Acme Solar Holdings Limited — Investor Meet, 03-02-2025: Analysts/Institutional Investor Meet/Con. Call Updates

**Financial Performance:** ACME Solar Holdings Limited recorded significant growth in Q3 FY25, with total revenue reaching INR 401 crore, a 10% increase on a reported basis and a 45% rise on an adjusted basis. EBITDA also saw a noteworthy jump, rising to INR 359 crore, reflecting a 15% increase reported and a substantial 59% year-over-year. The company achieved a remarkable PAT of INR 112 crore, marking a 152% increase from the previous year and a 317% increase on an adjusted basis. The PAT margin stood at 28%, up from 12% in the last quarter.

**Future Outlook and Growth Drivers:** Management is optimistic about maintaining growth momentum. They've increased operational capacity to 2,540 MW, nearly doubling it from 1,340 MW due to commissioning new projects. With a contracted portfolio of 6.97 GW, they anticipate secured future revenues from newly acquired projects and are focused on operational efficiency and cost reductions.

**Order Book and Operational Updates:** ACME's project pipeline includes 1,900 MW won in FY25. The PPA for 2,340 MW has been signed out of the 4,430 MW under construction, showing steady progress. Advanced construction stages are ongoing for 450 MW.

**Analyst Q&A Insights (Detailed):** Analysts sought clarity on revenue forecasts and potential operational risks. Management reaffirmed strong project execution capabilities amid external macroeconomic variables and tariff adjustments. They acknowledged cost management practices remain robust, particularly despite rising employee and operational expenses attributable to recent acquisitions.

**Market or Regulatory Updates:** The ALCM regime may slightly affect future tariffs, influencing bidding strategies. However, present projects remain unaffected by regulatory changes. Overall, new tariffs for future contracts are expected to stabilize.

**Strategic Focus Areas:** Key themes include capacity expansion through the adoption of advanced technologies and maintaining operational efficiency. The approach towards increased projects is projected to align well with the forecasted market demand.

**Investor Insight:** Given the strong financial results, positive operational developments, and strategic growth plan, the outlook seems favorable for investors. The strong revenue growth and robust project pipeline support a ‘buy’ position, highlighting potential upside amidst evolving market dynamics.