India’s green energy industry is growing quickly, and the use of solar power has grown a lot in the last few years. ACME Solar Holdings Ltd. has set a big capital expenditure (Capex) goal of Rs 17,000 crore to increase its renewable energy capability. The company wants to produce 5 GW of solar power by FY2026, and it is also looking into nuclear energy as a possible source of energy.
ACME Solar’s Growth Targets
At a recent news conference, Nikhil Dhingra, CEO of ACME Solar, talked about the company’s long-term plans. The main goals for growth are:
- Adding 3.5 GW of solar power by 2026 and 7 GW by 2027.
- The goal is to have 10 GW of contracted power by 2030.
- One important business plan is to focus on Hybrid and FDRE Renewable Energy projects that bring in money and increase profits.
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Operational Capacity and Revenue Potential
As of FY25, ACME Solar has a portfolio of 6,970 MW, with 2,540 MW of active capacity and 4,430 MW still being planned. It’s worth mentioning that Hybrid and FDRE projects use 49% of this power.
Based on how well it is running now, the company thinks its steady-state annual EBITDA will be between Rs 1,750 crore and Rs 1,800 crore. There are two types of power purchase agreements (PPAs): those with central and state bodies, which account for 67% and 33% of energy sales, respectively.
Financial Performance
ACME Solar has shown strong financial growth, with net profits rising 152% year-over-year (YoY) from Rs 44 crore in Q3 FY24 to Rs 112 crore in Q3 FY25. Some other important business measures are:
- From Rs 332 crore to Rs 349 crore, operating income rose 5.2% year over year.
- EBITDA went from Rs 310 crore to Rs 359 crore, a 15.7% year-over-year increase.
Brokerage Ratings and Future Outlook
Nuvama Institutional, a brokerage company, thinks that ACME Solar will grow. It has given the stock a “Buy” rating and set a goal price of Rs 328 per share, which is 74% higher than the current price.
The company’s stock went public for the first time in November 2024 at Rs 289 per share, but it has dropped 35% since then and is now selling around Rs 192. Analysts are still positive about ACME Solar’s plan to grow and its strong pipeline of projects.
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Strategic Advantage: In-House EPC and O&M
The Engineering, Procurement, and Construction (EPC) and Operations & Maintenance (O&M) teams that work for ACME Solar give the company an edge over its competitors. This helps the business cut costs, speed up processes, and make sure projects are finished on time.
Long-term power purchase agreements (PPAs) with state and central government-backed groups bring in most of the company’s money. These contracts, which usually last 25 years, offer security and steady streams of income.
Conclusion
By increasing its capacity, making a strong capital expenditure plan, and doing well financially, ACME Solar is setting itself up to be a major player in India’s renewable energy field. Analysts expect ACME Solar to grow significantly over the next few years, even though the stock price will continue to fluctuate in the short term. This makes ACME Solar an appealing option in the green energy space.
