Acme Solar shares: Axis Capital initiates coverage, sees 31% upside; check stock reaction
Axis Capital said Acme Solar is transitioning from a conventional solar independent power producer (IPP), with 3 GW of operational capacity, towards a complex renewable energy project developer.
- Oct 15, 2026,
- Updated Oct 15, 2026 11:40 AM IST
Acme Solar Holdings Ltd shares fell 2% in Thursday's trade as Axis Capital initiated coverage on the renewable energy company with a Buy rating. The brokerage cited its transition towards complex renewable energy projects and battery energy storage systems (BESS), which is expected to drive strong earnings growth over the coming years.
Axis Capital has set a target price of Rs 550 per share, valuing the company at 11 times its estimated FY30 run-rate enterprise value to Ebitda and discounting the valuation back to September 2027. The target price implies around 31% upside from the brokerage's stated current price of Rs 420 in the report.
In its initiating coverage report dated October 15, Axis Capital said Acme Solar is transitioning from a conventional solar independent power producer (IPP), with 3 GW of operational capacity, towards a complex renewable energy project developer. Around 95% of its 5.4 GW under-construction and pipeline capacity comprises complex projects. The company is also expanding its presence in battery storage, with an estimated addition of around 17 GWh of BESS capacity. Acme Solar aims to commission its first complex project by December 2026, while the brokerage expects its full portfolio to become operational by FY30, factoring in a one-year delay due to industry-wide transmission constraints.
Acme Solar shares touched a low of Rs 409.90, down 2.36% from their previous close of Rs 419.80. The stock opened at Rs 419.85 and touched a high of Rs 421 during the session.
The brokerage expects Acme Solar's Ebitda, excluding other income, to reach around Rs 89 billion at run rate, with a 38% compound annual growth rate over FY26-FY31. It estimates capital expenditure of around Rs 520 billion between FY27 and FY30 to commission the company's under-construction and pipeline projects. Axis Capital said the equity portion of this spending is expected to be funded through internal accruals, existing cash and qualified institutional placement (QIP) proceeds.
The report estimates that net debt to Ebitda will improve to 5.9 times by FY30 from 7.2 times in FY26. It also expects operating cash flow after interest to reach around Rs 30 billion at run rate, supporting further capacity additions.
Acme Solar Holdings Ltd shares fell 2% in Thursday's trade as Axis Capital initiated coverage on the renewable energy company with a Buy rating. The brokerage cited its transition towards complex renewable energy projects and battery energy storage systems (BESS), which is expected to drive strong earnings growth over the coming years.
Axis Capital has set a target price of Rs 550 per share, valuing the company at 11 times its estimated FY30 run-rate enterprise value to Ebitda and discounting the valuation back to September 2027. The target price implies around 31% upside from the brokerage's stated current price of Rs 420 in the report.
In its initiating coverage report dated October 15, Axis Capital said Acme Solar is transitioning from a conventional solar independent power producer (IPP), with 3 GW of operational capacity, towards a complex renewable energy project developer. Around 95% of its 5.4 GW under-construction and pipeline capacity comprises complex projects. The company is also expanding its presence in battery storage, with an estimated addition of around 17 GWh of BESS capacity. Acme Solar aims to commission its first complex project by December 2026, while the brokerage expects its full portfolio to become operational by FY30, factoring in a one-year delay due to industry-wide transmission constraints.
Acme Solar shares touched a low of Rs 409.90, down 2.36% from their previous close of Rs 419.80. The stock opened at Rs 419.85 and touched a high of Rs 421 during the session.
The brokerage expects Acme Solar's Ebitda, excluding other income, to reach around Rs 89 billion at run rate, with a 38% compound annual growth rate over FY26-FY31. It estimates capital expenditure of around Rs 520 billion between FY27 and FY30 to commission the company's under-construction and pipeline projects. Axis Capital said the equity portion of this spending is expected to be funded through internal accruals, existing cash and qualified institutional placement (QIP) proceeds.
The report estimates that net debt to Ebitda will improve to 5.9 times by FY30 from 7.2 times in FY26. It also expects operating cash flow after interest to reach around Rs 30 billion at run rate, supporting further capacity additions.