ACME Solar Hold. Q2 FY27 Results (NSE: ACMESOLAR)
Signal: Margin pressure
The read
The standalone business inflected into a very large EPC-led revenue quarter, with revenue up 896.5% YoY to ₹33,131.08 million, but the quality of the acceleration is mixed: EBITDA margin compressed 1893bps YoY to 13.02% as construction expenses scaled to ₹28,843.17 million, while PAT growth to ₹2,412.58 million was helped by operating scale and EPS was diluted by the enlarged share base.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹3,313.11 Cr | 896.5% | 46.1% |
| Net profit | ₹241.26 Cr | 672.7% | |
| EPS | ₹3.6 | 592.3% | |
| EBIT margin | 13.02% |
P&L walk
Standalone revenue accelerated to ₹33,131.08 million, +896.5% YoY and +46.1% QoQ, almost entirely on EPC contracts; EBITDA rose +306.1% YoY but EBITDA margin contracted to 13.02% from 31.98%, while PAT rose +672.7% with EPS growth lagging because of the QIP and ESOP share issuance.
Key positives
- EPC revenue reached ₹32,883.24 million, up 980.1% YoY and 46.7% QoQ, showing a sharp execution ramp in the standalone business.
- Operating cash flow was ₹27,037.86 million in H1FY27 versus negative ₹1,832.21 million in H1FY26, although the improvement was accompanied by a ₹9,740.40 million working-capital outflow from trade receivables offset by higher other liabilities.
- Finance-cost coverage improved to 4.1x EBITDA from 1.6x YoY as EBITDA reached ₹4,312.65 million and finance costs were ₹1,046.97 million.
- Property, plant and equipment plus CWIP increased to ₹152.90 million from ₹76.58 million while depreciation also rose to ₹38.79 million in the quarter, making the asset/depreciation progression clean.
Key concerns
- EBITDA margin fell 1893bps YoY to 13.02% despite revenue growth of 896.5%, indicating that the EPC-heavy revenue mix carries materially lower reported margin than the year-ago base.
- Trade receivables increased to ₹15,891.72 million from ₹6,151.32 million at 31 March 2026, a balance-sheet trend that warrants monitoring as EPC revenue scales.
- Finance costs rose 55.0% YoY to ₹1,046.97 million, even though EBITDA grew 306.1% YoY.
- O&M revenue declined 10.5% YoY to ₹247.84 million, so the quarter's growth was concentrated in EPC rather than recurring operating services.
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