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

ICICI Securities research report on ACME Solar Holdings

ACME reported a strong set of numbers – revenue grew 65% YoY to ~INR 5bn, EBITDA surged 117% YoY to INR 4.4bn with healthy EBITDA margin of ~90%, adj. PAT stood at INR 1.4bn (vs. INR 0.5bn loss in Q4FY24; adjusted for divestment of assets worth 369MW). Q4’s strong show was owing to: 1) operational capacity doubling YoY (to 2.5 GW by Jan’25); and 2) better generation performance with average PLF of 25.6% (+200bps YoY). With new wins worth 1.9GW in FY25, locked-in capacity/EBITDA grew to ~7GW/INR 81bn. Target capacity addition for FY26/FY27/FY28 is 0.45GW/1.9GW/2.1GW; ~0.2GW already commissioned in May’25. Of the 4.3GW under-construction capacity, PPAs have been signed for 2.2GW and debt funding secured for 1.7GW. Signing of PPAs for balance capacity of 2.1GW is a monitorable. Retain BUY; INR 350 TP unchanged.

Outlook

We maintain BUY on the stock with an unchanged TP of INR 350, valuing the stock at 9x locked-in EBITDA of INR 81bn.

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