ICRA Reaffirms ACME Solar’s AA- Rating, Raises Rated Amount To INR 3,500 Crore

ICRA has reaffirmed the long-term rating of ACME Solar Holdings Limited (ASHL) at [ICRA]AA- (Stable) and increased the total rated amount to Rs. 3,500 crore from Rs. 2,500 crore. The stable outlook reflects the company’s strong project execution capabilities, long-term power purchase agreements (PPAs), and stable cash flow profile.

ASHL currently has an operational renewable energy portfolio of 2.99 GWac and 3.1 GWh of BESS capacity spread across 11 Indian states. The company is also developing a pipeline of 5.1 GWac of renewable energy projects, supported by 15 GWh of associated BESS capacity and 550 MWh of standalone storage capacity.

To mitigate potential delays in grid evacuation and project commissioning, ASHL has commissioned 4.1 GWh of standalone BESS capacity ahead of project schedules. The early commissioning is expected to enable the company to generate revenues while some renewable projects remain affected by evacuation constraints.

The company has entered into long-term 25-year PPAs at competitive tariffs. Central government entities, including SECI, NTPC, NHPC, and SJVN, account for 84% of ASHL’s capacity mix, helping reduce counterparty credit risks. The weighted average tariff is around Rs. 3.4 per kWh for operational projects and Rs. 4.6 per kWh for under-construction projects.

ICRA expects the company’s cumulative debt service coverage ratio (DSCR) to remain above 1.35x, supported by contracted cash flows from its operating portfolio.

ASHL’s financial flexibility also improved following its Qualified Institutional Placement (QIP) in June 2026, through which the company raised approximately Rs. 2,800 crore. The proceeds are expected to support equity requirements for its ongoing expansion. Consolidated operating income increased to Rs. 2,023.4 crore in FY2026, compared with Rs. 1,407.7 crore in FY2025.

However, ICRA noted execution and funding risks associated with ASHL’s large, multi-location project pipeline. Grid evacuation constraints could push some commissioning schedules into FY2027 and FY2028. The company also remains exposed to weather-related generation variability and operational risks associated with long-duration BESS performance testing.

Regulatory uncertainty, including pending Supreme Court litigation related to deferred customs duty under the MOOWR scheme, remains another monitorable. Despite these challenges, ICRA said ASHL’s operational capabilities, contracted revenues, and prudent debt management continue to support its credit profile.