ACME Solar Holdings Limited has completed the refinancing of ₹2,147 crore to fully redeem existing Non-Convertible Debentures (NCDs) and their underlying offshore dollar bonds. The transaction involves 12 operational special purpose vehicles (SPVs) with a cumulative capacity of 450 MW, originally issued in August 2021 under a Restricted Group (RG) Structure. This move reduces borrowing costs by approximately 150 basis points across these entities, strengthening project cash flows and enhancing the long-term capital structure.

The funds were availed from the National Bank for Financing Infrastructure and Development (NaBFID), bringing the total financing raised by the company during the current fiscal year to ₹8,198 crore. The RG Structure comprises 12 operational solar assets, with 56% of the overall capacity tied up with Central Utilities, specifically SECI and NTPC, while the remaining capacity is contracted with various state offtakers. The structure holds a provisional rating of AA- from CARE Ratings, reflecting confidence in the operational and financial parameters of these assets.

Transaction Details

The key parameters of the refinancing transaction are outlined below:

Portfolio Overview

ACME Solar Holdings operates as an integrated renewable energy player with a diversified portfolio totalling 8,070 MW, encompassing solar, wind, storage, FDRE, and hybrid solutions. The company reports an operational contracted capacity of 2,990 MW and approximately 3.62 GWh of Battery Energy Storage System (BESS) capacity. Additionally, it has an under-construction contracted capacity of 5,080 MW, with a signed Power Purchase Agreement (PPA) portfolio of 3,880 MW in the pipeline.

Strategic Significance

The shift from offshore dollar bonds to domestic long-term financing via NaBFID indicates a strategic de-risking of currency exposure while simultaneously lowering interest burdens. A reduction of 150 basis points in borrowing costs directly improves net interest margins for the project assets. With more than half of the refinanced capacity tied to central utilities like SECI and NTPC, the revenue stream for these specific assets benefits from high credit quality counterparties, further justifying the AA- provisional rating and supporting stable cash flows.

ACME Solar Holdings Limited delivered its highest-ever quarterly financial performance in Q1 FY27, driven by strong renewable energy operations and significant contributions from its Battery Energy Storage System (BESS) business. For the quarter ended June 30, 2026, the company reported total revenue of ₹954 crore, a 63% year-on-year increase, and profit after tax (PAT) of ₹235 crore, up 80% year-on-year. The robust growth was underpinned by an improved capacity utilization factor (CUF) of 30.9%, the highest in the company’s history, and substantial revenue inflows from short-term BESS contracts.

The earnings call, held on July 30, 2026, was moderated by MUFG Intime and featured management commentary from Chairman and Managing Director Manoj Kumar Upadhyay, CEO Nikhil Dhingra, CFO Arun Chopra, and Director Ankit Verma. The disclosure was made in compliance with Regulation 30 and Regulation 46 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. Rajesh Sodhi, Company Secretary and Compliance Officer, authorized the filing submitted to both the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE).

Financial Performance Highlights

ACME Solar Holdings achieved an EBITDA of ₹831 crore for Q1 FY27, representing a 56% year-on-year growth and an EBITDA margin of approximately 87%. The PAT margin stood at around 25%. Management attributed the financial strength to higher CUF, new renewable capacity additions, and meaningful financial contributions from BESS operations.

Excluding BESS contributions, the core renewable energy business maintained an EBITDA margin of approximately 91%, consistent with recent quarters which have ranged between 88% and 92%. The BESS segment recorded an EBITDA margin of approximately 82%, with the lower margin primarily due to the accounting treatment of power purchased for charging batteries within operating expenses.

BESS Expansion and Revenue Lock-in

The company’s BESS portfolio saw significant expansion during the quarter, with approximately 2.3 gigawatt-hour (GWh) commissioned, bringing cumulative commissioned capacity to 3.62 GWh. This positions ACME Solar as holding roughly 40% of India’s cumulative commissioned BESS capacity. BESS power sales contributed ₹226 crore to the total quarterly revenue, comprising approximately 85% from short-term contracts and the balance from merchant sales.

Management highlighted that BESS operations are delivering an annual EBITDA-to-capex yield of more than 20%. The company secured short-term BESS contracts during the quarter, locking in more than ₹1,400 crore of revenue for partial FY27 BESS commissioning capacity. These contracts typically range from six to nine months, with some extending up to one year, primarily through bids on the DEEP portal and HP-TAM markets. Realizations from these contracted capacities range between ₹8 and ₹10 per unit, depending on volume and month.

Capital Expenditure and Project Pipeline

ACME Solar Holdings upgraded its full-year capital expenditure guidance to approximately ₹15,000–₹20,000 crore, following the successful completion of a Qualified Institutional Placement (QIP). During Q1 FY27, the company incurred capex of around ₹3,000 crore. The asset base expanded significantly to around ₹25,000 crore following the commissioning of new assets and batteries.

The company signed 600 megawatts (MW) of Full Day Round-the-Clock Energy (FDRE) and hybrid Power Purchase Agreements (PPAs) with SECI during the quarter. This brings the total PPA-signed capacity to 3,880 MW out of a total under-construction capacity of 5,080 MW. The remaining ~1,200 MW projects are progressing well and are expected to be signed soon. The total portfolio now stands at 8,070 MW, entailing around 20 GWh of battery storage. Financing of approximately ₹6,000 crore was secured for 700 MW of under-construction FDRE projects, tying up debt for nearly 85% of the PPA-signed portfolio.

What the Numbers Show

The divergence between the core renewable EBITDA margin (91%) and the blended EBITDA margin (87%) highlights the transitional nature of the BESS business model. While BESS margins appear lower due to the pass-through cost of purchased power for charging, the absolute yield (>20%) and rapid deployment scale (3.62 GWh commissioned) indicate a high-volume, strategic growth engine. The company’s strategy of preponing capex via QIP proceeds allows it to capture early market share in a nascent sector, with management projecting that 10 GWh of battery capacity will remain available for the short-term merchant market annually over the next five years, providing a recurring revenue stream beyond long-term PPAs.