ACME Solar Hold. Q2 FY27 Earnings Call — Analysis (NSE: ACMESOLAR)
ACME Solar reported strong Q2FY27 revenue growth of 67.5% YoY to ₹1,007 Cr with an 86.7% EBITDA margin, while raising FY27 BESS commissioning guidance to >12 GWh and 2030 targets to 15 GW RE plus 50 GWh storage.
Result quality: stable — Steady quarter. Management sentiment: optimistic.
The take
Q2FY27 Total Revenue ₹1,007 Cr ( +67.5% YoY ) . New guidance — FY28 contracted bess revenue lock-in more than ₹1,600 Cr [FY27] and more than ₹1,500 Cr [FY28] . New story: BESS as Core Cash Engine .
Results
Revenue grew 67.5% YoY to ₹1,007 Cr; EBITDA rose 63.6% to ₹874 Cr (86.7% margin) and PAT surged 133.5% to ₹269 Cr.
Financial highlights
| Metric | Value | Change | Basis |
|---|---|---|---|
| Total Revenue | ₹1,007 Cr | +67.5% | yoy · Q2FY27 |
| EBITDA | ₹874 Cr | +63.6% | yoy · Q2FY27 |
| EBITDA Margin | 86.7% | none · Q2FY27 · blended; 90.8% RE generation and 78.3% BESS | |
| Profit After Tax | ₹269 Cr | +133.5% | yoy · Q2FY27 |
| Total Asset Base | ₹28,462 Cr | +₹11,466 Cr | yoy · Q2FY27 |
| Gross Debt | ₹26,500 Cr | point_in_time · Q2FY27 · Sep-26 | |
| Cash Balance | ₹10,000 Cr | point_in_time · Q2FY27 · Sep-26 |
Guidance
Raised FY27 BESS commissioning guidance from 10 GWh to >12 GWh and increased 2030 capacity target to 15 GW RE with 50 GWh BESS.
What management committed to
- [Management] raises FY27 BESS commissioning guidance from 10 GWh to more than 12 GWh. — more than 12 gigawatt-hour, Q4FY27
- [Management] raises 2030 renewable target from 10 GW with 25 GWh BESS to 15 GW and 50 GWh BESS. — 15 gigawatts and 50 gigawatt-hour, FY30
- [ACME Solar] targets to capitalize the entire 12 GWh of [BESS] in this financial year [FY27]. — whole of 12 gigawatt hour, Q4FY27
- [Management] targets grid-connected RE capacity additions of upwards of 2.5 to 3 GW in FY28. — 2.5 gigawatts to 3 gigawatts, FY28
- [ACME Solar] expects balance 900 MWp of installed modules to be charged by November to December of this year [2026]. — balance [900 MWp], Q3FY27
- [ACME Solar] has locked in more than ₹1,600 Cr of revenue for FY27 and more than ₹1,500 Cr for FY28 through short-term BESS contracts. — more than INR1,600 crores [FY27] and more than INR1,500 crores [FY28], FY28
Key themes
BESS expansion and peak power monetization
How the narrative shifted
- BESS as Core Cash Engine: Management positions rolling BESS capacity of ~10 GWh as a self-financing vehicle generating high-margin cash flows that fund equity requirements for future renewable builds.
- GNA Delays and Early Monetization Strategy: While transmission GNA delays affect full plant COD, ACME mitigates risk by commissioning BESS and solar early to monetize curtailed power through short-term peak power markets.
- Disruption of RTC Power by Peak Storage: Management asserts state discoms are rapidly shifting procurement away from expensive thermal RTC contracts (85% of DEEP portal volumes) toward targeted peak power BESS.
- Debt Structure and Interest Insulation: 65% of operational debt is anchored with long-tenor developmental lenders (PFC, REC, IREDA, NaBFID), insulating the company from floating rate hikes while construction refinancing lowers borrowing spreads.
Operational commentary
- Commissioned ~5.2 GWh of BESS capacity till date, achieving the initial H1 target of 5.0 GWh and standing as India's second largest BESS capacity.
- Partially commissioned 1.9 GW of contracted projects across solar and BESS elements.
- Signed 430 MW FDRE PPAs in Q2 and another 400 MW FDRE PPA with NTPC post-quarter, taking overall signed PPAs to 92% of the 8,370 MW contracted portfolio.
- Installed 1.1 GW of modules (out of 1.7 GW delivered to site), with 200 MWp charged and the balance expected to be charged by Nov-Dec 2026.
- Generation volume rose 19.6% YoY to 1,840 MU with CUF improving from 24.1% to 27.8%; additional 324 MU sold through short-term peak power BESS contracts.
- Utilizing curtailed solar power to charge BESS ahead of full GNA operationalization, mitigating transmission evacuation delays.
- BESS capex executed below budgeted levels at ₹0.90-1.00 Cr/MWh by co-locating at existing operational substations.
- CRISIL upgraded ACME Solar Holdings credit rating outlook to AA- Positive from AA- Stable.
Analyst Q&A
Q. What is the revised power generation capacity addition and capex/capitalization plan for FY27 given transmission/GNA delays?
Targeting ~1.5 GW full commissioning and 2.5-3.0 GW of partial commissioning in FY27 depending on GNA. H1 capex was ₹6,500 Cr (₹3,500 Cr capitalized) and H2 will be higher as all 12 GWh of BESS is targeted for capitalization in FY27.
Q. Why did operational debt increase by ₹3,100 Cr QoQ while gross block increased by ₹1,782 Cr?
Gross debt rose to ~₹26,500 Cr primarily due to front-ended disbursements for BESS procurement/LCs and some refinancing; cash balance stands at ₹10,000 Cr as funds await LC drawdowns.
Q. How realistic is the 15 GW by 2030 target given ongoing grid connectivity and GNA delays?
Substations targeted have scheduled timelines of 2028-2029 with built-in buffers; company holds 10 GW RE connectivity inventory and >5 GW BESS connectivity granted, with AAA counterparties driving demand.
Q. How do peak power project economics work at a ₹6/unit tariff with battery costs around $100/kWh?
Early commissioning of BESS at live operational GNA substations generates 12-24 months of high-margin short-term revenues before full solar completion, delivering high-teens equity IRR.
Research and educational content only. Not investment advice.