ACME Solar profit jumps, but costs cut operating margin for a second quarter
Revenue rose 67.81% year on year, but expenses grew faster and other income contributed 29.04% of pre-tax profit.
Filed 29 Jul 2026, 20:28 IST · after market close · ACME Solar Holdings Ltd (ACMESOLAR)
Key takeaways
- Consolidated net profit rose 79.89% year on year, but operating margin fell 3.96 percentage points to 85.63%.
- Expenses grew 131.78% year on year against 67.81% revenue growth, while interest costs rose 47.78%.
- Management said it had raised its FY27 target to commission more than 10 GWh of cumulative BESS capacity.
Price around the results
Generation growth lifted Q1 revenue
ACME Solar reported consolidated revenue growth of 67.81% year on year and 56.52% quarter on quarter. Management attributed a 23.4% increase in power generation to 2,020 million units to capacity additions, higher irradiation and plant performance. The company also said quarterly CUF reached a record 30.9%, with Rajasthan assets at 32.5% and wind assets at 41.4%.
Faster cost growth narrowed the operating margin
Quarter on quarter, expenses grew 78.56% against revenue growth of 56.52%, reducing operating margin by 1.77 percentage points. Year on year, the gap was wider: expenses rose 131.78% while revenue increased 67.81%, taking margin down 3.96 percentage points. Interest costs also increased 47.78% year on year, and the tax rate rose 4.02 percentage points.
Profit growth included a sizeable other-income contribution
Other income accounted for 29.04% of pre-tax profit, so reported earnings were not driven only by operating performance. Net profit still increased 79.89% year on year, helped by the higher operating profit, but the higher tax rate and interest expense reduced the conversion of operating gains into profit after tax. Operating margin has now declined for two consecutive quarters from the Q3FY26 level, after recovering from the Q2FY26 trough.
BESS expansion is the main management focus
Management said it had raised its guidance to commission more than 10 GWh of cumulative BESS capacity by FY27 and targets a portfolio of 10 GW of generation capacity and 25 GWh of BESS capacity by 2030. The company told investors it incurred about Rs 2,958 cr of capital expenditure in Q1FY27 and had issued purchase orders worth about Rs 2,300 cr as of 30 June. It also said bids won for short-term contracts had locked in more than Rs 1,400 cr of revenue from partial FY27 BESS capacity sales.
Margin remains well above reported utility peers
ACME Solar's 85.63% operating margin was 53.64 percentage points above the 31.99% median for the 11 Utilities peers that had reported the same quarter. The results were filed after market close, so there is no current-session reaction to assess. Across the seven recent result reactions in the history provided, the stock rose four times and fell three times, with a median absolute move of 5.28%.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹858 cr | ₹548 cr | +56.52% | +67.81% |
| Other income | ₹96 cr | ₹171 cr | -43.83% | +68.63% |
| Expenses | ₹123 cr | ₹69 cr | +78.56% | +131.78% |
| Operating profit | ₹734 cr | ₹479 cr | +53.34% | +60.39% |
| Operating margin (%) | 85.63% | 87.40% | — | — |
| Interest | ₹344 cr | ₹337 cr | +2.01% | +47.78% |
| Depreciation | ₹155 cr | ₹123 cr | +26.07% | +43.93% |
| Profit before tax | ₹331 cr | ₹190 cr | +74.49% | +90.07% |
| Tax | ₹96 cr | ₹52 cr | +86.08% | +120.63% |
| Net profit | ₹235 cr | ₹138 cr | +70.15% | +79.89% |
| EPS (₹) | ₹3.71 | ₹2.30 | +61.30% | +71.76% |
Operating margin of 85.63% compares with a Utilities sector median of 31.99% across 11 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- The company achieved its highest-ever quarterly CUF of 30.9% in Q1 FY27.
- Power generation increased 23.4% to 2,020 million units, driven by capacity addition, higher irradiation and plant performance.
- Rajasthan-based operational assets with 2,250 MW contracted capacity delivered an average CUF of 32.5% in Q1 FY27.
- Wind operational assets with 150 MW contracted capacity delivered an average CUF of 41.4% in Q1 FY27.
Guidance & outlook
- The company revised upward its guidance to commission more than 10 GWh of cumulative BESS capacity by FY27.
- The company targets a portfolio of 10 GW generation capacity and 25 GWh BESS capacity by 2030.
Expansion
- The company incurred about INR 2,958 crore of capital expenditure in Q1 FY27.
- Purchase orders worth about INR 2,300 crore had been issued as of 30 June.
New initiatives
- The company won bids for short-term contracts that lock in more than INR 1,400 crore of revenue from partial FY27 BESS capacity sales.
- BESS capacity has been ordered for the entire signed UC PPA portfolio from suppliers including CATL and Hithium.
What to watch
- Whether operating margin holds above 85.63% after two consecutive quarterly declines.
- Whether interest-cost growth moderates from +47.78% year on year.
- Progress against management's stated target to commission more than 10 GWh of cumulative BESS capacity by FY27.