Acme Solar Holdings Limited — Q4 FY26 earnings call

Call held 8 May 2026

Management summary

ACME Solar Holdings reported strong financial performance for Q4 and FY26, driven by significant revenue growth and high EBITDA margins. The company successfully commissioned 2.3 GWh of BESS capacity, contributing substantially to daily realization, and expanded its project pipeline to over 8 GW. Strategic debt refinancing improved financial efficiency, while the company actively manages transmission delays through merchant BESS operations and focuses on central grid connectivity.

Highlights

  • FY26 Revenue of ₹2,507 crores, up 59% YoY, and Q4 Revenue of ₹705 crores, up 31% YoY.

  • EBITDA Margin over 90% for both Q4 and FY26, reflecting strong operational efficiency.

  • Approximately 2.3 gigawatt-hours (GWh) of BESS capacity commissioned, delivering net realization of ₹2.2 crores per day.

  • Under-construction portfolio expanded to 5.1 gigawatts (GW) and total portfolio to 8,071 megawatts (MW) with new project wins.

  • Refinanced ₹3,300 crores of debt for operational projects, reducing interest rates by ~150 basis points to an average of 8.4%.

Concerns

  • Transmission delays in Brownfield projects, though mitigated by BESS merchant operations.

  • A 1% decline in overall portfolio PLF year-on-year, attributed to lower irradiation and curtailment.

  • Ongoing regulatory debate regarding the trading margin (0.5% vs ₹0.07 paisa) for a specific 550 MWh BESS project.

Key financials

2 periods

Q4

  • Revenue
    ₹705 Cr
    YoY +31%
  • EBITDA Margin
    90%
  • PAT
    ₹138 Cr
  • PAT Margin
    19.6%
  • CUF
    26.9%
  • Generation
    1,720 million units
    YoY +13%

FY26

  • Revenue
    ₹2,507 Cr
    YoY +59%
  • EBITDA Margin
    90%
  • PAT
    ₹498 Cr
  • PAT Margin
    19.9%
  • Generation
    6,464 million units
    YoY +61%

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

8,071 megawatts

as of 2026-03-31 quantified

Inflow this quarter

301 megawatts

Composition

Mix 5 contract types
  • Under Construction (Total) 5.1 gigawatts 0.1%
  • PPA Signed Capacity 3,280 megawatts 79.2%
  • LOA converted to PPA (under construction) 3.2 gigawatts 0.1%
  • PPAs won recently 1.8 gigawatts 0%
  • Older PPAs in discussion 850 megawatts 20.5%

Share of order book by contract type, derived from disclosed amounts

Pipeline

other

Merchant BESS capacity slated to go to PPA

Cancellations & deferrals

  • other: Curtailment impact of ₹5-6 crores for the whole year, with ₹3 crores in Rajasthan for state-connected projects.
The company maintains a strong and growing project portfolio, with a focus on converting LOAs to PPAs and leveraging BESS for merchant operations amidst transmission delays.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex ₹1,200 Cr this quarter · ₹12,475 Cr (FY26) planned
    • Total committed capex ₹12,475 Cr
    • Capex incurred during FY26 ₹6,445 Cr
    • Purchase orders aggregating ₹6,030 Cr
    • Battery capex (Q4 approx) ₹1,200 Cr
    • Capital advances for material procurement (battery/turbines) ₹323 Cr
    we have committed total capex of INR12,475 crores, which includes capex incurred of INR6,445 crores during the year and purchase orders aggregating to INR6,030 crores. ... So in terms of last quarter, this quarter we have done approximately around INR1,200 crores of capex on the battery. ... Capital advances, Roughly INR323 crores.
  • Debt Debt disclosed Cost 8.4%
    • New borrowing Secured financing for various under construction projects ₹15,000 Cr
    • Refinance Refinanced debt for various operational projects, reducing interest rate by ~150 bps ₹3,300 Cr
    Also, the weighted average cost of debt for the operational projects stands at 8.4% per annum.
  • Liquidity Liquidity disclosed Financing is available for projects.
    We do have the financing available.

Guidance & targets

Capacity

  • Operating Battery Portfolio Capacity · Future · High confidence 10 gigawatt hour
    Upcoming future operational capacity is expected to have an operating battery portfolio of around 10 gigawatt hour, along with 1.5 gigawatts of contracted generation capacity

    — Nikhil Dhingra

  • Contracted Generation Capacity Capacity · Future · High confidence 1.5 gigawatts

    — Nikhil Dhingra

  • Projects Commissioning Capacity · This financial year · High confidence 1.5 gigawatts
    So we are targeting 1.5 gigawatts of projects in this financial year, right, and around 10 gigawatt hour of battery.

    — Nikhil Dhingra

  • Battery Commissioning Capacity · This financial year · High confidence 10 gigawatt hour

    — Nikhil Dhingra

  • Ready Substations and Connectivity for Battery Capacity · Near future · High confidence 2,500 megawatts
    And we have 2,500 megawatts of ready substations and connectivity, which are going to go live in the near future.

