Buy Acme Solar Holdings; target of Rs 350: ICICI Securities

ICICI Securities's research report on Acme Solar Holdings

Acme reported Q2FY26 results in line with our estimates, with revenue at INR 4.7bn (+80% YoY) and EBITDA at INR 4bn (+81% YoY) led by higher PLF (24.1% vs 22.2% YoY) and incremental capacity addition. Operational capacity stood at 2.9GW (vs. 2.5GW YoY). Acme remains on track to meet its FY26 commissioning target of 450MW, with 378MW already commissioned; it also guides for additional 1GWh of BESS commissioning by Q4FY26. It targets 1.9GW/2.2GW of capacity commissioning by FY27/FY28. It has already placed 5.1GWh BESS orders. Locked-in EBITDA stands at ~INR 78bn (PPA awaited for INR 21bn). Timely execution and PPA finalisation remain key while a hybrid/FDRE-heavy portfolio at competitive tariffs limit the PPA-related risk. Retain BUY with an unchanged TP of INR 350.

Outlook

Retain BUY with an unchanged TP of INR 350, valuing the stock at 9x locked in EBITDA of ~INR 78bn. Key risk: Delayed execution of under construction capacity and delay in PPA signing of balance capacity