Vikram Solar share price rises over 9% after credit rating upgrade from India Ratings; check details

Vikram Solar share price: Shares of solar photovoltaic module manufacturer Vikram Solar advanced on Monday, December 22, following a credit rating upgrade from India Ratings and Research Private Limited.

The stock climbed as much as 9.45% to ₹254.75 per unit on the National Stock Exchange (NSE). At 11:48 am, it was up 7% to ₹249.10.

This comes after the company, in an exchange filing on December 19, informed that India Ratings has upgraded ratings assigned to the long-term and short-term bank facilities for credit facilities of ₹2,700 crore.

"India Ratings and Research Private Limited (India Ratings) has upgraded its rating assigned to the Long-Term Bank Facilities and Short-Term Bank Facilities as per the rating letter issued to the Company for Credit facilities of ₹2,700 Crores," the firm said.

For the long-term bank facilities, the outlook has been upgraded to ‘IND A+’ Stable from ‘IND A’ Stable. Similarly, for short-term bank facilities, the revised rating is 'IND A1+' from 'IND A1'.

In the second quarter of the financial year 2024-25, the company reported a 1,636.5% increase in its consolidated profit after tax to ₹128.5 crore as against ₹7.4 crore in the same period of the previous fiscal year.

The revenue from operations advanced 93.7% to ₹1,109.9 crore in Q2 FY25 as compared to ₹572.9 crore in the year-ago period.

Earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the September quarter stood at ₹235 crore, an increase of 225.9% year-on-year. The EBITDA margin was at 21.17% for Q2 FY26 compared to 12.59% in Q2 FY25.

"To support this growing demand, we are expanding our capacities and are on track to scale up our module manufacturing capacity from 4.5 GW to 17.5 GW. Additionally, we plan to backward integrate by entering cell manufacturing, targeting a capacity of 12 GW by FY27. In tandem with our capacity expansion, we are also ramping up our workforce to support our growth ambitions and enhance operational excellence," Gyanesh Chaudhary, Chairman & Managing Director, Vikram Solar, said.