ACME Solar stock rises nearly 3% after strong Q4 performance; here's what brokerage say

ACME Solar Holdings' shares climbed nearly 3% to Rs 244.60 on Wednesday, reflecting a market capitalisation close to Rs 15,000 crore. This uptick comes after the stock settled at Rs 237.70 on Tuesday. ACME's stock has rebounded significantly, rising nearly 46% from its 52-week low of Rs 167.55, recorded four months ago in January 2025.

The company's financial performance in the March 2025 quarter marked a return to profitability, with a net profit of Rs 122 crore. Revenue rose by 69.5% year-on-year to Rs 539 crore, driven by a substantial capacity addition of 1,200 MW. ACME's EBITDA surged to Rs 488 crore, up 118.3% from the previous year, with EBITDA margins improving to 90.5%.

Recently, ACME Solar Holdings Ltd commissioned the second phase of its Sikar Solar power project in Bikaner, Rajasthan, on 19th May 2025. This phase added 112.5 MW, following an initial commissioning of 52.5 MW in early May. The project's total commissioned capacity now stands at 165 MW, with further capacity under development towards a planned 300 MW.

Nuvama Institutional Equities commented, "ACME posted Q4FY25 EBITDA of INR4.4bn (up 2.2x YoY), beating our/consensus estimate by 18%/12% led by a full-quarter benefit (in Q4) from the 1.2GW capacity addition (in end of Q3). EBITDA margin edged up to 89.5% in Q4FY25 (88% in Q3FY25)." Nuvama maintains a 'BUY' rating with a target price of Rs 314, forecasting a capacity/OCF CAGR of 40%/57% over FY25–28E.

JM Financial noted, "ACME in 4QFY25 reported revenue of INR 4.9bn (65% YoY, 40% QoQ, 9% JMFe). EBITDA came in at INR 4.4bn (2.2x YoY, 42% QoQ, 10% JMFe) with slight improvement in margin to 89% vs. 88% in 3QFY25." The firm projects revenue and EBITDA to grow at a CAGR of 54%/57% over FY25-28, maintaining a 'buy' on the stock with a target price of Rs 270.

Motilal Oswal Financial Services highlighted ACME's continued robust execution and its projection to increase installed capacity by 18% YoY in FY26, with a 63% YoY rise expected in FY27. "Reiterate BUY with a target price of Rs 302 per share, implying a 27% upside potential," stated the firm, citing strong solar merchant tariffs and lower battery and module prices as catalysts.