Acme Solar Holdings Limited — Q2 FY26 earnings call

Call held 4 Nov 2025

Management summary

ACME Solar Holdings Limited reported a strong Q2 FY26, driven by significant capacity additions and improved operational metrics. Revenue and EBITDA saw substantial year-on-year growth, supported by early commissioning and strategic project wins. The company also made progress in capital optimization, including debt refinancing and a credit rating upgrade, while advancing its battery energy storage system (BESS) strategy.

Highlights

  • Revenue increased by 104% YoY to ₹601 crores.

  • EBITDA grew by 108% YoY to ₹534 crores, with an 89% margin.

  • PAT stood at ₹115 crores, achieving a 19% margin.

  • Commissioned 378 MW of renewable energy capacity, with 72 MW in advanced stages.

  • Operational portfolio reached 2,918 MW, capable of delivering ₹2,025-2,075 crores annual EBITDA.

  • Secured new projects aggregating 720 MW, expanding under-construction portfolio to 4.5 GW.

  • Net operational debt to EBITDA at 4.3x and net debt to net worth at 1.9x.

  • Credit rating upgraded to AA- by CRISIL and ICRA for ACME Solar, and AA- for 1,100 MW operational projects.

Key financials

  1. Revenue ₹601 Cr +104%YoY
  2. EBITDA ₹534 Cr +108%YoY
  3. EBITDA Margin 89%
  4. PAT ₹115 Cr
  5. PAT Margin 19%
  6. Units Generated ₹153.9 Cr +134%YoY
  7. Capacity Utilization Factor 24.1%

What they filed

Q1 FY27: revenue up 67.9%, net profit up 79.4% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue260 349 487 511 468 +80%497 +42%548 +13%858 +68%
EBITDA221 307 436 458 400 +81%444 +45%479 +10%734 +60%
Net profit15 112 122 131 115 +667%114 +2%138 +13%235 +79%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Order book

high confidence

Total value

5,180 MW

as of 2025-09-30 quantified

Inflow this quarter

720 MW

Composition

Mix 5 others
  • Total Portfolio (MW) 7,390 MW 43.3%
  • BESS Capacity (GWh) 13.5 GWh 0.1%
  • PPA Signed Capacity (MW) 5,180 MW 30.3%
  • Under Construction Portfolio (MW) 4,500 MW 26.3%
  • PPA Signed Capacity (GW) - under construction 2.3 GW 0%

Share of order book by other, derived from disclosed amounts

Cancellations & deferrals

  • cancelled: NTPC 300 MW project removed from portfolio due to pooling scheme cancellation.
The company has a robust pipeline of signed PPAs and under-construction projects, with a focus on BESS integration and risk-adjusted returns.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex ₹12,000 Cr 75-25 to 80-20 debt equity, with INR 9,000 crores debt and INR 3,000 crores equity for FY26
    • Battery Energy Storage Systems (BESS) ₹5,000 Cr
    • Overall capex for 5.1 GWh BESS orders ₹5,000 Cr
    So, in terms of the capex, like, we have a target of INR12,000 crores capex like we discussed. So, all of our capex is between 75-25 to 80-20 debt equity. Lately, we have been getting 80-20 and debt sanctions. But typically, historically, it has been 75-25 debt equity. ... So for INR12,000 crores, it will be INR9,000 crores debt and INR3,000 crores equity.
  • Debt 4.3× EBITDA Cost 8% · Maturity: Average 20 years for refinanced debts
    • Rate reset Interest rate reduction of approximately 75 basis points on existing debt ₹2,080 Cr
    • Refinance Refinanced at an optimized interest rate of around 8.4%, expected to reduce further ₹1,100 Cr
    • New borrowing Secured financing for 680 MW FDRE projects from SBI and REC ₹7,000 Cr
    Our net operational debt to EBITDA stands at 4.3x and our net debt to net worth stands at 1.9x. ... So, all of our debts which we have refinanced is for a tenure of 20 years average because that is what we have done. And in terms of interest rates, we are effectively getting a rate of around 8% because it is linked to MCLR plus 10 basis points spread.
  • Liquidity Undrawn ₹1,000 Cr Undrawn securitization proceeds and refinancing proceeds available.
    We have undrawn securitization proceeds, which is the debt proceeds, the refinancing proceeds of around INR1,000-odd crores, which we have not drawn. And there are some refinancing coming up which will add another INR1,000 crores to that.

