ACME Solar Holdings is in focus after its Q1 results. 3 brokerage houses have recommended a Buy rating on the stock with as much as 22% upside potential. The robust pipeline of orders and growth visibility till FY30 are the key reasons supporting the positive recommendation.
Here is a detailed analysis of the key factors supporting the Buy recommendation on the ACME Solar Holding share price.
What’s powering the bullish call?
Brokerages have listed out key highlights of the Q1 performance that are supporting the positive call on the share price –
Nuvama on ACME Solar: Recommend Buy
Nuvama has a Buy rating on ACME Solar Holdings with a target price of Rs 360 per share. This implies an upside of nearly 22% from current level. They highlighted that the positive recommendation is on the basis of robust pipeline and the company winning maiden standalone BESS in Q1FY26.
At the end of Q1, its capacity was up 2,890 MW (up 116%) and additionally, it got 550MWh order for standalone BESS from NHPC. What added to the positive view on the share price is that the 300MW Sikar Solar project (spill-over from Q4FY25), which was on merchant capacity, is now PPA-based. Apart from this 50MW of maiden wind project were commissioned in Q1FY26.
Not just that, the management is now targeting 10GW generation capacity and 15GWh BESS capacity by FY30. Of this, the contracted portfolio is 6,970MW already. Grid connectivity and regulatory process (tariff adoption/order reserved) are in place for entire 6,970 MW.
Motilal Oswal on ACME Solar: Recommend Buy
It’s a Buy call from Motilal Oswal as well. They have a target price of Rs 272 per share. The Buy recommendation is on the basis of the strong profit and inline revenue performance in Q1. The company’s EBITDA came in 3% higher than their estimates. It is up 68% YoY and increased 5% QoQ. The Q1 EBITDA margin came in at 90% Vs estimates of 86%, supported by favourable operating leverage and operational efficiency.
The company recently tied up Rs 1,070 crore in refinancing at a fixed interest rate of 8.5% p.a. for five years for its 250 MW operational project in Rajasthan, resulting in a 95 bps reduction in interest cost. This also supported the positive call. The net debt to EBITDA now improved to 4.2x.
JM Financial on ACME Solar: Recommend Buy
JM Financial has a Buy rating on ACME with a target of Rs 270 per share. They highlighted that the company delivered in-line results in Q1 with the net profit increasing 23% due to an increase in other income. The company’s renewable power generation increased to 1,636 MUs in Q1FY26 Vs 790 MUs in Q1FY25 due to the capacity addition of 1,550MW sequentially. The overall capacity utilization factor increased to 28.5% in Q1FY26 from 27% in Q1FY25. The total under construction portfolio stands at 4,080 MW RE and 550 MWh standalone BESS.