ACME Solar shares closed down 1.62% at ₹360.70 on Thursday despite reporting its strongest quarterly results to date, with the stock trading between ₹347.80 and ₹366.80 during the session. The decline came a day after the company filed its Q1 FY27 investor presentation with exchanges, as reported by The Hindu BusinessLine. The stock had hit a 52-week high of ₹398.65 as recently as July 14 and is now trading about 9.5% below that peak, though it remains up 51.85% year-to-date, sharply outperforming the Nifty 500, which is down 2.33% over the same period. Volumes of 59.22 lakh shares worth ₹211.94 crore changed hands on NSE during the trading session.
ACME Solar Holdings delivered its best-ever quarterly performance with consolidated profit after tax (PAT) jumping 79.87% year-on-year to ₹235.33 crore for Q1 FY27, driven by higher irradiation, improved plant performance, and renewable energy and battery energy storage system (BESS) capacity additions. The company achieved record quarterly revenue of ₹954 crore, up 63.3% from ₹510.98 crore in the corresponding quarter last year, while EBITDA increased 56.5% to ₹831 crore from ₹297.85 crore. PAT margin improved to 27.4% from 26.0% a year ago, with EBITDA margin at 57.1% compared to 58.0% in the previous year, as it included the cost of power purchased for BESS operations under operating expenses. The company's capacity utilisation factor (CUF) reached a record 30.9% during the quarter, demonstrating exceptional operational efficiency. As per ICICI Securities, reported EBITDA stood at ₹7.3 billion, ahead of consensus estimate of ₹6.5 billion, with the duck curve creating significant arbitrage opportunities as electricity prices decline during mid-day hours and spike up during evening peak periods.
ACME Solar Holdings has achieved full financial closure for its 250 MW Firm and Dispatchable Renewable Energy (FDRE) project by securing ₹3,404.57 crore in sole-lender project debt from Power Finance Corporation (PFC). The funding milestone represents the successful completion of a high-priority project that had been under development since January 2026, with the Power Purchase Agreement (PPA) already executed with NHPC Limited at an approved tariff of ₹4.33 per unit for 25 years. This achievement demonstrates ACME Solar's ability to secure institutional financing for complex hybrid renewable energy projects that combine solar, wind, and battery storage technologies, with PFC providing the funding through a repayment tenor of 19 years that matches closely with the 25-year PPA cash flows. The funding will be used for the development and construction of the ACME Urja One (Phase-III) project, which spans across Fategarh-II in Jaisalmer, Rajasthan and Jamkhambhaliya in Devbhumi Dwarka, Gujarat, with necessary land and connectivity already in place, and commissioning expected in 2027.
During Q1 FY27, ACME Solar signed power purchase agreements (PPAs) for 600 MW of FDRE and hybrid projects with SECI, taking its under-construction PPA-signed capacity to 3,880 MW. The company also commissioned around 2.3 GWh of BESS capacity, taking cumulative commissioned BESS capacity to about 3.62 GWh. Revenue from the phased operationalisation of around 3.1 GWh of BESS capacity stood at ₹226 crore during the quarter. The company secured short-term contracts with revenue lock-in of over ₹1,400 crore for the partial sale of FY27 BESS capacity and revised its guidance to commission cumulative BESS capacity of more than 10 GWh by FY27. This substantial BESS capacity expansion demonstrates ACME Solar's strategic focus on storage-linked hybrid assets and its transition from developer to operator in the high-growth FDRE segment. As per ICICI Securities, the company has upgraded its BESS contribution estimates by 16%/23% for FY27E/28E to factor in BESS capacities and arbitrage opportunities, with FY27/FY28 EBITDA estimates of ₹34/64 billion and BESS contribution of ₹10/15 billion respectively. The company aims to achieve BESS capacity base of 10,000 MWh by the end of the current fiscal.
ICICI Securities has upgraded ACME Solar Holdings to a BUY rating with a revised target price of ₹450, up from ₹350 earlier, as reported in its research report dated July 30, 2026. The brokerage firm cited the company's strong quarterly performance and significant BESS capacity expansion as key drivers for the upgrade. ICICI Securities estimates FY27/FY28 EBITDA of ₹34/64 billion, with contribution from BESS at ₹10/15 billion, driven by incremental new PPAs and earnings from BESS operations. The upgrade reflects the company's successful execution of its hybrid renewable energy strategy and its ability to capitalize on the duck curve creating significant arbitrage opportunities in the power market. With the company's operational contracted capacity of 2,990 MW, around 3.62 GWh of BESS capacity, and 5,080 MW of contracted capacity under construction, ACME Solar is well-positioned to execute its expanding renewable energy pipeline and strengthen its market leadership in the high-growth, storage-linked green energy space.
