ACME Solar Holdings Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

ACME Solar Holdings Ltd trades at ₹402, in a confirmed uptrend and 22 weeks into that stage. That is +25.6% against its own 200-day average. It sits at 93% of a 52-week range of ₹199 to ₹418. On relative strength it has been ahead of the NIFTY 500 on a trailing-13-week view for 6 straight weeks.

Today the stock is in a confirmed uptrend — week 22 of stage 2, confirmed. At ₹402 it trades +25.6% versus its 200-day average and sits at 93% of its 52-week range (₹199–₹418).

Against the market, two honest reads. Cumulative: over the last 1.8 years the stock moved +76% while the NIFTY 500 moved +4% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock has been ahead for 6 straight weeks — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

Story check

ACME Solar Holdings Ltd's story is not scored yet against the markers our research file set on 22 August 2026. Where it sits in its own cycle: PEAK_PASSED_RECOVERY. Still open: The thesis breaks if subsequent reported results fail to show commissioned storage or renewable capacity converting into revenue while debt-funded capex continues to rise.

Our read, 22 August 2026. ACME’s storage ramp and contracted renewable build can lift earnings, but the investment case depends on delivery against repeatedly revised battery milestones.

From the numbers. This week’s PE snapshot is 44.6 versus a 43.65 median, with the STRONG_OPPORTUNITY matrix label and an EARNINGS_DRIVEN decomposition. The deterministic curve class is PEAK_PASSED, while the normalized verdict is…

From the price. Price stage 2, week 22 — above its 200-day line, relative strength rising.

From the research. ACME’s storage ramp and contracted renewable build can lift earnings, but the investment case depends on delivery against repeatedly revised battery milestones.

🚨 Where they disagree. This week’s PE snapshot is 44.6 versus a 43.65 median, with the STRONG_OPPORTUNITY matrix label and an EARNINGS_DRIVEN decomposition. The deterministic curve class is PEAK_PASSED, while the normalized verdict is NA_SHORT_MARGIN_HISTORY: valuation is broadly fair, but the limited margin history prevents a high-confidence through-cycle conclusion. Institutional selling and execution risk temper the recovery interpretation.

What is proven. ACME’s storage ramp and contracted renewable build can lift earnings, but the investment case depends on delivery against repeatedly revised battery milestones.

What is not proven yet. The thesis breaks if subsequent reported results fail to show commissioned storage or renewable capacity converting into revenue while debt-funded capex continues to rise.

🚨 What would change our mind. The thesis breaks if subsequent reported results fail to show commissioned storage or renewable capacity converting into revenue while debt-funded capex continues to rise.

Layer 1 read, 22 August 2026 — KEEP. Real megawatts, real revenue growth — but debt is now four times equity and the battery promise slipped once. The business is genuinely scaling: June-quarter revenue was 858 crore against 511 a year earlier and profit 235 against 131 crore, and the plants behind that are contracted, with 3,800 of 5,080 megawatts under construction already signed to buyers. The problem is how it is funded and how it is promised. Borrowings went from 8,536 crore in March 2024 to 19,896 crore in March 2026 against equity of about 5,061 crore — I checked this in the balance-sheet table because the timeline itself admitted it could not resolve the debt alert — and free cash flow was minus 6,068 crore last year. Meanwhile management missed its own battery commissioning target and then moved the target FORWARD, from…

What would change Layer 1’s mind. Commissioned storage or renewable capacity failing to show up as revenue in the next two reported quarters while debt-funded spending keeps rising — that is the timeline's own kill-switch and it is the right one, because the entire case is that 19,896 crore of borrowings converts into contracted cash flow. The specific tripwire I would watch from my own dig: if borrowings pass roughly 22,000 crore before the more-than-10-GWh battery target is evidenced as commissioned, the company is funding a…

Layer 2 read, 22 August 2026 — BENCH. Strong growth is not enough while unsigned capacity and grid delays block cash conversion. Jun-2026 revenue rose from 511 crore to 858 crore and PAT from 131 crore to 235 crore, so the operating growth is real. Yet the current sector row is CAPACITY_RISK, 1,200 MW remains unsigned and solar at Gadag and Fatehgarh 2 waits for GNA; those external constraints make BENCH the safer call.

What would change Layer 2’s mind. BENCH becomes ADVANCE when most of the remaining 1,200 MW has signed PPAs and the waiting Gadag and Fatehgarh 2 solar assets receive grid access and begin contracted generation without another battery-target revision.

The test written in advance. The thesis breaks if subsequent reported results fail to show commissioned storage or renewable capacity converting into revenue while debt-funded capex continues to rise. — the thesis as written as stated by the next result.

