India’s energy landscape has significantly shifted towards sustainability, with solar power adoption growing 30-fold. Installed capacity rose from 2.5 GW in 2014 to around 94.16 GW by November 2024. The government’s efforts, including initiatives like the International Solar Alliance, highlight the nation’s potential to expand solar energy in partnership with over 120 countries.
Price Action
The shares of ACME Solar Holdings Ltd, with a total market capitalization of Rs 11,387.75 Crores on Monday, closed at Rs 188.2 per share which was 2.5 percent lower than the previous closing price of Rs 193.10.
Capex Plans
During a recent press conference, the company stated that it is planning for Rs 17,000 Crores Capex to boost renewable energy capacity to 5 GW by FY2026. The company also announced that it is planning to diversify into nuclear energy.
The CEO stated that the company is aiming to increase its solar capacity to 3.5 GW by 2026, 7GW by 2027 and ultimately targeting to reach 10GW of contracted capacity by 2030.
Nikhil Dhingra, CEO ACME Solar, said “We intend to focus our new capacities on the revenue and margin accretive Hybrid and FDRE Renewable Energy projects as a critical pivot in our business strategy”.
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Operational Capacity
As of the end of the nine-month FY25 period, ACME Solar’s portfolio totaled 6,970 MW, with 2,540 MW operational and 4,430 MW under development. Of this, 49% is focused on hybrid and FDRE projects.
With 2,540 MW of operational capacity, ACME Solar is expected to give a steady state annual EBITDA of Rs 1,750 Crore to Rs 1,800 Crore. The current operational capacity is shared between central and state off-takers, with 67% and 33% power purchase proportions, respectively.
Share Price Target
Brokerage Firm Nuvama is bullish on the shares of ACME solar Holdings Ltd with a “Buy” rating and has set a target price of Rs 328 per share. This implies an upside potential of up to 74 percent from Monday’s closing price.
Financials
The company’s Net Profits jumped 152 percent YoY from Rs 44 Crores in Q3FY24 to Rs 112 Crores in Q3FY25. Their revenue from operations saw a growth of 5.2 percent YoY from Rs 332 Crores to Rs 349 Crores over the same period. On the operating front, their EBITDA increased by 15.7 percent YoY from Rs 310 Crores to Rs 359 Crores.
About ACME Solar Holdings Ltd
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. The Company is focused on developing and operating on-grid solar power projects using the latest PV technology.
Written By Adhvaitha Nayani
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