ACME Solar Q1 FY27: Record Quarter Powered by Batteries and Higher CUF

ACME Solar Holdings Limited reported its strongest quarter yet for Q1 FY27, supported by higher generation performance and a meaningful first full-quarter contribution from its battery energy storage system operations. On a consolidated basis, total income rose to INR 954 crore versus INR 584 crore in Q1 FY26. EBITDA grew to INR 831 crore from INR 531 crore, and PAT increased to INR 235 crore from INR 131 crore.

Management attributed the year-on-year improvement to higher irradiation, improved plant performance, incremental renewable capacity, and the operationalization of a large block of battery capacity during the quarter. The company highlighted that it achieved its highest-ever quarterly CUF at 30.9%, up from 28.5% in Q1 FY26, with generation rising 23.4% to 2,020 million units.

While the renewable portfolio remains the core driver, the quarter marked a shift in the earnings mix with battery operations generating INR 226 crore of revenue from sale of power. The company stated that 85% of battery revenue came from short-term contracts and the balance from merchant sales. In its battery-specific P&L snapshot for the quarter, ACME reported EBITDA of INR 189 crore on battery revenues of INR 226 crore, reflecting an EBITDA margin of 82%.

Financial performance: consolidated sale of power vs standalone EPC

ACME’s disclosed results separate the consolidated sale-of-power business from the standalone in-house EPC business. At the consolidated level, operational revenue is reported primarily from sale of electricity because EPC revenue is eliminated as inter-group. At the standalone level, revenue reflects EPC work performed for wholly owned subsidiaries.

In Q1 FY27, standalone total income was INR 2,358 crore with EBITDA of INR 262 crore and PAT of INR 122 crore. Management emphasized that consolidated metrics are more relevant for understanding operational power economics, while standalone results capture the internal EPC execution engine.

Batteries shift from capability to monetization

The most notable strategic development in the quarter was the scale and monetization of battery capacity. ACME commissioned about 2.3 GWh of BESS during the quarter, taking cumulative commissioned capacity to about 3.62 GWh. The company also indicated phased operationalization of about 3.1 GWh of BESS capacity during the quarter generated INR 226 crore revenue.

Management stated that battery power sales are delivering an annual EBITDA-to-capex yield of more than 20%. On the call, leadership described the operating mode as typically one cycle per day and emphasized execution in 15-minute scheduling blocks. The battery business delivered an EBITDA margin of 82% in Q1 FY27, lower than the renewable portfolio due to the inclusion of purchased power cost for charging within operating expenses.

ACME also discussed commercial momentum. It disclosed bids won for short-term contracts with more than INR 1,400 crore of revenue lock-in for partial sale of FY27 battery capacity. During Q&A, management indicated that around 70% to 80% of the targeted battery capacity for FY27 had been contracted, with the remainder still to be tied up. It also clarified that merchant operations are being used as a bridge during early commissioning, with battery capacity ultimately intended to sit inside PPAs.

Execution, financing and balance sheet trajectory

The company’s build-out is reflected in its asset base and net debt. Asset base increased to INR 24,910 crore in Q1 FY27 from INR 16,316 crore in Q1 FY26, driven by commissioning of assets and a higher CWIP balance. Net debt rose to INR 12,600 crore from INR 7,842 crore, with CWIP net debt increasing to INR 5,050 crore.

Despite higher net debt, leverage metrics improved. Net debt to TTM EBITDA declined to 2.9x in Q1 FY27 from 4.2x in Q1 FY26, which the company attributed to QIP inflow and higher EBITDA. The presentation also stated a target of keeping net debt to run-rate EBITDA under about 5.5x on an operational portfolio basis.

Financing progress was positioned as a key enabler for execution. The company highlighted that debt is tied up for around 85% of PPA-signed projects. It also disclosed INR 6,000+ crore debt tied up for 700 MW under-construction FDRE projects with REC and PFC. Weighted average cost of debt for operational projects was stated at 8.4%.

Working capital trends were also highlighted. DSO as billed improved sharply over the last few years, with Q1 FY27 DSO at 20 days excluding BESS receivables. If BESS receivables are included, DSO was 37 days. The company expects the share of central offtakers in the operational mix to rise over time, which it believes should support further improvement in collections.

Capacity roadmap and near-term milestones

ACME’s portfolio as presented stands at 8,070 MW across solar, wind, storage, hybrid and FDRE projects. The company stated that its total portfolio entails around 20 GWh of battery storage under current configuration. Operational capacity stood at 2,990 MW with around 3.6 GWh BESS commissioned.

For execution, the company guided commissioning in FY27 of about 1.5 GW of renewable capacity comprising FDRE and hybrid projects, and cumulative 10+ GWh BESS by FY27. The BESS commissioning plan table in the presentation shows cumulative commissioning building from 3,109 MWh by Q1 to 10,959 MWh by Q4.

The longer-term roadmap targets 10 GW generation capacity and about 25 GWh BESS by 2030. The company also highlighted a connectivity inventory of about 10 GW available for future projects and more than 18,000 acres of land acquired for the under-construction portfolio.

Risk and operating control: BESS incident disclosure

ACME addressed a July 13, 2026 incident at the Acme Suryodaya BESS facility. The company stated that a technical root cause analysis was completed and concluded the incident was caused by an electrical short circuit in AC cabling between the transformer and the PCS, resulting in a localized fire and shutdown. It stated there was no damage to battery systems or other on-site equipment.

The company outlined corrective actions across detection, suppression and containment, including AI analytics on CCTV for early fire detection, arc-flash sensors inside PCS panels, aerosol-based extinguishing systems inside PCS panels, and additional fire barriers and cable protection.

Takeaways for investors

ACME’s Q1 FY27 results reflect a stronger operating base with improved CUF and high availability, but the quarter’s defining element is the battery business becoming a material contributor to revenue and EBITDA. The company’s near-term narrative is centered on disciplined commissioning of renewable capacity and rapid scaling of batteries to 10+ GWh by FY27, backed by contracted short-term revenue and ongoing PPA progress.

At the same time, the balance sheet is in an investment phase, with higher net debt and CWIP, making execution timelines, connectivity readiness, and contracted cash flows central to sustaining returns. The company’s disclosures on battery performance metrics, contracting, and incident root cause suggest an intent to build investor confidence as it scales a newer and operationally sensitive asset class.