ACMESOLAR - ACME Solar Hold.

📊 NSE: ACMESOLAR 🏢 Engineering - Turnkey Services 📅 Last Updated: 12/13/2025 17:49

💰 Financial Performance

Revenue Growth by Segment

Total revenue grew 103.8% YoY to INR 601 Cr in Q2 FY26. EPC revenue contributed INR 332 Cr (71.4% of total income) in Q2 FY26, up 17.3% from Q1 FY26. Adjusted for asset divestments, FY25 revenue grew 32.3% YoY to INR 1,405.1 Cr.

Geographic Revenue Split

The portfolio is spread across 11 states in India, with revenue generated from 17 different counterparties. Central offtakers (SECI/NTPC) account for 69% of the operational portfolio and 83% of the total portfolio.

Profitability Margins

Operating profit margin improved from 13% in FY24 to 28% in FY25 (up 120%). Net profit margin was 14% in FY25, down from 89% in FY24 due to one-time divestment gains in the previous year; however, adjusted net margin improved from 5.4% to 15.9% in FY25.

EBITDA Margin

EBITDA margin stood at 88.8% in Q2 FY26, up from 86.8% in Q2 FY25, driven by favorable operating leverage and optimized operational efficiency. EBITDA grew 108.3% YoY to INR 534 Cr in Q2 FY26.

Capital Expenditure

Planned capital expenditure is approximately INR 12,000 Cr for FY26 and INR 12,000-13,000 Cr for FY27. Projects are typically funded with a debt-equity ratio of 75:25 or 80:20.

Credit Rating & Borrowing

Credit rating was upgraded to CRISIL AA-/Stable in October 2025 from A+/Positive. Borrowing costs were reduced by 75 basis points (0.75%) through debt refinancing and prepayment of INR 2,069.9 Cr of debt using IPO proceeds.

⚙️ Operational Drivers

Raw Materials

Key equipment includes Solar PV modules (Bifacial and TopCon technology), Wind Turbines, and Battery Energy Storage Systems (BESS).

Capacity Expansion

Current operational capacity is 2.54 GWAC (2,918 MW). The total portfolio is 7,390 MW, with 1,890 MW of PPAs signed in FY25 and 550 MWh of standalone BESS projects won.

Raw Material Costs

Cost of materials consumed was INR 261 Cr in Q2 FY26, representing 72.7% of total expenses. Procurement strategies focus on 'just-in-time' delivery for major equipment like turbines 3-4 months before COD.

Manufacturing Efficiency

Capacity Utilization Factor (CUF) improved to 24.1% in Q2 FY26 from 22.2% in Q2 FY25. Plant and grid availability remained above 99%.

📈 Strategic Growth

Expected Growth Rate

32.30%

Growth Strategy

Growth will be achieved through the execution of the 7.39 GW portfolio, focusing on Firm and Dispatchable Renewable Energy (FDRE) and Hybrid projects (49% of portfolio). The company is also expanding into standalone BESS (550 MWh won) and winning Round-The-Clock (RTC) tenders like the 130 MW REMCL Railways project.

Products & Services

Renewable electricity generated from Solar, Wind, Hybrid, and FDRE projects sold under long-term Power Purchase Agreements (PPAs).

Brand Portfolio

ACME Solar.

New Products/Services

New product focus includes 550 MWh of Standalone Battery Energy Storage Systems (BESS) and FDRE projects to manage intermittency.

Market Expansion

Expanding presence across 11 states in India with a focus on increasing the share of Central offtakers to 83% of the total portfolio.

Market Share & Ranking

One of the largest Renewable Energy Independent Power Producers (IPPs) in India.

Strategic Alliances

Winning bidder for 130 MW Railways (REMCL) Round-The-Clock Renewable Energy tender.

🌍 External Factors

Industry Trends

The share of renewables in India's power mix is projected to grow from 22% in FY25 to 35% by FY27, led by solar PV and hybrid projects with storage.

Competitive Landscape

The industry is shifting toward complex Hybrid and FDRE projects where ACME Solar's experience in balancing solar, wind, and battery proportions provides a competitive edge.

Competitive Moat

Moat is built on scale (7.39 GW portfolio), geographical diversity (11 states), and a high-quality offtaker profile (83% Central offtakers), which ensures lower credit risk and stable cash flows.

Macro Economic Sensitivity

Peak power demand in India is forecast to increase by a CAGR of 6% from FY25 to FY27, directly driving demand for new capacity.

Consumer Behavior

Rising electrification and digital technology adoption are driving a 6% CAGR in peak power demand.

⚖️ Regulatory & Governance

Industry Regulations

New amendments allow battery energy storage systems to use existing connectivity infrastructure for merchant operations. Regulatory commissions are directed to liquidate INR 1.5 lakh Cr of regulatory assets within 4 years.

Environmental Compliance

Focused on decoupling economic growth from emissions by increasing RE share to 35% by 2027.

Taxation Policy Impact

Effective tax rate was approximately 24.4% in Q2 FY26 (INR 10 Cr tax on INR 41 Cr PBT).

Legal Contingencies

Received a favorable APERC ruling for the recovery of INR 48.6 Cr in outstanding dues from Andhra Pradesh discoms, to be recovered in installments.

⚠️ Risk Analysis

Key Uncertainties

Execution risks for under-construction projects (time/cost overruns), weather-related generation variability, and potential delays in PPA signing for projects under LOA.