AI-generated · cited to primary sources · not investment advice · How we research
ACME Solar Hold.
Our verdict on ACME Solar Hold. isn’t the consensus take — see where we landed, and the one risk the bull case glosses over.
See the verdict — free →Does management do what it says?
The company reported a Cash ROE of 20.1% for FY26, significantly higher than the 16% threshold. (1 exceeded, 4 met across 5 tracked commitments)
“Net Debt/Run-Rate EBITDA targeted to be under ~5.5x on operational portfolio basis”
The company exceeded its upgraded target by commissioning 2,352 MWh (~2.35 GWh) of BESS capacity by the end of the financial year. (1 exceeded, 2 met, 1 revised, 1 in progress across 5 tracked commitments)
“Cumulatively, with 422 megawatt commissioned year to date, we remain firmly on track to achieve our FY'26 commissioning guidance of 450 megawatt with a balance 28 megawatt at advanced stages of construction.”
See the full cited Management analysis of ACME Solar Hold.
How durable is the business?
Revenue from operations grew significantly due to new capacity additions and higher capacity utilization factors (CUF). (5 expanding across 1 engine)
“At Consolidated level, Operational Revenue is reflected only from Sale of Electricity while EPC Revenue gets eliminated due to inter-group nature. Revenue increased by 30.7% for the quarter (y-o-y basis), driven by capacity addition and higher CUF. EBITDA margin of 90.2% for the quarter”
The company is expanding its cost advantage by integrating Battery Energy Storage Systems (BESS) and securing lower interest rates through refinancing. (1 expanding)
“One of the Largest Renewable Energy IPPs in India... Portfolio of 8,071 MW and 550 MWh standalone BESS spanning across solar, wind, storage, hybrid & FDRE projects... Long Term Stable Cashflows: Contracted through 25 yrs PPAs with government backed entities at fixed tariffs”
See the full cited Business Model analysis of ACME Solar Hold.
Where does growth come from?
The BESS initiative is accelerating with a massive 3.1 GWh order placed and a new 550 MWh standalone project win. (1 accelerating across 1 signal, 1 leading indicator)
“Acme Solar is advancing commissioning and operation of large-scale BESS capacity on merchant on short term basis... resulting in net realization as on date: INR ~2.2 Cr/day”
The pipeline of projects under construction is robust, providing clear visibility for growth over the next 2-3 years. (1 new trend, 4 steady across 5 signals, 2 leading indicators)
“Target to have a portfolio of 10 GW generation capacity and 20 GWh BESS capacity by 2030”
See the full cited Future Growth analysis of ACME Solar Hold.
What could break the thesis?
Execution risk is easing as the company is on track to meet its FY26 commissioning guidance (422 MW of 450 MW target completed). Connectivity is secured for all under-construction projects, and land acquisition is complete for the majority of FY27 projects. (1 easing, 4 stable, 1 high-severity)
“taking total under construction capacity to 5,081 MW... Total portfolio of 8,071 MW”
The risk is INTENSIFYING. Grid Availability (GA) dropped by 0.8% due to a specific transformer failure at a solar park pooling substation in Rajasthan. (5 intensifying, 1 high-severity)
“Net Debt (INR Cr) Q4 FY25 7,507 Q4 FY26 12,830”
See the full cited Risk analysis of ACME Solar Hold.
Read the full thesis on ACME Solar Hold.
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