Smallcap Solar Stock ACME Solar Rises 2% After Securing Rs 1,072 Crore Refinancing

India’s solar power sector has seen remarkable growth, rising 3,450% over the past decade, from 2.82 GW in 2014 to 100.33 GW as of January 31, 2025. 

With another 84.10 GW under implementation and 47.49 GW under tendering, the country is on track to further scale up renewable capacity. 

Hybrid and round-the-clock (RTC) projects are also progressing steadily, with 64.67 GW in the pipeline.

Private players like ACME Solar Holdings have played an active role in driving this momentum. 

Known for its portfolio of utility-scale solar projects, ACME Solar continues to contribute to India’s clean energy transition. 

In a recent development, the company announced on 23 June 2025 that it has secured a Rs 1,072-crore domestic project finance facility through its subsidiary, ACME Aklera Power Technology, to refinance existing debt for its 250 MW operational project in Rajasthan. 

So, how is the deal shaping the company’s fundamentals and its stock price? Let’s understand.

Strategic Refinancing for the 250 MW Rajasthan Project

The new facility replaces existing debt at a lower cost, cutting the borrowing rate by 95 basis points to 8.5% per annum, and extends the debt tenure to 18 years. 

This move enhances the project’s capital structure, reduces financing costs, and improves long-term financial stability.

This refinancing is part of ACME Solar’s broader strategy to strengthen its financial health. In the past six months alone, the company has completed refinancing transactions totaling Rs 4,575 crore, focusing on post-commissioning assets.

In a capital-intensive sector like renewable energy, maintaining financial discipline is crucial. Lowering debt costs and freeing up capital enables ACME Solar to fund new projects and remain competitive in the rapidly growing sector.

Market Reaction

On June 24, 2025, ACME Solar Holdings’ share price showed minimal movement, closing marginally higher after an initial 2% gain earlier in the day.

Source: MoneyControl

While the market response reflects short-term sentiment, the company’s overall financial positioning and project pipeline will be critical factors in determining the sustainability of such progress in the long run.

Financial Snapshot of ACME Solar Holdings

Company Position and Growth

ACME Solar Holdings has rapidly expanded its operational footprint. As of FY25, the company’s operational capacity rose 80% YoY to 2,540 MW (from 1,340 MW in FY24), reaching 2,593 MW by June 30, 2025. This capacity supports an estimated annualised EBITDA run rate of Rs 1,800 crore.

ACME Solar’s total contracted capacity stands at 6.97 GW, comprising 3,440 MW solar, 150 MW wind, and 3,380 MW hybrid and Firm & Dispatchable Renewable Energy (FDRE) systems — reflecting a strategic move towards more reliable and higher-value generation.

Project Pipeline and Execution

Currently, 4,378 MW is under construction, including 1,200 MW SECI ISTS projects (Rs 4,400 crore invested), 450 MW in advanced stages, and 112.5 MW recently commissioned at ACME Sikar (Rajasthan). 

ACME has also secured 100% grid connectivity for 4,430 MW under construction, with another 2,000 MW pre-approved for future bids. Recent CRISIL AA-/Stable rating for its 300 MW ISTS project highlights execution strength and financial viability.

The company is actively shifting toward hybrid and FDRE projects — positioning itself as a provider of grid-stable, dispatchable renewable power, aligned with the next phase of India’s energy transition

Revenue And Profit Trends

For FY25, the company’s networth has increased from Rs 2,591 crore in FY24 to Rs 4,509 crore. EBITDA was recorded at Rs 1,406 crore and EBITDA margin was 89.2%. Plus, the company added Rs 4,116 crore of asset base to its portfolio during FY25 to reach Rs 15,507 crore. 

Source: Money Control and Annual Reports

Growth Prospects For Acme Solar Holdings

ACME Solar has outlined significant expansion plans aimed at scaling capacity and diversifying its portfolio. The company targets 5 GW capacity by 2027, with an objective of tripling its renewable capacity to 7 GW by 2028, and reaching 10 GW of contracted capacity by 2030, a notable increase from its 2,540 MW operational capacity in FY25.

To support this growth, ACME Solar plans to invest Rs 17,000 crore in FY26. The company is also prioritising hybrid and Firm & Dispatchable Renewable Energy (FDRE) projects, which integrate storage to address intermittency and provide round-the-clock power. The project pipeline reflects this strategy, combining solar, wind, and hybrid assets designed to accelerate revenue generation and enhance margin profiles.

ACME Group is also advancing into green hydrogen and green ammonia markets. Its Duqm, Oman project has secured $140 million of a planned $540 million in financing, with an initial production target of 100,000 tonnes annually and off-take arrangements in place with Yara. Globally, ACME targets 10 million tonnes of green hydrogen and ammonia output by 2030, with projects under consideration in India, Egypt, Australia, and Chile.

Conclusion

ACME Solar’s recent refinancing reflects its broader efforts to optimise financial efficiency while supporting ongoing expansion. 

Combined with an active project pipeline, diversified portfolio strategy, and focus on operational efficiency, the company is well-positioned to contribute to India’s evolving renewable energy market.

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