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    ACME Solar Hold.

    ACMESOLAR
    Power·28 Jul 2025
    Management Summary

    ACME Solar Holdings delivered a strong Q1 FY26, marked by significant revenue and EBITDA growth, driven by operational capacity expansion and strategic wins in the energy storage sector. The company commissioned 350 MW of new projects, bringing its operational portfolio to 2890 MW, and expanded its under-construction pipeline to 4080 MW plus 550 MWh storage with new BESS and FDRE project wins. Financial discipline was maintained through healthy debt metrics and successful refinancing, while the company continues to benefit from supportive government policies for renewable energy deployment.

    Highlights

    9

    • Revenue of INR 584 crores, up 72% YoY.

    • EBITDA of INR 531 crores, up 76% YoY, with a 91% EBITDA margin.

    • PAT stood at INR 131 crores.

    • Operational portfolio reached 2890 MW, capable of INR 2,000-2,050 crores annual EBITDA.

    • Under-construction portfolio expanded to 4080 MW plus 550 MWh storage.

    • Secured new orders for 550 MWh standalone BESS (NHPC) and 550 MW FDRE and solar projects.

    • Placed purchase orders exceeding INR 7,000 crores for the under-construction portfolio.

    • Refinanced INR 1,070 crores of debt at 8.5% fixed, reducing interest cost by 95 bps.

    • Capacity Utilization Factor (CUF) improved to 28.5% from 27% last year.

    What Changed2

    vs Q2 FY26

    Guidance items7 → 9 (+2)Q&A highlights8 → 6 (-2)

    Key financials

    Single quarter

    08 metrics
    1. 01Revenue₹584 Cr+72%YoY
    2. 02EBITDA₹531 Cr+76%YoY
    3. 03EBITDA Margin91%
    4. 04PAT₹131 Cr
    5. 05Net Operational Debt to EBITDA4.2 x

    Order Book

    high confidence

    Total Value

    2.2 GW

    as of 2025-06-30

    quantified

    Inflow this qtr

    550 MW

    Execution

    2.2 GW contracted capacity to be commissioned by FY27

    Pipeline

    other

    Under construction portfolio including 4080 MW renewable and 550 MWh storage capacity, with purchase orders exceeding INR 7,000 crores.

    "The trend has shifted to solar plus storage and pure storage, with a focus on 24-hour procurement to drive higher peak power growth. The company is actively building out its under-construction portfolio, securing key equipment and grid connectivity."

    Source:
    Prepared remarks

    Capital allocation

    3
    high confidence
    CategoryHeadline
    Capex

    ₹800 crores this quarter · ₹14,000 crores (FY26) planned

    75% debt and 25% equity

    Debt

    4.2x EBITDA

    Cost 8.8%

    Liquidity

    Undrawn ₹1,500 crores

    Company has sufficient liquidity of more than INR 3,000 crores.

    Guidance & targets

    9
    CategoryTargetPriority
    EBITDA
    Annual Steady State Project Level EBITDA
    INR 2,000 to INR 2,050 crores
    		High
    EBITDA Margin
    EBITDA Yield
    14%-15%
    		High
    Debt
    Net Operational Debt to EBITDA
    5.5x
    		High
    Cost of Financing
    Cost of Financing
    below 8.5%
    		High
    Credit Rating
    Holding Company Rating
    AA family
    		High
    Capacity Addition
    Commissioned Capacity (FY26)
    at least 2.5 gigawatt
    		High
    Capex
    Capex (FY26)
    INR 14,000 crores
    		High
    Capacity Commissioning
    Contracted Capacity Commissioning
    2.2 gigawatt
    		High
    BESS Revenue
    NHPC BESS Project Annual Revenue
    INR 70 crores
    		High

    PPA Signing for Pending Projects

    next 4 months
    CurrentOmega Urja, NTPC Alpha Renewables, Hybrid 3.25 pending
    TargetSigned PPAs for these projects

    Why it matters

    Timely PPA signing is crucial for project execution and revenue visibility for the under-construction pipeline.

    So, this should be signed, if not in July, maybe in August, this 2.52. There are no hurdles to it as far as we are aware. Then in terms of the 3 point – the NTPC Alpha Renewables 3.32 one. That is something which is pending as of now with NTPC... So we are quite positive that we should be able to conclude this whole pipeline in another 4 months.

