The shares of Renewable Energy stock, which specializes in large-scale solar power generation and provides clean energy solutions, are in focus after leading Indian Brokerage firm ICICI Securities initiated a Buy Target with an upside potential of 26 percent.
With a market capitalization of 16,963.64 Crores on Wednesday, the shares of Acme Solar Holdings Ltd jumped upto 0.7 percent, making a high of Rs. 288.95 compared to its previous close of Rs. 286.70.
Acme Solar Holdings Ltd, engaged in large-scale solar power generation and providing clean energy solutions, is in focus after a leading Indian brokerage firm, ICICI Securities, initiated a Buy Target of Rs. 350 on it with an upto 26 percent Upside Potential from the day’s current price.
The reasons for the “Buy” target
Robust Revenue and Profit Growth: Acme Solar reported a strong start to FY26 with revenue rising 65% YoY to ₹5.1 billion, EBITDA up 68% YoY to ₹4.6 billion, and PAT at ₹1.3 billion, reflecting healthy operational leverage and efficient cost control.
Significant Growth in Power Generation: Electricity generation more than doubled to 1.6 billion units due to a ramp-up in operational capacity to 2.9 GW and an improved plant load factor (PLF) of 28.5%, indicating optimized asset utilization and higher efficiency.
Strong Execution Track Record: The company commissioned 350 MW in the quarter, demonstrating timely execution and strong project management capabilities, which supports further scalability and investor confidence.
High Revenue Visibility through Locked-in EBITDA: With recent PPA signings of 550 MW and 550 MWh battery energy storage systems (BESS), Acme’s annual locked-in EBITDA from contracted projects has increased to ₹60 billion, enhancing future earnings visibility.
Pipeline Expansion and Battery Storage: Acme is targeting additional PPA tie-ups worth ₹10–15 billion in Q2 and plans to commission another 100 MW and 2.5 GWh of battery capacity ahead of schedule, showing aggressive expansion and first-mover advantage in the battery storage segment.
Attractive Valuation Relative to Growth: The stock is valued at 9x its locked-in EBITDA (~₹81 billion), offering a compelling valuation for a renewable energy company with a growing asset base, stable cash flows, and long-term PPAs.
Favorable Sector Tailwinds: Rising demand for renewable energy and government focus on decarbonization and energy transition policies are long-term tailwinds benefiting players like Acme Solar with execution capabilities and integrated solar-plus-storage offerings.
Financials & Others
The company’s revenue rose by 71 percent from Rs. 340.01 crores to Rs. 583.99 crores in Q1FY25-26. Meanwhile, Net profit rose from Rs. 1.39 crores to Rs. 130.83 crores in the same period.
ACME Solar Holdings Limited is one of India’s largest and most prominent renewable energy independent power producers (IPPs), managing a diverse portfolio across solar, wind, hybrid, and firm and dispatchable renewable energy (FDRE) projects.
The company specializes in the development, construction, ownership, operation, and maintenance of large-scale renewable energy solutions, leveraging in-house engineering, procurement, and construction (EPC) as well as operations and maintenance (O&M) capabilities.
In the recent quarter, they secured their maiden standalone Battery Energy Storage System (BESS) project of 550 MWh from NHPC and signed fresh PPAs totaling 550 MW (including 250 MW FDRE and 300 MW solar) along with 550 MWh BESS. The company also commissioned four 300 MW SECI ISTS projects, all rated CRISIL AA-/Stable. Financially.
It has also commissioned 350 MW in Q1 FY26, including 300 MW solar at Acme Sikar (contracted with SECI) and 50 MW wind at Acme Pokhran (contracted with GUVNL). Additionally, the 100 MW Acme Eco Clean wind project is in advanced stages of construction.
The company aims to scale its portfolio to 10 GW of generation capacity and 15 GWh of BESS by 2030. Currently, it has around 10 GWh of BESS capacity under construction through FDRE projects and an additional 550 MWh from standalone BESS projects.
Written by Sridhar J
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