Acme Solar Holdings
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
ACME Solar Holdings is strategically positioned for robust growth, driven by a strong pipeline of signed Power Purchase Agreements (PPAs) and an aggressive pivot towards Battery Energy Storage Systems (BESS). Management's optimistic outlook is underpinned by the successful commissioning of 2.3 GWh of BESS and a target of 10 GWh by FY27, which is expected to enhance revenue and EBITDA margins. The company's disciplined execution of its 8,070 MW portfolio and proactive capital allocation strategies are critical as it navigates potential execution risks related to grid infrastructure and regulatory challenges. Vista's financial outlook reflects accelerating revenue growth and improving margins, supported by favorable regulatory tailwinds and a stable market environment. However, the elevated leverage and financial stress risk on the balance sheet warrant close monitoring. Over the next 12-24 months, key opportunities include the expansion of BESS capacity and the execution of high-margin contracts, while watchpoints include potential delays in project commissioning and the volatility of battery material costs. Overall, ACME Solar's strategic initiatives position it well for significant growth, with a target price reflecting a substantial expected upside
Why We Like This Stock
- Strong pipeline of signed PPAs totaling 3,880 MW, enhancing revenue visibility
- Aggressive BESS deployment strategy expected to drive EBITDA growth and improve margins
- Favorable regulatory environment supporting project execution and market expansion
Things To Watch Out For
- Elevated leverage and financial stress risk could impact operational flexibility
- Execution risks related to grid infrastructure and regulatory challenges may delay project timelines
- Potential volatility in battery material costs could pressure margins
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 1,319 | 1,405 | 2,023 | 2,904 | 4,913 |
| Profit Before Tax (Cr.) | 165 | 361 | 674 | 1,084 | 1,679 |
| PBT Margin | 12.5% | 25.7% | 3331.7% | 37.3% | 34.2% |
| Net Profit (Cr.) | 232 | 282 | 506 | 819 | 1,266 |
| Earnings Per Share | 3.3 | 4.0 | 7.2 | 11.6 | 17.9 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Elara Capital | ► Accumulate | 387 | 25-Jun-2026 |
| HDFC Securities | ▲ Buy | 342 | 13-May-2026 |
| HSBC | ▲ Buy | 350 | 15-Apr-2026 |
| ICICI Securities | ▲ Buy | 450 | 31-Jul-2026 |
| JMFinancials | ▲ Buy | 341 | 09-Jun-2026 |
| Motilal Oswal | ▲ Buy | 427 | 30-Jul-2026 |
Company Overview
Show Company Profile
ACME Solar Holdings Limited, a solar independent power producing company, engages in developing, building, owning, operating, and maintaining utility scale grid connected solar power projects in India. The company owns and operates solar energy projects with installed capacity of 2540 MW; and develops and constructs solar energy projects with capacity of 3780 MW. It is also involved in the wind power and hybrid power generation business. In addition, the company provides engineering, procurement, and construction services, as well as operation and maintenance services. It serves central and state government-backed entities. The company was founded in 2003 and is based in Gurugram, India. ACME Solar Holdings Limited is a subsidiary of ACME Cleantech Solutions Limited.