Acme Solar Holdings Limited period ending 2026-05-14 Earnings Call Transcript
📊
Overview
📋
Detailed Analysis
Sentiment
Strongly Positive
Executive Summary
ACME Solar Q4 FY26: Total revenue ₹705 crores (Q4) / ₹2,507 crores (FY26); PAT ₹138 crores (Q4), ₹498 crores (FY26)
Q4 and FY26 consolidated results (transcript covers audited standalone and consolidated results). Total revenue was reported at INR 705 crores in Q4 and INR 2,507 crores for FY26, up 31% and 59% YoY respectively. Profitability remained high with EBITDA margin of over 90% (quarter and full year) and PAT of INR 138 crores (Q4) / INR 498 crores (FY26) (margins ~19.6%/19.9%). Management emphasised early BESS deployment (2.3 GW commissioned to date) and a target operating battery portfolio of ~10 GWh with 1.5 GW contracted generation. Exceptional items: Q4 revenue includes other income of INR 157...Management ToneHigh
Confident on
BESS deployment scale and near-term economics
FY26 reported financials (revenue, PAT, EBITDA margins)
Orderbook / capex plan and financing secured
Evasive / Deflected on
Duration and sustainability of merchant arbitrage (long-term price outlook)
Final capex/zero date and exact IRR timing for the 550 MWh standalone battery project
"So we are targeting 1.5 gigawatts of projects in this financial year, right, and around 10 gigawatt hour of battery."
Total revenuep.4
INR 705 croresvs ₹538 crores in Q4 FY25
Total revenuep.4
INR 2,507 croresvs ₹1,576 crores in FY25
Other incomep.4
INR 157 croresvs ₹X in Q4 FY25
EBITDA marginp.4
over 90%vs over 90% in Q4 FY25
PATp.4
INR 138 croresvs ₹X in Q4 FY25
PATp.5
INR 498 croresvs ₹X in FY25
Operational generation contracted capacityp.4
2,990 megawattvs ₹X in prior period
BESS commissioned to date (operational)p.4
approximately 2.3 gigawattvs 1.3 gigawatt commissioned prior quarter
Key Speakers
5
Nikhil DhingraCEOemphasised BESS deployment (2.3 GW commissioned), merchant arbitrage INR2.2 crores/day and defended CTU-focused portfolio
Arun ChopraCFOwalked through sector and company financial highlights including revenue, EBITDA margin and capex numbers
Manoj Kumar UpadhyayCMDstressed strategic rationale for batteries and CTU focus and defended regulatory/curtailment position
Ankit VermaHead of Corporate Financeprovided run-rate EBITDA (INR ~2,200 crores FY26 incl. other income) and merchant margin assumptions
Puneet (HSBC)Analystpushed management for battery capex, run-rate EBITDA and CUF details
Key Highlights
7
ACME commissioned ~2.3 GW of BESS and reported the BESS delivering net realization of ~INR2.2 crores per day.
Total revenue grew strongly
EBITDA margin remained elevated at over 90% for both quarter and full year due to operating leverage and operational efficiency.
Company has committed capex of INR 12,475 crores, of which INR 6,445 crores was incurred during the year and POs aggregating INR 6,030 crores remain.
Operational contracted generation capacity stands at 2,990 MW and under-construction portfolio expanded to 5.1 GW (total portfolio 8,071 MW) requiring ~17 GWh BESS.
Other income in Q4 includes recurring interest from SPV cash and DSRA balances (INR 157 crores), with corresponding finance cost treatment noted.
+1 more in Detailed Analysis →
Q&A Highlights
5
Puneet (HSBC) extracted that battery capex in the last quarter was around INR1,000–1,200 crores (question forced disclosure of near-term capex on batteries).
Management disclosed that the 2.3 GWh BESS is delivering ~INR2.2 crores per day net realization (real, recurring merchant revenue signal).
Ankit / management clarified merchant vs FDRE split
Kartik (Anand Rathi) forced quantification of curtailment impact
+1 more in Detailed Analysis →
Key Highlights
7
ACME commissioned ~2.3 GW of BESS and reported the BESS delivering net realization of ~INR2.2 crores per day.
Total revenue grew strongly
EBITDA margin remained elevated at over 90% for both quarter and full year due to operating leverage and operational efficiency.
Company has committed capex of INR 12,475 crores, of which INR 6,445 crores was incurred during the year and POs aggregating INR 6,030 crores remain.
Operational contracted generation capacity stands at 2,990 MW and under-construction portfolio expanded to 5.1 GW (total portfolio 8,071 MW) requiring ~17 GWh BESS.
Other income in Q4 includes recurring interest from SPV cash and DSRA balances (INR 157 crores), with corresponding finance cost treatment noted.
Debt cost optimization
Guidance & Outlook
4
We are targeting 1.5 gigawatts of projects in this financial year and around 10 gigawatt hour of battery.
Management commentary
Formal guidance
Management commentary
Risks & Concerns
5
Transmission/connectivity delays
CTU timelines can shift (management assumes up to ~6 months delay) and materially affect solar commissioning timing.
“they have done a wonderful job of give and take 6 months delay” — page 19
Supply / geopolitical risk for batteries and equipment could impact ability to hit the 10 GWh target (management admits dependence on supply factors).
Sustainability of merchant BESS arbitrage uncertain — management says 'anybody's guess' on duration and cites assumptions that price may stay elevated for ~4–5 years but not definitive.
Receivable/working capital concentration risk mitigated as portfolio shifts to central offtakers, but earlier DISCOM payment issues (Telangana/Andhra) required regulatory LPS enforcement to normalise collections.
Management did not quantify FY27 merchant revenue sensitivity under different price scenarios; downside if arbitrage compresses is not modelled on the call.
Q&A Highlights
5
Puneet (HSBC) extracted that battery capex in the last quarter was around INR1,000–1,200 crores (question forced disclosure of near-term capex on batteries).
Management disclosed that the 2.3 GWh BESS is delivering ~INR2.2 crores per day net realization (real, recurring merchant revenue signal).
Ankit / management clarified merchant vs FDRE split
Kartik (Anand Rathi) forced quantification of curtailment impact
Aniket (SBI Mutual) prompted disclosure of capital advances (~INR323 crores) tied to supplier advances for batteries/turbines.
AI-generated analysis. May contain inaccuracies — verify against original sources.