HSBC Global Research has initiated coverage on India's renewable energy space with a positive stance, flagging ACME Solar Holdings and Clean Max Enviro Energy Solutions as key beneficiaries of the sector's next growth phase. The brokerage has assigned ‘Buy' ratings with target prices of Rs 350 for ACME Solar and Rs 1,150 for Clean Max, implying upside potential of around 28% and 34%, respectively.
HSBC believes India's renewable energy sector is entering a critical inflection point, where execution capabilities will drive returns more than capital availability. With renewable power now 30-50% cheaper than thermal alternatives, structural demand remains robust, supported by urbanisation, industrialisation, and decarbonisation goals.
The brokerage notes that both key business models — supplying power to distribution companies and directly to commercial and industrial (C&I) users — are viable and expanding the addressable market.
Top Picks: ACME Solar, Clean Max
ACME Solar's large contracted capacity provides strong long-term earnings visibility, supported by fixed tariff agreements. HSBC expects the company to deliver a sharp EBITDA CAGR of 72% over FY26–28, driven by capacity additions and improved project mix. The company's increasing focus on FDRE projects and battery energy storage systems is likely to enhance returns and operational efficiency, positioning it well for the next phase of sector growth.
Clean Max is expected to benefit from accelerating corporate demand for green energy, with renewable tariffs currently 30–45% lower than grid power. Its direct-to-customer (C&I) model offers both scalability and superior margins. HSBC forecasts an EBITDA CAGR of 60% over FY26–28, driven by strong client additions, rising adoption, and a scalable operating model.
While the growth outlook remains strong, HSBC highlights execution—particularly in land acquisition, transmission readiness, and timely commissioning—as the key determinant of success.
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