Vikram Solar Plunges 11% Amid Q1 Profit Halving and Trump's New Polysilicon Tariff Bombshell
Shares of Vikram Solar experienced a sharp decline, plunging around 11% on Friday after the company released its Q1 FY27 results. The stock hit a fresh lifetime low of Rs 155.38 apiece on the NSE following a damning report of an 85% year-on-year drop in net profit to Rs 20 crore.The steep fall in share price was exacerbated by news that US President Donald Trump had imposed new trade restrictions, including a 15% tariff on products manufactured using polysilicon. This combined operational weakness and geopolitical uncertainty contributed significantly to the investor panic.
Q1 Financials Show Profitability Crisis at Vikram Solar
Despite the dramatic squeeze on profit, Vikram Solar managed some resilience in revenue. Revenue from operations rose nearly 38% year-on-year, reaching Rs 1,563 crore for the first quarter of FY27. However, this top-line growth masked a severe deterioration in profitability metrics.The company's net profit plummeted by 85% compared to the previous period. The EBITDA figure also saw a sharp drop, falling 48% YoY to Rs 126 crore. Consequently, the EBITDA margin slipped to 8%, down from the 21% reported in the corresponding period of the prior financial year.
US Tariff Tantrum Sparks Investor Concerns
The market reaction was amplified by the announcement from Washington regarding raw material controls. President Donald Trump imposed a series of price floors and the new 15% tariff on products made from polysilicon, a crucial component used in both solar panels and semiconductors.Polysilicon itself is an ultra-pure form of silicon that sits at the start of manufacturing supply chains globally. While most of Vikram Solar’s deployments are domestically based in India, the company has expanded its global reach through exports amounting to around 1.5 GW across 39 countries.
Market Reacts as Tariffs Weigh on Sentiment
The news concerning the tariffs added a significant layer of concern for investors already reeling from the weak Q1 earnings report. Previously, Vikram Solar had stated that Trump's proposed 126% tariff on solar imports from India and other nations would have only a limited impact on their business model.While the current implications of the 15% tariff remain to be fully assessed by the industry, the announcement has clearly weighed heavily on investor sentiment, compounding anxieties over the firm's shrinking margins.
Stock Performance Highlights Decline Trends
After hitting its lifetime low of Rs 155.38, Vikram Solar shares managed a slight recovery, trading around 4% lower at Rs 168 apiece in some early Friday trading. The stock has seen multiple declines recently, having fallen more than 6% in the past week and 9% in the last month.The company currently maintains a market capitalization exceeding Rs 6,066 crore. Looking across the fiscal year, Vikram Solar's shares are down approximately 30% in 2026 so far, with the stock’s P/E ratio standing close to 18x.
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