₹12,830 Cr Debt: Solar Stock Whose Debt Rose by 70% in Just One Year to Look Out For

Synopsis: A renewable energy company nearly doubled its profit in FY26 while aggressively building new capacity. But with net debt rising sharply, investors are asking whether returns can keep pace with borrowings. 

A renewable energy company nearly doubled its profit in FY26 while building one of India’s largest battery storage systems. But its debt jumped 71% in the same year, and investors want to know if the growth is worth the borrowing.

India’s renewable energy buildout is minting a new breed of power companies – ones that grow fast, borrow big, and bet on long-term contracted cash flows to make it work. ACME Solar Holdings closed FY26 with revenue nearly 60% higher, profit almost doubled, and a battery storage business already earning crores every day. But its debt pile grew just as fast, raising a question retail investors cannot ignore: is the growth engine running ahead of its ability to repay?

Revenue and Profit Jump Sharply in FY26

ACME Solar reported total revenue of ₹2,507 crore in FY26, up 59.2% from ₹1,575 crore in FY25. EBITDA rose 61.2% to ₹2,265 crore, and profit after tax nearly doubled to ₹498 crore from ₹251 crore. EBITDA margins improved slightly to 90.3% from 89.2%, showing the company is getting more efficient as it gets bigger. For Q4 FY26 alone, revenue came in at ₹705 crore, up 30.7% year-on-year. PAT for the quarter stood at ₹138 crore, up 13.3%.

Debt Rose 71% – But So Did Assets

The company spent heavily to grow. Net debt rose 71% to ₹12,830 crore from ₹7,507 crore a year ago. Total capex committed in FY26 was ₹12,475 crore, of which ₹6,445 crore was already spent and ₹6,030 crore is locked in purchase orders.

High debt is common in this sector. Peers like Adani Green Energy and ReNew Power also carry large borrowings because building power plants requires massive upfront capital. What matters is whether the debt is manageable. On that front, ACME’s net debt to TTM EBITDA on operational projects improved to 3.9x from 4.4x, and the company targets keeping it below 5.5x. Net worth stood at ₹5,060 crore.

Capacity Grows, Battery Storage Goes Live

ACME crossed 2,990 MW of operational generation capacity in FY26 after commissioning its 100 MW Acme Eco Clean wind project. Power generation jumped 61.1% to 6,464 million units.

The big milestone this year was battery storage. The company commissioned approximately 2.3 GWh of BESS capacity across three sites in Rajasthan, making it one of India’s largest such deployments. This storage system is already earning around ₹2.2 crore per day by buying cheap power and selling it during peak hours, with round-trip efficiency of 88-90%.

A Big Pipeline and a 2030 Target

The under-construction portfolio stands at 5,081 MW, with 3,280 MW having PPAs already signed. The total portfolio including future projects is 8,071 MW with 17 GWh of planned battery storage. The company added 1,401 MW of new projects in FY26 alone, including a 301 MW FDRE win with SECI in Q4.

By 2030, ACME targets 10 GW of generation capacity and 20 GWh of battery storage, growing at a 35% CAGR. Cash ROE improved to 20.1% in FY26 from 15.7% in FY25, and days outstanding on receivables fell to just 14 days from 181 days in FY23.

About the Company

ACME Solar Holdings Limited is one of India’s largest renewable energy independent power producers. The company develops, builds, and operates solar, wind, hybrid, and battery storage projects. It sells power primarily to central government-backed entities under 25-year power purchase agreements and handles construction and operations through its in-house teams.

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