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    ACME Solar Hold.

    ACMESOLAR
    Power·20 May 2025
    Management Summary

    ACME Solar Holdings reported a strong performance for Q4 and full year FY25, driven by significant capacity additions and improved operational efficiency. The company achieved substantial growth in revenue and EBITDA, alongside a healthy reduction in its net operational debt to EBITDA ratio. Strategic focus on FDRE and hybrid solutions, coupled with robust financing and a strong project pipeline, positions ACME Solar for continued growth, despite some PPA signing and commissioning delays.

    Highlights

    7

    • Q4 FY25 Revenue (adjusted) stood at INR 539 crores, up 73% YoY.

    • Q4 FY25 EBITDA (adjusted) reached INR 488 crores, marking a 119% YoY increase.

    • Full Year FY25 Revenue was INR 1,575 crores, a 32% YoY growth.

    • Full Year FY25 EBITDA was INR 1,400 crores, up 43% YoY, with a margin exceeding 89%.

    • Net operational debt to EBITDA improved to 4.4, well within the guided range of 5.5.

    • Operational capacity expanded by 1,200 MW this year, reaching 2,700 MW, with a target to reach 3 GW soon.

    • Secured INR 16,500 crores in financing for 1,700 MW of under-construction projects and refinanced INR 7,700 crores of operational debt at 8.8% interest, reducing cost by 75 bps.

    What Changed2

    vs Q1 FY26

    Guidance items9 → 21 (+12)Risks discussed3 → 5 (+2)
    Key financials

    Metrics

    12

    Periods

    2

    Headline

    5
    • Revenue (Adjusted)
      ₹539 Cr
      YoY+73%
    • EBITDA (Adjusted)
      ₹488 Cr
      YoY+119%
    • PAT (Adjusted)
      ₹122 Cr
    • Cash PAT (Adjusted)
      ₹238 Cr
    • Capacity Utilization Factor (Rajasthan Plants)
      29.4%

    FY25

    7
    • Revenue
      ₹1,575 Cr
      YoY+32%
    • EBITDA
      ₹1,400 Cr
      YoY+43%
    • EBITDA Margin
      89%
    • PAT
      ₹251 Cr
      YoY+2.9%
    • Cash PAT
      ₹559 Cr
      YoY+1.6%

    Order Book

    high confidence

    Total Value

    4,300 MW

    as of 2025-03-31

    quantified

    Composition

    Mix2 products
    • PPA Signed51.0%
    • LOA Awarded49.0%

    Share of order book by product

    Pipeline

    other

    Total project portfolio including operational, under-construction, and future bids

    "The company has a robust under-construction pipeline of 4.3 GW, with over half already PPA signed and the remainder LOA awarded. A significant portion of this capacity is dedicated to FDRE and hybrid solutions, aligning with market trends. The total project portfolio stands at approximately 7 GW."

    Source:
    Prepared remarks

    Capital allocation

    3
    high confidence
    CategoryHeadline
    Capex

    ₹20,000 crores

    INR 16,500 crores from debt and INR 4,000 crores from equity

    Debt

    4.4x EBITDA

    Cost 8.8%

    Liquidity

    Cash ₹2,900 crores · Undrawn ₹1,500 crores

    Cash and bank balances as of FY25, supplemented by unutilized equity from credit lines.

    Guidance & targets

    21
    CategoryTargetPriority
    Capacity
    Operational Capacity
    3 gigawatts
    		High
    Capacity
    Sikar Plant Remaining Commissioning
    135 megawatt
    		High
    Capacity
    Wind Project Commissioning (First Phase)
    First phase running
    		High
    Capacity
    Wind Project Commissioning (Complete)
    Complete commissioning
    		High
    Capacity
    Total Project Portfolio
    7 gigawatts
    		High
    Capacity
    Total Contracted Capacity Target
    10 gigawatts
    		High
    Capacity
    Total Installed Capacity Target (for 10 GW contracted)
    more than 20 gigawatts
    		High
    Revenue
    Sikar Plant Top Line
    INR 230-240 crores
    		High
    PPA
    PPA Signing for New Projects
    750 megawatts
    		High
    Connectivity
    Surplus Connectivity for Future Bids
    2,500 megawatts
    		High
    Land
    Government Land Applied
    10,000 acres
    		High
    CUF
    Overall CUF
    bound to go up
    		Medium
    Capacity Addition
    FY26 Capacity Addition (AC Basis)
    450 megawatts
    		High
    Capacity Addition
    FY26 Capacity Addition (DC Basis)
    600 megawatt peak
    		High
    Capacity Addition
    FY27 Capacity Addition
    1.89 gigawatt
    		High
    Capacity Addition
    Capacity Addition Post FY27
    2 gigawatts
    		Medium
    Project
    UP PSP Project Storage Capacity
    600 MW into 6 MWh
    		High
    Project Timeline
    380 MW FDRE Project COD
    June of next year
    		High
    Project Timeline
    570 MW SJVN Project Timeline
    May 2026
    		High
    Project Timeline
    Battery Pilot Project Commissioning
    Q2
    		High
    Project Timeline
    Large-Scale Battery Project Commissioning
    Q3
    		High

    Sikar Plant Commissioning Completion

    next 30 days
    Current165 MW commissioned, 112.5 MW commissioned yesterday, ~135 MW remaining
    TargetFull 300 MW commissioned

    Why it matters

    Completion of this plant will contribute to revenue generation and operational capacity, impacting Q1 FY26 financials.