    — Nikhil Dhingra

  • Merchant BESS (FY27) Capacity · This financial year · High confidence 8.5 gigawatt hour
    So you will see around 8.5 gigawatt hour out of this 10 gigawatt hour would be on merchant.

    — Nikhil Dhingra

Profitability

  • Merchant BESS EBITDA Margin Profitability · Ongoing · High confidence 75-80%
    But assuming a tariff arbitrage of INR6, which means selling the power at INR8, which of course more than that we are currently seeing and purchasing the power at INR2. So give or take, the margin will be around 75% to 80% EBITDA margin.

    — Ankit Verma

Commissioning Timeline

  • Neemuch Substation Commissioning Timeline · June · High confidence June
    There is a Neemuch substation, which will be the first commissioning from our side because that's the substation which is more or less ready, and it will be charged in June

    — Nikhil Dhingra

  • Fatehgarh Long-Term Open Access Commissioning Timeline · March 2027 · High confidence March '27
    The long-term open access as per CTU is in March '27. So the full FDRE for SJVN, but will be ready by FY '27 end.

    — Nikhil Dhingra

  • NTPC Long-Term Open Access Commissioning Timeline · December 2026 · High confidence December '26
    And the NTPC, we are ready with the solar. But of course, there is a long-term open access there also which is slated to be commissioned by December '26.

    — Nikhil Dhingra

  • All FY27 Projects (SJVN, FDRE, NTPC hybrid) Commissioning Timeline · March 2027 · High confidence March '27
    So the full FDRE for SJVN, but will be ready by FY '27 end. ... So by March '27, all this will be commissioned.

    — Nikhil Dhingra

What to watch in Q1 FY27

Neemuch Substation Commissioning

Next quarter
Current Slated for June 2026
Target Operational

Why it matters

This is the first commissioning from ACME's side for FDRE projects and is a key milestone for future capacity.

There is a Neemuch substation, which will be the first commissioning from our side because that's the substation which is more or less ready, and it will be charged in June

Risks & concerns

  • Transmission delays in Brownfield projects

    medium

    Transmission delays in Brownfield projects are occurring, but the company is utilizing BESS for merchant operations to mitigate the impact.

    Management acknowledged

  • CTU timeline shifts

    medium

    CTU timelines for substations are shifting, impacting project commissioning, but the company is deferring solar capex and installing batteries early to adapt.

    Management acknowledged

  • Geopolitical factors impacting material supply

    medium

    Geopolitical factors are identified as uncertainties that could impact the supply of materials for projects.

    Management acknowledged

  • Regulatory debate on BESS trading margin

    low

    A debate is ongoing with the state regulator regarding the appropriate trading margin (0.5% vs ₹0.07 paisa) for a specific 550 MWh BESS project.

    Management acknowledged

Q&A highlights

8 direct
Battery cost capitalization and commissioned capacity Direct
So in terms of last quarter, this quarter we have done approximately around INR1,200 crores of capex on the battery. ... But in the last quarter, we did around -- basically last quarter was around INR1,000 crores to INR1,200 crores. ... And how much was commissioned till last quarter? Yes, just in capacity terms as well? 1.3.

Clarifies the significant capital expenditure on BESS and the current operational scale of battery assets.

Asked by Puneet

Run rate EBITDA from existing capacity Direct
So give or take for the last full year, our EBITDA, including other income has been around INR 2,200-odd crore. This primarily includes revenue from sale of power only from the PPA projects. However, given that the batteries came in various phases in the last quarter, especially in March. So probably the run rate EBITDA you will realize in this quarter itself. But having said that, like I mentioned, 2.3 gigawatt hour is currently operational. And of course, it is running on a merchant basis. And as Arun highlighted earlier, so it is delivering, give or take, average net realization of INR2.2 crores per day, which is effectively more than INR60 crores per month, this capacity which is running.

Provides specific financial contribution from operational assets, differentiating between PPA projects and new merchant BESS.

Asked by Puneet

PLF of new solar plants Direct
So our Sikar plant basically got commissioned in this year, right? And it is doing close to around 29% to 30% year CUF-- for the overall year. ... So for the last quarter, I think, see PLF has been around 28% plus for these plants. ... For the full year, it's been close to 26% for the entire portfolio.

Details the performance metrics (CUF/PLF) of recently commissioned solar assets and the overall portfolio.

Asked by Puneet

SECI ISTS hybrid tranche scheme economics with battery inclusion Direct
Yes, it got approved, right. So basically, it is -- what happens is most of the states want battery installation along with the project. So it basically keeps the return in high teens only. So it does not impact really the returns from this thing. But of course, we need to satisfy the customer requirement in terms of the power mix they want because everybody needs peak power now. So that is where we need to offer that 1 hour of battery, yes.

Explains the strategic and financial rationale behind integrating batteries into new hybrid projects, driven by market demand for peak power.

Asked by Puneet

Curtailment impact in Rajasthan Direct
But adjusted for that, for the whole year, we have only INR5 crores to INR6 crores of impact on the curtailment, which is the real curtailment. And of course, on STU, it was only INR3 crores in Rajasthan for the whole year, state connected projects. ... Most of the CTU connected projects, we are installing the battery. So in fact, such curtailment sometimes provides you opportunity to sell the power in the peak or in the evening. ... And as the battery installation happens... the curtailment issue will be further reduced

Quantifies the financial impact of curtailment and highlights how BESS installations are mitigating this risk, especially for CTU-connected projects.

