ACME Solar Holdings Ltd
(BOM:544283)
₹
368.05
-7.35 (-1.96%)
Market Cap: 260.34 Bil
Enterprise Value: 396.26 Bil
PE Ratio: 38.04
PB Ratio: 4.41
GF Score: 12/100 
Q1 2027 ACME Solar Holdings Ltd Earnings Call Transcript
Jul 30, 2026 / 06:30AM GMT
Release Date Price:
₹361
(-1.47%)
Key Points
Positve
- Record Q1 FY27 performance with highest-ever revenue of INR 954 crore (up 63% YoY) and EBITDA of INR 831 crore (up 56% YoY), driven by higher CUF, BESS contributions, and capacity additions.
- BESS operations delivered strong financials: INR 226 crore revenue from power sales with EBITDA-to-CapEx yield exceeding 20%, and 1,400 crore of short-term contracts locked in for FY27.
- Commissioned 2.3 GWh of BESS during the quarter, reaching 3.62 GWh cumulative capacity (about 40% of India's total), with operational excellence (RTE ~89%, DoD ~93%, SoH >99.9%, availability >99%).
- Upgraded BESS commissioning guidance to >10 GWh by FY27 (three quarters earlier than prior target) and secured battery supply for ~90% of the 20 GWh portfolio from leading suppliers like CATL and Lithium.
- Signed 600 MW of FDRE and hybrid PPAs with SECI, bringing total PPA-assigned capacity to 3,800 MW out of 5,080 MW under construction, with debt tied up for ~85% of the PPA portfolio.
- Achieved record CUF of 30.9% (up from 28.5% YoY) and power generation up 23% YoY, supported by continuous repowering and operational improvements.
- Successfully completed QIP, providing flexibility to prepone CapEx for under-construction projects and improve return economics.
- Positive regulatory developments: MNRE extended commissioning deadlines, Ministry of Power extended ISTS waiver benefits, and CERC's free exit option for merchant conversion is expected to free up connectivity, benefiting future growth.
- Strong sector tailwinds: India's power demand grew 8.8% YoY in Q1, peak demand hit a record 271 GW, and renewable capacity additions are accelerating, supporting long-term demand for BESS and peak power.
- Management's strategic focus on early BESS deployment and short-term contracts is delivering superior returns, with plans to maintain ~10 GWh of BESS capacity for the short-term market annually over the next 3-4 years.
Negative
- BESS operations carry execution risks: The recent fire incident at ACME Suryodaya facility, though attributed to AC cabling short circuit, highlights potential operational hazards and could impact investor confidence.
- Dependence on timely availability of substations and transmission lines for commissioning 1.5 GW of renewable capacity in FY27; delays could push projects into FY28, affecting revenue recognition.
- BESS revenue is heavily reliant on short-term contracts (85% of BESS revenue), which are subject to market volatility and pricing fluctuations; management acknowledges potential for price normalization beyond the current El Nino-driven demand.
- Curtailment from state-based projects contributed to ~1% revenue loss in Q1, and while mitigation measures are planned, regulatory and operational challenges persist.
- High capital expenditure guidance of INR 15,000-20,000 crore for FY27 (up from INR 3,000 crore in Q1) increases financial risk, especially with rising BESS costs (lithium carbonate volatility) and potential interest rate pressures.
- The company has a significant open capacity of ~1,200 MW (out of 5,080 MW under construction) for which PPAs are yet to be signed, exposing it to merchant market risk and potential revenue uncertainty.
- BESS EBITDA margin (82%) is lower than the renewable portfolio (88-89%) due to power purchase costs, and management expects only a 2-5% variation, indicating limited margin expansion potential.
- The merchant BESS market is nascent and competitive; while management sees strong demand, the entry of other players (e.g., Adani) could compress spreads over time, though management remains optimistic.
- Regulatory changes, such as the CERC free exit option, could lead to increased competition for connectivity and potentially lower returns on future projects.
- The company's growth plans are contingent on continued strong bidding activity from SECI and states; a slowdown in bids (as seen recently) could impact pipeline replenishment and future revenue growth.
Operator
Ladies and Gentlemen, good day and welcome to ACME Solar Holdings Limited, Q1 and FY27 Earning Conference Call hosted by MUFG Anytime. (Operator Instructions) I now hand the conference over to Mr. Nikunji seth. Thank you, and over to you, Nikunj.
Nikunj Seth
MUFG Pension & Market Services - Assistant Vice President
Thank you, Ramesh.
Hello, everyone. Welcome to Q1, FY27 Earnings Conference Call of ACME Solar Holdings Limited.
From the management, we have with us Mr. Manoj Upadhyay, Chairman and Managing Director, Mr. Nikhil Dhingra, CEO, Mr. Arun Chopra, CFO, and Mr. Ankit Verma, Director and Head of Corporate fina.
Now, I would like to hand over the call to the management for their opinion.
Ankit Verma
ACME Solar Holdings Ltd - Director - Corporate Finance and Investor Relations
Good afternoon, everyone, and thank you for joining us today.
I am Ankit Verma, Director of Corporate Finance, and it is my pleasure, to present the highlights of our performance for the first
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