Guidance & targets

Capacity

  • Renewable energy capacity commissioning Capacity · FY26 · High confidence 450 MW
    So, our execution guidance for FY26 was to commission 450 megawatts of renewable energy capacity, and we are on track to achieve it.

    — Nikhil Dhingra

EBITDA

  • Annual EBITDA from merchant BESS operations EBITDA · Q4 FY26 onwards (annual) · High confidence INR 170 crores
    In addition to our earlier guidance, we plan to approximately operate one gigawatt hour of battery energy storage system on merchant from Q4 FY26 onwards, which is expected to give an upside potential of annual EBITDA of around INR 170 crores, assuming price difference of INR 5 between merchant power saving during peak hours and cost of producing the same.

    — Nikhil Dhingra

  • Annual steady state project level EBITDA EBITDA · Annual (current operational portfolio) · High confidence INR 2,025 to INR 2,075 crores
    With recent commissioning, our operational portfolio now stands at around 2,918 megawatts, capable of delivering an annual steady state project level EBITDA of INR 2,025 to INR 2,075 crores, and an EBITDA yield of around 14%-15%.

    — Nikhil Dhingra

  • EBITDA to capex yield for new projects EBITDA · High confidence 14%-15%
    Given the unique project design, the project is expected to deliver a stronger EBITDA to capex yield of around 14%-15% and a strong counterparty demand anticipated to drive new PPAs signing.

    — Nikhil Dhingra

Capex

  • Total Capex Capex · FY26 · High confidence INR 12,000 crores
    So, in terms of the capex, like, we have a target of INR12,000 crores capex like we discussed.

    — Nikhil Dhingra

  • Total Capex Capex · FY27 · Medium confidence INR 12,000 crores to INR 13,000 crores
    Because the next year also in FY '27, we are planning a INR12,000 crores to INR13,000 crores kind of a capex.

    — Yogesh Patil

BESS Capacity

  • Total BESS orders installation BESS Capacity · starting Q4 FY26 (phased manner) · High confidence 5.1 GWh
    This takes our total BESS orders to 5.1 gigawatt hour till date, which is expected to get installed in a phased manner starting in Q4 FY‘26.

    — Nikhil Dhingra

What to watch in Q3 FY26

PPA signing for pending projects

next couple of months
Current Some projects in advanced stages, others not
Target Resolution and signing of PPAs for projects like ACME Sigma Urja and ACME Omega Urja

Why it matters

Ensures pipeline conversion and revenue visibility for under-construction capacity.

So we have, you can say, with four counterparties split equally almost with all the four counterparties. So we are quite advanced in a couple of them. And, of course, we are not advanced in one or two of them. So now what is happening is because of this urgency, we will see that some of them will get signed earlier and some of them will get signed later.

Risks & concerns

  • PPA signing delays for projects under LOA

    medium

    Some projects are in advanced stages, but others are not, with central government pushing states to sign pending PPAs.

    Analyst acknowledged

  • Transmission infrastructure delays impacting commissioning

    medium

    One project (ACME Sikar) is operating under temporary GNA/STOA due to Narela K3 line delay, but most delays are within PPA timelines.

    Analyst acknowledged

  • Uncertainty regarding compensation for curtailment under STOA

    medium

    While LTOA projects have clear rights, precedents for compensation under STOA are yet to be established.

    Analyst acknowledged

Q&A highlights

6 direct
Risk of PPA cancellation for projects with LOA Partial
So, yes, there is an increased urgency from the central government to basically take a decision for the states to sign the pending PPAs. And that is why you see in the last six months, the bids have been low because the government wants to clear up the existing projects first before they go for new bids.

