Synopsis: ACME Solar’s Rs 4,725 crore financing strengthens balance-sheet stability and improves cash-flow visibility. Refinancing Rs 1,209 crore of operational debt lowers interest costs by 170–195 bps, directly lifting project returns. Additional refinancing of Rs 3,380 crore and a 60 bps rate reduction on Rs 4,035 crore of borrowings further improves margins. Let us see what more this financing has to offer.
This company is a renewable energy company in India with a portfolio of solar, wind, hybrid, and firm and dispatchable renewable energy (“FDRE”) projects and was in the news after securing financing of Rs 4,725 from several sources. Let us see how it will help the company in its future course of actions.
With the market cap of Rs 14,288 crore, the shares of ACME Solar Holdings Ltd had hit their intraday high at Rs 237.90, gaining about 2.98 percent compared to their previous day’s closing price of Rs 231. The shares are trading at a PE of 28.2, whereas their industry PE is at 26.3.
About the financing.
ACME Solar has raised Rs 4,725 crore of long-term financing from leading Indian institutions to both fund new renewable projects and refinance existing ones. The loans carry 18–20-year tenures, which match the long life of renewable assets and bring stability to the company’s funding profile. Of this, Rs 2,716 crore has come from PFC for a 300 MW FDRE project with four-hour battery storage, while Rs 800 crore has been secured from NaBFID for a 150 MW solar plus energy storage project. Both projects already have connectivity in place and are in advanced stages of construction, reducing execution risk.
Alongside growth funding, ACME Solar has also focused on lowering borrowing costs. The company refinanced its 300 MW operational Sikar Solar project through Rs 1,209 crore from Yes Bank, cutting interest costs by 170 basis points initially and up to 195 basis points over time.
In the current financial year alone, ACME Solar has secured Rs 10,590 crore of greenfield financing, refinanced Rs 3,380 crore of existing debt, and achieved over 90% debt tie-up for PPA-backed projects under construction, highlighting strong lender confidence.
How will the financing benefit the company?
The most immediate benefit is a meaningful improvement in cash flows and returns. By refinancing Rs 1,209 crore of operational debt at a 170–195 bps lower interest rate, ACME Solar materially reduces annual interest outgo, directly lifting project-level profitability. In addition, refinancing Rs 3,380 crore of debt during the year and securing a further 60 bps rate reduction on Rs 4,035 crore of other borrowings strengthens margins across both operational and under-construction assets.
Secondly, the financing sharply reduces execution and funding risk for ACME’s growth pipeline. With over 90% debt tie-up for PPA-backed projects, the company has largely eliminated funding uncertainty for its 4,578 MW under-construction capacity, which includes 15 GWh of battery energy storage systems (BESS). This allows management to focus on timely commissioning, ensuring smoother revenue ramp-up and predictable cash generation over the next few years.
Finally, the funding positions ACME Solar strongly in higher-value, next-generation renewable segments. Dedicated financing for 300 MW FDRE with four-hour storage and 150 MW solar + ESS projects enables participation in round-the-clock and hybrid power tenders, which typically offer longer PPAs and better tariff visibility.
Expanded non-fund-based limits from banks like ICICI, Standard Chartered, FAB, and EXIM Bank further reduce working-capital strain during construction. Together, this supports disciplined scaling across ACME’s 7,520 MW total portfolio, of which 5,380 MW already has signed PPAs, reinforcing long-term earnings visibility.
Financials and more.
The revenue from operations for the company stands at Rs 468 crores in Q2 FY26 compared to Q2 FY25 revenue of Rs 260 crores, growing by about 80 percent YoY. Similarly, the net profit stood at Rs 115 crore in Q2 FY26, up from Rs 15 crore in Q2 FY25, giving a growth of about 667 percent.
ACME Solar Holdings Limited is a large integrated renewable energy player with a total installed and under-development capacity of 7,520 MW. The company currently operates 2,942 MW of renewable power assets, while 4,578 MW of capacity is under construction, reflecting a strong and visible growth pipeline.
Its portfolio also includes around 15 GWh of battery energy storage systems, highlighting its increasing focus on storage-linked and next-generation renewable solutions. In addition, 5,380 MW of its capacity is backed by long-term power purchase agreements, providing stability and long-term revenue visibility.
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