Acme Solar Holdings Limited

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.

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.

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.

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.

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.

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.