Finance and M&A

ACME Solar Revenue Surges 68% to ₹8.58 Billion in Q1 FY 2027

August 4, 2026 By Gaurav Nathani 5 min read
0:00 / 05:21

ACME Solar Holdings Limited has reported a standout financial performance for the first quarter of fiscal year 2027, underpinned by a 67.8% year-on-year surge in revenue from operations to ₹857.50 crore. When accounting for other income, total income reached ₹954 crore, marking a 63.3% increase over the previous year. Alongside a nearly 80% jump in consolidated net profit, the company announced an aggressive acceleration of its Battery Energy Storage System (BESS) roadmap, pulling forward its 10 GWh capacity target from the 2027 calendar year to the end of fiscal year 2027.

Q1 FY 2027 Financial Performance Breakdown

The company’s first-quarter results demonstrate significant operating leverage, though margins faced specific technical pressures related to the rapid scale-up of storage assets:

  • Revenue from Operations: ₹857.50 crore (up 67.8% YoY).
  • Consolidated Net Profit (PAT): ₹235.33 crore (up 79.9% YoY).
  • EBITDA: ₹831 crore (up 56.5% YoY).
  • EBITDA Margin: 87.1% (reflecting a 382 bps compression from 90.9% in Q1 FY 2026, driven specifically by ₹38.95 crore in power purchase costs required to meet BESS contractual obligations).
  • Basic EPS: ₹3.71 (up 71.8% YoY).

The robust top-line growth was catalyzed by superior solar irradiation and enhanced technical plant performance. Beyond the core solar portfolio, the phased operationalization of new BESS assets has begun to fundamentally alter the company’s earnings profile, contributing roughly 23% of total quarterly revenue.

Strategic Pivot: Accelerated Energy Storage Targets

ACME Solar is aggressively retooling its portfolio to address the “Duck Curve” dynamic currently reshaping the Indian power grid. As midday net demand approaches zero due to the proliferation of solar, the “Evening Peak”—currently at 300 GWh and projected to rise toward 1 TWh—represents the most profitable frontier for renewable energy providers. To capture this Arbitrage opportunity, the company has officially revised its storage target upward to more than 10 GWh by the end of FY 2027.

The company’s current operational status underscores its market-leading position:

  • Commissioned in Q1: 2.3 GWh of BESS capacity.
  • Cumulative Commissioned Capacity: 3.62 GWh (approximately 3,621 MWh), representing nearly 40% of India’s total installed battery storage market of 7,499 MWh.

Financially, BESS operations generated ₹226 crore in Q1. The company has secured short-term electricity supply contracts providing revenue lock-ins exceeding ₹1,400 crore for FY 2027. Management’s deliberate philosophy involves accepting merchant pricing for the first year of a battery’s operation to capture peak-hour premiums while capital is being allocated toward a final long-term Power Purchase Agreement (PPA) destination.

Operational Highlights and Project Pipeline

ACME continues to drive technical efficiency while managing a massive 5,080 MW under-construction portfolio across solar, wind, and hybrid projects:

  • Capacity Utilization Factor (CUF): Reached a record quarterly high of 30.9%, up from 28.5% YoY. This improvement was achieved despite curtailment, as the company increasingly uses BESS to absorb curtailed generation for later dispatch.
  • Electricity Sales: 2,020 million units (up 23.4% YoY).
  • Recent PPA Signings: 600 MW total, including 300 MW of Firm and Dispatchable Renewable Energy (FDRE) with SECI at ₹6.28/unit and 300 MW of hybrid capacity at ₹3.25/unit.
  • Asset Management: The company has implemented a 20-year depreciation policy for its storage assets.
  • Procurement: A significant 2 GWh BESS order was placed through Posco International Corporation from Chuzhou Lishen New Energy Technology. This order is slated for phased delivery over the next 6 to 10 months.

Capital Structure and Funding

ACME Solar has taken decisive steps to de-lever its balance sheet following its Qualified Institutional Placement (QIP), which raised ₹2,762.9 crore in net proceeds. As of June 30, ₹411 crore has been deployed for debt repayment. While finance costs grew 47.78% YoY during the quarter, the expected relief on interest expenses is back-weighted, as approximately ₹1,689 crore in QIP proceeds remained undeployed as of the reporting date.

On the project financing side, the company has successfully tied up over ₹6,000 crore in debt with REC and PFC specifically for 700 MW of under-construction FDRE projects.

Market Context and Operational Outlook

The transition toward FDRE configurations is no longer a niche strategy but a necessity for grid stability. ACME management estimates that BESS-backed capacity carries a 4x value equivalence compared to standalone solar because it aligns generation with the shape of demand.

Looking forward, the company aims to scale its total renewable portfolio to 7 GW by FY 2029. A primary strategic objective for the coming year is the elimination of merchant risk; the company intends to achieve zero uncontracted battery storage capacity by the end of FY 2027, insulating its storage revenue from the volatility of peak-hour pricing through stable, long-term PPAs.

Official Sources & Regulatory Filings

The following links provide direct access to official company communications and regulatory disclosures filed by ACME Solar Holdings Limited with the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE):

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