    The remaining capacity of around 135 megawatt under commissioning expected to be commissioned in the next 30 days.

    How to verify

    guidance_and_targets[metric='Sikar Plant Remaining Commissioning']

    Risks & concerns

    5
    RiskSeverity

    PPA Signing Delays

    Expected PPA signing for 400-500 MW in Q3 FY25 shifted to Q4 FY25, indicating challenges in forecasting and regulatory processes. — Management acknowledged

    medium

    Project Commissioning Delays

    Sikar 300 MW solar plant commissioning slipped by 60 days from March 31st target due to India-Pakistan border issues affecting installation. — Management acknowledged

    medium

    Tougher Commissioning Environment

    Regulatory requirements for power factor correction, harmonics, and flickering are making commissioning more complex and time-consuming. — Management acknowledged

    medium

    Wind Project Underperformance

    Wind projects have historically underperformed and are less predictable than solar, though the company mitigates this by minimizing wind components in FDRE and using conservative CUF assumptions. — Both acknowledged

    low

    ALCM Impact on New Tariffs

    ALCM (import restrictions on cells from China post-June 26) is already reflected in new tariffs, potentially making new projects more expensive, but also making existing PPAs more attractive. — Management acknowledged

    medium

    Q&A highlights

    7

    “So, in terms of timelines for this project, the PPA got signed for 190 megawatts of the 380 megawatts in June of last year. So, the scheduled COD of that project is June of next year. 2 years' time you get to execute. And similarly, for the 320 and 250 megawatt, that's around 570 megawatts of SJVN, that's also the timeline is May 2026 as per the PPA.”

    Clarifies the specific timelines and execution periods for major under-construction projects, providing visibility on future capacity additions.

    asked by Mohit

    2 min read5 chapters

    Detailed Narrative

    01

    Robust Capacity Growth and Operational Performance

    ACME Solar achieved substantial capacity growth in FY25, adding 1,200 megawatts (MW) of solar capacity, bringing its total operational capacity to 2,700 MW. The company aims to reach 3 gigawatts (GW) soon. This expansion significantly contributed to a 55% increase in energy generation, totaling 401 crore units. The Capacity Utilization Factor (CUF) for FY25 stood at 25.6%, with Rajasthan plants, a significant portion of the portfolio, achieving a higher CUF of 29.4%. Management expects the overall CUF to improve further in the next fiscal year as new plants run for a full year.

    02

    Strong Financials and Balance Sheet Management

    For Q4 FY25, on an adjusted basis, revenue grew 73% YoY to INR 539 crores, and EBITDA surged 119% YoY to INR 488 crores. For the full year FY25, revenue was INR 1,575 crores (up 32% YoY) and EBITDA was INR 1,400 crores (up 43% YoY), with an impressive margin exceeding 89%. The company maintained financial discipline, with net operational debt to EBITDA at 4.4 (within the guided range of 5.5) and net debt to net worth at 1.7x. Cash and bank balances stood at INR 2,900 crores as of FY25.

    03

    Strategic Project Pipeline and Financing

    ACME Solar's total project portfolio is approximately 7 GW, with 4.3 GW currently under construction. Of this, 2.2 GW has signed Power Purchase Agreements (PPAs), and 2.1 GW has Letters of Award (LOAs). Over 90% of the 4.3 GW under-construction projects have orders reserved, with 80% (3.38 GW) dedicated to FDRE and hybrid solutions. The company secured INR 16,500 crores in financing for 1,700 MW of under-construction projects and refinanced INR 7,700 crores of operational debt at an average interest rate of 8.8%, reducing the cost by 75 basis points. The company's credit rating was upgraded to A+ by Crisil in February 2025.

    04

    Focus on FDRE, Hybrid, and Battery Storage

    The company is strategically shifting towards FDRE and hybrid energy solutions, which integrate battery storage, to deliver flexible power and meet rising base load and peak power demands. Management noted that utilities are increasingly preferring solar with battery solutions. Prices for battery components have been locked in with Tier 1 Chinese suppliers, and a 200 MW battery pilot project is targeted for commissioning in Q2 FY26, with a larger scale project in Q3 FY26. The company believes ALCM (import restrictions) will make existing PPAs more attractive due to potentially higher future tariffs.

    05

    Commissioning and PPA Signing Delays

    Management acknowledged some delays, including the Sikar 300 MW solar plant slipping by 60 days from its March 31st target due to India-Pakistan border issues, with the remaining 135 MW expected to be commissioned in the next 30 days. PPA signings for 400-500 MW expected last quarter were also shifted to the current quarter, with around 750 MW of PPAs in final stages of discussion. The company noted that commissioning is becoming tougher due to stringent regulatory requirements for grid stability.

    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.