ACME Solar Holdings Ltd Q4 FY26 Earnings Analysis

- ACME Solar plans to commission approximately 1.5 gigawatt of contracted renewable capacity in FY'27. - Targeting more than 10 gigawatt hour of Battery Energy Storage Systems (BESS) commissioning by calendar year 2027. - Near-term visibility includes around 770 MW of PPAs, with advanced discussions on an additional ~700 MW. - The company aims for a 10 gigawatt operational capacity target by 2030. - Generated 1,567 million units in the recent quarter with a 49% YoY increase, indicating strong volume growth. - Capacity additions aligned with connectivity readiness, ensuring timely execution and disciplined capacity build-up. - Industry-wide demand revival expected to accelerate PPA signings, supporting revenue growth. - Battery projects operational in FY'27 expected to add EBITDA, with 1 GWh battery capacity contributing around Rs. 170 crore EBITDA annually.

- ACME Solar plans to execute ~1.5 GW of contracted renewable capacity and commission over 10 GWh of BESS by calendar year 2027, enabling revenue growth. - EBITDA margin improved to 91.5% in Q3 FY'26; cash ROE was strong at 20.6% as of December 2025. - Battery projects contribute significant profitability, with 1 GWh battery generating ~Rs. 170 crore EBITDA annually at Rs. 5 arbitrage. - By FY'27, 1.5 GW capacity addition and 4-6 GWh battery installations expected, supporting expanding operating profits. - Debt optimization efforts reduced weighted average cost of debt to 8.45%, improving financial efficiency. - Near-term focus on signing PPAs for ~770MW and advanced discussions for additional 700MW, supporting stable future cash flows. - Achieving high-teen IRRs on projects ensures sustained profitability. - Targeting 10 GW operational capacity by 2030, indicating strong long-term growth in earnings and EPS.

- FY'27 planned execution: ~1.5 GW of contracted renewable capacity. - FY'27 BESS commissioning target: >10 GWh (Battery Energy Storage System). - CAPEX for FY'27 renewable capacity: ~Rs. 12,000 crores (includes BESS cost). - CAPEX for FY'28 renewable capacity: ~Rs. 10,000 crores (includes BESS). - Strategy to fast track BESS installment of 10 GW in FDRE projects by calendar year 2027 to unlock early value. - Deployment of batteries at operational sites to optimize transmission, save Rs. 20 lakhs per MW on transmission CAPEX, and avoid ROW challenges. - Buffer of a quarter delay kept in planning for transmission projects; strategic CAPEX deferrals if delays extend. - Majority of land acquisition and connectivity secured; over 90% debt tied up for PPAs signed under construction portfolio. - Near-term PPA visibility of ~770 MW with advanced discussions for an additional ~700 MW.

- The transcript does not mention any specific plans for new fundraising through debt or equity. - It highlights debt optimization efforts, including refinancing and credit rating upgrades. - Weighted average cost of debt has reduced to 8.45% for operational portfolio and 8.6% for entire outstanding debt. - Debt has already been tied up for more than 90% of PPAs signed under construction portfolio (excluding 250 MW signed recently). - No explicit mention of fresh debt raising or equity issuance in the near term. - Focus appears on execution of 1.5 GW contracted renewable capacity and 10+ GWh BESS commissioning by 2027, with most debt and land acquisition secured. In summary, ACME Solar is focusing on optimizing existing debt rather than raising new debt/equity currently, backed by strong refinancing and credit upgrades.

- ACME Solar Holdings Limited has around 7.5 gigawatt of secured and applied connectivity inventory available for upcoming bids beyond existing portfolios, live in phases till FY'33. - Near-term visibility includes approximately 770 MW of PPAs pending signing, including 130 MW REMCL PPA invitation and PSA consent secured for 640 MW with advanced regulatory approvals. - There is an additional ~700 MW of PPAs under advanced discussion without written buyer approval yet, potentially signing in the next quarter. - Total portfolio stands at 7,770 MW, which includes operational capacity, under-construction projects, and PPAs. - Debt has been tied up for more than 90% of PPAs signed under the under-construction portfolio. - The company targets 10 GW operational capacity by 2030 with continuous focus on winning new projects meeting their return criteria.