1. Opening Hook
When the sun doesn’t set on your ambition, it’s called “renewable optimism.” ACME Solar’s Q2 call was a masterclass in solar swagger—450 MW planned, 378 MW done, and the rest “under advanced stages” (that corporate euphemism for “we’ll get there, promise”). The management spoke of gigawatt hours like caffeine shots—1 GWh of merchant storage here, 5 GWh ordered there. But here’s the twist: they’re chasing sunlightanddebt refinancing at 8%. Read on, because this story gets charged—literally.
2. At a Glance
- Revenue up 104%– CFO swears it’s execution, not Excel inflation.
- EBITDA ₹534 Cr (+108%)– Margins touching 89%, because sunlight is cheaper than diesel.
- PAT ₹115 Cr (flat QoQ)– Solar profits decided to go into “power saving mode.”
- Debt/EBITDA 4.3x– Bright solar panels, slightly darker leverage.
- Rating upgraded to AA-– CRISIL saw the light, apparently.
- Operational CUF 24.1%– Panels working harder than most politicians in winter.
3. Management’s Key Commentary
“We’re on track to commission 450 MW this year.”(Translation: 378 MW done, 72 MW praying for sunny days ☀️)
“Battery storage will add ₹170 Cr annual EBITDA from FY26.”(If the batteries don’t discharge faster than our patience.)
“Our tariffs remain attractive and demand strong.”(Investors heard “strong,” forgot to ask “profitable.” 😏)
“The sector achieved 35 GW of new renewable capacity in 2025.”(Everyone’s installing panels like they’re Diwali lights.)
“Debt refinanced at 8.4%, likely to go lower.”(Spoiler: Depends on the RBI’s morning mood.)
“GST cut from 12% to 5% will boost renewable demand.”(Also boosts excuses for missed targets next quarter.)
“Days of sales outstanding fell to 27 days.”(That’s CFO code for “finally, the Discoms paid up.”)
4. Numbers Decoded
| Metric | Q2 FY26 | YoY Growth | Remark |
|---|---|---|---|
| Revenue | ₹601 Cr | +104% | Double the sun, double the sales |
| EBITDA | ₹534 Cr | +108% | Margins at 89% – solar goldmine |
| PAT | ₹115 Cr | +95% | Profits rising slower than watt-hours |
| Operational Capacity | 2,918 MW | +15% | Sun at full throttle |
| Under Construction | 4,500 MW | – | Execution marathon begins |
| Net Debt/EBITDA | 4.3x | – | Leverage slightly “sunburnt” |
| CUF | 24.1% | +1.9% | Efficiency creeping up |
Note:₹7,000 Cr greenfield financing locked; ₹1,100 Cr refinanced at 8.4%; ₹5,000 Cr battery orders glowing in the pipeline.
5. Analyst Questions
Q:“Any risk of PPA cancellations?”A:“Only for projects older than your playlist—ours are safe.” (Translation: Wehopeso.)
Q:“Transmission delays?”A:“Only one line delayed. We’ll blame Delhi land prices.”
Q:“Why are tariffs rising?”A:“Because BESS is expensive, not because we’re greedy.”
Q:“Capex looks huge—₹12,000 Cr?”A:“Mostly batteries and optimism.”
Q:“Curtailment risks?”A:“Only in early commissioning. But hey, better early than never!”
6. Guidance & Outlook
Management reaffirmed commissioning450 MWthis year and hinted at1 GWh of merchant storagekicking in by Q4 FY26. They’re chasing14–15% ROCEand planning₹12,000 Cr capex, funded 80-20 via debt-equity (because sunshine is free, banks aren’t). With tariff cuts, reduced GST, and
