ACME Solar Holdings reported a stellar Q2 FY27 with revenue rising 67.5% to Rs 1,007 crore and profit surging 133.5% to Rs 269 crore. The company met its half-yearly BESS target of 5.2 GWh and has upwardly revised its 2030 capacity goal to 15 GW and 50 GWh of storage, signaling confidence in the peak power demand cycle.
ACME Solar Q2 Profit Surges 133% Amid Upward Target Revision
Revenue grew 67.5% YoY to INR 1,007 crores, while PAT rose 133.5% YoY to INR 269 crores.
Reader Takeaway: Strong BESS execution drives record growth, though grid connectivity delays and battery price volatility remain key risks.
What just happened
ACME Solar Holdings reported robust growth for Q2 FY27. The company hit a revenue of INR 1,007 crores, up significantly from the previous year. Profitability expanded at a faster clip, with PAT reaching INR 269 crores. EBITDA stood at INR 874 crores, maintaining a strong margin of 86.7%, bolstered by peak power BESS operations.
Why this matters
The company successfully commissioned 5.2 GWh of Battery Energy Storage System (BESS) capacity. Management views BESS as a high-margin 'cash engine' that funds ongoing expansion, reducing the need for additional equity. Due to this momentum, management has raised its FY27 BESS target to over 12 GWh and increased the 2030 goal to 15 GW of capacity with 50 GWh of storage.
The backstory
ACME Solar has been aggressively building its contracted portfolio, which currently stands at 8,370 MW, with 92% of PPAs already signed. The company has clarified that recent contract adjustments with NTPC for a 400 MW project were due to GST transitions and increased battery duration, rather than tariff cuts. The credit outlook has also improved, with CRISIL moving the outlook from Stable to Positive.
Debt and Capex
Total assets grew to INR 28,462 crores, a year-on-year increase of INR 11,466 crores. H1 FY27 capex hit INR 6,500 crores. The company sources 65% of its debt from long-term institutional lenders like PFC, REC, and IREDA at an average cost of 8.4%. Management emphasized that debt growth is tied to upfront battery procurement and is not indicative of over-leveraging.
Risks to watch
Grid Network Access (GNA) remains a potential bottleneck for specific project timelines. Additionally, while battery cell prices are currently stable, investors should watch for potential supply chain disruptions or geopolitical shifts that could affect future cost assumptions.
What to track next
Watch for updates on the commissioning speed of the expanded BESS targets and any updates from regulators regarding GNA availability for new renewable sites.