Acme Solar Holdings Limited — Q4 FY25 earnings call

Call held 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

  • 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.

Key financials

2 periods

Headline

  • 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

  • Revenue
    ₹1,575 Cr
    YoY +32%
  • EBITDA
    ₹1,400 Cr
    YoY +43%
  • EBITDA Margin
    89%
  • PAT
    ₹251 Cr
    YoY +290%
  • Cash PAT
    ₹559 Cr
    YoY +155%
  • Capacity Utilization Factor
    25.6%
  • Gross Block
    ₹15,500 Cr

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

4,300 MW

as of 2025-03-31 quantified

Composition

Mix 2 products
  • PPA Signed 51%
  • LOA Awarded 49%

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

high confidence
  • Capex ₹20,000 Cr INR 16,500 crores from debt and INR 4,000 crores from equity
    • Under construction capacity (1,700 MW) ₹16,500 Cr
    The INR16,500 crores is the debt portion, long-term project finance, which is available to us. ... INR16,500 crores of debt will be supplemented by around INR4,000 crores of equity, and that will help us do INR20,000 crores of capex.
  • Debt 4.4× EBITDA Cost 8.8%
    • Refinance Refinancing for operational projects, reducing average interest rate by 75 basis points. ₹7,700 Cr
    As of FY '25, our net operational debt to EBITDA stands at 4.4, which is well within our guided range of 5.5.
  • Liquidity Cash ₹2,900 Cr · Undrawn ₹1,500 Cr Cash and bank balances as of FY25, supplemented by unutilized equity from credit lines.
    We continue to maintain a robust liquidity position with cash and bank balances of around INR2,900 crores as of FY '25. ... And we have unutilized, basically, equity, which will get released of around INR1,500 crores more, which we can take in terms of the unutilized credit lines, which we have available for our equity portion.

Guidance & targets

Capacity

  • Operational Capacity Capacity · soon · High confidence 3 gigawatts
    Our operational capacity as of today stands at around 2700 megawatts, and with the commissioning of the balance near commissioning project, which I just spoke about, we will be touching around 3 gigawatts soon.

    — Nikhil Dhingra

  • Sikar Plant Remaining Commissioning Capacity · next 30 days · High confidence 135 megawatt
    with the remaining capacity of around 135 megawatt under commissioning expected to be commissioned in the next 30 days.

    — Nikhil Dhingra

  • Wind Project Commissioning (First Phase) Capacity · early part of the second quarter · High confidence First phase running
    with the first phase running in the early part of the second quarter

    — Nikhil Dhingra

  • Wind Project Commissioning (Complete) Capacity · later part of the second quarter · High confidence Complete commissioning
    and the complete commissioning in the later part of the second quarter.

    — Nikhil Dhingra

  • Total Project Portfolio Capacity · ongoing · High confidence 7 gigawatts
    taking our total project portfolio to approximately 7 gigawatts.

    — Nikhil Dhingra

  • Total Contracted Capacity Target Capacity · ongoing · High confidence 10 gigawatts
    we reach 10 gigawatts

    — Nikhil Dhingra

  • Total Installed Capacity Target (for 10 GW contracted) Capacity · ongoing · High confidence more than 20 gigawatts
    installed capacity, which will be, let's say, for us also more than 20 gigawatts when we install this around 10 gigawatts

    — Nikhil Dhingra

Revenue

  • Sikar Plant Top Line Revenue · when fully operational · High confidence INR 230-240 crores
    it is expected to generate a top line of around INR230 to INR240 crores when fully operational.

    — Nikhil Dhingra

PPA

  • PPA Signing for New Projects PPA · very soon · High confidence 750 megawatts
    we are at a final stage of around three PPAs, which will aggregate to around 750 megawatts. We are hopeful that they will be signed very soon.

    — Nikhil Dhingra

Connectivity

  • Surplus Connectivity for Future Bids Connectivity · future · High confidence 2,500 megawatts
    we have surplus connectivity in place, both applied and secured of 2,500 megawatts for our future bids.

    — Nikhil Dhingra

Land

  • Government Land Applied Land · ongoing · High confidence 10,000 acres
    Additionally, we have applied for over 10,000 acres of government land, which is currently at various stages of approval process

    — Nikhil Dhingra

CUF

  • Overall CUF CUF · next year · Medium confidence bound to go up
    Next year, we will, of course, have the full run for our 1,200-megawatt plants. This new plant of 300-megawatt, which is just getting commissioned, also is part of the Rajasthan portfolio. ... the CUF is bound to go up.

    — Nikhil Dhingra

Capacity Addition

  • FY26 Capacity Addition (AC Basis) Capacity Addition · this year (FY26) · High confidence 450 megawatts
    on a FY '26 basis, we are very close to achieving our targets as per PPA timelines. 450 megawatt is what we are adding in this year.

    — Nikhil Dhingra

  • FY26 Capacity Addition (DC Basis) Capacity Addition · this year (FY26) · High confidence 600 megawatt peak
    On a DC basis, it could be, you can say 600 megawatt peak around that number.

    — Nikhil Dhingra

  • FY27 Capacity Addition Capacity Addition · FY '27 · High confidence 1.89 gigawatt
    1.89 gigawatt in FY '27.

    — Ankit Verma

  • Capacity Addition Post FY27 Capacity Addition · beyond FY '27 · Medium confidence 2 gigawatts
    It's roughly around 2 gigawatts.

