Vikram Solar faces NCLT hurdle as insolvency petition rattles investors

The solar energy firm is moving to challenge an insolvency order over a disputed Rs 9.44 crore claim, even as its recent financials signal robust operational health.

The solar power sector is watching closely after the Kolkata Bench of the National Company Law Tribunal (NCLT) admitted an insolvency petition against Vikram Solar. The order, passed on June 12 and made public on June 18, triggered an immediate reaction in the markets, with the Vikram Solar share price sliding 2% to trade at Rs 196.3 on June 22.

The petition was filed by Isitva Steels under Section 9 of the Insolvency and Bankruptcy Code (IBC), citing unpaid dues of Rs 9.44 crore. This figure includes roughly Rs 4.21 crore in interest. However, the company has hit back, asserting that the claim is entirely invalid due to a full and final settlement agreement signed between the two parties back in December 2019, which related to civil works for a solar project in Andhra Pradesh.

Legal standoff and corporate response

Following the NCLT order, Tripti Agarwal has been appointed as the Interim Resolution Professional to oversee the process. Vikram Solar has clarified that it is currently consulting with legal advisors to file an appeal before the National Company Law Appellate Tribunal (NCLAT).

In a filing to the stock exchanges, the company maintained that it remains in a strong financial position. It reported a revenue of Rs 4,802 crore and a net profit of Rs 470 crore for FY26. Furthermore, management emphasized that they hold no long-term debt as of March 31, 2026, and have received confirmation from existing lenders that their accounts remain standard and operational.

Why it matters: The bigger picture

This case serves as a sharp reminder of the complexities inherent in legacy contract disputes. Even for companies with healthy balance sheets and improved working capital cycles—down to 44 days from 82 days in the previous fiscal—the admission of an insolvency petition creates immediate friction.

For investors, the primary concern is not just the immediate share price volatility, but the potential for operational distraction that legal proceedings often entail. The company’s ability to stay "standard and regular" with its lenders is a vital buffer, yet the markets are clearly pricing in the uncertainty of the NCLAT proceedings. As the renewable energy sector continues to scale, such disputes over sub-contracted civil works highlight the risks of historical liabilities catching up with even the most profitable players.