2,540 MW Operational Capacity: This Small-Cap Renewable Energy Stock Hits 5 Per cent Upper Circuit After Securing Rs 2,491 Crore Refinancing From SBI and REC
The company's operational capacity increased from 1,340 MW to 2,540 MW, reflecting a 90 per cent expansion.
ACME Solar Holdings Limited, a key player in India's renewable energy sector, has secured a substantial Rs 2,491 crore long-term refinancing facility aimed at reducing the cost of debt for its renewable energy projects in Andhra Pradesh, Rajasthan, and Punjab. This refinancing, obtained from SBI and REC at a reduced weighted average interest rate of 8.8 per cent, is part of ACME's strategy to enhance its credit profile and achieve a higher credit rating for its projects in Andhra Pradesh and Punjab.
The refinancing initiative aligns with the company's goal of creating an efficient capital structure and reducing overall interest costs. Purushottam Kejriwal, Chief Financial Officer of ACME Solar Holdings, stated, 'The refinancing initiative aligns with our strategy to create an efficient capital structure while consistently reducing cost of debt.' With an operational capacity of 2,540 MW, ACME Solar Holdings is committed to expanding its capacity to 6,970 MW within the next three years, reinforcing its position at the forefront of India's transition to clean energy.
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Incorporated in 2015, ACME Solar Holdings is a leading renewable energy company in India, specialising in solar, wind, hybrid, and firm and dispatchable renewable energy projects. As one of India's largest independent power producers, ACME Solar boasts a diverse portfolio across multiple technologies and a geographic reach spanning 10 Indian states. The company manages the entire project lifecycle in-house, from development to operations and maintenance, ensuring cost control and performance monitoring. ACME Solar's power portfolio includes a total commissioned capacity of 2,719 MW, with significant under-construction and awarded capacities in solar, wind, hybrid, and FDRE projects.
The company has secured long-term power purchase agreements with government and private entities, providing stable cash flows. ACME Solar's funding model relies on a mix of equity and debt, with a strong track record of refinancing and utilising green bonds to optimise financial performance. The company raised Rs 2,900 crore through an IPO in November 2024, with proceeds earmarked for debt repayment and general corporate purposes.
On April 3, 2025, the stock price of ACME Solar Holdings locked in the 5 per cent upper circuit at Rs 192.55. The stock's 52-Week High is Rs 281.2, and the 52-Week Low is Rs 174.25. ACME Solar Holdings has a market capitalisation of Rs 11,636 crore. The company's Price-Earnings (PE) Ratio stands at 27.63.
The company reported significant operational and financial growth in Q3 FY25. Its operational capacity increased from 1,340 MW to 2,540 MW, reflecting a 90 per cent expansion. A key milestone was the commissioning of 1,200 MW of solar capacity tied up with SECI, which contributed significantly to the operational portfolio. The current portfolio is split with 67 per cent from central offtakers and 33 per cent from state offtakers, improving credit ratings.
In terms of growth, the company secured 1,900 MW of new capacity in FY25, bringing the total contracted portfolio to 6.97 GW. It also successfully signed 2,340 MW of Power Purchase Agreements (PPAs) from its under-construction capacity of 4,430 MW, with 450 MW at advanced construction stages.
Financially, total revenue for Q3 FY25 rose to Rs 401 crore, marking a 45 per cent increase on an adjusted basis due to phased commissioning. EBITDA for the quarter stood at Rs 359 crore, reflecting a 59 per cent increase on a like-to-like basis. PAT surged to Rs 112 crore, registering a 152 per cent rise on a reported basis and 317 per cent on a like-to-like comparison. Additionally, net debt declined from Rs 8,755 crore in the previous quarter to Rs 6,882 crore, following the effective utilisation of IPO proceeds.
Investors must keep this Small-Cap stock on their radar.
Disclaimer: The article is for informational purposes only and not investment advice.