Synopsis:
ACME Solar Holdings Ltd jumped 10% after reporting a 13,000% YoY surge in net profit for Q1FY26. Strong revenue growth, margin expansion, and new project wins, including battery storage and wind, signal robust execution and long-term potential in India’s clean energy transition.
Shares of a leading renewable energy stock surged nearly 10% after it reported strong Q1 results, marked by double-digit growth in revenue and profit on both quarterly and annual basis. Margin expansion, improved generation metrics, and operational milestones further fueled investor optimism.
The stock in focus is ACME Solar Holdings Ltd, which has a market capitalization of Rs 17,783 crore. The stock opened at Rs 284.85 and touched an intraday high of Rs 297.48, compared to its previous close of Rs 270.45 a gain of 9.99%.
What’s the News?
Quarter-on-Quarter (Q1FY26 vs Q4FY25): ACME Solar reported a consolidated revenue of Rs 511 crore in Q1FY26, up 4.9% from Rs 487 crore in Q4FY25. Operating profit rose 5% to Rs 458 crore from Rs 436 crore in the previous quarter. Profit before tax increased by 4.8% to Rs 174 crore from Rs 166 crore, while net profit grew 7.4% to Rs 131 crore compared to Rs 122 crore last quarter. Margins also showed notable improvement, with EBITDA margin expanding from 88.8% to 90.9%, and PAT margin increased from 0.4% to 22.4%, driven by stable execution and operating leverage.
Year-on-Year (Q1FY26 vs Q1FY25): On an annual basis, the company posted a robust 64.8% increase in revenue from Rs 310 crore in Q1FY25 to Rs 511 crore in Q1FY26. Operating profit jumped 68.4% from Rs 272 crore to Rs 458 crore, while profit before tax surged 248% from Rs 50 crore to Rs 174 crore. Net profit recorded a steep rise from just Rs 1 crore in the same quarter last year to Rs 131 crore in the current quarter, marking a 13000 percent growth.
Comments from Management
Commenting on the quarterly performance, Mr. Manoj Kumar Upadhyay, Chairperson & MD, ACME Solar Holdings Ltd, said, – “We are proud to report another strong quarter, marked by robust financial performance and meaningful operational progress. The commissioning of 350 MW, including our first wind project, underscores our commitment to diversifying our clean energy portfolio.
Securing our maiden standalone battery storage projects is a landmark moment – positioning us at the forefront of the energy transition as we scale solutions that enhance grid reliability and flexibility. Our continued focus on execution excellence and disciplined financial management is clearly reflected in our margin expansion, significant improvement in cash PAT, and reduced debt cost.
The adoption of tariffs for the majority of our under-construction portfolio and signing of key PPAs reflect the strong demand for the renewable energy solutions. We remain confident in our longterm growth trajectory and are committed to delivering sustainable value to all stakeholders.”
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Operational Highlights
ACME commissioned 350 MW of projects in Q1FY26, including its first 50 MW wind project in Gujarat, taking the total operational capacity to 2,890 MW, up 115.7% YoY. The company won its maiden standalone battery energy storage system (BESS) project of 550 MWh with NHPC and signed PPAs for 550 MW (FDRE 250 MW, Solar 300 MW) along with 550 MWh of standalone BESS.
It generated 1,636 million units (MUs) during the quarter, up 107.1% YoY, driven by a rise in capacity utilization factor (CUF) to 28.5%, compared to 27.0% in Q1FY25. Rajasthan-based assets with 2,250.8 MW contracted capacity delivered an average CUF of 30.3%. Plant availability and grid availability stood at 99.4% and 98.7%, respectively. ACME also refinanced Rs 1,072 crore of debt, lowering interest costs by 95 basis points.
About the Company
ACME Solar Holdings Ltd is a pure-play, fully integrated renewable energy company operating across solar, wind, hybrid, storage, and FDRE projects. It is among the top 10 independent renewable power producers in India with 2,890 MW operational capacity and 4,080 MW under construction, along with 550 MWh of BESS.
The company sells power through long-term PPAs to central and state-backed entities and has in-house EPC and O&M capabilities, providing it control over execution and technology.
Written by – Manan Gangwar
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