As India marches towards a cleaner energy future, ACME Solar is setting records in this journey. Aditya Birla Money has initiated coverage on this recently-listed IPO stock with a ‘Buy’ rating and a target price of INR 290 per share, implying a potential upside of 67.73% from its recent low of INR 172.90 per share.
This comes after Motilal Oswal had a positive view in February with a target price of INR 330 per share—a 59% upside, while JM Financial was bullish with a target of INR 262, a 26% gain. With consensus across the brokerage and strong operational momentum, ACME Solar Holdings is becoming the most watched clean energy stock in the Indian markets
Why Brokerages Are Bullish on ACME Solar?
The context is important. The government has set a target of 500 GW of installed renewable energy capacity by FY2030—up from around 200 GW currently, including hydro. To bridge this massive gap in just five years, the country needs to add 40–50 GW of renewable capacity every year, more than two times the 18.5 GW added in FY24.
This aggressive buildout can only be accomplished through deep private sector involvement, and players like ACME Solar Holdings are expected to shoulder a significant portion of the expansion. Government policy is moving in tandem with a sharper focus on firm and dispatchable renewable energy (FDRE), hybrid energy solutions, and mandatory 10% energy storage mandates for new projects.
ACME Solar, with its well-balanced portfolio, vertically integrated capabilities, and early mover advantage in FDRE projects, is strategically aligned to benefit from this structural shift.
Aditya Birla Money’s ‘Buy’ on ACME?
Aditya Birla Money’s optimism stems from several key observations:
➤ 1. Strong Operational Base and Ambitious Pipeline
ACME currently operates 2,540 MW of solar capacity. What sets it apart is not just its scale, but the quality and complexity of its pipeline, which totals 4,430 MW:
- 2,630 MW in FDRE projects (59% of pipeline)
- 750 MW in hybrid projects (17%)
- 1,050 MW in solar/wind (24%)
Notably, 2,340 MW (53%) of this order pipeline is already tied to signed Power Purchase Agreements (PPAs)—with the balance expected to be finalized in the next few quarters. The firm anticipates near-term capacity expansion with 300 MW of solar and 150 MW of wind becoming operational soon.
➤ 2. Vertical Integration Drives Cost Leadership
ACME designs, builds, commissions and operates its own projects—a rare feat even among large independent power producers (IPPs). This in-house EPC and O&M capability gives cost advantage, better project execution and operational control, resulting in higher margins and predictable growth.
➤ 3. Clear Earnings Visibility and Accelerating Growth
As per Aditya Birla Money, ACME’s capacity, revenue and EBITDA are expected to grow at 39%, 76% and 77% respectively from FY25 to FY28. Motilal Oswal expects an aggrasive 52% EBITDA CAGR from FY24 to FY27 while JM Financial projects revenue and EBITDA CAGR at 55% and 57% respectively from FY24–FY28.
EBITDA margins of 82.6% currently are expected to expand to 88.6% by FY28 due to better mix of FDRE and hybrid projects.
The Manufacturing Foray
ACME is not content with remaining a pure-play energy generator. In a strategic pivot to control its supply chain and diversify revenues, the company has launched a new arm, ACME Renewable Equipment Manufacturing.
The company has already:
- Commissioned an INR 230 crore solar module facility in Jaipur with an annual capacity of 1.2 GW.
- Employed over 700 people, strengthening its local employment footprint.
- Earned a spot on the MNRE’s ALMM list, which is now mandatory for participating in most government-backed renewable projects.
Future plans include the establishment of a solar cell manufacturing facility and expanded module production, with the goal of generating INR 10,000 crore in manufacturing revenue by 2030.
This vertical integration positions ACME as a Make in India champion, reducing reliance on Chinese imports, improving profitability, and creating a dual revenue stream—one from power generation and another from module sales.
Recent Developments in ACME
Financial discipline is another strong suit. On 3 April 2025, ACME Solar Holdings secured an INR 2,491 crore long-term refinancing package from SBI and REC, replacing older, higher-cost debt with loans at a reduced weighted average interest rate of 8.8%.
The refinancing covers 490 MW of operational projects in Andhra Pradesh, Punjab, and Rajasthan—some with nearly a decade of operating history. This move not only lowers interest burdens but also improves credit ratings and project viability, especially under the co-obligor structure used for Andhra Pradesh and Punjab.
ACME Solar Post-IPO Journey
ACME Solar Holdings went public in November 2024, raising INR 2,900 crore. Despite listing jitters and a post-IPO dip of over 39% (to a low of INR 173.85), the stock has regained investor confidence thanks to its strategic clarity and improving financial metrics.
Currently, ACME Solar shares are trading around INR 195.32 per share, reflecting a correction of 30% from its all-time high of INR 280.90 per share.
ACME Solar Holdings Valuation
Analysts across the board agree that ACME is trading at a valuation discount. According to Motilal Oswal:
- ACME trades at 11x FY28E EV/EBITDA
- NTPC Green trades at 14x
- JSW Energy and Tata Power at 15x
This pricing gap, despite comparable or superior growth, presents a compelling re-rating opportunity.
Risks to Monitor
While the long-term outlook is bright, investors should be aware of key risks:
- Delays in PPA finalizations could impact cash flow visibility.
- Execution risks in complex FDRE projects remain high.
- Government tendering delays may slow pipeline conversion.
- Weather-related variability in solar/wind output could impact short-term revenues.
That said, ACME’s increasing mix of FDRE and hybrid projects offers better load predictability, which may mitigate seasonal fluctuations.
Conclusion
In a sector flooded with new entrants and IPOs, ACME Solar Holdings stands out not just as a clean energy player but as a forward-looking energy platform, with generation, equipment manufacturing, in-house execution, and refinancing discipline all under one roof.
With policy tailwinds, scalable infrastructure, strong project visibility, and favorable analyst coverage, ACME is well-positioned to lead India’s green energy revolution—and reward its investors handsomely along the way.
As Aditya Birla Money notes, the time to buy might be now.
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Disclaimer: This article is for informational purposes only. Stock market investments are subject to market risks. Consult a certified financial advisor before making investment decisions.