    — Ankit Verma

Project

  • UP PSP Project Storage Capacity Project · ongoing · High confidence 600 MW into 6 MWh
    It's a 600 into 6 megawatt hour of storage, 6 hours of storage.

    — Nikhil Dhingra

Project Timeline

  • 380 MW FDRE Project COD Project Timeline · June 2026 · High confidence June of next year
    the scheduled COD of that project is June of next year.

    — Nikhil Dhingra

  • 570 MW SJVN Project Timeline Project Timeline · May 2026 · High confidence May 2026
    that's around 570 megawatts of SJVN, that's also the timeline is May 2026 as per the PPA.

    — Nikhil Dhingra

  • Battery Pilot Project Commissioning Project Timeline · later part of Q2 · High confidence Q2
    one pilot project, which will be executed in our operational sites in 200 megawatts. So, that we are targeting for Q2, the later part of Q2.

    — Nikhil Dhingra

  • Large-Scale Battery Project Commissioning Project Timeline · Q3 · High confidence Q3
    And the large scale battery we are trying to do in Q3.

    — Nikhil Dhingra

What to watch in Q1 FY26

Sikar Plant Commissioning Completion

next 30 days
Current 165 MW commissioned, 112.5 MW commissioned yesterday, ~135 MW remaining
Target Full 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.

Risks & concerns

  • PPA Signing Delays

    medium

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

    Management acknowledged

  • Project Commissioning Delays

    medium

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

    Management acknowledged

  • Tougher Commissioning Environment

    medium

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

    Management acknowledged

  • ALCM Impact on New Tariffs

    medium

    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

  • Wind Project Underperformance

    low

    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

Q&A highlights

5 direct
Timeline for large construction projects (380 MW FDRE, 680 MW) Direct
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

Battery Capex and Suppliers Partial
So, in terms of the capex, I will not be able to divulge specific numbers. But what I can tell you is that it is definitely much below the budget we had in terms of the initial bid budget. ... they are all tier 1 suppliers. And they are all from China, of course, because as you know, China is the primary supplier for the lithium-ion phosphate batteries which we are procuring.

Provides qualitative assurance on competitive battery capex and supplier quality, but withholds specific cost figures.

Asked by Apoorva Bahadur

ALCM Impact on Tariffs Direct
In none of the projects which we have bid for are under the ambit of ALCM. But how it impacts us is that the new bids come under the ambit of ALCM. So, for the customers, new bids and old bids are the same, right? They care about the prices. It's a commodity, right? My power is not different from the earlier power, right? So, in terms of the benchmarking, it gives us some benefit in terms of having the old PPAs because the ALCM will have an up move on the tariff.

Explains how the ALCM policy, while not directly affecting current projects, creates a favorable pricing environment for existing PPAs by potentially increasing future tariffs.

Asked by Apoorva Bahadur

PPA Signing for 2.52 INR Project (Omega Urja solar) Partial
So, I think the one thing is that on the ISTS waiver front, it's the commissioning date, and it's not the PPA signing date. So, there is no advantage, per se. But of course, you're very right that INR2.52 is a very attractive tariff, and we are expecting that PPA to get signed very soon. ... Right now, most of the utilities, this is Manoj here. So, most of the utilities, they are looking evening and morning power, right. So, they are not that much attractive to just buy solar, right. So, they are all preferring solar with battery, solar FDRE, those things, right.

Addresses the delay in signing a PPA for a low-tariff project, highlighting that ISTS waiver depends on commissioning, and current utility preference is for FDRE/battery solutions over pure solar.

Asked by Dhruv Muchhal

Battery Funding Hurdles (warranties, insurance) Direct
See, the INR16,500 crores of financing we have obtained, right, almost leaving apart one or two projects, all of them have battery components. So, that is something which has already happened. You know, ReNew recently operationalized the battery plant, right. They have got international lenders, Indian lenders. So, that hurdle has been crossed for a large portion of projects. All the leading lenders are comfortable with battery.

Confirms that funding for battery-integrated projects is no longer a significant hurdle, with lenders now comfortable due to government support and industry precedents.

Asked by Dhruv Muchhal

Wind Project Underperformance & Risk Mitigation Direct
So, the wind strategic role, which was there earlier in an FDRE plan, is no longer that strategic, because the solar and battery is able to compete very well with the component of wind, with the uncertainties built in in wind and reliability built in in solar and battery, so, that's a big plus. ... So, our wind components are very low in any of these FDRE. In hybrid, you can't help it. You have to have one third component as wind. ... we factor in a very conservative wind CUF, keeping in mind these past performances.

Explains the company's strategy to mitigate risks from wind underperformance by minimizing wind components in FDRE projects and using conservative CUF assumptions.

Asked by Anuj Upadhyay

FY30 Capacity Target (10 GW contracted, >20 GW installed) Direct
So, when we talk about target, we talk about contracted capacity and we don't talk about installed capacity. Some of the companies talk about installed capacity, which will be, let's say, for us also more than 20 gigawatts when we install this around 10 gigawatts or because the solar and the battery and various other equipment which go is multiples of the contracted capacity. For a 250 megawatt plant, let's say we will have more than 500, 600 megawatts of installed capacity.

Clarifies the distinction between contracted capacity (10 GW) and the significantly higher installed capacity (>20 GW) required to achieve it, providing insight into the company's long-term growth ambition and asset base.

Asked by Anuj Upadhyay

2 min read 5 chapters

Detailed narrative

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.

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.

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.

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.

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.

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