Asked by Kartik Sharma

DSO improvement sustainability Direct
Yes. Actually that there was a regulatory reform, which was government has implemented called LPS, right? Under that LPS late payment surcharge scheme, 2, 3 states which were delayed actually because of the various regulatory issues, there were some court cases in Andhra Pradesh. All those dues are now settled and they are paying on time because this LPS scheme is very strict. ... So central projects, technically, they are paid in just 6, 7 days because they want to take a cash discount.

Confirms that the significant improvement in Days Sales Outstanding (DSO) is due to structural regulatory changes and a shift towards central off-takers, making it sustainable.

Asked by Kartik Sharma

Cash flow impact from non-current assets (capital advances) Direct
So it is mainly because of the capex buying which is happening. So it mainly include the capital creditors. ... Capital advances, Roughly INR323 crores. ... Let's say, battery contracts, we have typically 10% advance upfront where we get a bank guarantee against it. Similarly, the turbines also we give 20% advance. So these are capital advances you need to give to supplier where they give you a BG against that.

Clarifies the nature of the increase in non-current assets, linking it to necessary capital advances for project procurement, which is a standard industry practice.

Asked by Aniket Mittal

CERC LOA-based connectivity mechanism Direct
No, that's a very welcome move from CERC, which CERC has done. It's a discussion paper right now, and they will formalize it after getting comments from all. So that's a good move. In terms of how it will work is if you are not able to sign PPAs for a certain amount of LOA and the Renewable Energy Implementation Agency really clarifies that these PPAs cannot be signed. Then of course that developer is free to develop it in a merchant basis or free to use it in another LOA. As far as we are concerned, we have around 6.2 gigawatts of signed PPA, which we are constructing. And so which is a very sort of so our LOAs are more or less converted into PPA.

Addresses a new regulatory development that could impact project flexibility and the company's strategy for utilizing its connectivity for unsigned PPAs.

Asked by Ishan

2 min read 6 chapters

Detailed narrative

Strong Financial Performance and Operational Efficiency

ACME Solar Holdings delivered robust financial results for Q4 and FY26, with Q4 revenue growing 31% year-on-year to INR 705 crores and full-year FY26 revenue increasing 59% to INR 2,507 crores. The company achieved an impressive EBITDA margin of over 90% for both periods, reflecting strong operating leverage and optimized efficiency. Net profit for Q4 stood at INR 138 crores (19.6% margin) and for FY26 at INR 498 crores (19.9% margin), underscoring healthy profitability.

Significant BESS Commissioning and Contribution

The company successfully commissioned approximately 2.3 gigawatt-hours (GWh) of Battery Energy Storage System (BESS) capacity, which is currently operating on merchant and short-term contracts. These BESS units are generating a net realization value of approximately INR 2.2 crores per day, translating to over INR 60 crores per month. The BESS operations are demonstrating high efficiency with a round-trip efficiency of 88% to 90%, meeting or exceeding expectations.

Expanding Project Pipeline and Order Book

ACME Solar expanded its under-construction portfolio by winning 301 megawatts (MW) of peak power FDRE projects, bringing the total under-construction capacity to 5.1 gigawatts. The total project portfolio now stands at 8,071 megawatts, which will require the installation of approximately 17 gigawatt-hours of BESS. The company has 3.2 gigawatts of LOA converted to PPA under construction and recently won 1.8 gigawatts of PPAs, demonstrating a robust pipeline.

Strategic Debt Management and Capital Deployment

During FY26, the company secured INR 15,000 crores in financing for various under-construction projects. Additionally, INR 3,300 crores of debt for operational projects were refinanced, resulting in a reduction of approximately 150 basis points in interest rates. This strategic move brought the weighted average cost of debt for operational projects down to 8.4% per annum. Total committed capex is INR 12,475 crores, with INR 6,445 crores incurred during the year and INR 6,030 crores in purchase orders.

Regulatory Updates and BESS Strategy

India's electricity demand reached a record 256 gigawatts in April '26, with 55 gigawatts of renewable energy added in FY26. MNRE has clarified that BESS charged from conventional power can sell power in merchant mode, and CERC is reviewing SCOD timeline extensions. ACME is actively participating in short- and medium-term BESS opportunities, leveraging transmission delays in Brownfield projects by utilizing BESS for merchant operations and focusing on central grid connectivity.

Commissioning Outlook and Future Targets

For FY27, ACME targets commissioning 1.5 gigawatts of projects and 10 gigawatt-hours of battery capacity. Key commissioning milestones include the Neemuch substation in June, Fatehgarh long-term open access by March '27, and NTPC long-term open access by December '26. The company anticipates that approximately 8.5 gigawatt-hours of the 10 gigawatt-hour battery target will operate on a merchant basis, with an expected EBITDA margin of 75-80% for these operations.

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

More Power earnings calls