Synopsis
ACME Solar holdings shares are in focus after the announcement of Change in Law compensation by RERC which can affect the company’s revenue.
A small-cap Company that is a renewable energy company in India with a portfolio of solar, wind, hybrid, and firm and dispatchable renewable energy (FDRE) projects, is in the spotlight after Change in Law compensation by RERC.
With the market capitalization of Rs. 15,325.03 crore, the shares of ACME Solar Holdings Limited closed at Rs. 252.90, up by 0.92 percent from its previous day’s close price of Rs. 250.60 per equity share.
What’s the News?
The Rajasthan Electricity Regulatory Commission has approved Change in Law compensation for cost increases arising from Basic Customs Duty imposed on solar cells and modules, the GST rate revision from 5 percent to 12 percent, and carrying costs linked to these regulatory changes. Based on these adjustments, the company has been granted compensation of Rs. 47.40 crore.
This compensation will increase the revenue of the company’s 250 MW solar project by 3.5 percent over a 15-year period, structured through an annuity-based payment mechanism at a 9 percent discount rate, thereby enhancing long-term cash flows and improving project viability.
About the Company & Others
ACME Solar Holdings Limited is a leading renewable energy player with 2,918 MW operational and 4,472 MW under-construction capacity, including 13.5 GWh of BESS installation. With in-house EPC and O&M capabilities, it delivers efficient, cost-effective solar, wind, hybrid, and storage projects, achieving industry-leading CUF and strong operating margins.
A return on equity (ROE) of about 7.57 percent, a return on capital employed (ROCE) of about 8.42 percent and debt to equity ratio at 2.72 demonstrate the company’s financial position. At the moment, the company’s P/E ratio is 30.2x higher as compared to its industry P/E 27.5x.
The company reported revenue of Rs. 468 crore in Q2FY26, up 80 percent YoY from Rs. 260 crore but down 8.4 percent QoQ from Rs. 511 crore. Profit stood at Rs. 115 crore, rising sharply by 666.67 percent YoY from Rs. 15 crore, though declining 12.2 percent QoQ from Rs. 131 crore, indicating strong annual growth despite a sequential moderation.
Written by Akshay Sanghavi
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