ACME Solar Holdings is a renewable energy company in India with a portfolio of solar, wind, hybrid, and firm and dispatchable renewable energy ("FDRE") projects, incorporated in 2015. The company has established itself as one of India's largest renewable energy-independent power producers ("IPP") and among India's top 10 renewable energy players in terms of operational capacity as of June 30, 2024.
The company operates through an integrated business model that encompasses end-to-end project lifecycle management, from land acquisition, engineering, procurement, and construction (EPC) to operations and maintenance (O&M). This comprehensive approach allows ACME Solar to maintain control over costs, monitor real-time performance, and minimize reliance on third-party contractors.
ACME Solar has demonstrated impressive growth in its operational capacity. The company has doubled its operational capacity to 2.9 GW and continues to expand its portfolio across multiple renewable energy technologies. The company has 2.7 GW operational capacity and 2.3 GW under construction, along with a total order book of 6.9 GW.
The company's portfolio diversity includes solar, wind, and hybrid energy systems, along with FDRE, which provides firm, on-demand power through energy storage. This diversification strategy positions ACME Solar to capitalize on various market opportunities while reducing technology-specific risks.
ACME Solar Holdings has demonstrated strong financial performance, particularly in recent quarters. Today's market capitalization of ACME Solar Holdings Ltd is ₹15,101.18 Crore as of July 2025. The company's financial metrics reflect its growing scale and operational efficiency.
For FY25, ACME Solar reported a 7% YoY revenue increase to ₹15.8 billion, with a 131% rise in adjusted net profit to ₹2.5 billion. The company's Q4 FY25 performance showed remarkable growth, with revenue rising by 69.5% year-on-year to ₹539 Crore, driven by a substantial capacity addition of 1,200 MW.
Key financial highlights include:
- Revenue for FY25: ₹15.8 billion (7% YoY growth)
- Adjusted net profit for FY25: ₹2.5 billion (131% YoY growth)
- Q4 FY25 revenue: ₹539 Crore (69.5% YoY growth)
- Q3 FY25 revenue: ₹400.83 Crore (8.28% YoY growth)
- Q3 FY25 net profit: ₹112.06 Crore (152.1% YoY growth)
ACME Solar's projects are distributed across 10 Indian states, chosen for their renewable energy potential. The company's strategic geographic diversification helps optimize resource utilization and reduce regional risks.
With this latest achievement, ACME Solar's signed PPA portfolio now stands at 5,130 MW, of which 2,890 MW is already operational, and the remaining capacity is at various stages of implementation. Additionally, the company has a robust pipeline of 1,840 MW, with Letters of Award (LOA) already received.
The company's customer base is well-diversified, with 86% of ACME Solar's portfolio tied to off-take agreements with central government enterprises, while the remaining 14% is contracted with state distribution companies (discoms). This customer mix provides stability and reduces counterparty risk.
ACME Solar has been actively expanding its portfolio through strategic acquisitions and new project developments. The company recently secured significant contracts, including NHPC's tender for two Battery Energy Storage System projects in Andhra Pradesh, totaling 275 MW capacity. This marks the company's entry into standalone battery energy storage systems, complementing its existing renewable energy portfolio.
ACME Solar signed a 25-year PPA with SECI for a 300 MW Rajasthan project at ₹3.05/kWh, commissioned June 2025. The company has also been successful in securing favorable financing arrangements, including a ₹1,072 Crore refinancing deal for its 250 MW project in Rajasthan, reducing financing costs by 95 basis points.
The company has focused on operational excellence through technology adoption and process improvements. Capacity utilization factor has increased from 23.3% in H1FY24 to 24.6% in H1FY25 owing to initiatives focused on preventive and predictive maintenance. Plant availability has improved from 99.2% in H1FY24 to 99.3% in H1FY25.
The implementation of dry-cleaning robots streamlined the process of module cleaning and enhanced operational performance, demonstrating the company's commitment to technological advancement and operational efficiency.
The investment community remains optimistic about ACME Solar's prospects. 100% of analysts recommend a 'BUY' rating for ACME Solar Holdings Ltd. Average target price of ₹310.17, indicating significant upside potential from current levels. Motilal Oswal Financial Services has upgraded ACME Solar's target price to ₹347, reflecting a 40% upside due to strong project execution and capacity expansion.
The company's strong execution capabilities, diversified portfolio, and strategic positioning in India's growing renewable energy sector continue to attract positive analyst coverage and investor interest.