Addresses a key concern about project pipeline stability and the government's strategy to clear pending PPAs before new bids.

Asked by Mohit Kumar

Impact of transmission issues on commissioning timelines Direct
At max, one to three months kind of timeline delay and they are all within the PPA. Like Neemuch plant of ours, which we have signed up with Damodar Valley Corporation through NHPC. So that is actually coming up early because the Neemuch connectivity is operational.

Clarifies the expected delays due to transmission issues are manageable and within PPA timelines for most projects, with some exceptions.

Asked by Mohit Kumar

Sustainability of higher weighted average tariffs and ROCE targets Direct
So I would not compare, I would not do a weighted average of tariffs to realize whether everybody is going up or not, because it is also because it takes a lot of batteries there, it takes a lot of solar there to charge. So the weighted average tariff is sometimes misleading, unless you adjust that for capex. And unless you adjust that for what is the component of that, because each source either generates or stores.

Management emphasizes looking at ROCE/EBITDA to capex yield rather than just weighted average tariff, given the varying configurations of projects (solar, BESS, hybrid).

Asked by Balasubramanian

Learnings from 10 MWh pilot BESS project Direct
So, what we wanted to achieve I think with these two golden containers. We call it golden containers because they come first and we do the whole installation testing. And, with that we are able to ascertain what we have bided and beyond that some of those improvements which Nikhil mentioned we could achieve it.

Highlights the successful testing of BESS configurations, leading to improved efficiency (4-5% round-trip efficiency) and reduced installation time and bill of material for future projects.

Asked by Balasubramanian

Details on refinancing and debt structure Direct
So, all of our debts which we have refinanced is for a tenure of 20 years average because that is what we have done. And in terms of interest rates, we are effectively getting a rate of around 8% because it is linked to MCLR plus 10 basis points spread.

Provides clarity on the long tenure and competitive interest rates achieved through refinancing, benefiting from credit rating upgrades.

Asked by Balasubramanian

Impact of 42 GW pending PPA cancellations on the industry and ACME's projects Partial
So, basically, their target is primarily the solar projects which have been bid, and because they were bids very long back also. And like you know that the government has come up with guidelines that no project should come up without storage on a central bid and that is no longer happening, because storage is now a key part of all the upcoming bids.

Explains that the cancellations primarily target older solar projects without storage, which aligns with the government's new policy focus on storage-integrated renewables, differentiating ACME's newer projects.

Asked by Ketan Jain

Funding for FY26 and FY27 capex, especially equity portion Direct
So, you know, when the project gets operational and you are going from a 9%, 9.5% rate to 8% rate, it leads to the securitization or a refi proceeds getting added to that project. And then to add to this sort of number, we have the, you see the annual PAT plus tax depreciation, right? Which is half a year, we've done around 275 to 260 kind of numbers.

Details how internal accruals, undrawn securitization proceeds, and refinancing gains will fund the substantial capex plans for FY26 and FY27.

Asked by Yogesh Patil

Curtailment due to transmission line delays and compensation Direct
So, see, the curtailment, wherever you are seeing, is only because of transmission line delays. There is, because in all the PPAs, there is a must-run clause for renewables. So, whenever you have got a long-term open access, you are, you have a legal right to get the full evacuation or full payment for your power which you have generated.

Clarifies that curtailment is due to transmission delays, and projects with Long-Term Open Access (LTOA) have a legal right to full evacuation or payment, while Short-Term Open Access (STOA) cases are still evolving.

