ACME Solar shares gain 6% as HSBC raises target; BESS project commissioned

HSBC remains positive on ACME Solar's ability to secure new projects and convert LoAs into PPAs, although it noted that project economics have deteriorated somewhat because of competitive intensity. 3 Min Read Shares of ACME Solar Holdings Ltd. rose as much as 6% on Tuesday, September 15, after the company commissioned the first phase of a battery energy storage system (BESS) project in Rajasthan, while brokerage firm HSBC raised its target price on the stock to ₹450 from ₹390 and retained its "Buy" rating. In an exchange filing on Monday, ACME Solar said that its wholly owned subsidiary, ACME Greentech Seventh, commissioned 53.63 MW / 300 MWh of the BESS component of its 300 MW / 1,581 MWh firm and dispatchable renewable energy (FDRE) project in Bikaner, Rajasthan. The corresponding renewable energy generation component is still under development, while the commercial operation date for the commissioned BESS component is set for September 16, 2026.

HSBC sees recovery in renewable auctions HSBC raised its EV/EBITDA multiple for ACME Solar's core business to 11.7 times from 10.9 times, factoring in the expected improvement in sector momentum and a stronger growth pipeline beyond FY28. The revised target implies a 12% upside from Friday's closing price of ₹402.30. The brokerage expects ACME to remain in a high-growth phase over the next two years as renewable energy auctions show signs of recovery after a relatively weak period over the past year, driven by rising power demand and higher evening peak demand.

The brokerage noted that around 4.8 GW of capacity was auctioned in Q2 FY27, including 2.3 GW of wind capacity, 1 GW of thermal-mimic round-the-clock capacity and 1.5 GW of assured peak FDRE capacity. BESS is becoming an important part of these tenders as developers look to provide firm and dispatchable power, HSBC said. It highlighted ACME Solar's progress in converting awarded capacity into PPAs.

The company has converted 730 MW of letters of award (LoAs) into PPAs over the past two quarters, giving the brokerage greater confidence in its ability to maintain business momentum. ACME also won a 300 MW contracted-capacity project in Q2FY27 at a discovered tariff of ₹6 per kWh for four-hour assured evening supply. HSBC remains positive on ACME's ability to secure new projects and convert LoAs into PPAs, although it noted that project economics have deteriorated somewhat because of competitive intensity.

It identified high leverage, higher equipment and borrowing costs, and delays in commissioning contracted capacity as key downside risks. Analyst consensus and stock movement 11 of 12 analysts covering ACME Solar have a "Buy" rating, while one has a "Sell" rating. Shares of ACME Solar are among the few broader market names that have bucked the trend in today's session, raising as much as 6% to ₹426.1.

The stock currently trades 5.1% higher at ₹442.7, having gained 78% so far in 2026. Also read: Motilal Oswal 'bull case' projects 75% upside for this clean energy stock Home Market News ACME Solar shares gain 6% as HSBC raises target; BESS project commissioned

Source: CNBC TV18