Detailed Narrative
Strong Q3 FY26 Financial Performance
ACME Solar Holdings reported robust financial results for Q3 FY26, with total revenue increasing by 54% year-on-year to ₹617 crores. The company achieved an EBITDA margin of 91.5%, an improvement from 89.6% in the previous year, and a PAT of ₹114 crores, representing an 18.4% margin. Cash ROE stood at 20.6% for December 2025, reflecting efficient operational capacity additions and optimized operational efficiency.
Capacity Expansion and BESS Integration
The company commissioned 72 MW of wind capacity in Q3, bringing its total operational portfolio to 2962 MW. Cumulatively, 422 MW has been commissioned year-to-date, keeping ACME on track for its FY26 commissioning guidance of 450 MW. Notably, BESS operational guidance was upgraded to 2 GWh in Q3 FY26, with an additional 2 GWh planned for Q1 FY27, and 1,150 MWh of BESS has already been delivered for commissioning at three sites.
Strategic Procurement and Cost Management
ACME has proactively managed procurement costs, securing 1.7 GW of modules and a large amount of BESS for its FY27 planned 1.5 GW contracted capacity. Despite China's withdrawal of VAT export rebates for solar products, the company noted a marginal impact of less than ₹1 per module, with landed costs remaining below budget. This strategic procurement has resulted in over 10% savings in overall CAPEX from the budgeted cost, ensuring cost competitiveness.
PPA Pipeline and Strategy
The company signed 450 MW of new PPAs this quarter, including 200 MW solar+ESS with SECI and 250 MW FDRE with NHPC, bringing the total PPA signed portfolio to approximately 2.7 GW. A significant 130 MW round-the-clock project was also secured with REMC Limited. ACME maintains near-term visibility for an additional 770 MW of PPA signings, supported by 7.5 GW of secured connectivity inventory for upcoming bids, indicating a robust future pipeline.
Debt Optimization and Financial Health
ACME has successfully reduced its weighted average cost of debt for its operational portfolio to 8.45%, a reduction of over 100 basis points from December 2024. The weighted average cost of debt for the entire outstanding debt, covering operational and under-construction projects, stands at 8.6%. The company's net operational debt to EBITDA stands at 4.2x, and net debt to net worth at 2 times, underscoring a healthy balance sheet. Debt has been tied up for over 90% of the under-construction PPAs.
Regulatory Landscape and Curtailment Management
Management addressed concerns regarding grid curtailment, stating that the company experienced a one-time📎 curtailment loss of ₹17.5 crores in its Sikar project due to temporary GNA, but this project is now operating at full capacity since December 14, 2025. For the rest of the portfolio, curtailment was negligible, less than ₹1 crore. ACME confirmed receiving payments for CTU curtailment under ancillary regulations, ensuring no revenue impact from grid stability-related curtailment.
Future Growth and Innovation
ACME aims to execute approximately 1.5 GW of contracted renewable capacity in FY27 and commission over 10 GWh of BESS by calendar year 2027, targeting 10 GW of operational capacity by 2030. The company is also investing in technology, including testing Perovskite technology, implementing robotic installation for modules to enhance efficiency, and pursuing patents in battery optimization and renewable wind to provide cheaper base load power.