'Buy' ACME Solar Shares Maintains Motilal Oswal Post Strong Q1 Results — Check Target Price

ACME Solar has continued to execute well and remains on track to scale up its installed capacity to ~7GW by FY27, which is expected to drive an Ebitda CAGR of 68% over FY25-27E.

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Motilal Oswal Report

ACME Solar Holdings Ltd. reported a robust performance in Q1 FY26, with Ebitda growth of 68% YoY/5% QoQ to Rs 4.6 billion (3% beat), driven by capacity additions and improved capacity utilization factor. Adjusted profit after tax of Rs 1.5 billion was 27% above our estimate, supported by higher other income.

The company has continued to execute well and remains on track to scale up its installed capacity to ~7GW by FY27, which is expected to drive an Ebitda CAGR of 68% over FY25-27E.

Key monitorables include:

1. ACME expects to sign PPAs for majority of its remaining capacity by 2025 end,

2. early commissioning plan of BESS for the 2.3GW projects (under construction contracted), which will enable sales in the merchant market during peak hours to boost earnings, and

3. the company has outlined a phased BESS rollout—installing 3 GWh by end-2025, followed by an additional 3-3.5 GWh in the first half of 2026 and the remaining 3-3.5 GWh in the second half of 2026, which could pose upside risks to our current Ebitda estimates for Q4 FY26 and FY27.

Reiterate Buy with a target price of Rs 347, implying an 18% upside potential.

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