India’s solar manufacturing sector is in a rapid expansion phase, supported by strong domestic demand, export opportunities, and favourable policy frameworks such as the ALMM (Approved List of Module Manufacturers). Investors have already seen significant wealth creation from listed players like Waaree Energies, Premier Energies, and Websol Energy System, all of whom have leveraged capacity growth and profitability to achieve premium valuations.
Vikram Solar IPO, scheduled for 19–21 August 2025, marks the entry of another large-scale manufacturer into the public market. Vikram Solar peer comparison aims to showcase its operational and financial performance versus listed competitors, helping you make an informed investment decision.
2. Vikram Solar’s Peer Group
The peer group selection is based on comparable business models, market segments, and product offerings in India’s solar PV manufacturing space:
- Waaree Energies – India’s largest solar module manufacturer and exporter, with a 21% share of the domestic market and 44% of India’s solar module exports as of FY24.
- Premier Energies – A leading integrated solar cell and module manufacturer, holding nearly 100% share in India’s solar cell exports and pioneering TOPCon cell production domestically.
- Websol Energy System – Focused on high-efficiency crystalline solar cells and PV modules for both domestic and export markets.
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3. Vikram Solar vs Peers: Comparative Snapshot
| Metric | Vikram Solar | Waaree Energies | Premier Energies | Websol Energy |
| Installed Capacity (MW) | 4,500 | 15,000 | 5,100 | 550 |
| Order Book (MW) | 10,341 | 25,000 | 5,303 | NA |
| EBITDA Margin (%) | 14.37 | 21.04 | 28.78 | 44.20 |
| PAT Margin (%) | 4.08 | 13.35 | 14.09 | 26.90 |
| ROCE (%) | 24.49 | 35.1 | 41.5 | 59.2 |
| Debt-Equity | 0.19 | 0.13 | 0.69 | 0.55 |
| P/E (X) | 72.17 | 37.3 | 42.4 | 29.6 |
| Price-to-Sales (X) | 3.51 | 5.36 | 6.65 | 8.67 |
| Price-to-Book (X) | 8.46 | 8.66 | 15.8 | 21.2 |
| Current Ratio | 1.55 | 1.55 | 1.88 | 1.91 |
4. Vikram Solar vs Waaree vs Premier Energies: Capacity & Market Position
- Scale Leadership Gap: Waaree Energies’ 15 GW installed capacity dwarfs other players, while Premier Energies stands slightly ahead of Vikram Solar at 5.1 GW. Websol remains a niche player at 0.55 GW.
- Order Book Strength: Vikram Solar’s 10.34 GW order book is over twice its installed capacity, indicating strong demand visibility, particularly from utility-scale projects.
- Capacity Utilisation: FY25 utilisation rose sharply to 78.1% from 48.1% in FY24, signalling operational turnaround and better fixed cost absorption.
- ALMM Positioning: With 2.85 GW ALMM-listed capacity, Vikram Solar is well-placed to tap into government-linked project demand.
5. Financial Performance
- Revenue Growth: Vikram Solar grew revenue by 36.3% YoY in FY25, benefitting from higher utilisation and strong export sales.
- Margins: At 14.37% EBITDA margin and 4.08% PAT margin, Vikram Solar trails Waaree, Premier, and especially Websol, whose niche positioning allows for a 44% EBITDA margin.
- Return Ratios: With an ROCE of 24.49%, Vikram Solar demonstrates solid capital efficiency, and while Premier (41.5%) and Websol (59.2%) are currently ahead, this highlights further headroom for Vikram Solar to unlock even greater returns going forward.
- Leverage: A conservative debt-equity ratio of 0.19 gives the company financial headroom for its planned expansion.
6. Vikram Solar vs Peers: Valuation Metrics
- P/E Premium: At 68.5–72.2x FY25 EPS, Vikram Solar is priced significantly above Waaree (37.3x), Premier (42.4x), and Websol (29.7x), reflecting market optimism about its growth potential.
- Price-to-Sales: At 3.51x, valuation is modest relative to peers, suggesting room for re-rating if margins improve.
- Price-to-Book: ~8.4x is broadly in line with Waaree (8.66x) but well below Premier (15.8x) and Websol (21.3x).
7. Vikram Solar vs Peers: Competitive Strengths
- Integrated Model: Manufacturing, EPC, and O&M services diversify revenue streams and enhance customer retention.
- Expansion Pipeline: Target to reach 20.5 GW by FY27, backed by planned solar cell capacity (12 GW) and battery storage capability (1–5 GWh).
- Export Leverage: Focus on high-margin export markets such as the US and Europe, where tariffs create a competitive advantage for Indian manufacturers.
- Brand Recognition: BloombergNEF Tier 1 Manufacturer since 2014; EUPD Top Brand PV Seal (May 2025).
8. Industry Challenges & Risks
- Execution Risk: Scaling capacity by over 4x within two years will require flawless project and supply chain execution.
- Policy Sensitivity: ALMM listing, safeguard duties, and international trade policies are key revenue enablers.
- Margin Gap vs Leaders: Current profitability metrics are below sector leaders, necessitating continued efficiency gains.
- Competitive Pricing: Global competition, particularly from Chinese manufacturers, remains an ongoing challenge.
Final Words
Vikram Solar enters the primary market with operational momentum, a robust order book, and one of the largest capacity expansion programs in the sector. While current margins and return ratios lag industry leaders, the integrated business model and balance sheet strength provide a solid foundation for scaling profitability.
At the IPO’s upper price band, the valuation reflects high expectations for execution and market share gains. For long-term investors seeking exposure to India’s solar manufacturing growth story, Vikram Solar offers an attractive capacity-led, export-leveraged play with re-rating potential — provided it can close the profitability gap with its peers.
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