ICRA Assigns AA- Rating To ACME Sikar’s 300 MW Solar Project, Strengthening Financing Profile

ACME Solar Holdings Limited has informed BSE Limited and the National Stock Exchange of India about a major credit rating upgrade received by its wholly owned subsidiary, ACME Sikar Solar Private Limited. Credit rating agency ICRA Limited has assigned a long-term rating of “[ICRA] AA- (Stable)” to the subsidiary’s fund-based term loan amounting to ₹1,209 crore. The company shared this update through a voluntary submission to the stock exchanges.

According to ACME Solar, this improved credit rating is expected to strengthen the financial position of the Sikar solar project. The company stated that the new rating could help reduce financing costs by nearly 25 basis points. This benefit comes after a recent refinancing exercise carried out with Yes Bank Limited, which had already lowered the project’s interest rate by about 170 basis points. Together, these developments are expected to improve the project’s overall cash flows and financial stability.

ICRA highlighted several reasons for assigning the high rating. One of the key factors is the project’s long-term power purchase agreement with the Solar Energy Corporation of India. The 300 MW project has a 25-year PPA with SECI, which removes risks related to power demand and price fluctuations. SECI’s strong credit profile was also noted, as payments are usually received within around 10 days of billing. In addition, ICRA pointed to the project’s competitive construction costs and favourable loan terms, which help maintain a comfortable debt service coverage ratio.

ACME Solar Holdings Limited continues to be a major player in India’s renewable energy sector. The company has a total portfolio of 7,770 MW, covering solar, wind, energy storage, and hybrid projects. Out of this, 2,962 MW is already operational, while 4,808 MW is under construction. ACME Solar follows an integrated business model with in-house EPC and operations and maintenance teams, helping it control costs and maintain healthy operating margins.

The disclosure to the stock exchanges was made by Rajesh Sodhi, Company Secretary and Compliance Officer. The detailed rating rationale is available on ICRA’s website.