Acme Solar Plans Rs 40,000 Crore Capex In Next 3.5 Years To Reach 7GW Capacity

Acme Solar Holdings plans to make capital expenditure (capex) exceeding Rs 40,000 crore over the next three and a half years in efforts to expand its capacity to 7 gigawatts by FY28, according to the company’s Chief Executive Officer Nikhil Dhingra.

Talking about the company’s future growth plans, Dhingra told NDTV Profit that Acme Solar aims to add 4.5 gigawatts of capacity by Dec. 2027, bringing its total capacity to 7 gigawatts.

“In terms of the next stage of growth, we have to execute close to 4.5 gigawatts of capacity, which will come up in phases starting from June of 2026 till December of 2027. And that will come up as per the PPA (purchase power agreement) timelines. So that will take our overall capacity to 7 gigawatts,” he said.

The capex required for building a 7-gigawatt capacity is over Rs 40,000 crore, the top executive revealed.

“So, in terms of the numbers for the capex we need to do to reach 7 gigawatts, it will be in excess of around Rs 40,000 crores. This will be done over a period of 3-3.5 years in phases,” he mentioned.

As much as 75% of this proposed capex will be funded by debt, and the rest by equity, Dhingra said.

“This business is very capex intensive. For each megawatt you build, you have a capital. Out of it, 75% is funded by debt, and 25% is funded by equity. That debt has been around for 20 years. The PPAs are for 25 years,” he said.

According to the top executive, Acme Solar aims to do a capex of over Rs 10,000 crore in FY26 and ramp it up by FY28.

“We will target doing more than Rs 10,000 crores of capex in FY26, and that will ramp up substantially as we move to FY27 and FY28,” Dhingra explained.

Over the next two to three quarters, Acme Solar will add capacities worth 450 megawatts, the CEO revealed.

“In terms of the future growth in the upcoming quarters, we are looking at around 450 megawatts in the upcoming two to three quarters,” he said.

“The current capacity is 2,450 megawatts. This number will go to around 3,000 megawatts by June to September, in the next 2 to 3 quarters. So that is one milestone we have to reach,” Dhingra added.

Shares of Acme Solar Holdings Ltd. was locked in upper circuit of 10% at Rs 210.35 apiece, while benchmark Nifty 50 was 0.13% higher at 23,203.95 points.