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    Acme Solar Holdings Q1 FY27 earnings call

    ACMESOLAR
    Power·30 Jul 2026
    Management Summary

    Acme Solar Holdings Limited reported a strong Q1 FY27, with revenue up 63% and PAT up 80% year-on-year, driven by robust BESS operations and capacity additions. The company commissioned 2.3 GWh of BESS this quarter, securing INR1,400 crores in short-term contracts, and upgraded its full-year capex guidance. While facing a recent incident at a BESS facility and a general slowdown in RE bidding, management expressed confidence in future growth and market demand.

    Highlights

    7

    • Total revenue of INR954 crores, up 63% YoY, driven by higher CUF, BESS operations, and capacity additions.

    • EBITDA increased 56% YoY to INR831 crores, achieving an 87% margin.

    • PAT grew 80% YoY to INR235 crores, with a PAT margin of 25%.

    • Commissioned 2.3 GWh BESS this quarter, reaching 3.62 GWh cumulative, accounting for ~40% of India's total commissioned BESS capacity.

    • Secured INR1,400 crores in short-term BESS contracts for FY27, with BESS operations delivering >20% annual EBITDA to capex yield.

    • Achieved highest-ever CUF at 30.9% (vs 28.5% last year), with power generation up 23% YoY to 2020 million units.

    • Completed QIP, providing flexibility to prepone capex and improve return economics.

    Concerns

    3

    • An incident at ACME Suryodaya BESS facility due to an electrical short circuit in AC cabling, though management clarified no damage to battery systems and safety measures worked.

    • Acknowledged a general slowdown in RE bidding activity in the last quarter and FY26, though management expects a strong revival.

    • Potential for BESS short-term revenue realizations to normalize or be lower from next year onwards as power demand stabilizes post-El Nino effects.

    Key financials

    Single quarter

    06 metrics
    1. 01Revenue₹954 Cr+63%YoY
    2. 02EBITDA₹831 Cr+56.0%YoY
    3. 03PAT₹235 Cr+80%YoY
    4. 04Total EBITDA Margin87%
    5. 05CUF30.9%

    Segment breakdown

    Renewable Energy Portfolio
    88.5% EBITDA Margin
    BESS Business
    82% EBITDA Margin₹226 Cr Revenue
    List

    Order Book

    high confidence

    Total Value

    8,070 MW

    as of 2026-06-30

    quantified

    Inflow this qtr

    ₹ 1,400 crores

    Composition

    PPA Signed Capacity(contract type)
    3,880 MW
    BESS Contracted Capacity(product)
    18 GWh90.0%

    Pipeline

    L1 awaiting loa

    Balance projects of around 1,200 megawatts for which PPAs are yet to be signed are progressing well and expected to get signed soon.

    "The company's total portfolio stands at 8,070 MW, including 20 GWh of battery storage, with 90% of the BESS capacity already contracted. Short-term BESS contracts generated INR1,400 crores in revenue this quarter."

    Source:
    Prepared remarks

    Capital allocation

    3
    high confidence
    CategoryHeadline
    Capex

    ₹3,000 crores this quarter · ₹17,500 crores (FY27) planned

    raised — prepone capex for under-construction projects and deliver better return economics · QIP completed, providing flexibility

    Debt

    Debt disclosed

    Liquidity

    Liquidity disclosed

    QIP completion reflects investor confidence and provides flexibility to prepone capex for under-construction projects.

    Guidance & targets

    9
    CategoryTargetPriority
    Capacity
    BESS Commissioning
    more than 10 GWh
    		High
    Capacity
    Contracted Renewable Energy Generation Capacity Commissioning
    1.5 GW
    		High
    Capacity
    BESS Capacity for Short-Term Market
    10 GWh
    		High
    Capacity
    Total Target Capacity
    beyond 10 GW
    		Medium
    Capex
    Full Year Capex
    INR15,000-20,000 crores
    		High
    Profitability
    BESS Annual EBITDA to Capex Yield
    >20%
    		High
    Profitability
    EBITDA Margin (Excluding BESS)
    88-91%
    		Medium
    Revenue
    BESS Revenue from 10 GWh Capacity
    INR1,400 crores
    		High
    Revenue
    BESS Revenue Run Rate
    INR2,000-2,500 crores
    		Medium

    What to watch in Q2 FY27

    5

    BESS Commissioning Progress

    next quarter / FY27
    Current3.62 GWh cumulative
    Targetmore than 10 GWh by FY27

    Why it matters

    Tracking the accelerated BESS commissioning is key to realizing the company's strategic growth and revenue targets.