The test written in advance. Battery guidance credibility — Battery guidance credibility Cumulative commissioned storage capacity versus the stated fiscal-year objective. by the next result.

The test written in advance. Merchant storage realization risk — Merchant storage realization risk Battery revenue mix between contracted, short-term, and merchant sales. by the next result.

What the company does. The latest reported quarter combines higher revenue and profit with a still-high operating margin. Battery sales are now visible, while signed capacity and contracted financing support the construction programme. The key discount is execution credibility: battery targets and storage requirements have changed faster than disclosed operating proof.

🚨 What the surface reading misses. The surface reading is: A current valuation near the historical middle appears neither cheap nor expensive. The research reads it further: Normalized earnings are lower than trailing earnings because the normalized bridge reduces other income and uses a higher mid-cycle operating margin assumption only cautiously.

🚨 What the surface reading misses. The surface reading is: A high operating margin can look like proof of durable profitability. The research reads it further: The deterministic bridge places current trailing margin below its normalized estimate but finds only a limited history, so neither a peak-margin nor trough-margin verdict is reliable.

Lever 6 · Order-book wins — BUILDING. Battery power sales and contracted storage capacity can add a new earnings stream before linked solar assets are fully commissioned. What proves it keeps working: Storage monetization. It stops working if Battery commissioning or contract conversion falls behind the stated programme, or merchant spreads narrow before PPAs are signed.

Lever 2 · Value-added mix — BUILDING. Signed renewable capacity and construction financing provide a pipeline for generation growth once grid access and commissioning gates clear. What proves it keeps working: Contracted renewable commissioning. It stops working if Grid access or PPA conversion delays keep completed equipment from entering commercial operation.

Lever 3 · Management change — BUILDING. Lower debtor days can reduce funding pressure while the asset base is built. What proves it keeps working: Receivables improvement. It stops working if Receivable days rise as the buyer mix changes or payments slow.

Lever 7 · Consolidation — BUILDING. Lower-cost refinancing can soften the interest burden as commissioned assets enter service. What proves it keeps working: Refinancing and project funding. It stops working if Funding costs rise or debt increases without timely operational commissioning.

Sources: our stock research file (22 August 2026) · quarterly results through Jun 26 · the company’s own earnings calls. The story check is re-scored every results season; the record below never changes.

Revenue Revenue is the top line: everything the company billed its customers in the period.

ACME Solar Holdings Ltd reported ₹858 Cr of revenue in the Jun 26 quarter, +67.9% year on year. That is the 7th straight quarter of year-on-year growth. Over 6 years it has compounded at 2.2% a year. The last full year, FY26, came in at ₹2,023 Cr. The last four reported quarters add to ₹2,371 Cr.

Why this happened. Management reported battery power sales and stated that most of the planned storage capacity had revenue contracts. The driver works only if commissioning and contracting translate into reported operating cash flow rather than temporary merchant exposure.

FY26 revenue came in at ₹2,023 Cr (+44.0% on the year), capping 6 years at 2.2% compound. The latest quarter (Jun 26) printed ₹858 Cr, +67.9% year on year — the 7th consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +50.7% growth against the decade's 2.2% — the current year is running faster than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +47.5% over the last 4 quarters against +37.2%/yr over the last 8 — accelerating; TTM profit +58.4% vs −1.1%/yr — accelerating.

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

ACME Solar Holdings Ltd's operating margin is 86.0% in the Jun 26 quarter, −4.0 percentage points against the same quarter a year ago. Across 7 fiscal years the operating margin has ranged 83.0% to 93.0%. The current quarter sits inside that band.

Why this happened. Management cited signed capacity under construction and financing tied to the PPA-signed portfolio. The operating-leverage catapult applies only after assets are commissioned; transmission and GNA availability remain the limiting gates.

The latest quarter's operating margin is 86.0%, −4.0 pp against the same quarter a year ago. Across 7 fiscal years the operating margin has ranged 83.0%–93.0%.

🚨 Why the margin moved: operating margin went −4.0 pp year on year while gross margin went −4.5 pp — the loss came mostly from the gross line: input costs and pricing.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

ACME Solar Holdings Ltd earned ₹235 Cr of net profit in the Jun 26 quarter, +79.4% year on year. It is the 5th consecutive quarter of growth. Full-year FY26 profit was ₹498 Cr. The 6-year compound rate is 34.0%. That is 27.4% of the quarter's revenue. The same quarter a year earlier earned ₹131 Cr.

