Vikram Solar has signed an agreement with Evervolt Solar Technology to source 130 MW of solar cells between July 2026 and March 2027. This move aims to support domestic module production and improve profit margins. Investors are tracking how the company manages the funding of its ₹2,700 crore backward integration project alongside this new supply arrangement.
Vikram Solar Ltd. has entered into a commercial agreement with Evervolt Solar Technology India to source 130 MW of Mono-PERC 10BB solar cells. The supply is scheduled to take place from July 2026 through March 2027. These solar cells are specifically compliant with Domestic Content Requirement (DCR) norms, which are essential for the company to supply modules to government-backed solar projects in India that mandate the use of locally manufactured components.
The transaction is a standard supply agreement and does not involve any equity stakes or board participation. Vikram Solar clarified that Evervolt Solar Technology, formerly known as CETC Renewable Energy Technology India, is not a related party. This ensures the deal operates as a pure commercial arrangement between the two entities.
Financial Outlook and Margin Focus
The company is looking to stabilize its profitability amid a challenging sector environment. The solar manufacturing industry has recently faced pressure from global oversupply and volatile module prices. Vikram Solar’s Chief Financial Officer, Ranjan Kumar Jindal, noted that the agreement is intended to help the company recover profit margins. The management has provided a strong outlook for the 2027 fiscal year, projecting that absolute EBITDA—a measure of operating profit—could reach approximately 1.7 times the levels seen in FY26.
Investors should note that while management remains optimistic, the actual realization of these margins will depend on maintaining steady demand and managing raw material costs in a competitive market. Shares of Vikram Solar closed at ₹193.40 on the BSE, reflecting a rise of 5.22% following the announcement.
Strategic Expansion and Funding
Beyond this supply deal, the company is moving forward with a larger capital spending plan. Vikram Solar has board approval for a 6-gigawatt backward integration project with a total outlay of ₹2,700 crore. As part of this growth strategy, the company is preparing to start work on a wafer and ingot facility in Tamil Nadu in the coming quarter.
Funding for these expansion projects will come from a mix of internal cash flow and debt. For shareholders, the key monitorable will be how effectively the company executes these large-scale projects without significantly straining its balance sheet. The pace of construction at the Tamil Nadu site and the company’s ability to secure consistent orders for its new capacity will be important areas to track in the upcoming quarters.