Vikram Solar greenlights Rs 4,371 crore BESS manufacturing capex

Vikram Solar has approved a major growth move as its board cleared a Vikram Solar BESS capex of about Rs 4,371 crore for Phase 1 of its battery energy storage system business.

The investment will be executed through its wholly owned subsidiary, VSL Powerhive, marking a focused entry into large-scale energy storage manufacturing.

The capex supports Powerhive’s long-term roadmap to develop 30 GWh of battery cell, module and pack, and BESS manufacturing capacity in phases. Under Phase 1, VSL Powerhive will commission a 5 GWh BESS manufacturing facility at Oragadam, Tamil Nadu, by FY27. The project is designed to address rising grid-scale storage demand as renewable energy capacity continues to expand across the country.

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In parallel, the company is advancing backward integration into battery cell manufacturing. Vikram Solar plans to set up a 7.5 GWh cell manufacturing facility that is expected to be fully operational by FY29, subject to receipt of applicable statutory and regulatory approvals. A dedicated research and development lab will be a core part of this initiative, focused on developing future-ready battery products and innovation-led solutions. The Vikram Solar BESS capex will be funded through a combination of debt and equity.

Vikram Solar is among India’s leading solar module manufacturers, with cumulative PV module production capacity of 4.5 GW and an international presence across 39 countries. The storage expansion comes amid a sharp improvement in financial performance. Consolidated net profit surged to Rs 128.49 crore in the quarter ended September 2025, compared with Rs 7.36 crore in the quarter ended September 2024. Sales jumped 93.72 percent year-on-year to Rs 1,109.91 crore in Q2 FY26, reflecting stronger demand and improved scale.