ACMESOLAR - ACME Solar Holdings Limited Share Price

During the earnings call held on May 8, 2026, management at ACME Solar Holdings provided an optimistic outlook for the company, highlighting strategic priorities and financial projections for the upcoming fiscal year.

Key forward-looking points include:

1. Battery Energy Storage System (BESS) Expansion: The company successfully commissioned approximately 2.3 gigawatts of BESS capacity and plans to advance the commissioning of a total of around 10 gigawatt-hours of battery capacity, enabling them to utilize existing transmission infrastructure. This capacity is expected to enhance revenue generation during peak demand periods.

2. Operational Capacity Growth: Management aims to expand its operational generation capacity to 1,500 megawatts for FY27, with a focus on timely execution and significant order book additions, currently standing at 8,071 megawatts including 5.1 gigawatts under construction.

3. Financial Performance Expectations: The total capital expenditure planned is approximately INR 12,475 crores, with an expectation of achieving an EBITDA margin of 75-80% on merchant operations due to favorable tariff arbitrage.

4. Regulatory Context: Regulatory clarity from CERC allows BESS charged with conventional power to be sold in merchant mode, advancing revenue generation opportunities without compromising project timelines.

5. Efficiency Metrics: The company reported a round trip efficiency of BESS between 88-90%, underlining operational efficiency. The adjusted EBITDA run rate is expected to reflect a value close to INR 2,200 crores, accounting for new operational capacities.

These strategic initiatives reflect ACME Solar Holdings' commitment to leveraging market dynamics, regulatory support, and operational efficiencies for sustained growth and enhanced shareholder value.

Question 1: Can you talk about how much of the battery cost you capitalized in the previous year? And how much have you spent so far in the 2.3 gigawatt that is now fully commissioned?

Answer: We have done approximately around INR1,200 crores of capex on the battery this quarter. Last quarter, we spent between INR1,000 crores to INR1,200 crores. The 2.3 gigawatt of BESS capacity is fully commissioned as of now.

Question 2: Can you also give a sense of what is the run rate EBITDA you are making out of your existing capacity with and without BESS?

Answer: Our run rate EBITDA for FY '26 is around INR 2,200 crores, primarily from power sales. The operational projects running on merchant agreements are now realizing approximately INR2.2 crores daily, exceeding INR60 crores monthly.

Question 3: What sort of PLF did the new solar plants from FY '25 end up generating for '26?

Answer: The newly commissioned Sikar plant has achieved a Capacity Utilization Factor (CUF) of around 29% to 30% for the year. Overall, the projects in Rajasthan cumulatively reflect a PLF of about 28%.

Question 4: Is there any curtailment impact that we've had? If yes, could you quantify the EBITDA loss?

Answer: The real curtailment impact was around INR5 crores to INR6 crores for the entire year, mainly due to two projects connected to the Rajasthan state grid. Most of our plants are connected to the central grid, which offers protection from curtailment losses.

Question 5: Could you help us understand whether the reduction in the DSO to 14 days is sustainable?

Answer: The trend is indeed sustainable as our operational portfolio is shifting to 100% central offtakers. They incentivize prompt payments through cash discounts. This results in the healthier receivable cycles that we are seeing currently.

Question 6: What would be the total installed base of batteries, let's say, 6 months down the line?

Answer: Our target is a total installed capacity of 10 gigawatt hours. This is contingent on supply and connectivity factors, but we are confident about achieving this target due to our existing infrastructure and financing commitments.

Question 7: Could you clarify recent CERC proposals regarding connectivity?

Answer: CERC's new mechanism allows developers to surrender LOA capacities if PPA signing cannot occur within a year. We have 3.2 gigawatts of LOA that will convert into PPAs. If needed, we will leverage any released capacities for future bids or battery-connected projects.

Question 8: What kind of EBITDA margins can we expect on capacities that operate on a merchant basis?

Answer: For projects operating on merchant terms, assuming an optimal cost structure, we expect EBITDA margins to be around 75% to 80% based on selling power at approximately INR8 per unit, while purchasing at INR2.