Because apparently, EBITDA now stands for “Energised By Dramatic And Bumper Additions.”
1. At a Glance
In Q1 FY26, ACME Solar delivered a dazzling performance: EBITDA surged 76% YoY to ₹531 Cr, PAT exploded by a gravity-defying 9,319% to ₹131 Cr (yes, really), and 350 MW of new capacity was commissioned—including their first wind project. Someone clearly left the solar panel on beast mode.
2. Intro – Why This Matters
Imagine you’re a cricketer who just hit a triple century in the IPL opener, and on the side, picked up a bowling hat-trick. That’s ACME Solar this quarter. Not only did they launch their maiden 50 MW wind project in Gujarat, they also signed their first standalone Battery Energy Storage System (BESS) deal with NHPC. Oh, and that PAT? From ₹1 Cr to ₹131 Cr in a year. That’s not a comeback, it’s a corporate reincarnation.
3. Deep Dive – What’s the Deal?
Let’s dissect this renewable buffet:
- Capacity Commissioned: 350 MW (300 MW solar in Sikar, 50 MW wind in Pokhran).
- New BESS Biz: 550 MWh secured with NHPC at ₹2.20 lakh/MWh/month.
- PPAs Signed: 250 MW FDRE + 300 MW Solar + 550 MWh BESS = over 55% of under-construction (UC) capacity locked in.
- Operational Portfolio: 2,890 MW—up 115.7% YoY.
- Under Construction: 4,080 MW + 550 MWh BESS.
- BESS Orders Placed: 3.1+ GWh with big-league names like Narada and Trina.
Execution Model:
Fully in-house EPC = Total control over quality, cost, and deadlines. It’s like IKEA if IKEA actually built your house for you.
Tariffs & Contracts:
Tariff adoption and grid connectivity secured across the entire 6,970 MW portfolio. In short: nobody is winging it.
4. Strategic Impact – What Changes Now?
- EBITDA Run Rate: ₹2,000–2,050 Cr projected from operational assets = solid cash cow.
- Pre-Tax ROCE: 14.5% expected—respectable for infra, unlike your bank FD.
- Grid Avail. & Plant Avail.: 98.7% and 99.4% respectively = These plants show up more reliably than your friends to Sunday brunch.
- CUF Jump: From 27% to 28.5% YoY. Rajasthan projects hit 30.3%. The sun really shines brighter there, it seems.
In a nutshell: recurring revenues, improving margins, a grid-connected future—and storage-backed certainty.
5. Risks & What to Watch
- Execution Risks: 4,080 MW still under construction. Delays can convert “asset” into “ass-et”.
- DSO Watch: 36 days excluding a sticky ₹20 Cr AP discom due. Include it, and it’s 41 days. Not red alert, but worth tracking.
- Leverage: Net debt/EBITDA at 4.2x. Manageable, but let’s not start a borrowing bender.
- Interest Rates: Refinancing helped (₹1,072 Cr at 8.5%, saving ~95 bps), but new debt must remain disciplined.
As always: solar margins shine until cloudy regulators, state discom dues, and tariff drama walk in.
6. Edu Take™ – Final POV
ACME’s Q1 FY26 is the kind of quarter other infra firms daydream about while applying for project finance. A 9,319% PAT surge isn’t a rounding error—it’s a statement.
The firm isn’t just installing solar anymore. It’s writing a BESS chapter, dabbling in wind, and locking in PPAs like a hoarder in a tariff apocalypse.
Bottom Line:
Not a multibagger yet. But definitely looks like a well-paying renewable salary job with occasional bonus.
Let’s just hope they don’t get too addicted to commissioning headlines and forget the golden rule of infra: Execution > Hype.
Written by EduInvesting Team | 25 July 2025
Tags: ACME Solar, Q1 FY26 Results, ₹131 Cr PAT, BESS Project, Renewable Energy, Edu Style Article, SEBI Regulation 30, EduInvesting Premium
