ACME Solar Expands BESS Portfolio as FY26 Revenue Surges 59%, Strengthens Renewable Energy Pipeline

ACME Solar Expands BESS Portfolio as FY26 Revenue Surges 59%, Strengthens Renewable Energy Pipeline

The Electrical Post

Speaking during the Q4 FY26 conference call, Mr. Nikhil Dhingra, Chief Executive Officer of ACME Solar Holdings Limited, highlighted India's accelerating energy transition, strong power demand growth, and the company's expanding battery energy storage and renewable generation portfolio.

ACME Solar Holdings Limited is among India’s top 10 leading renewable energy Independent Power Producers (IPPs), contributing significantly to the nation’s transition towards clean energy. With our diverse portfolio and focus on innovation, we are committed to powering a sustainable future for all.

India recorded its highest-ever peak electricity demand of 256 GW on April 25, 2026, surpassing the previous peak of 250 GW registered in May 2024 and exceeding the 245 GW peak observed in January 2026. The increase in demand coincided with the onset of summer conditions across the country, with electricity consumption growing by 8.9% during April 2026.

India also maintained robust momentum in renewable capacity additions during FY26, with approximately 55 GW of renewable energy capacity added during the year, taking cumulative renewable energy capacity to 283 GW. Total electricity generation reached 1,845 billion units in FY26, while non-fossil fuel sources contributed 29% of total generation, equivalent to nearly 539 billion units.

Dhingra noted that India achieved a major milestone in June 2025 by reaching 50% of its cumulative installed power generation capacity from non-fossil fuel sources, five years ahead of its 2030 target under the Paris Agreement commitments.

On the regulatory front, he highlighted several developments expected to support growth in the renewable energy and storage sector. The Ministry of New and Renewable Energy has designated SECI as the single Renewable Energy Implementing Agency, a move aimed at creating a more streamlined and structured bidding framework. Battery Energy Storage Systems (BESS) have also received significant policy support, with clarifications permitting BESS charged from conventional power under Firm and Dispatchable Renewable Energy (FDRE) bids to participate in merchant markets without requiring buyer consent until associated renewable assets are commissioned.

Additionally, the Central Transmission Utility has begun processing BESS connectivity applications under the Right of First Refusal mechanism, enabling faster deployment while allowing up to 36 months of grid charging from the General Network Access effective date. The Central Electricity Regulatory Commission has also proposed extending Scheduled Commercial Operation Date timelines under connectivity and GNA regulations by up to one year with compensation provisions, providing greater certainty for projects facing transmission delays.

According to Dhingra, these regulatory developments create opportunities for battery storage assets, particularly in brownfield projects where transmission delays can be utilized through merchant BESS operations.

ACME Solar has continued its early mover strategy in energy storage, successfully commissioning approximately 2.3 GW of BESS capacity to date. These storage assets are currently operating under merchant and short-term contracts, benefiting from tariff arbitrage between peak and off-peak electricity prices.

The company stated that its BESS portfolio is generating net realizations of nearly ₹2.2 crore per day, while achieving round-trip efficiency levels of approximately 88% to 90%, meeting or exceeding management expectations.

Alongside storage expansion, ACME Solar's operational contracted generation capacity has reached 2,990 MW. During the quarter, the company secured a 301 MW peak power FDRE project from SECI, taking its under-construction portfolio to 5.1 GW and its total portfolio to 8,071 MW. The overall portfolio is expected to require installation of nearly 17 GWh of battery storage capacity.

Of the total projects under construction, power purchase agreements have already been signed for 3,280 MW. The company has committed capital expenditure of ₹12,475 crore, comprising ₹6,445 crore invested during FY26 and purchase orders worth ₹6,030 crore.

Financially, ACME Solar reported strong growth during FY26. Total revenue for Q4 stood at ₹705 crore, while annual revenue reached ₹2,507 crore, representing year-on-year increases of 31% and 59%, respectively. The growth was driven by capacity additions and improved capacity utilization factors.

Quarterly revenue included other income of ₹157 crore, primarily consisting of recurring interest income generated from cash accumulated at special purpose vehicles before upstreaming to the holding company, as well as interest earned on Debt Service Reserve Account balances maintained under financing agreements.

The company reported EBITDA margins exceeding 90% both for the quarter and the full year, supported by operating leverage and enhanced operational efficiencies. Profit after tax stood at Rs. 138 crore for Q4 and Rs. 498 crore for FY26, translating into margins of 19.6% and 19.9%, respectively.

Operational performance also remained strong. ACME Solar generated 1,720 million units during the fourth quarter, an increase of 13% year-on-year, while annual generation reached 6,464 million units, reflecting growth of 61% over FY25. Capacity utilization factor for Q4 stood at 26.9%, while both grid availability and plant availability exceeded 99% during the year.

The company also advanced its debt optimization initiatives during FY26, securing financing of approximately Rs. 15,000 crore for under-construction projects and refinancing ₹3,300 crore of debt associated with operational assets. The refinancing exercise reduced borrowing costs by nearly 150 basis points, with the weighted average cost of debt for operational projects currently standing at 8.4% per annum.

Dhingra added that 2.2 GW of ACME Solar's operational portfolio has received an AA- Stable credit rating, reflecting the strength of its asset base and financial profile.

Looking ahead, the company plans to maintain its focus on timely project execution, battery storage deployment and selective order book expansion. ACME Solar expects future operational assets to include a battery portfolio of nearly 10 GWh alongside 1.5 GW of contracted generation capacity, subject to timely transmission connectivity and other external factors.

While maintaining its emphasis on long-term 25-year contracts, the company also intends to actively pursue short- and medium-term BESS opportunities, aiming to capitalize on evolving market dynamics and growing demand for energy storage solutions in India's rapidly expanding renewable energy sector.
 

Published at : Sep 27, 2026 07:41 AM (IST)

Total Views : 27