{"id":57647,"date":"2025-07-10T17:18:07","date_gmt":"2025-07-10T11:48:07","guid":{"rendered":"https:\/\/www.equentis.com\/blog\/?p=57647"},"modified":"2025-11-06T23:23:27","modified_gmt":"2025-11-06T17:53:27","slug":"why-acme-solar-holdings-share-price-is-rising","status":"publish","type":"post","link":"https:\/\/www.equentis.com\/blog\/why-acme-solar-holdings-share-price-is-rising\/","title":{"rendered":"Why ACME Solar Holdings Share Price is Rising"},"content":{"rendered":"
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Did you know – every second, the Sun releases enough energy<\/a> to power the entire Earth for 500,000 years!<\/p>\n\n\n\n

In one hour, the Earth receives 173,000 terawatts of solar energy – that’s over 10,000 times what the entire world consumes at any given moment.<\/p>\n\n\n\n

If we expand the duration to one day, the sun provides more energy than all the fossil fuel reserves on Earth combined – let that number sink in: One Day!<\/p>\n\n\n\n

And yet, most of this energy goes untapped.<\/p>\n\n\n\n

But now, that\u2019s shifting\u2026 at least in India. Thanks to government support, policy shifts, unit economics, capex flows, and export demand, we are taking serious efforts towards expanding our solar energy capacity<\/a>.<\/p>\n\n\n\n

And one company that sits right at the center of it is ACME Solar Holdings<\/a>.<\/p>\n\n\n\n

In the past 5 trading sessions, the company\u2019s stock price<\/a> has surged over 16%.<\/p>\n\n\n\n

ACME Solar – 5 Days Performance<\/p>\n\n\n\n\n\n

Let\u2019s understand the company\u2019s background and then delve deeper into why its stock price is rising.<\/p>\n\n\n\n

A Word About ACME Solar Holdings<\/h1>\n\n\n\n

ACME Solar is one of India’s largest independent power producers (IPP). The company specialises in solar, wind, hybrid, and firm dispatchable projects.<\/p>\n\n\n\n

The company owns and operates over 2.7 GW of solar energy projects and is developing an additional 1.65 GW of projects. It’s also engaged in green hydrogen<\/a> and green ammonia projects, with a notable offtake agreement for 100 KTPA of green ammonia with Yara for a project in Oman.<\/p>\n\n\n\n

Earlier this year in January, ACME announced a strategic partnership with Cliantech Solutions and Technologies to establish a state-of-the-art solar module manufacturing facility in Rajasthan. This gigawatt-capacity factory is expected to be commissioned by July 2025 and ACME plans to produce advanced solar modules, including TOPCon, MonoPERC, and bifacial modules, at this facility.<\/p>\n\n\n\n

As of March 2025, promoters of the company hold over 83% stake, with the rest held by domestic institutions and retail investors.<\/p>\n\n\n\n\n\n

Source: Investor Presentation<\/p>\n\n\n\n

Why ACME Solar Share Price is Rising<\/h1>\n\n\n\n

In the past few trading sessions, the company\u2019s stock price has seen a decent uptick.<\/p>\n\n\n\n

The recent rally comes after Elara Capital initiated a coverage on the stock. In its report, the brokerage mentioned:<\/p>\n\n\n\n

“India’s ambitious 500GW renewable energy<\/a> target by FY30, up from the current 220GW, sets a strong growth backdrop for companies like ACME Solar Holdings…with 2.8GW of operational solar capacity and 4.1GW under development, ACME is rapidly expanding its portfolio to 7.0GW by FY28.”<\/p>\n\n\n\n

The brokerage added that ACME Solar is also diversifying into firm and dispatchable renewable energy at 2.6 GW, and hybrid at 750 MW segments to enhance returns and grid reliability, with this robust pipeline expected to drive significant growth. <\/p>\n\n\n\n

Apart from Elara, Motilal Oswal also has a buy rating on this recently listed solar and wind energy stock.<\/p>\n\n\n\n

Battery Energy Storage Order<\/h1>\n\n\n\n

Apart from the above reason, there\u2019s one more factor contributing to the rally. ACME Solar recently placed an order for more than 3.1 GWh of BESS to procure high-efficiency and scalable storage solutions from Zhejiang Narada and Trina Energy.<\/p>\n\n\n\n

This is one of the largest battery storage procurements in India to date and will support the deployment of Battery Energy Storage Systems (BESS)<\/a> across ACME Solar\u2019s multiple renewable energy FDRE (Firm & Dispatchable Renewable Energy) and battery-linked projects, scheduled for commissioning over the next 12-18 months across multiple states in India.<\/p>\n\n\n\n

