Summary
ACME Solar Holdings Limited - Q3 FY 2026 Earnings Call Summary Friday, January 30, 2026, 11:00 AM IST
Event Participants
Executives 5 Ankit Verma (Head of Corporate Finance), Arun Chopra (Head of Finance & Accounts), Manoj Kumar Upadhyay (Chairman & Managing Director), Nikhil Dhingra (Chief Executive Officer), Rajat Kumar Singh (Group CFO)
Analysts 6 Aniket Mittal (SBI Mutual Funds), Apoorva Bahadur (IIFL Capital), Akash Mehta (Canara HSBC Life), Dhruv Muchhal (HDFC AMC), Mohit Kumar (ICICI Securities), Nikhil Abhyankar (UTI AMC), Sourabh Arya (Oaklane Capital), Yogesh Patil (Dolat Capital)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Operational Portfolio | 2,962 MW | Includes 72 MW wind capacity commissioned in Q3; on track for 450 MW FY26 target. |
| Total Portfolio | 7,770 MW | Includes 16.0 GWh of BESS capacity and 5,630 MW of PPA-signed capacity. |
| Revenue | ₹617 crores | +54% YoY; driven by new capacity additions and higher Capacity Utilization Factor (CUF). |
| EBITDA Margin | 91.5% | +190 bps YoY; attributed to favorable operating leverage and optimized efficiency. |
| PAT | ₹114 crores | 18.4% margin; supported by strong operational performance. |
| Cash ROE | 20.6% | Driven by higher cash PAT following operational capacity additions. |
| Net Operational Debt/EBITDA | 4.2x | Management noted successful refinancing reduced weighted average cost of debt by 100 bps to 8.45%. |
| CUF (Solar/Wind) | 24.3% | Improved from 22.7% YoY; grid and plant availability maintained at >99.5%. |
Geographic & Segment Commentary
- Solar & Hybrid Projects: ACME has 4.8 GW of under-construction projects with connectivity secured for all sites. Significant progress in FDRE (Firm and Dispatchable Renewable Energy) projects, including a recent 250 MW NHPC PPA signed at ₹4.33/unit.
- Battery Energy Storage Systems (BESS): Strategic pivot to merchant operations for BESS; 2 GWh to be operational in Q4 FY26, with an additional 2 GWh in Q1 FY27. Management targets 10 GWh of BESS by CY2027 to unlock value early and optimize existing transmission infrastructure.
- Wind Energy: 72 MW commissioned in Q3; full project completion expected in February 2026 following delays caused by a sand mining ban in Gujarat and extended monsoon rains.
Company-Specific & Strategic Commentary
- BESS Value Unlocking: Management is fast-tracking BESS installation at existing operational sites to save ₹20 lakhs/MW in transmission CAPEX and generate early cash flows via merchant arbitrage (₹170 Cr EBITDA/GWh assumed).
- Supply Chain & VAT Impacts: China’s withdrawal of VAT export rebates is expected to impact module costs by ~₹1/watt. ACME has mitigated this by procuring 50% of its FY27 module requirements and 100% of BESS requirements prior to the change.
- Technological Innovation: R&D teams are testing Perovskite technology and implementing robotic installations to scale annual capacity additions from 2 GW to 5 GW without increasing manual labor.
- Grid Stability & GNA: Revenue remains protected from grid-stability curtailment by GNA regulations. A one-time ₹17.5 crore loss occurred at the Sikar project due to temporary GNA, but the project is now at full capacity.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Capacity Addition | 1.5 GW (Contracted) | Targeted for FY27; debt and land secured for majority of this capacity. |
| BESS Operational | 10 GWh by CY 2027 | Includes 4 GWh in FY27 to support FDRE projects and merchant arbitrage. |
| Operational Target | 10 GW by 2030 | Long-term target to be met through new project wins meeting threshold return criteria. |
| PPA Signing | 770 MW Near-term | Visibility into 130 MW REMCL and 640 MW Discom consent at advanced stages. |
Risks & Constraints
| Risk | Context |
|---|---|
| Module Price Volatility | Phased withdrawal of Chinese VAT rebates may increase cell prices. Management expects this to be temporary and offset by supply-demand dynamics within 2 months. |
| Regulatory Changes (DSM) | New Deviation Settlement Mechanism (DSM) rules from April 2026 pose risks to wind unpredictability. Mitigation includes retrofitting batteries to stabilize output. |
| Transmission Delays | Infrastructure-related curtailment can impact revenue during “temporary GNA” phases. Management tracks CTU progress monthly and adjusts CAPEX to minimize IDC. |
Q&A Highlights
BESS Merchant Economics
- Question: What is the EBITDA potential of merchant BESS? (Akash Mehta)
- Answer: 1 GWh of battery generates ~₹170 crores EBITDA annually assuming a ₹5 arbitrage between charging and discharging. The system is designed for 1.6 to 2 cycles per day (Nikhil Dhingra/Manoj Upadhyay).
Module Procurement & CAPEX
- Question: How has the Chinese VAT change impacted capital costs? (Aniket Mittal)
- Answer: Impact is roughly ₹1/watt on landed cost. Current solar project CAPEX is ~₹3.35 crores/MW (DC basis). 50% of FY27 requirements are already secured at lower prices (Nikhil Dhingra).
PPA Signing Delays
- Question: Why is there a lag in industry-level PPA signing? (Akash Mehta)
- Answer: Buyers are choosing projects that offer ISTS waivers (expiring June 2028). ACME has buyer approval for 770 MW and expects another 700 MW to move as states aggregate peak power requirements (Nikhil Dhingra).
Curtailment & Revenue Protection
- Question: Is curtailment a structural risk to revenue? (Dhruv Muchhal)
- Answer: No. Grid stability curtailment (TRAS-Down) is paid as per schedule under central regulations. ACME faced only ₹1 crore in “real” loss outside of a specific temporary infrastructure delay at Sikar (Nikhil Dhingra).
Key Takeaway
ACME Solar Holdings delivered a robust Q3 FY26, with revenue growing 54% YoY to ₹617 crores and EBITDA margins expanding to 91.5%. The company successfully navigated grid curtailment risks, reporting that revenue remains protected under GNA regulations, while commissions reached 422 MW year-to-date. A major strategic shift is underway to fast-track 10 GWh of Battery Energy Storage (BESS) by CY2027, with 2 GWh going operational this quarter for merchant arbitrage. Management has mitigated Chinese supply chain risks by pre-ordering 50% of FY27 modules and 100% of BESS requirements. With 4.8 GW under construction and ₹8,200 crores in committed CAPEX, ACME is pivoting toward high-return FDRE and hybrid projects. The company remains focused on achieving 10 GW of operational capacity by 2030 while leveraging R&D in Perovskite cells and robotic automation to drive execution efficiency.
Want more insights like this?
Subscribe to get deep dives delivered to your inbox.
More Earnings Summaries
Explore more Q3 FY26 earnings call analyses: