Bullish Momentum: Why did Vikram Solar shares jump 9% in today’s market session?

Synopsis: Vikram Solar shares surged 9% after India Ratings upgraded its credit ratings and the board approved a Rs. 4,371 crore capex plan for battery energy storage, strengthening its financial profile and long-term growth prospects.

This company manufactures solar PV modules and also provides EPC and O&M service, and expanding its footprint in the renewable energy and battery storage sectors is now in the spotlight after  India Ratings and Research has upgraded its credit ratings

With a market capitalisation of Rs. 8,817 cr, the shares of Vikram Solar Ltd are currently trading at Rs. 243 per share, surging 9% in today’s market session, making a high of Rs. 254.20, from its previous close of Rs. 232.95 per share.

Reason for the surge 

Vikram Solar Limited announced that India Ratings and Research has upgraded its credit ratings for the company’s bank facilities totaling Rs. 2,700 crore. The long-term bank facilities rating was raised from ‘IND A’ (Stable) to ‘IND A+’ (Stable), while the short-term bank facilities rating was upgraded from ‘IND A1’ to ‘IND A1+’. This reflects the company’s improved credit profile and financial strength.

Recently, on December 16, 2025, Vikram Solar Limited’s Board approved a capital expenditure of approximately Rs. 4,371 crore through its wholly-owned subsidiary, VSL Powerhive Private Limited, for Phase 1 of its Battery Energy Storage System (BESS) roadmap. This marks a significant step in the company’s expansion into the energy storage sector.

Phase 1 includes commissioning a 5 GWh BESS manufacturing facility at Oragadam, Tamil Nadu, by FY27. The long-term plan envisions 30 GWh of battery cell, module/pack, and BESS capacity, along with backward integration into a 7.5 GWh battery cell manufacturing facility by FY29, subject to approvals. A dedicated R&D lab will drive innovation and future-ready products.

About the company 

Vikram Solar Limited is a leading Indian solar energy solutions company, specializing in the manufacturing of photovoltaic modules and providing EPC and energy storage solutions. The company is focused on innovation, sustainable energy, and expanding its footprint in the renewable energy and battery storage sectors.

It demonstrates solid financial efficiency with a ROCE of 26.4% and ROE of 16.6%, supported by a low debt-to-equity ratio of 0.09. The company has delivered strong profit growth, achieving a 46.5% CAGR over the past five years.

The company reported strong financial growth, with sales rising 94% YoY to Rs. 1,110 crore in Q2FY26 from Rs. 573 crore in Q2FY25. EBITDA surged 226% to Rs. 235 crore, while net profit jumped an impressive 1,646% to Rs. 128 crore. Earnings per share also soared 1,443% to Rs. 3.55, reflecting robust profitability and operational performance.

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