The delivery for the same is planned in a phased manner over the next four to eight months of FY26.<\/p>\n\n\n\n

A Close Look at its Financials<\/h1>\n\n\n\n

Coming to its financials, ACME Solar\u2019s revenue<\/a> has varied over the years depending on the order and project intake. In FY25, the company posted a marginal growth in its revenue while its net profit more than halved on a year-on-year basis.<\/p>\n\n\n\n

The company\u2019s RoCE<\/a> has averaged at around 7% over the past 9 years, while it has negative free cash flow on a cumulative basis over the same period. Its debt-to-equity is also high at 2.3x as of March 2025.<\/p>\n\n\n\n

Financial Snapshot of ACME Solar<\/strong><\/p>\n\n\n\n

Particulars (in Rs crore)<\/td>2016<\/strong><\/td>2017<\/strong><\/td>2018<\/strong><\/td>2019<\/strong><\/td>2020<\/strong><\/td>2021<\/strong><\/td>2022<\/strong><\/td>2023<\/strong><\/td>2024<\/strong><\/td>2025<\/strong><\/td><\/tr>
Revenue<\/td>0.1<\/td>292<\/td>1,096<\/td>1,672<\/td>1,777<\/td>1,692<\/td>1,488<\/td>1,295<\/td>1,319<\/td>1,405<\/td><\/tr>
Growth (%)<\/td>–<\/td>713071%<\/td>275%<\/td>53%<\/td>6%<\/td>-5%<\/td>-12%<\/td>-13%<\/td>2%<\/td>7%<\/td><\/tr>
Net Profit<\/td>-6<\/td>-68<\/td>-240<\/td>-47<\/td>86<\/td>15<\/td>62<\/td>-3<\/td>698<\/td>252<\/td><\/tr>
Margin (%)<\/td>–<\/td>-23%<\/td>-22%<\/td>-3%<\/td>5%<\/td>1%<\/td>4%<\/td>0%<\/td>53%<\/td>18%<\/td><\/tr>
RoCE (%)<\/td>-2%<\/td>2%<\/td>6%<\/td>9%<\/td>9%<\/td>11%<\/td>8%<\/td>7%<\/td>9%<\/td>7%<\/td><\/tr>
Free Cash Flow<\/td>-172<\/td>-3,516<\/td>-1,853<\/td>-1,984<\/td>-2,180<\/td>635<\/td>-3,677<\/td>-143<\/td>-1,477<\/td>1,543<\/td><\/tr>
Debt to Equity (x)<\/td>0.6<\/td>125.9<\/td>8.0<\/td>8.7<\/td>5.5<\/td>4.6<\/td>3.8<\/td>4.3<\/td>3.0<\/td>2.3<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Source: Ace Equity<\/p>\n\n\n\n

What Lies Ahead for ACME Solar Holdings?<\/h1>\n\n\n\n

By 2030, the company is targeting 10 GW of installed renewable energy capacity (current 2.5 GW), which provides a long runway of growth.<\/p>\n\n\n\n

Importantly, Acme has also secured battery capacity commitments of 3.6 GWh. This makes it one of the early movers in BESS-backed projects.<\/p>\n\n\n\n

The company is also developing merchant solar assets to monetise current high prices and plug into PPAs later.<\/p>\n\n\n\n

Together, all these moves position Acme well to tap into India\u2019s clean energy transition.<\/p>\n\n\n\n

But investors should tread carefully \u2014 execution risks, policy delays, and market volatility could still impact the company\u2019s growth path.<\/p>\n\n\n\n

Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis \u2013 Research & Ranking. We will not be liable for any losses that may occur. Investments<\/a> in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI<\/a>, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.<\/p>\n","protected":false},"excerpt":{"rendered":"

Did you know – every second, the Sun releases enough energy to power the entire Earth for 500,000 years! In […]<\/p>\n","protected":false},"author":22,"featured_media":57648,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[9,948],"tags":[],"class_list":["post-57647","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing","category-stock-market-news"],"_links":{"self":[{"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/posts\/57647","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/comments?post=57647"}],"version-history":[{"count":3,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/posts\/57647\/revisions"}],"predecessor-version":[{"id":59704,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/posts\/57647\/revisions\/59704"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/media\/57648"}],"wp:attachment":[{"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/media?parent=57647"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/categories?post=57647"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/tags?post=57647"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}