Buy ACME Solar Holdings; target of Rs 347: Motilal Oswal

Motilal Oswal's research report on ACME Solar Holdings

ACME Solar Holdings (ACME) reported a robust performance in 1QFY26, with EBITDA growth of 68% YoY/5% QoQ to INR4.6b (3% beat), driven by capacity additions and improved capacity utilization factor (CUF). Adj. PAT of INR1.5b 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.

Outlook

We reiterate our BUY rating on ACME. We assign 10x FY28E EV/EBITDA (discounted by 1 year). Adjusting for the net debt, we derive our TP of INR347, implying an 18% potential upside.