ACME Solar shares rally 7% in 3 days after Q1 profit soars 9,319%

Time of India

6 days ago

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Profit skyrockets, margins widen
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Operational milestones and new project wins
Refinancing and ratings boost
ACME Solar shares have surged nearly 7% over the past three trading sessions after the renewable energy firm posted a 9,319% year-on-year jump in consolidated net profit for the June quarter, buoyed by strong project additions, robust margin expansion and fresh battery storage wins.Shares of the company climbed almost 1% on Wednesday, July 30, to hit an intraday high of Rs 288.95 on the BSE, extending their post-results rally to 6.9% since the results were announced after market hours on Friday, July 25. However, the stock pared gains later in the session to trade at Rs 280.35, down 2.2% on the day.ACME Solar reported a consolidated profit after tax of Rs 131 crore for Q1 FY26, compared to just Rs 1.4 crore in the year-ago period, marking a staggering 9,319% surge. The company's revenue grew 71.8% year-on-year, driven by capacity additions and a rise in the capacity utilisation factor (CUF), which improved from 27% in Q1 FY25 to 28.5% in the latest quarter.EBITDA came in at Rs 531 crore for the quarter ended June, up 76% from a year earlier, while EBITDA margin expanded to 90.9% from 88.8% in the same period last year. PAT margin stood at 22.4%.The company said it generated 1,636 million units (MUs) of electricity in Q1 FY26, a 107.1% rise from the year-ago period, led by higher CUF and the addition of new capacity.During the quarter, ACME Solar commissioned 350 MW of projects, including its first wind project, 50 MW at Pokhran in Gujarat, taking the total operational portfolio to 2,890 MW, up 115.7% year-on-year.The company also reported progress on its battery storage ambitions, having won a 550 MWh standalone battery energy storage system (BESS) project contracted with NHPC. It has signed power purchase agreements (PPAs) for 250 MW of firm and dispatchable renewable energy (FDRE), 300 MW of solar capacity and 550 MWh of BESS.'3.1+ GWh of BESS [have been] ordered from leading global energy system suppliers including Zhejiang Narada and Trina Energy,' the company said. It added that commitments have been secured for key long lead items like power conversion systems, transmission lines and wind turbines.ACME also refinanced Rs 1,072 crore of debt during the June 2025 quarter, reducing the interest cost for a 250 MW operational project in Rajasthan by around 95 basis points. The debt was tied at an 8.5% fixed rate for five years, with Standard Chartered Bank, Bank of America and India Infradebt joining as new lenders.The company's credit profile also saw upgrades. 'Recently commissioned 4x300 MW SECI ISTS solar projects each received rating of CRISIL AA-/Stable,' while the Acme Aklera 250 MW project was upgraded to ICRA A+/Stable, the company said.ACME's net debt to EBITDA stood at 4.2x as of Q1 FY26, comfortably within its targeted range of 5.5x.The company expects the current operational portfolio to yield an annual project EBITDA of Rs 2,000–2,050 crore, resulting in a pre-tax ROCE of 14.5%.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)