At a Glance
ACME Solar is what you get when you cross solid EPC capabilities, long-term PPAs, and a renewable wet dream—but then spike it with heavy debt. With a ₹16,143 Cr market cap, OPM of 88%, and a rising EPS trajectory, it looks like sunshine. But the P/E of nearly 40x and ballooning debt of ₹10,976 Cr says: “Solar is sexy, but leverage ain’t.” The company just clocked ₹131 Cr net profit in Q1 FY26 on ₹511 Cr revenue and a blinding 90% margin. But you better like patience with your photons—this is a long game.
Introduction
ACME Solar Holdings is India’s ambitious renewable energy independent power producer (IPP) that does everything: solar, wind, hybrid, FDRE (Firm and Dispatchable Renewable Energy), EPC, O&M, and even battery storage. Basically, it’s like Reliance Green Energy… but still in its teens.
The company has assets across 10 states, 25-year fixed PPAs, and the rare capability to deliver stored renewable power on demand. Yet its IPO journey hasn’t exactly been a fairy tale—stock fell ~12% from its ₹304 high to ₹266, likely due to its P/E discomfort and a balance sheet loaded with enough debt to make a PSU sweat.
Business Model (WTF Do They Even Do?)
- IPP (Independent Power Producer): ACME builds, owns, and operates renewable power plants.
- Tech Stack: Solar, wind, hybrid, and FDRE projects with battery/pumped hydro storage.
- Revenue Source: Primarily long-term (25-year) PPAs with government & private DISCOMs.
- O&M + EPC In-House: Keeps costs under control and project execution tight.
- FDRE Projects: The big differentiator—can provide reliable power on demand via storage, solving renewables’ intermittency issue.
Bottom Line: Predictable revenue, chunky margins, but capex-hungry and debt-thirsty.
Financials Overview
FY25 Highlights:
- Revenue: ₹1,405 Cr (TTM: ₹1,606 Cr, +28% growth)
- EBITDA: ₹1,235 Cr
- PAT: ₹251 Cr (TTM PAT: ₹380 Cr)
- EPS (TTM): ₹6.34
- OPM: 88%
- ROCE: 8.4%, ROE: 7.5%
Q1 FY26:
- Revenue: ₹511 Cr
- PAT: ₹131 Cr
- EPS: ₹2.16
- OPM: 90%
Commentary: Blisteringly high margins, improving debtor days (now 99), and TTM net profit jumping ~50%. But don’t forget—this is a debt-backed party.
Valuation
Let’s peel the panel layer by layer:
- P/E
