Company Update : ACME Solar Holdings by Motilal Oswal Financial Services Ltd
Strong PAT beat; revenue in line
* ACME’s consol. revenue was in line with our est. at INR5.1b (+65% YoY, +5% QoQ), driven by capacity additions and improved capacity utilization factor (CUF).
* EBITDA came in 3% higher than our est. at INR4.6b (+68% YoY, +5% QoQ), with an EBITDA margin of 90% vs. our est. of 86%, supported by favorable operating leverage and operational efficiency.
* Adj PAT was 27% higher than est. at INR1.5b (vs. INR14m in 1QFY25), on account of higher-than-expected other income. An exceptional loss of INR159m included ancillary costs of INR180.4m incurred on the prepayment of borrowings by subsidiaries and contingent consideration received related to investments disposed of in the earlier year, amounting to INR39.6m.
* Net debt stood at INR78b. The net debt-to-net worth ratio remained at 1.7x, while net debt-to-EBITDA improved to 4.2x (4QFY25: 4.4x).
Operational Highlights
* Generation stood at 1,636MUs in 1QFY26 (+107% YoY). The company recorded a CUF of 28.5% (27% in 1QFY25).
* Operational capacity reached 2,890MW as the company commissioned 300MW solar and 50 MW wind projects, reflecting a 115.7% rise from 1QFY25.
* Secured 550 MWh of standalone BESS projects contracted with NHPC at a weighted average tariff of INR2.20 lakhs/MW/month.
* PPAs have been signed for 250 MW of FDRE, 300 MW of solar, and 550 MWh of standalone battery projects, covering over 55% of the under-construction capacity.
* The company tied up INR10.7b 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 ~95bp reduction in interest cost. Standard Chartered Bank, Bank of America, and India Infradebt Limited have been added as new lenders to the debt portfolio.
* ACME’s recently commissioned 4×300 MW SECI ISTS solar projects have received a CRISIL AA-/Stable rating, while the 250 MW Acme Aklera project (SECI offtake) has been upgraded to ICRA A+/Stable
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