ACME Solar plans Rs 17,000 crore capex for hybrid renewables in FY26

ACME Solar on Sunday said it has planned an investment of Rs 17,000 crore on capital expenditure in FY26 with a focus on hybrid and round-the-clock renewable capacities.

The company is also evaluating entry in nuclear energy segment, though these plans are at a drawing board level, ACME Solar said in a statement.

ACME Solar Holdings plans to invest Rs 17,000 crore to boost renewable energy capacity to 5 GigaWatts by 2027. As a broader strategy, ACME Solar aims to treble its current renewable capacity to reach 7 GW by 2028, according to the statement.

"We intend to focus our new capacities on the revenue and margin accretive hybrid and FDRE (Firm and Dispatchable Renewable Energy) projects as a critical pivot in our business strategy," CEO Nikhil Dhingra said.

Renewable energy projects integrated with energy storage systems are referred as FDRE projects. Such projects ensure round-the-clock supply of green power, addressing challenges related to variable RE production.

Dhingra further said that ACME Solar plans to roll out its capacity expansion in two phases starting in April this year.

As of the nine-month period of FY25, ACME Solar's portfolio stood at 6,970 MW, with 2,540 MW already operational and 4,430 MW under construction projects, with 49 per cent focus in hybrid and FDRE projects.

The operational capacity of 2,540 MW is expected to provide ACME Solar an annualized EBIDTA run rate of up to Rs 1,800 crore.

The current operational capacity off-take is split between central and state off-takers having power purchase proportions of 67 per cent and 33 per cent, respectively.

This is reflective of the growing demand for renewable energy across both the state and central governments, positioning ACME Solar as a key supplier in the country's energy transition.

ACME Solar secures long-term power purchase agreements (PPAs) of 25 years that are less susceptible to the volatility of the merchant power market.

Delving into the company's business strategy pivot, Dhingra pointed out that ACME Solar's growth plan is not only focused on expanding its solar capacity but also diversifying its project mix.

Its under-construction projects include a mix of solar, wind, FDRE, and hybrid solutions. These renewal projects have a short capex-to-revenue cycle ensuring faster accretion of revenue and margin benefits.

The company has recently invested around Rs 4,400 crore in its 1,200 MW inter-state transmission system connected project in Jaisalmer, Rajasthan.

ACME Solar also said it has made significant strides in reducing net debt. Through IPO proceeds, the company reduced net debt by Rs 2,070 crore, while also securing Rs 16,500 additional debt for 1,700 MW under-construction hybrid and FDRE renewable energy projects.

The company has secured grid connectivity for 4,430 MW of under-construction capacity, and further connectivity of 2,000 MW is available for future bids.

Besides having solar, wind and hybrid renewable energy projects, Dhingra said the company is keen to explore nuclear energy investments, particularly in light of the recent government push to involve private sector participation in the sector.

In the third quarter of FY25, ACME Solar reported a 9.9 per cent year-on-year growth in revenue, amounting to Rs 401 crore.

EBITDA (earnings before interest, tax, depreciation and amortisation) increased by 15.7 per cent, and net profit surged by a remarkable 152.1 per cent, it said.