ACME Solar to Invest ₹17,000 Crore in Capex for FY26

Key Takeaways

ACME Solar plans to invest Rs 17,000 crore to expand its renewable energy capacity to 5 GW by 2027.
The company is exploring nuclear energy investments and aims to diversify with hybrid and Firm and Dispatchable Renewable Energy projects.
ACME Solar’s operational capacity reached 2,540 MW, generating a projected annual EBIDTA of Rs 1,800 crore.

Investment Plans and Capacity Expansion

ACME Solar announced a substantial investment of Rs 17,000 crore focused on enhancing its renewable energy capacity to 5 Gigawatts (GW) by 2027. This investment aligns with the company’s broader ambition to triple its current renewable capacity, targeting 7 GW by 2028. CEO Nikhil Dhingra emphasized the plan to concentrate on revenue-generating hybrid and Firm and Dispatchable Renewable Energy (FDRE) projects as pivotal to their business strategy.

FDRE projects, which integrate renewable energy with storage systems, promise a consistent supply of green power, overcoming the challenges posed by the inherent variability in renewable energy production. Dhingra stated that ACME Solar intends to launch its capacity expansion in two phases beginning in April.

As of the first nine months of FY25, ACME Solar’s overall portfolio stood at 6,970 MW, split into 2,540 MW operational and 4,430 MW under construction, with nearly half of that in hybrid and FDRE projects. The operational capacity is expected to yield an annualized EBITDA run rate of Rs 1,800 crore, with a power purchase agreement (PPA) distribution of 67% from central and 33% from state off-takers, showcasing the demand for renewable energy across government sectors.

Diversification and Financial Health

In addition to its solar projects, ACME Solar’s growth strategy encompasses a diverse project portfolio, including wind and hybrid solutions. This diversification strategy not only targets increased solar capacity but also leverages a quick capex-to-revenue cycle, allowing for fast revenue and margin gains.

Recent investments include about Rs 4,400 crore directed at a 1,200 MW inter-state transmission project located in Jaisalmer, Rajasthan. The company has made notable progress in managing its net debt, having reduced it by Rs 2,070 crore through IPO proceeds and acquiring an additional Rs 16,500 crore in debt for 1,700 MW of ongoing hybrid and FDRE projects.

Grid connectivity has been secured for 4,430 MW of under-construction capacity, with an additional 2,000 MW available for future bids. Furthermore, Dhingra expressed interest in nuclear energy investments, particularly following recent government initiatives aimed at attracting private sector participation.

Financial Performance

In its financial reports for the third quarter of FY25, ACME Solar noted a 9.9% year-on-year revenue growth, totaling Rs 401 crore. EBITDA rose by 15.7%, while net profit surged dramatically by 152.1%. This growth underscores ACME Solar’s strong market positioning and financial health as it continues to expand its renewable energy footprint.

The content above is a summary. For more details, see the source article.