Acme Solar Holdings Limited

' ACME Solar Holdings Limited Q4 & FY26 Earnings Conference Call ' May 08, 2026

EBITDA margin of over 90%, both for the quarter and full year on account of favourable operating leverage and optimized operational efficiency. PAT stood at INR138 crores for the ACME Solar Holdings Limited May 08, 2026 quarter and INR498 crores for the year with a margin of 19.6% and 19.9%, respectively. Now at last coming to operational metrics for the quarter. We generated 1,720 million units in Q4, up 13% and 6,464 million units in FY '26, up 61% yearon-year.

' ACME Solar Holdings Limited Q4 & FY26 Earnings Conference Call ' May 08, 2026

Puneet: For full year basis, you said 29% to 30% from the new plants? It is a blended number sort of? Nikhil Dhingra: Yes, for the new plant it is because we have a higher DC installed there. So it has a higher CUF, yes. Ankit Verma: For the full year, it's been close to 26% for the entire portfolio. Nikhil Dhingra: He is asking about Rajasthan. New plant. Puneet: Got it. And lastly, there was this SECI ISTS hybrid tranche scheme, which got a regulatory approval for 3.25. And now it says that there is a battery inclusion. Can you talk about how has the economics changed there? Nikhil Dhingra: You're talking about the -- the PPA is not yet signed, right? Puneet: Yes. But it got approved, right? I mean, that has 3.25? Nikhil Dhingra: Yes, it got approved, right. So basically, it is -- what happens is most of the states want battery installation along with the project. So it basically keeps the return in high teens only. So it does not impact really the returns from this thing. But of course, we need to satisfy the customer requirement in terms of the power mix they want because everybody needs peak power now. So that is where we need to offer that 1 hour of battery, yes.

' ACME Solar Holdings Limited Q4 & FY26 Earnings Conference Call ' May 08, 2026

mix when you say that it's going to be more central offtakers and how sustainable this working capital profile is going forward? Nikhil Dhingra: So see, our portfolio as it gets more operational, it is shifting towards 100% central. All of our under construction projects are 100% central, where they take a cash discount. So it essentially -- and they pay in 10 days. Basically, in 30 days, if you pay, you get a cash discount. So that is where they take a cash discount. So that is why we are getting a 15 days kind of a receivable cycle today. So which is more or less not because of one-off, it is the norm. Yes. So Ankit, do you want to add? Ankit Verma: Yes, earlier, I think the higher receivable days you are talking about, so that pertains to very -- you can say FY '23 and before that. And I think at that point of time, like Nikhil mentioned the contribution of central offtaker was less. And there are, of course, some payment issues, especially from a couple of DISCOMs as well, especially Telangana and Andhra. Even that payment has normalized now.. Kartik Sharma: See, is that the effect that we've seen in the trade receivables, which have gone down 13% yearon-year? Manoj Upadhyay: Yes. Actually that there was a regulatory reform, which was government has implemented called LPS, right? Under that LPS late payment surcharge scheme, 2, 3 states which were delayed actually because of the various regulatory issues, there were some court cases in Andhra Pradesh. All those dues are now settled and they are paying on time because this LPS scheme is very strict. They don't pay on time, you inform to the PRAPTI portal and they will get disconnected from the power. So this discipline is helping, especially for the state project. But mostly now what has happened, our projects are central projects. So central projects, technically, they are paid in just 6, 7 days because they want to take a cash discount. Moderator: Next question is from the line of Aniket Mittal from SBI Mutual Fund. Aniket Mittal: First question was just on the cash flow. So when I look at the cash flow statement, there seems a very large increase in the non-current assets and some other balance sheet items, which is impacting the cash flow from operations. Just wanted to understand that? Nikhil Dhingra: Aniket, could you point out which are the -- which number you're referring to and what is the number? Aniket Mittal: So if I look at the non-current assets in the balance sheet, so looking at the cash flow statement, cash flows from operations have come in lower on a Y-o-Y basis, partly I think because the base for last year was higher. But when I look at the balance sheet, there's been a sharp jump in the other non-current assets and also on the other financial non-current assets. So just trying to understand?

