ACME Solar has become one of the top-performing renewable energy stocks in recent months. The company’s share price has risen 45 per cent in the past six months, while peers like NTPC Green and JSW Energy have barely moved. Leading domestic brokerage house, Motilal Oswal has set a target price of Rs 370, suggesting another 29 per cent upside for ACME Solar share price.
Motilal Oswal on ACME Solar: Strong execution
According to Motilal Oswal, the optimism comes from ACME Solar’s ability to deliver projects on time and secure power purchase agreements (PPAs). In a sector where many projects are stuck, execution strength has helped the company stand apart, the brokerage firm added.
Installed capacity is expected to more than double from 2.5 GW at the end of FY25 to 5.5 GW by FY28. The company’s pipeline totals around 6.7 GW, which, once commissioned, could generate annual EBITDA of nearly Rs 8,100 crore.
Motilal Oswal on ACME Solar: Revenue set to rise sharply
Motilal Oswal estimates indicate that the FY26 revenue is set to rise sharply to Rs 2,260 crore in FY26 and further to Rs 3,930 crore by FY27. The The adjusted profit after tax is projected to increase to Rs 650 crore by FY27 from Rs 270 crore in FY25.
They estimate return ratios improving going forward. As per the brokerage house, the return on equity seen rising from 7.7 per cent in FY25 to over 12 per cent in FY27. However, debt levels remain high.
Motilal Oswal on ACME Solar: Battery storage as a growth driver
Beyond solar projects, the company is planning to add 3–3.5 GWh of battery storage by the end of 2025. Motilal Oswal analysts model a conservative 2.5 GWh by FY27, which could lift EBITDA by 3–9 per cent depending on power price spreads. This potential upside is not yet factored into earnings estimates.
Sector backdrop and policy push
The broader power sector has faced mixed demand trends. Between April and August this year, demand was flat compared with last year, though August alone saw 4 per cent growth with peak demand at 229 GW. At the same time, around 40 GW of renewable energy projects are still awaiting PPAs. The government is now urging states to sign contracts to unlock growth, the report noted.
Motilal Oswal on ACME Solar: Valuation and comparison with peers
ACME Solar is currently trades at 15.5 times FY27 EV/EBITDA, compared with 13.3 times for NTPC Green and 12.6 times for JSW Energy. Despite the premium, the brokerage house argues that the company’s execution record and battery storage plans justify the higher multiple.
The road ahead
ACME Solar has cancelled one 300 MW project, trimming FY28 earnings estimates by about 1 per cent. But it has also won a 220 MW solar-plus-battery project, which is not yet included in the forecasts. Commissioning of 1.9 GW in FY27 and 0.5 GW in FY28 is expected to drive earnings growth, as per the brokerage house.