ACME Solar Holdings Ltd Sele͏cted͏ as HDFC Securities’ Pick of th͏e Week

ACME Solar is one of the largest independent power producers (“IPP”) in renewable energy and among the top 10 renewable energy players in India by operational capacity, with a portfolio spanning solar, wind, hybrid, and firm and dispatchable renewable energy (“FDRE”) projects. Over the years, ACME Solar has diversified and expanded its portfolio from solar power projects to become an integrated renewable energy company in India. ACME Solar boasts an operational contracted capacity of 2,966 MW and an under-construction contracted capacity of 4,424 MW, including approximately 17 GWh of BESS capacity. The under-construction portfolio with signed PPAs stands at 3,304 MW.

ACME Solar’s Hybrid and Firm and Dispatchable Renewable Energy (FDRE) solutions integrate solar, wind, and battery energy storage systems (BESS) to deliver a more reliable, consistent power supply. The combination of various renewable energy technologies enhances the availability of dispatchable power, allowing greater flexibility in meeting grid demand and further reducing dependence on conventional fossil-fuel-based generation. ACME Solar has projected a target capacity of 10 GW of renewable portfolio under operations by FY2030 and is currently developing hybrid and FDRE projects totaling 4,472 MW across strategically important states, including Andhra Pradesh, Madhya Pradesh, Gujarat, Karnataka, and Rajasthan, positioning the company as a key player in India’s renewable energy transition. Moreover, with a total capacity under implementation of ~13.5 GWh across the portfolio, ACME is among the first movers in the industry and offers significant economies of scale in BESS project implementation.

As India’s power demand continues shifting towards clean and sustainable sources, ACME Solar is well-positioned to play an increasingly important role in this transition. The company’s strategic expansion is characterised by prudent project selection, prioritising ventures with strong return ratios and sustainable growth trajectories, rather than aggressive expansion at the expense of financial health.

ACME Solar has demonstrated its commitment to innovation by investing in new technologies such as battery energy storage systems and hybrid renewable solutions, supporting grid stability and round-the-clock green power supply. Backed by transparent governance and manageable debt levels, the company’s disciplined approach not only broadens its operational footprint across key Indian states but also strengthens its contribution to the country’s renewable energy goals. ACME Solar is poised to enter a high-growth phase with its ambitious goal of reaching 10 GW of contracted capacity by FY30. This expansion is expected to be executed while maintaining healthy margins, even accounting for potential delays of up to one quarter in capacity commissioning. With a seasoned management team emphasising sustainable, margin-accretive projects, ACME Solar is well-positioned to capitalise on India’s rapidly increasing demand for clean energy while preserving operational efficiency and shareholder value. Moreover, the shift in offtaker split from state to central entities will further ease working capital constraints and improve cash flows for the company.