ACME Solar Holdings Shines Bright with Stellar Q2 FY26 Performance

ACME Solar Holdings Limited, a prominent player in India's rapidly expanding renewable energy sector, has reported an exceptional performance for the second quarter of Fiscal Year 2026 (Q2 FY26). The company's latest earnings reflect robust growth across key financial metrics, driven by strategic capacity additions and enhanced operational efficiency. This quarter's results underscore ACME Solar's commitment to leading through innovation and capitalizing on the burgeoning demand for sustainable energy solutions.

For Q2 FY26, ACME Solar reported a remarkable 103.8% year-on-year (YoY) increase in total revenue from operations, reaching INR 601 crore. This impressive top-line growth was complemented by a significant surge in profitability. The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) soared by 108% YoY to INR 534 crore, maintaining a strong margin of 89%. Profit After Tax (PAT) witnessed an extraordinary jump of 652.1% YoY, landing at INR 115 crore, with a PAT margin of 19.1%. These figures highlight the company's operational leverage and optimized efficiency.

Operational Excellence and Strategic Expansion

ACME Solar's strong financial performance is a direct result of its focused operational strategy and aggressive expansion. During Q2 FY26, the company partially commissioned 28 MW out of a 100 MW wind project in Gujarat, bringing the cumulative H1 FY26 commissioned capacity to 378 MW. This expansion is part of a broader strategy to diversify its energy portfolio across solar, wind, storage, hybrid, and Firm and Dispatchable Renewable Energy (FDRE) projects.

A significant highlight of the quarter was the successful securing of new projects totaling 720 MW/2,460 MWh (including 670 MW/2,240 MWh Solar + ESS and 50 MW/220 MWh FDRE) and an additional 550 MWh in standalone Battery Energy Storage Systems (BESS). These wins have substantially increased ACME Solar's total portfolio to 7,390 MW, which now includes 13.5 GWh of BESS capacity and 5,180 MW of PPA-signed capacity. The company also placed new orders for an additional 2 GWh BESS, bringing total BESS orders to 5.1 GWh, with phased commissioning expected from Q4 FY26.

Financial Discipline and Future Outlook

ACME Solar has demonstrated robust financial discipline, evident in its improved credit ratings and proactive debt management. The company received upgrades to AA-/Stable by both CRISIL and ICRA, marking its highest-ever credit rating. This upgrade enabled a significant interest rate reduction of approximately 75 basis points on INR 2,080 crore of existing debt and the refinancing of INR 1,100 crore at an optimized interest rate of around 8.4%. These actions are expected to further reduce finance costs and enhance profitability.

Management's guidance for FY26 includes commissioning 450 MW of renewable energy capacity, with 378 MW already achieved. The company also plans to operate 1 GWh of BESS on a merchant basis from Q4 FY26, anticipating an annual EBITDA upside of INR 170 crore. Looking ahead, ACME Solar aims to achieve a total portfolio of 10 GW generation capacity and 15 GWh BESS capacity by 2030, reinforcing its long-term growth trajectory in the renewable energy sector. The company's strategic focus on diversified projects, efficient operations, and disciplined financial management positions it strongly for sustained growth and value creation for its stakeholders.