Asked by Akash Mehta

4 min read 6 chapters

Detailed narrative

Sector Overview and Regulatory Tailwinds

The renewable energy sector witnessed significant growth, adding 35 GW of new capacity from January to October 2025, bringing the total installed capacity to 247 GW. This expansion led to renewables contributing approximately 27% of India's total energy generation. Key regulatory updates include a reduction in GST rates on solar and wind equipment from 12% to 5%, lowering capital costs. Additionally, Renewable Energy Purchase Obligations (RPO) have been replaced with a wider Renewable Energy Consumption Obligation (RECO), targeting a minimum of 43% RE consumption by 2030. The CERC also amended connectivity and GNA regulations to accommodate battery energy storage systems (BESS) for grid stability and merchant operations. The Supreme Court's directive to liquidate ₹1.5 lakh crores of regulatory assets within four years is expected to bring financial discipline to electricity tariff determination.

Q2 FY26 Financial Performance

ACME Solar Holdings reported robust financial performance for Q2 FY26. Total revenue for the quarter stood at ₹601 crores, marking a substantial 104% increase year-on-year. EBITDA also saw a significant rise of 108% to ₹534 crores, achieving a strong margin of 89% compared to 87% last year. Profit After Tax (PAT) was ₹115 crores, with a PAT margin of 19%. The company noted that the Narela K3 line of the ACME Sikar project (300 MW) is currently operating under temporary GNA/STOA due to a delay in connectivity line commissioning, which is expected to be operational by December, shifting the plant to LTOA and full revenue potential.

Operational Performance and Capacity Additions

The company is on track to meet its FY26 execution guidance of commissioning 450 MW of renewable energy capacity, having already commissioned 378 MW, with the remaining 72 MW in advanced stages. The operational portfolio now stands at approximately 2,918 MW, capable of generating an annual steady-state project-level EBITDA of ₹2,025 to ₹2,075 crores, with an EBITDA yield of 14%-15%. In Q2, the company generated 153.9 crore units, a 134% increase year-on-year, and improved its capacity utilization factor (CUF) to 24.1% from 22.2% last year, with plant and grid availability above 99%.

Capital Optimization and Debt Profile

ACME Solar demonstrated strong capital optimization efforts. The company achieved a significant interest rate reduction of approximately 75 basis points on ₹2,080 crores of existing debt for operational projects, driven by a credit rating upgrade. One operational project was refinanced for ₹1,100 crores at an optimized interest rate of around 8.4%, with further reductions anticipated. For greenfield projects, ₹7,000 crores in financing was secured from SBI and REC for 680 MW FDRE projects. The company's net operational debt to EBITDA stands at 4.3x, and net debt to net worth is 1.9x. The credit rating for ACME Solar was upgraded to AA- by CRISIL and ICRA, with 1,100 MW of operational projects also receiving an AA- rating.

New Project Wins and BESS Strategy

During the quarter, ACME Solar won new projects totaling 720 MW, including a 50 MW FDRE project and a 670 MW solar plus BESS project. This expands the under-construction portfolio to 4.5 GW, with a total PPA signed capacity of 2.3 GW. The 220 MW RUMSL Morena solar park project, secured at a competitive tariff of ₹2.764 per unit, benefits from cost efficiencies like non-applicability of ALCM, reduced GST, and free night charging by DISCOM. The 450 MW SJVN project, with a peak power tariff of ₹6.75, involves a 2,200 MWh battery and is expected to deliver a strong EBITDA to capex yield of 14%-15%. The company also placed new orders for 2 GWh BESS, bringing total BESS orders to 5.1 GWh, with installations expected to begin in Q4 FY26.

BESS Pilot Project Learnings and Future Plans

ACME Solar successfully commissioned a 10 MWh pilot BESS project at its ISTS plant, which helped in assessing effectiveness across configurations. This pilot project improved efficiency, reducing capex and generating the same energy output, and enhanced reliability in round-trip efficiency and discharge rates. Learnings from the pilot will reduce installation time and bill of materials for future projects. The company plans to operate 1 GWh of merchant BESS from Q4 FY26, projected to generate an annual EBITDA upside of ₹170 crores. The total planned capex for FY26 is ₹12,000 crores, with ₹9,000 crores from debt and ₹3,000 crores from equity, and a similar capex of ₹12,000-13,000 crores is planned for FY27.

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