ACME Solar Holdings shares rallied sharply by 8% in Friday's trading session, driven by bullish commentary from brokerages highlighting strong growth visibility and positioning in next-generation renewable energy segments. According to reports from The Hindu BusinessLine and The Economic Times, the stock jumped nearly 8% intraday, rising to ₹274 from its previous close of ₹254.12. The buying interest remained firm throughout the session, with the stock later trading about 6% higher at ₹268.83 on the NSE at 12:34 pm. The stock has demonstrated strong momentum with 37% gains over the past year, reflecting sustained investor confidence in the company's transformation strategy.
Investec initiated coverage with a buy rating and a target price of ₹319, representing a 25.5% upside potential from the previous close. As reported by The Economic Times, Investec cited ACME Solar's transition into a leading player in firm and dispatchable renewable energy (FDRE). The brokerage noted that nearly half of ACME's portfolio is already aligned to FDRE, with a robust pipeline of about 5 GW under development. Investec expects strong earnings growth over the next few years, driven by capacity additions and higher utilisation assets, with profitability supported by improving return ratios and execution visibility. The brokerage values the company at 9x FY28E EV/EBITDA, positioning it at a discount to peers trading in the 12-14x range.
A key highlight of ACME's portfolio is the increasing share of FDRE (Firm and Dispatchable Renewable Energy) projects, which account for around 79% or 4.0 GW of the under-construction pipeline, although these are yet to be operational. These assets typically operate at plant load factors exceeding 40% and deliver returns on equity of about 18%. As reported by The Economic Times, ACME's installed base is expected to grow from 2.5 GW in FY25 to 6 GW by FY28, supporting robust financial growth. Revenue, EBITDA and PAT are projected to grow at CAGRs of 62%, 63% and 69% respectively over FY25–28E, reaching ₹5,900 crore, ₹5,300 crore and ₹1,200 crore respectively. EBITDA margins are likely to improve to 89.5% by FY28E from 87.9% in FY25, led by higher contribution from high-margin FDRE projects.
Centrum Broking also initiated coverage with a buy call at ₹315, positioning the company as a high-growth renewable independent power producer (IPP). According to The Hindu BusinessLine, Centrum Broking expects robust earnings momentum, projecting revenue, EBITDA, and profit to grow at a strong pace over FY25–FY28. The brokerage noted that ACME's strategic shift towards hybrid, FDRE, and storage-backed projects enhances its competitiveness, offering better tariffs and improved project economics compared to traditional solar assets. The company's recent commissioning of an additional 4 MW out of 100 MW wind power project at Surendaranagar district, Gujarat, demonstrates continued operational progress.
The company maintains a robust growth pipeline with 5.1 GW of capacity currently under construction, providing clear multi-year visibility. As reported by The Economic Times, this is expected to scale installed capacity to 6 GW by FY28 and further to 8 GW by FY30E, implying a healthy CAGR of around 26% over FY25–30E. Importantly, a majority of these projects have been awarded by central agencies such as Solar Energy Corporation of India, NTPC Limited, NHPC Limited and SJVN Limited, which significantly reduces counterparty risk. The company enjoys strong execution visibility with power purchase agreements (PPAs) already secured for 3.5 GW of its under-construction portfolio, with management expecting letters of award for the remaining 1.6 GW, with only 300 MW pending. Additionally, evacuation infrastructure is in place for the entire 4.5 GW under-construction capacity, and most of the required land for projects planned up to FY27 has already been acquired.
