Synopsis:
ACME Solar Holdings surged nearly 10% to a seven-month high, gaining 15% in four sessions. Elara Capital initiated coverage with a ‘Buy’ rating and Rs. 325 target, citing robust expansion plans and projected fourfold growth in revenue and EBITDA by FY28.
A key player in the renewable energy sector has caught investor attention with a sharp rally, driven by bullish brokerage views and strong capacity expansion plans aligned with India’s green energy goals.
Price action
With market capitalization of Rs. 17,514cr, the shares of ACME Solar Holdings Ltd were currently trading at Rs. 287.08 per share with today’s high of Rs. 289.24 with nearly 10% up from previous closing of Rs. 262.95 per share. Over the past four sessions, the stock has surged around 15%.
News
The rally follows Elara Capital’s initiation of coverage on the stock with a ‘Buy’ rating and a target price of Rs. 325, suggesting a 13% upside from current levels. The brokerage highlighted India’s aggressive goal of achieving 500GW of renewable energy capacity by FY30 (from the existing 220GW) as a strong growth catalyst for ACME. The company currently operates 2.8GW of solar capacity and is working to expand to 7.0GW by FY28, with 4.1GW under development.
Additionally, ACME is diversifying into firm and dispatchable renewables (2.6GW) and hybrid projects (750MW), aiming to improve grid stability and enhance profitability. Elara expects ACME’s revenue and EBITDA to quadruple between FY25 and FY28, driven by strong execution and capacity expansion. The stock is currently valued at 8.3x FY28 estimated EV/EBITDA and 13.2x FY28 estimated P/E, with the target price based on a 9.0x multiple of FY28 EV/EBITDA.
About the company
ACME Solar Holdings is a renewable energy company in India with a portfolio of solar, wind, hybrid, and FDRE (Firm and dispatchable renewable energy) projects. ACME Solar is one of the largest solar IPPs in India, having a portfolio of solar power projects (which comprises Operational and Under-construction solar power projects) with an aggregate capacity of 2800 MW. The Company develops, builds, owns, operates and maintains utility scale grid connected solar power projects (through its in-house EPC and O&M operations), and generates revenue through the sale of electricity to central and state government entities and government-backed corporations.
Financials
ACME Solar reported a stellar performance for Q4FY25, with total revenue rising 69.5% YoY to Rs. 539 crore. EBITDA surged 118.3% to Rs. 488 crore, while PAT stood at Rs. 122 crore. The company also reported a cash PAT of Rs. 238 crore.
ACME commissioned 1,200 MW of solar projects in FY25 and an additional 165 MW in May 2025, a 101.9% rise over FY24. It added 1,900 MW of new projects, improved CUF to 25.6%, and refinanced Rs. 7,700 crore, reducing interest costs by ~75 bps.
Written by Manideep Appana
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