Financial Performance Highlights

  • Q2 FY27 Total Revenue: INR1,007 crores, up 67.5% year-on-year
  • Q2 FY27 EBITDA: INR874 crores, up 63.6% year-on-year
  • Blended EBITDA Margin: 86.7% (comprising 90.8% from renewable generation and 78.3% from BESS operations)
  • Q2 FY27 Profit After Tax: INR269 crores, up 133.5% year-on-year
  • PAT Margin: 26.7%
  • Asset Base: INR28,462 crores, increased by INR11,466 crores over the year
  • Weighted Average Cost of Debt: ~8.4% for fully operational projects
  • 65% of borrowings from PFC, REC, IREDA, and NaBFID with limited interest rate volatility
  • CRISIL upgraded rating outlook to AA- positive from AA- stable

Operational Updates

  • BESS Capacity Commissioned: 5.2 GWh (second largest in India), achieving initial half-yearly target of 5 GWh
  • Partially Commissioned Projects: 1.9 GW of contracted projects
  • Module Delivery: 1.7 GW delivered to site, with 1.1 GW installed
  • Module Charging: 200 MW peak already charged, balance expected by November-December 2026
  • New PPAs Signed: 430 MW during quarter, plus additional 400 MW FDRE PPA with NTPC signed after quarter end
  • PPA Portfolio: 92% of total contracted portfolio of 8,370 MW now signed
  • Short-term BESS Contracts: Locked in >INR1,600 crores revenue for partial FY27 capacity and >INR1,500 crores for partial FY28 capacity
  • CUF Improvement: Increased from 24.1% to 27.8% year-on-year
  • Power Generation: 1,840 million units, up 19.6% YoY
  • BESS Sales: 324 million units through short-term peak power contracts

Regulatory and Sector Developments

  • BESS Connectivity: CTUIL initiated grant of BESS connectivity under non-ROFR route
  • Green Energy Corridor Phase III: Union Cabinet approved INR1.36 lakh crores for interstate transmission and INR50,000 crores for 50 GWh of BESS
  • Pradhan Mantri Surya Sarovar Yojana: Targets 5,000 MW floating solar with co-located storage, provides central financial assistance up to INR1 crore per MW
  • Curtailed Energy Use: New rules allow use of curtailed solar under PPA to charge BESS for merchant sale

Upgraded Capacity Roadmap

  • FY27 BESS Commissioning Guidance: Raised from 10 GWh to >12 GWh
  • 2030 Targets: Increased from 10 GW renewable with 25 GWh BESS to 15 GW renewable with 50 GWh battery storage

Growth Drivers

  • Strong tender pipeline: 20+ GW upcoming tenders across solar plus BESS, FDRE, CfD, and PHSP
  • 50 GWh of peak power builds already rolled out till September 2027
  • 200-250 GWh of short-term peak power contracts expected in near to medium term
  • 20 GWh of medium-term peak-only tenders expected shortly
  • SECI launched 4 GW/16 GWh auction for 4 hours assured peak power with VGF funding of INR15 lakhs per MWh
  • 10 GW of RE connectivity inventory secured for upcoming bids
  • 5 GW+ of BESS connectivity already granted
  • 19 GWh of BESS already contracted with suppliers including CATL, Hithium, Ganfeng, Trina, and CLOU

Strategic Priorities

1. Return on capital and profitability focused on earnings growth quality

2. BESS as cash engine with ~10 GWh operational capacity expected on rolling basis

3. Execution excellence focusing on higher CUF and BESS additions

4. Margin improvement through use of curtailed solar for BESS charging and below-budget capex

5. Contracted revenue visibility through long-term PPAs and short-term peak power contracts

Capital Expenditure Update

  • H1 FY27 Capex: INR6,500 crores spent (INR3,500 crores capitalized, INR3,000 crores CWIP)
  • H2 FY27 Capex: Expected to be similar or higher than H1
  • Target: Capitalize entire 12 GWh of BESS in FY27
  • Cash Position: Significant cash available due to September disbursements

Partial Commissioning Details

  • 1.9 GW capacity partially commissioned through mix of solar and BESS commissioning
  • Full commissioning dependent on GNA timelines, targeting 1.5 GW for FY27
  • Partial commissioning expected to reach 2.5-3 GW
  • Revenue generation occurs even with partial commissioning through BESS operations

Debt and Financing

  • Gross Debt: INR26,500 crores in Q2 FY27 (vs INR20,000 crores in Q1 FY27)
  • Interest Cost: Remained flat due to QIP raise of INR2,800 crores, internal accruals usage, and refinancing
  • Refinancing: Two projects in progress where battery commissioned and solar near commissioning
  • Currency Exposure: 100% rupee, no dollar exposure

BESS Economics

  • Capex: INR90 lakh to INR1 crore per MWh (below budget due to installation at operational substations)
  • FY27 Capacity Tie-up: ~90-95% tied up
  • FY28 Capacity Tie-up: ~50-60% tied up
  • Procurement Strategy: Reducing external power purchases through own solar generation for charging

Market Outlook

  • Bidding Environment: SECI floating bids with complete power tie-up, faster PPA conversion (2 months)
  • Peak Power Demand: Significant shift from RTC procurement to BESS procurement
  • Tariff Realization: New bids showing substantially higher tariffs than current contracts
  • Structural Shift: 85% of near-term power procurement moving from RTC to BESS

Q&A Highlights

  • Transmission Delays: Strategy reoriented around BESS commissioning to mitigate GNA delays
  • Generation Capacity: Targeting 1.5-2 GW of additional generation capacity by FY27 end
  • Module Pricing: ALMM 2 compliant modules expected below INR17/Watt
  • Other Expenses: Included O&M and one-time ROC fees of ~INR2.5 crores per SPV
  • Accounting: Partially commissioned assets capitalized and generating revenue

#Tags #ACME Solar #Q2FY27Results #BESS #RenewableEnergy #RegulatoryFiling #Positive