Jun 26 profit was ₹235 Cr, +79.4% year on year — the 5th consecutive quarter of growth. On the full year, FY26 printed ₹498 Cr (+98.4%), and the 6-year compound rate is 34.0%.

Why profit moved: revenue contributed +67.9% and the margin −4.0 pp — the quarter was revenue-led despite a thinner margin.

Pace comparison, last four quarters: profit +190.3% vs revenue +50.7%. Profit is growing faster than sales — fixed costs are being spread over a bigger base, and each extra rupee of revenue drops more to the bottom line.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 292% of ACME Solar Holdings Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹1,249 Cr of operating cash against ₹498 Cr of profit. After ₹6,881 Cr of capital spending, ₹−5,632 Cr was left as free cash.

FY26: operating cash of ₹1,249 Cr against reported profit of ₹498 Cr, leaving free cash of ₹−5,632 Cr after ₹6,881 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 292% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

Why conversion sits at 292%: the cash cycle tightened 96 days between FY21 and FY26 — cash that used to wait in the cycle now reaches the bank sooner.

Router verdict: the bigger cash user is investment — capital spending ran 11.6× depreciation over three years, so the next section's job is to check what that build-out is buying.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

ACME Solar Holdings Ltd's cash conversion cycle runs 60 days in FY26, down from 156 days in FY21. Capital spending ran ₹12,375 Cr over the last 3 years. At FY26 sales of ₹2,023 Cr each day of that cycle holds about ₹5.5 Cr, so roughly ₹333 Cr sits inside the business at any moment.

FY26: debtors at 60 days (an asset-light business — no inventory to speak of) — for a full cycle of 60 days, tighter than FY21's 156.

In money terms: at FY26 sales of ₹2,023 Cr, each day of the cycle holds about ₹5.5 Cr — so the 60-day loop keeps roughly ₹333 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹12,375 Cr over the last 3 fiscal years against ₹1,063 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹4,358 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the cash is going into capacity, not disappearing into the cycle — the question becomes whether the new capacity earns.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

ACME Solar Holdings Ltd earns a ROCE of 9% in FY26. That is up from a trough of 7% in FY22. Return on invested capital clears the cost of that capital by −5.7 percentage points, so growth here is not yet paying for the capital it uses. The wiring behind it is 24.6% net margin on 0.07× asset turns.

FY26 ROCE is 9%, recovered from a FY22 trough of 7% — the full ladder below shows the fall and the climb, undoctored.

🚨 Why the return is what it is — the wiring (FY26): 24.6% net margin × 0.07× asset turns × 5.64× balance-sheet leverage ≈ 9.7% on equity. Margin is doing the heavy lifting; leverage is a meaningful part of the equation.

The capstone test — ROIC − WACC: 6.3% − 12.0% = a −5.7 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. Negative — growth at these returns destroys value until the returns recover.

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.

ACME Solar Holdings Ltd carries total debt of ₹19,896 Cr against shareholder equity of ₹5,060 Cr as of Mar 26, a debt-to-equity of 3.93. On the annual view that ratio went from 3.29 in FY24 to 3.93 in FY26. Read the returns elsewhere on this page with that leverage in mind.

Mar 26: total debt of ₹19,896 Cr against shareholder equity of ₹5,060 Cr — a debt-to-equity of 3.93. On the annual view, debt-to-equity went from 3.29 (FY24) to 3.93 (FY26). Read the returns on this page with that leverage in mind.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Domestic institutions added 12.1 points of ACME Solar Holdings Ltd over 6 quarters, the biggest move on the register. That takes domestic institutions to 19.1% of the company. Promoters moved −12.0 points over the same window, to 71.4%. The register is read on the four disclosed classes only; nothing is inferred between filings.

Why this happened. The cash review shows receivable days falling across the available annual series, and management attributes the improvement to central off-takers. This supports cash conversion, although it does not eliminate the capex funding requirement.

The register over the last two years — Domestic institutions: +12.1 points over 6 quarters to 19.1%; Promoters: −12.0 points over 6 quarters to 71.4%; Foreign institutions: −1.2 points over 6 quarters to 4.4%.

Why the register moved: domestic institutions drove it (+12.1 points), absorbed on the other side by promoters (−12.0 points) — steady accumulation by institutions reading the same numbers this page reads.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

ACME Solar Holdings Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

ACME Solar Holdings Ltd trades at 47.8× P/E, mid-range by its own standards (65th percentile). Its long-run median P/E is 42.5×, measured across 1.8 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 47.8× is mid-range by its own standards (65th percentile), against a long-run median of 42.5× measured over 1.8 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

Why the multiple sits where it does: over the past year annual EPS moved +97.4% against a +26.2% price move — earnings outran the price, pushing the multiple DOWN its own range.