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ACME Solar Holdings Limited

May 08, 2026

Arun Chopra: So it is mainly because of the capex buying which is happening. So it mainly include the capital creditors. Aniket Mittal: Okay. And what is the capital advances number there? Arun Chopra: Capital advances, Roughly INR323 crores. Aniket Mittal: INR323 crores. And this is pertaining to what, like? Arun Chopra: So this advances basically given to -- for the procurement of material, which has been given to various and the material will come in over a period of time. So these advances have been given to them, maybe a partial advance, let's say, 10%, 20% advance. Nikhil Dhingra: Let's say, battery contracts, we have typically 10% advance upfront where we get a bank guarantee against it. Similarly, the turbines also we give 20% advance. So these are capital advances you need to give to supplier where they give you a BG against that. Aniket Mittal: Okay. So this largely because of battery and probably some wind. Nikhil Dhingra: Yes. On services and domestic procurement, typically, we don't give any advance. But from an international procurement perspective and large equipment, we have to because it helps you to bind the supplier also in terms of the contract honoring and also giving him advance to purchase raw material because if you don't pay advance, he will not have money to purchase the raw material. Aniket Mittal: Okay. And when I look at the PLF number on a Y-o-Y basis, I see a 1% decline. What's the reason for that for this quarter? Nikhil Dhingra: For this quarter, Aniket, could be a function of, of course, the lower irradiation or and curtailment. These two could be the only 2 factors which would have impacted. On a Y-o-Y basis, of course, the larger capacity, it is a larger capacity. So of course, the denominator is higher. But these are the 2 only factors because it is determined by seasonality as well. So these are the factors in terms of -- we can give you a site-by-site, I think, analysis. But broadly, it is because of these factors. Aniket Mittal: Okay. In the presentation within the under construction portfolio, I also see a merchant BESS of 654 megawatt hour. Are we putting some purely on a merchant basis? What does this pertain? Nikhil Dhingra: Actually, it is merchant as of now. It is slated to go to a PPA, which we are supposed to sign very shortly. Most likely -- because it is pure battery, which is taking power from the grid and giving to the grid, it can fit it in any of these peak power projects PPA we have, which we have not yet signed with a tariff of either 6.28 or similar, and there are a lot of bids coming in where we can deploy this BESS. It gives us some flexibility.

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ACME Solar Holdings Limited

May 08, 2026

Nikhil Dhingra:

Nikhil Dhingra: So gross block has increased by around INR3,000-odd crores, right, in terms of capitalization. right? So in terms of the -- what you are seeing -- not seeing is the -- you can say the wind, wind has not really started performing, first of all, because wind has got installed in the -- Nikhil Dhingra: In phases. Dhruv Muchhal: But that's included in your run rate EBITDA of INR2,000-odd crores, right? Nikhil Dhingra: No, no. See, the run rate EBITDA is basically in terms of the last month, it basically got commissioned at the fag end of the year -- I think it got commissioned at the fag end of the year. And so run rate EBITDA is -- what you're talking about is the reported EBITDA or the run rate EBITDA? Dhruv Muchhal: Run rate EBITDA. So in Q3, you reported run rate EBITDA of about INR2,100 crores. I think largely all your projects were commissioned by then, including the wind, probably small portion was remaining. So is it probably the gross block number includes the battery, which was commissioned by the end of the year for which the run rate EBITDA is not part of it? Nikhil Dhingra: It definitely includes the -- we can give you the commissioned projects for the full -- basically, the run rate EBITDA is for the 12 months number. We have -- I think we don't have that number in this year because these -- the whole gross block will not be operating for the 12 months. Arun Chopra: Out of this INR3,460 crores, roughly INR1,000 crores to INR1,100 crores is related to battery, which... Dhruv Muchhal: I think that explains that, Yes, so that explains it very well.