ACME Solar Hold. Q1 FY26 Results (NSE: ACMESOLAR)
Signal: Margin expansion
The read
Q1FY26 consolidated results show accelerating revenue growth (+67.8% YoY, highest in 5 quarters) and 5th straight quarter of margin expansion (OPM 96.8%, +700bps YoY). Revenue growth is driven by electricity sales as new capacity (including BESS) comes online. PAT rose 80% YoY, though current tax jumped 7x demonstrating higher taxable profits. Key watch items: finance cost remains elevated at ₹3,443 Mn (+48% YoY), and the high P/E of 50.9x leaves little room for execution misses. The QIP dilution of 67% in share count (~101 Cr now vs ~60 Cr) will weigh on per-share growth until deployed capital generates incremental returns.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹857.5 Cr | 67.8% | 56.6% |
| EBIT | ₹331.46 Cr | 130.9% | |
| Net profit | ₹235.33 Cr | 79.8% | |
| EPS | ₹3.71 | 71.8% | |
| EBIT margin | 96.8% |
P&L walk
Revenue surged +67.8% YoY to ₹8,575 Mn, driven entirely by electricity sales (no EPC revenue in consolidated). OPM expanded 700bps YoY to 96.8% — 5th consecutive quarter of expanding margins. Finance cost grew +47.8% YoY, but depreciation (+43.9%) and employee costs (+52.5%) grew slower than revenue. Exceptional items were nil (vs ₹159 Mn pre-payment cost in Q1FY25). PAT rose +79.8% YoY to ₹2,353 Mn, though current tax jumped to ₹582 Mn from ₹85 Mn a year ago, indicating higher taxable profits. EPS of ₹3.71 grew +71.8% YoY, slightly lagging PAT growth due to equity dilution from QIP.
Key positives
- Revenue ₹8,575 Mn, +67.8% YoY — fastest growth in five quarters.
- OPM expanded 700bps YoY to 96.8% (5th consecutive quarter of margin expansion).
- PAT ₹2,353 Mn, +79.8% YoY, driven by operating leverage and higher other income.
- No exceptional items in Q1 (vs ₹159 Mn prepayment cost in Q1FY25).
- Recent BESS capacity additions (3.62 GWh operationalised) and 300 MW hybrid PPA signed support long-term growth.
- QIP proceeds of ₹27,629 Mn raised; ₹4,110 Mn already deployed for debt reduction.
Key concerns
- EPS growth (+71.8%) lags PAT growth (+79.8%) due to 67% dilution from QIP (shares outstanding ~101 Cr vs ~60 Cr a year ago).
- Finance cost ₹3,443 Mn, +47.8% YoY, significantly outpacing PBIT growth — high leverage weighs on PAT margin.
- Current tax jumped to ₹582 Mn from ₹85 Mn (₹85 Mn in Q1FY25) — normalisation of tax rate could compress net margins going forward.
- Standalone EPC revenue of ₹22,413 Mn (+739% YoY) is pass-through; standalone OPM compressed to 11.6%.
- Debt/Equity at 3.93x remains high despite QIP infusion.
Research and educational content only. Not investment advice.