    We are upgrading our BESS commissioning guidance from 10 gigawatt hour by calendar year 2027 to more than 10 gigawatt hour by fiscal year 2027, effectively bringing forward this milestone by nearly 3 quarters.

    Risks & concerns

    4
    RiskSeverity

    Incident at ACME Suryodaya BESS facility

    An electrical short circuit in AC cabling caused a localized fire, but no damage to battery systems; safety measures prevented escalation. — Management downplayed

    medium

    Slowdown in RE bidding activity

    General slowdown in bidding in Q4 FY26, but management expects revival due to new regulatory guidelines and demand drivers. — Analyst acknowledged

    medium

    Potential for lower BESS short-term revenue realization

    Concerns that post-El Nino normalization of power demand could lead to lower short-term BESS revenue realizations from next year, though management sees strong demand drivers. — Analyst acknowledged

    medium

    Curtailment of power generation

    Curtailment impacted less than 1% of revenue; company plans to eliminate it by using surplus renewable energy for battery charging and regulatory changes. — Management acknowledged

    low

    Q&A highlights

    8

    “So the supply side, I'm not very bullish on the huge supply into the BESS on an open basis, right? So there will be very opportunistic supplies coming in into the BESS from the supply side first, right? In terms of the demand, so this has opened a very new, let's say, each state is now evaluating it very seriously because they were not aware of this availability, right? And they were not aware of the ability to supply, right?”

    This question addresses the long-term profitability of the company's BESS strategy, particularly its reliance on merchant market spreads, and management's view on competition and demand.

    asked by Apoorva Bahadur

    2 min read6 chapters

    Detailed Narrative

    01

    Robust Financial Performance in Q1 FY27

    Acme Solar Holdings Limited delivered a strong financial performance in Q1 FY27, with total revenue reaching INR954 crores, marking a 63% year-on-year increase. EBITDA grew by 56% year-on-year to INR831 crores, resulting in a healthy EBITDA margin of 87%. Profit after tax (PAT) surged 80% year-on-year to INR235 crores, translating into a PAT margin of 25%. This growth was primarily attributed to higher Capacity Utilization Factor (CUF), revenue contribution from BESS operations, and renewable capacity additions.

    02

    Accelerated BESS Commissioning and Contract Wins

    The company commissioned approximately 2.3 gigawatt hour (GWh) of Battery Energy Storage System (BESS) during the quarter, bringing its cumulative commissioned BESS capacity to 3.62 GWh. This represents about 40% of India's total commissioned BESS capacity. BESS operations contributed INR226 crores to the total revenue and delivered an annual EBITDA to capex yield exceeding 20%. The company also secured short-term BESS contracts worth over INR1,400 crores in revenue for partial FY27 capacity, with approximately 90% of its 20 GWh total BESS capacity already contracted.

    03

    Strategic Capacity Expansion and Project Pipeline

    Acme Solar's total portfolio now stands at 8,070 megawatts (MW), including 20 GWh of battery storage. During the quarter, the company signed 600 MW of FDRE and hybrid PPAs with SECI, increasing its total PPA-signed capacity to 3,880 MW out of 5,080 MW under construction. Financing of INR6,000 crores was secured for 700 MW of under-construction FDRE projects, tying up debt for nearly 85% of the PPA-signed portfolio. The company also upgraded its full-year capex guidance to INR15,000-20,000 crores for FY27.

    04

    Regulatory Support and Market Dynamics

    Several policy developments are encouraging for the sector, including MNRE's extension of commissioning deadlines for Open Access and Net Metering projects to December 31, 2026. The Ministry of Power extended graded ISTS waiver benefits for delayed projects, and CTU began granting BESS connectivity through the Right of First Refusal route. These measures are expected to accelerate BESS deployment, strengthen grid reliability, and enable better participation in peak power demand, supporting the company's growth strategy.

    05

    Clarification on BESS Facility Incident

    Management addressed a recent incident at the ACME Suryodaya BESS facility, clarifying that a detailed technical root cause analysis confirmed it was caused by an electrical short circuit in the AC cabling, not within the battery system. They reiterated that there was no damage to any battery systems or other equipment at the site, attributing this to already deployed safety measures such as AI-enabled video analytics, arc-flash sensors, and enhanced fire barriers.

    06

    Outlook on Bidding Activity and New Growth Avenues

    Despite a general slowdown in bidding activity in Q4 FY26, management expects a strong revival, driven by new bidding formats from SECI and states, including midterm contracts, long-term peak power, and RTC FDRE. The company is also actively exploring opportunities in the C&I segment, particularly catering to data center requirements, viewing it as a promising sector that aligns with its strengths in building power infrastructure and competencies.

    This is an AI-generated summary of a publicly available earnings call transcript.