New Delhi, 2nd March 2025, ACME Solar Holdings plans to invest Rs 17,000 crore to boost renewable energy capacity to 5 GigaWatts by 2027. “We intend to focus our new capacities on the revenue and margin accretive Hybrid and FDRE Renewable Energy projects as a critical pivot in our business strategy,” Mr Nikhil Dhingra, CEO of the company said. He further adds that ACME Solar plans to roll out its capacity expansion in two phases starting in April this year. The company is also evaluating entry in nuclear energy segment though these pans are still at a drawing board level. As a broader strategy, ACME Solar aims to treble its current renewable capacity to reach 7 GW by 2028.
As of 9 Months FY25, ACME Solar’s portfolio stood at 6,970 MW, with 2,540 MW already operational and 4,430 MW under construction projects, with 49 per cent focus in Hybrid & FDRE projects. The operational capacity of 2,540 MW is expected to provide ACME Solar an annualized run-rate EBIDTA of upto Rs 1800 crore.
The current operational capacity off-take is split between central off-takers 67 percent and state off-takers 33 per cent. This is reflective of the growing demand for renewable energy across both the state and central governments, positioning ACME Solar as a key supplier in the country’s energy transition. ACME Solar secures long-term power purchase agreements (PPAs) of 25 years tenure that are less susceptible to the volatility of the merchant power market.
Delving into the company’s business strategy pivot, Mr Nikhil Dhingra pointed out that, ACME Solar’s growth plan is not only focused on expanding its solar capacity but also diversifying its project mix. Its under-construction projects include a mix of solar, wind, firm dispatchable renewable energy (FDRE), and hybrid solutions. These renewal projects have a short capex to revenue cycle ensuring faster accretion of revenue and margin benefits.
The company has invested approx. Rs 4,400 crore in its 1200 MW inter-State transmission system connected project in Jaisalmer, Rajasthan. This project has bolstered ACME Solar’s operational capacity, reflecting its scaling ambitions.
On the leverage front, ACME Solar has made significant strides in reducing its net debt. Through IPO proceeds, it reduce its net debt by ₹2,070 crore, while also securing Rs 16,500 additional debt for 1,700 MW under-construction hybrid and FDRE renewable energy projects. This financial strength supports its ongoing projects and positions the company for an aggressive future scale-up. The company has secured grid connectivity for 4,430 MW of under-construction capacity, and further connectivity of 2,000 MW is available for future bids.
While the company’s core focus remains on solar, wind and hybrid renewable energy projects, Dhingra has expressed interest in exploring nuclear energy investments, particularly in light of the recent government push to involve private sector participation in the nuclear power sector. With India’s ambitious goal of generating 100 GW of nuclear power by 2047.
The company’s overall performance has been impressive. In Q3 FY25, ACME Solar reported a 9.9 per cent year-on-year growth in revenue, amounting to ₹401 crore. EBITDA increased by 15.7 per cent, and net profit after tax (PAT) surged by a remarkable 152.1 per cent. This financial growth further highlights the efficiency of its operations and its ability to capitalize on India’s renewable energy needs.
As India strives to meet its renewable energy goals and reduce its carbon footprint, ACME Solar Holdings is focusing on enhancing its contribution to the country’s clean energy future, with a comprehensive strategy that spans solar, wind, hybrid, and potentially nuclear energy investments.