    How to verify

    order_book.pipeline.description

    Risks & concerns

    3
    RiskSeverity

    VGF Reduction Impact

    Government reduced VGF for BESS from INR 27 lakhs to INR 18 lakhs per MWh, but management believes it's offset by falling capex costs and competitive tariffs. — Both acknowledged

    low

    Local BESS Assembly Quality/Warranty

    At the nascent stage of BESS, local assembly carries risks related to product reliability and warranty, leading the company to prefer importing full battery packs. — Management acknowledged

    medium

    FDRE Project Regulatory Approvals

    FDRE projects involve new regulatory pieces, such as obtaining NOC from counterparties and NRLDC approvals for early commissioning, which are being navigated for the first time. — Management acknowledged

    medium

    Q&A highlights

    6

    “in terms of the VGF reduction, as you know, the capex cost has come down for the whole battery solution. And the government is... Looking at the tariff reduction which has happened across the projects. Very competitive rates have come. So government believes that reduced VGF will also be fine in terms of getting the economical rates.”

    Explains the government's rationale for reducing VGF for BESS projects, linking it to falling capex costs and competitive tariffs, which impacts project economics.

    asked by Meet Katrodiya

    2 min read6 chapters

    Detailed Narrative

    01

    Q1 FY26 Performance Overview

    ACME Solar Holdings reported robust financial performance in Q1 FY26, with total revenue reaching INR 584 crores, marking a 72% increase year-on-year. EBITDA grew by 76% to INR 531 crores, achieving a healthy EBITDA margin of 91%. The company's Profit After Tax (PAT) stood at INR 131 crores. The operational portfolio now totals 2890 MW, capable of delivering an annual steady-state project level EBITDA of INR 2,000 to INR 2,050 crores.

    02

    Strategic Capacity Expansion & Order Book

    The company commissioned 350 MW of new projects in Q1 FY26, including its first 50 MW wind project. The under-construction portfolio has expanded to 4080 MW of renewable energy and 550 MWh of storage, with 55% of this portfolio having signed Power Purchase Agreements (PPAs). ACME Solar has placed purchase orders exceeding INR 7,000 crores for its under-construction portfolio, ensuring grid connectivity for the entire 4080 MW.

    03

    Battery Energy Storage System (BESS) Focus

    ACME Solar secured its first standalone BESS project of 550 MWh with NHPC and signed PPAs for an additional 550 MWh of standalone BESS projects. The company has placed orders for over 3.1 GWh of battery energy storage systems, with a total battery requirement of roughly 10 GWh for its under-construction portfolio. Management confirmed a strategy to import full battery packs for reliability and warranty, rather than local assembly, given the nascent stage of the BESS market.

    04

    Financial Discipline & Debt Management

    The company maintained strong balance sheet discipline, with a net operational debt to EBITDA ratio of 4.2x and a net debt to net worth of 1.7x, both well within guided ranges. ACME Solar refinanced INR 1,070 crores of debt for a 250 MW operational project at a fixed interest rate of 8.5% for 5 years, leading to a 95 basis points reduction in interest cost. The interest cost for operating projects is currently around 8.75%, with further significant reductions anticipated due to ongoing refinancing efforts and credit rating improvements.

    05

    Industry Trends & Regulatory Support

    The Ministry of Power announced a second tranche of the VGF scheme with INR 5,400 crores for BESS projects, providing INR 18 lakhs per MWh and targeting 30 GWh of BESS capacity. The 100% ISTS waiver was extended, signaling government support for energy storage. India added over 12 GW of renewable capacity in Q1 FY26, bringing the total installed renewable capacity to approximately 234 GW, with non-fossil fuel sources now comprising over 50% of the country's total installed electric capacity.

    06

    FDRE Project Execution & Challenges

    The 2.2 GW of contracted FDRE capacity is scheduled for commissioning by FY27. Management noted that while FDRE execution is not inherently challenging, new regulatory aspects, such as obtaining NOCs from counterparties and NRLDC approvals for early commissioning, are being navigated for the first time. The company's strategy involves diversifying connectivity across states and securing early intervals to mitigate evacuation risks, rather than relying solely on future HVDC projects for its current pipeline.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.