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

ICICI Securities is bullish on Acme Solar Holdings has recommended buy rating on the stock with a target price of Rs 350 in its research report dated July 29, 2025.

Broker Research

July 30, 2025 / 10:51 IST

BUY

26 Aug, 2025 12:21

Volume

Todays L/H

ICICI Securities's research report on Acme Solar Holdings

ACME has had an impressive beginning to FY26 with revenue of INR 5.1bn (+65% YoY), EBITDA at INR 4.6bn (+68% YoY), and PAT of INR1.3bn. Generation more than doubled to 1.6BU, owing to operational capacity ramp-up to 2.9GW and improved PLF of 28.5%. Execution remains on track with 350MW commissioned in the quarter. New PPAs for 550MW and 550 MWh BESS were signed, improving the locked-in EBITDA with PPA to INR 60bn p.a. (vs. INR 55bn at end-Q4FY25). We expect another INR 10–15bn worth of PPA to be tied up in Q2, improving visibility further. It is looking to commission 100MW and another 2.5GWH of battery (ahead of commissioning timelines). We maintain BUY with a TP of INR 350, valuing the stock at 9x locked-in EBITDA. Key risk: Delay in commissioning of the projects.

Outlook

Retain BUY with a TP of INR 350, valuing the stock at 9x locked-in EBITDA of ~INR 81bn. Key risk: Delayed execution of under construction capacity.

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