ACME Solar Holdings Ltd (ACMESOLAR) Q1 FY27 Results Analysis: PAT Jumps 79.9%, Margin Compresses 382 bps

ACME Solar Holdings Ltd's Q1 FY27 numbers came in strong, with revenue of Rs. 857.50 Cr (+67.80% YoY) and PAT growth of +79.88% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Revenue and PAT grew strongly (67.8% and 79.9% YoY) driven by capacity expansion and new BESS operations. The QIP strengthened the balance sheet. However, EBITDA margin compressed 382 bps YoY due to new costs, and the effective tax rate rose. The strong project pipeline (1.5 GW target for FY27) supports future growth.

Key Investment Insights

Key Positives

• Revenue from operations grew 67.8% YoY to Rs.857.50 Cr.
• PAT grew 79.88% YoY to Rs.235.33 Cr.
• Basic EPS grew 71.76% YoY to Rs.3.71.
• Net capacity addition of ~100 MW (2,890 MW to 2,982 MW) and BESS commissioning of 160 MWh.
• QIP raised Rs.2,762.90 Cr net proceeds, with Rs.411.01 Cr used for debt repayment and Rs.660.00 Cr for general corporate purposes.
• Normalized PAT (excluding exceptional items) grew 64.84% YoY.

Risk Factors

• EBITDA margin compressed 382 bps YoY to 87.08% due to new cost of power purchased (Rs.38.95 Cr) and higher other expenses (up 78.1% YoY).
• Total operating expenses rose 131.77% YoY, outpacing revenue growth of 67.8%.
• Effective tax rate rose to 29.00% from 24.98% in Q1 FY26, reflecting expiration of tax holidays on some project SPVs.
• Cash tax rate increased to 17.55% from 4.85% in Q1 FY26, indicating growing cash tax outflow.
• Finance costs grew 47.78% YoY, though only 2.01% QoQ.