Put together: the multiple is full against its own past, so the story rests on the earnings line underneath it, not the multiple.

What the price assumes This reading works the multiple backwards. It asks one question: what yearly rate of profit growth is a buyer at the market price already paying for? The number is the growth rate that makes eleven years of profit — six years growing, then five fading — add up to that day's market price, once each year is discounted at 11% a year.

Solved at its 25 August 2026 price, ACME Solar Holdings Ltd was paying for profit growth of about 28.8% a year. Profit itself has compounded 34.0% a year over the past 6 years. Today the market pays 47.8× P/E, the 65th percentile of its own 2-year range.

What the two numbers say together. The multiple is full against its own past, and the growth the price is paying for is below what this company has actually delivered.

How to hold this number: it is a reading of one day's price, taken on 25 August 2026, not a running figure — every other number on this page, the multiple included, is read off the live quote as of 11 September 2026. A higher price is paying for more growth and a lower price for less, so it moves whenever the price does, and this page does not restate it between measurements.

Stage: Improving Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

ACME Solar Holdings Ltd reads as improving on its fundamental arc. Improving — profit growth bottomed 8 quarters ago at −98.8% and has held its recovery at +79.4% (single-quarter readings), ROCE holding at 8.5%. The read is built from 9 quarters across 3 curves, on partial evidence.

Why it matters: a sustained climb off the trough is the setup this page is built to catch — the question moves to what you pay for it.

One or more growth curves carry a base-effect spike — a large year-on-year move off a near-zero or loss-making comparable quarter. Those spikes are capped before the classifier reads the trajectory, and shown pinned on the chart, so a single distorted quarter does not drive the stage call.

A partial read: at least one curve is short, or the returns curve is not the computed quarterly series — hold the stage word a little more loosely.

4-Factor Sector Score

66.1/100 — rank 1 of 9 in Engineering - Turnkey Services · 93% evidence confidence

ACME Solar Holdings Ltd scores 66.1 out of 100 against the 9 companies it is compared with in Engineering - Turnkey Services, ranking 1. Balanced evidence: keep at normal research priority and require another comparable period before raising conviction.

The four contributions add to the total exactly: 22.5 + 11.4 + 13.6 + 18.6 = 66.1. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Said versus delivered

What ACME Solar Holdings Ltd's management promised, set against what actually arrived — 4 tracked promises on the record. Read straight from the company’s own earnings calls. A promise that slipped stays on this page after it is met.

BESS Commissioning Milestone Brought Forward · 30 July 2026. The timing of the more-than-10-GWh BESS milestone has been materially accelerated without explaining what operational change supports the earlier delivery. In January 2026, management targeted this milestone by calendar year 2027, whereas in July 2026 it moved the target to fiscal year 2027, bringing it forward by nearly three quarters and changing the timing assumptions for commissioning and monetization.

BESS Requirement Increased for Essentially Unchanged Portfolio · 30 July 2026. The implied storage intensity of the portfolio increased materially without an explanation. May 2026 management stated that an 8,071 MW portfolio would require around 17 GWh of BESS, while July 2026 cited an almost identical 8,070 MW portfolio requiring around 20 GWh, an increase of approximately 18% that could affect BESS capex and project economics.

2030 Capacity Target Raised Without Quantification · 30 July 2026. Management has shifted from a defined target of 10 GW of operational capacity by 2030 to contemplating a target above 10 GW. Although the latest call refers generally to new market opportunities, it does not quantify the revised target or explain the associated capital allocation, return thresholds, or execution risks, making this a material change to the long-term growth narrative.

🚨 BESS Commissioning Target Miss · 30 January 2026. In the July 2025 call, management set a minimum target to commission 'at least 2.5 gigawatt' of battery capacity by the end of the financial year (FY26). However, in the January 2026 call, they positioned a target of 2 gigawatt hour for the same period as an 'upgrade' to guidance, masking that it is actually a reduction from the original floor set two quarters prior. Earlier call (Jul 2025): “Our target is to commission if not 3.1 gigawatt at least 2.5 gigawatt by this financial year... we would be adding... around 2.5 gigawatt hours of battery component... which we can generate revenue from.” Later call (Jan 2026): “We are pleased to upgrade this guidance to 2 gigawatt hour of BSS becoming operational in this current quarter [Q4 FY26]”.

Every quote above is taken word for word from the company’s own earnings calls.

Frequently asked questions