mercom India said the company’s order book stood at about 7.9 GW as of June 30, 2026.
The latest results mark a sharp reversal from the same quarter a year earlier, when Vikram Solar posted its strongest quarterly performance to date, with revenue, EBITDA and net profit all setting records, according to PV Magazine India, PV Tech, Energetica India and Business Standard. The contrast highlights how quickly margins can shift in the solar manufacturing business, where raw material and operating costs can overwhelm volume growth even when demand remains robust.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
