Acme Solar share price has seen a significant jump of 18% in the past month. This rise comes after the company reported excellent performance in its fourth quarter, showing double-digit growth in both revenue and profit, along with improved power generation.
Acme Solar is actively increasing the operational capacity of its renewable energy projects. A key strength for the company is that all its operational capacity is secured by long-term power purchase agreements (PPAs) with central and state government agencies. This means the company has clear visibility on its future earnings, making it a stable investment.
Acme Solar Holdings also specialises in various types of renewable energy, including solar, wind, hybrid, and Firm and Dispatchable Renewable Energy (FDRE). FDRE projects are particularly valuable as they offer a more consistent power supply compared to traditional solar and wind farms. This is attracting investors towards it.
Acme Solar continues its aggressive expansion. On June 10, the company announced it had started operations at an additional 75 megawatts (MW) of renewable energy capacity at its project in Sikar, Rajasthan. This follows another 165 MW added in May, bringing the total commissioned capacity for this project to 240 MW out of a planned 300 MW.
These additions have significantly boosted Acme's total operational capacity to 2,806 MW as of June 10, 2025, a substantial increase from 1,340 MW just a year ago. The company also has plans for another 4,164 MW of capacity currently being built, which it expects to start operating by the financial year 2028 (FY28).
Despite its strong financial and operational performance, Acme Solar share price has faced some challenges since its IPO on November 13, trading mostly below its offer price of ₹289. This pressure was partly due to the promoter group needing to sell additional shares to meet regulatory requirements (reducing their holding from 83.4% to 75% or below).
At 1:46 PM, Acme Solar share price was trading at ₹252.45 on Tuesday on the BSE.
In the financial year 2025 (FY25), Acme Solar's power generation jumped by 55.2% to 4,013 million units. This growth was due to more operational capacity and better efficiency in power generation.
Excluding asset sales, the company's revenue increased by an impressive 32.3% year-on-year to Rs 1,575 crore. Even more remarkably, its net profit surged nearly four times, reaching Rs 251 crore in FY25.
The company's asset base expanded by 36% to Rs 15,507 crore, and its net worth grew by 74% to Rs 4,509 crore. This growth in net worth was significantly helped by its Initial Public Offering (IPO) in November, where it raised Rs 2,395 crore from selling new shares.
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Acme Solar Holdings is demonstrating robust operational expansion and strong financial results, making it an attractive prospect in the renewable energy sector. While its stock faced initial post-IPO pressure, analysts are confident about its future growth, suggesting potential for investors as its commissioned capacity and revenue visibility continue to improve.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.
Published on: Jun 11, 2025, 1:52 PM IST
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