Vikram Solar Q1FY27: PAT crashes 85% YoY to ₹19.8 Cr despite 38% revenue growth
PAT -85.2% YoY · revenue +37.9% · margins compressing · miss vs street
₹1,563.09 Cr
+37.9% YoY
₹19.78 Cr
-85.2% YoY
1.26%
-10.5pp YoY
₹0.55
Vikram Solar's consolidated Q1FY27 print is a clear miss: PAT fell 85.2% YoY (and 82.1% QoQ) to ₹19.8 Cr even as revenue grew 37.9% YoY to ₹1,563.1 Cr (₹1,452.8 Cr in Q4FY26; ₹1,133.6 Cr a year ago). Analyst previews (Goodreturns) had modeled steeper revenue growth of ~52.6% YoY but a shallower PAT decline of ~-35.2% YoY with NPM near 12.4% — the actual print undershot both the top-line growth and the profitability bar, with NPM cratering to 1.27% versus 11.72% a year ago and 7.51% last quarter.
Q1 FY-2027 vs prior quarters
The compression sits squarely on the cost line: cost of materials consumed, net of the inventory build, rose to roughly 81% of revenue this quarter versus ~69% a year ago and ~72% last quarter, implying module realizations have not kept pace with input costs. EBITDA margin (OPM) nearly halved sequentially and more than halved YoY, falling to ~8.1% from 16.1% (QoQ) and 21.4% (YoY). Finance costs rose 53% YoY to ₹49.4 Cr and depreciation rose 91% YoY to ₹64.0 Cr as the ongoing capex ramp adds fixed costs ahead of the revenue scale needed to absorb them.
The stock went into the print at ₹173.96, down 5.3% over the past month of trading.
For context: revenue is at a 5-quarter high.
What the summary numbers don't show
Basic EPS fell to ₹0.55 (consolidated) from ₹4.21 YoY and ₹3.05 QoQ.
Management guides for significant volume growth in FY27 with expected production of approximately 8 gigawatts, projecting a 74% increase in EBITDA to INR 1,500-1,600 crores despite some near-term margin optimization. The company is executing a large-scale, multi-year capex plan focused on full backward integration into
— This quarter: missed
Management's May 2026 concall guided FY27 production of ~8GW and a 74% jump in full-year EBITDA to ₹1,500-1,600 Cr, while explicitly flagging "some near-term margin optimization." Q1's EBITDA of ~₹126 Cr annualizes to roughly a third of the low end of that target, so this quarter's margin dip is directionally consistent with that warning but larger in magnitude than "some" implies — the full-year target is now contingent on a sharp margin recovery over the remaining three quarters. The same board meeting approved raising the Gangaikondan (Tamil Nadu) wafer/ingot capacity from 6GW to 9GW at up to ₹5,589 Cr, timed to the ALMM-3 mandate effective June 2028 — a fresh capex commitment layered on top of an already-compressed quarter. No management press release accompanied this filing; the company's earnings call is scheduled for August 7, 2026.
W1
Whether FY27 EBITDA can still reach management's guided ₹1,500-1,600 Cr (74% growth) — Q1 EBITDA of ~₹126 Cr annualizes to roughly a third of that run-rate.
W2
Trajectory of the materials-to-revenue ratio in Q2 (currently ~81% vs ~69% YoY) as backward integration into cells/wafers progresses.
W3
Funding and progress of the newly expanded 9GW Gangaikondan capacity (~₹5,589 Cr capex) against management's stated net debt/equity ceiling of 1.5x.
No exceptional items in current or year-ago quarter; PAT decline is margin-driven (materials cost ~81% of revenue vs ~69% YoY) plus finance cost +53% YoY and depreciation +91% YoY from capex ramp; standalone PAT ₹18.7 Cr closely tracks consolidated ₹19.8 Cr, no material basis divergence; filed in ₹ million, converted to ₹ Crore (÷10); safeguard-duty (₹148.5 Cr) and disputed EPC receivable (₹52.8 Cr) items are balance-sheet contingencies, not P&L impacts this quarter.
Informational and educational content only. Not investment advice.