ACME Solar Q2 Profit Jumps 134% to ₹269 Crore on Revenue Growth

ACME Solar Holdings Ltd reported a 133.5% year-on-year increase in its consolidated profit after tax for the second quarter of fiscal 2027. The company stated that net earnings reached ₹269 crore, compared with ₹115 crore in the same period last year.

According to the company, revenue from operations climbed 89.6% year-on-year to ₹887 crore in Q2 FY27.

Financial Performance

The top-line growth extended across the income statement, with total income rising 67.5% year-on-year to ₹1,007 crore in Q2 FY27, up from ₹601 crore in the prior year period. Consolidated EBITDA followed a similar trajectory, climbing 63.6% to ₹874 crore from ₹534 crore.

Metric	Q2 FY27	Q2 FY26
Total Income (₹ crore)	1,007	601
EBITDA (₹ crore)	874	534
EBITDA Margin	86.7%	88.8%
Cash PAT (₹ crore)	441	N/A

While earnings expanded, the EBITDA margin contracted to 86.7% from 88.8% a year earlier. Cash profit after tax (PAT) reached ₹441 crore, marking a 93.2% increase over the previous year.

Operational Metrics

The company generated 1,840 million units of electricity in the second quarter of fiscal 2027, a 19.6% increase from 1,539 million units in the same period last year. This volume growth was supported by an improvement in efficiency, with the capacity utilisation factor rising to 27.8% from 24.1% a year earlier.

The company reported a plant availability rate of 99.3% and a grid availability rate of 99.2% during the quarter. Beyond traditional power generation, ACME also sold 324 million units of short-term peak power through its battery energy storage systems.

Looking at the broader first half of fiscal 2027, cash profit after tax reached ₹831 crore, marking a 72.3% year-on-year increase.

Growth Strategy

ACME Solar’s expansion in the first half of fiscal 2027 was driven by increased energy output and a significant push into storage.

• Electricity generation rose 21.6% year-on-year to 3,860 million units in H1 FY27.
• Short-term peak-power sales via battery energy storage systems (BESS) reached 518 million units in the same period.
• The company commissioned 2.1 GWh of BESS capacity in Q2 FY27, bringing cumulative commissioned BESS capacity to 5.2 GWh.
• Signed power purchase agreements (PPAs) cover 430 MW of firm and dispatchable renewable energy capacity.
• Total capacity under construction with signed PPAs stands at 4,310 MW, involving 17 GWh of BESS.
• According to the company’s investor presentation, total signed PPAs amount to 7.3 GW, representing 87% of its total portfolio capacity.
• The FY27 cumulative BESS commissioning target was raised to over 12 GWh from the previous 10 GWh.
• The long-term renewable energy capacity target for 2030 was revised upward to 15 GW from 10 GW.
• Revenue lock-ins exceed ₹1,600 crore for FY27 BESS and ₹1,500 crore for FY28 BESS.
• Remaining BESS capacity is expected to be tied up through future bids.

Capital Structure

To fuel its rapid expansion, ACME Solar has relied on a mix of internally generated funds and significant external borrowing. Operating cash flow from consolidated operations surged to ₹1,067 crore in the first half of fiscal 2027, a substantial jump from ₹294 crore in the corresponding prior year period. This internal liquidity underpinned heavy capital expenditure, with outlays for property, plant, and equipment rising to ₹6,329 crore from ₹1,402 crore previously. As a result, the net cash outflow from investing activities widened to ₹8,194 crore, creating a need for substantial financing.

To cover this funding shortfall, the company secured net cash inflows from financing activities of ₹9,280 crore, up from ₹1,284 crore in the same period last year. These funds were provided by lenders such as JPMorgan Chase Bank, India Infrastructure Finance Company Ltd, REC Ltd, Power Finance Corporation, and Indian Renewable Energy Development Agency, bringing total debt to ₹9,100 crore. This increased scale of borrowing pushed consolidated finance costs to ₹689 crore, up from ₹497 crore. Despite the heavier debt burden, the weighted average cost of debt for fully operational projects remains at 8.4%. Signaling stronger financial health, CRISIL has upgraded the company’s rating to AA-/Positive from AA-/Stable.

What to watch

H1 FY27 revenue from operations reached ₹1,745 crore, a 78.3% year-on-year increase, while total income climbed 65.4% to ₹1,961 crore. EBITDA rose 60.1% to ₹1,704 crore from ₹1,065 crore in the prior year period. Profit after tax more than doubled, jumping 105% to ₹504 crore from ₹246 crore.