Acme Solar Holdings Limited (NSE: ACMESOLAR) has announced its financial results for the third quarter and nine months ending December 31, 2025, demonstrating significant operational scale and market leadership in India’s renewable energy sector. The company continues to solidify its position through technological innovation and a diversified portfolio spanning solar, wind, and storage solutions.
Performance by Business Vertical
The distinction between ACME’s core operational activities:
• Sale of Power (Consolidated): This vertical remains the primary driver of stable cash flows, with revenue increasing by 53.9% year-over-year (y-o-y) in Q3 FY26 to reaching INR 617 Cr. This growth was fueled by capacity additions and an improved Capacity Utilization Factor (CUF).
• In-house EPC Business (Standalone): On a standalone level, the financials reflect the performance of the company’s EPC business for its subsidiaries, reporting a total income of INR 1,831 Cr for the nine months ended December 2025.
Key Segment Developments and Strategic Expansion
ACME is aggressively diversifying its technological footprint, moving beyond traditional solar into complex, high-value segments:
• BESS and Hybrid Projects: The company is an early adopter of Battery Energy Storage Systems (BESS), with a total portfolio of 16 GWh of BESS installations. Over 80% of the total portfolio is now linked with central offtakers, with a heavy shift toward Firm and Dispatchable Renewable Energy (FDRE) and Hybrid projects.
• Recent Wins: Notable developments include winning a 130 MW round-the-clock (RTC) project with Railway Energy Management Company Limited (REMC Limited) and signing Power Purchase Agreements (PPAs) for 450 MW during the quarter.
Core Growth Strategies and Trajectory
ACME’s growth is underpinned by a 35% CAGR target to reach a generation capacity of 10 GW and BESS capacity of 20 GWh by 2030. A key strategy involves the early commissioning of BESS capacity at existing operational sites, which utilizes existing transmission infrastructure to achieve capex savings of INR 20 lakhs per MW while generating early cash flows.
Robust Capital Strength
The company maintains a strong financial foundation characterized by:
• Credit Ratings: Both ICRA and CRISIL reaffirmed an AA-/Stable rating for ACME Solar in January 2026.
• Debt Management: ACME successfully reduced its weighted average cost of debt for operational projects to 8.45%, down over 150 bps y-o-y. Recent refinancing for a 300 MW project was secured at a competitive rate of 8.0% p.a..
• Returns: The company reported a Cash ROE of 20.6% as of December 2025, driven by increased cash PAT from new operational capacity.
Shareholder Value and Interim Dividend
ACME Solar enjoys a strong shareholding structure, with the Promoter Group holding 83.29% and notable institutional investors including Nippon India Mutual Fund, Tata Mutual Fund, and SBI Life. The company focuses on creating long-term value through its 25-year government-backed PPAs and fixed tariffs.
Outlook: Future-Ready Infrastructure
The outlook for ACME Solar remains positive as it prepares for large-scale commissioning in FY2027. The company has already locked in prices for ~5.1 GWh of BESS capacity and ~1.7 GWp of solar modules, achieving approximately 10% savings in overall capex from budgeted costs. With a connectivity inventory of ~7.5 GW available for upcoming bids, ACME is well-positioned to maintain its momentum in the energy transition.