ACME Solar Hold.Q1 FY27
ACME Solar Hold. Q1 FY27 Earnings Call Analysis
Revenue, margin, capex, fundraise and order book outlook from management commentary.
Price: ₹398P/E: 47.7Market Cap: ₹28.4K CrSector: Power
Management growth scorecard
Revenue
Category 1
Margin
Category 3
Fundraise
N/A
Order
Yes
Capex
Yes
3 of 4 growth signals are positive.
Full analysisRevenue guidance
Category 1- →ACME Solar expects a revenue run rate of INR 1,400 crores+ in the next 2-3 years, based on a 10-gigawatt hour BESS capacity in short-term contracts.
- →There is potential to exceed INR 1,400 crores if the full 10-gigawatt hour capacity is contracted, with possibilities of reaching INR 2,000-2,500 crores in subsequent years.
- →The plan includes continuous pipeline development and bid submissions targeting more BESS capacity beyond 3 years, depending on market conditions and PPAs.
- →By 2030, the company plans to expand its capacity target beyond 10 gigawatts due to emerging market opportunities.
- →Growth also relies on expanding into promising sectors such as data centers and C&I customers, alongside government and PPA-backed projects.
- →The firm anticipates increasing battery storage volumes linked to peak power demand growth and evolving merchant market dynamics.
Margin guidance
Category 3- →ACME Solar expects continued revenue growth, targeting more than INR1,400 crores annually from BESS capacity in the next 2-3 years, with potential to exceed this as more capacity is contracted.
- →EBITDA margins for the core renewable business (excluding BESS) are stable around 88-91%, with BESS EBITDA margins around 80-82%; overall EBITDA margins are expected to maintain this range.
- →Increasing capacity additions and higher CUF (Capacity Utilization Factor) contribute to EBITDA growth; continuous plant repowering also supports margin improvement.
- →Company plans to commission 1.5 GW renewable capacity in FY27, with a capital expenditure of INR15,000-20,000 crores fueling growth.
- →Long-term growth beyond 2030 includes plans to increase capacity beyond 10 GW, focusing on peak power and storage solutions.
- →Profit after tax grew 80% YoY in Q1 FY27, indicating strong earnings momentum.
- →Expansion into new segments like data centers and C&I customers is expected to add to future profitability.
3 more insights locked — sign up free to unlock
Fundraise plans
- →The transcript does not explicitly mention any current or future fundraising plans through debt or equity.
- →However, it is noted that the company has already ordered more than 15 gigawatt-hours of battery capacity within budgeted cost, indicating ongoing capital expenditure funded by existing resources.
- →There is mention of a 20-year depreciation policy and existing interest costs (INR 32 crores for battery-related interest), reflecting current debt servicing.
- →The company plans growth beyond 10 gigawatts by 2030 and may update on this in coming quarters, which could imply future capital raising, though not explicitly stated.
- →Overall, no definite debt or equity fundraising plans were disclosed in the provided pages.
Order book
Yes- →ACME Solar Holdings currently has a total portfolio of 8,070 megawatts under execution, which includes around 20 gigawatt hours (GWh) of battery storage.
- →They have signed 3,880 megawatts of FDRE and hybrid PPAs (power purchase agreements) out of the 5,080 megawatts of projects under construction.
- →Approximately 1,200 megawatts of projects are under construction but PPAs are yet to be signed; these are progressing well and expected to be signed soon.
- →They have already contracted nearly all of their planned 20 GWh of battery capacity (around 90% contracted), with only about 600 megawatt hours currently uncontracted but intended to be put under PPA soon.
- →The company plans to commission around 1.5 gigawatts of contracted renewable energy capacity in FY27, subject to timely availability of substations and transmission lines.
- →A steady pipeline exists with enabling medium- and long-term contracts, including participation in storage-related and peak power tenders.
Capex plans
Yes- →Capex largely done for non-module parts of projects, including 80% of transmission lines, substations, and plant infrastructure.
- →Modules are being purchased opportunistically, with current prices around INR11.60 per watt, considering favorable Chinese module pricing until December.
- →Plans to minimize interest during construction by balancing timing of module purchase.
- →Ordered more than 15 gigawatt-hours of batteries from global suppliers CATL and Hithium, within budgeted costs (~INR93 lakhs per MW including IDC and EPC profit).
- →Battery capital costs expected to stay within budget despite potential modest price increases (5-10%) due to commodity and currency fluctuations.
- →Building capability and team focused on catering to data center power requirements.
- →Future investments aimed at CTU-connected projects to leverage peak power and infra strengths.
- →Upgrading projects to include 4-hour battery cycles to meet PPA requirements, with some states buying 6-hour power.
- →Strategic focus on growth beyond 10 GW by 2030 based on market opportunities.
How does ACME Solar Hold. rank vs peers in Power?
Pro feature1ACME Solar Hold.
Rev 1Mar 3
See full Power sector rankings
How does ACME Solar Hold. rank in Power?
Compare ACME Solar Hold. against every Power company (Q1 FY27) on revenue, margins and earnings-call signals.