Vikram Solar, which recently went public, has seen its order book grow to 10.96 GW — double its current rated capacity — during the June quarter. To meet surging demand, the company is scaling up manufacturing capacity four-fold to 17.5 GW by FY2027. Chairman and Managing Director Gyanesh Chaudhary speaks to Raghavendra Kamath about the company’s funding strategy, integration plans, and market outlook.
You’re scaling up manufacturing capacity fourfold. How are you funding this expansion?
We’re following a balanced funding mix -— using IPO proceeds, debt, and internal accruals. It’s a strategic investment, not just a capacity build-out. Aligning capital deployment with policy incentives like the PLI scheme and state-level benefits ensures long-term financial resilience and positions us to invest in advanced technologies at scale.
What are your plans for backward integration into solar cell manufacturing?
Yes. We’re setting up a world-class solar cell facility in Gangaikondan, Tamil Nadu, with a two-phase rollout—3 GW and 9 GW—targeted for commissioning by FY2027. This will strengthen supply chain control and reduce dependence on third-party suppliers.
It also positions us well under policy frameworks like the Domestic Content Requirement (DCR), CPSU Phase-II, PM-KUSUM, and the upcoming ALMM List-II for solar cells. We’re also developing a dedicated Vendor Park at the site to co-locate suppliers of critical components.
Are you looking to revise your capex for the year. If yes, can you elaborate.
We’re staying on track with the capex outlined in our prospectus. Over the next two fiscal years, we’ll add 13.5 GW of module capacity and 12 GW of solar cell capacity across greenfield and brownfield projects. The goal is not just scale, but to build a globally competitive, fully integrated manufacturing ecosystem.
What will be the impact on reduction of GST on solar cells from 12% to 5% on the solar sector in general and Vikram Solar in particular?
The GST Council’s decision to reduce the rate on solar cells and renewable energy devices from 12% to 5% is a decisive step in strengthening India’s clean energy transition. By lowering the levelised cost of energy (LCOE), this reform will make solar power more affordable and accessible to households, businesses, and industries alike, unlocking faster adoption and advancing the vision of inclusive energy access.
For the sector, this translates into lower project costs, improved developer viability, and accelerated deployment across applications, directly supporting India’s target of 500 GW of renewable capacity by 2030. This move reinforces a favourable policy environment that complements production-linked incentives and import duties. Together, these measures not only boost domestic competitiveness but also encourage investment in scale, technology, and innovation.
Will it make Indian panels competitive and reduce reliance on China?
While the GST cut is neutral in terms of sourcing and does not create a direct barrier for Chinese imports, it improves the market dynamics for domestic manufacturers. When combined with existing duties on solar cells, production-linked incentives, and state-level subsidies, this reform strengthens the long-term case for domestic manufacturing. More importantly, this will create a more favourable environment for self-reliance under Atmanirbhar Bharat and helps Indian players scale up and go global.
What is your outlook for module orders and EPC and O&M orders for the rest of the year?
The domestic solar sector is witnessing unprecedented momentum, with 13.3 GW of capacity added in just the first four months of FY26. This rapid scale-up is directly reflected in our own order pipeline, where our confirmed order book stood at over 10 GW as of June 30, 2025. Therefore, our strategic focus remains on scaling the manufacturing business, and we are confident of fully utilising our existing capacities as well as the upcoming greenfield and brownfield expansions.
On the EPC side, we’re not taking on new projects but continue to service over 1 GW under O&M. We’re seeing strong short-term demand from mid-sized EPC players for module procurement, suggesting a healthy pipeline over the next 3–6 months.