ACMESOLAR Q2 FY27 Results Analysis: PAT Jumps 133%, Margin Compresses 203 bps

ACMESOLAR's Q2 FY27 numbers came in strong, with revenue of Rs. 887.01 Cr (+89.63% YoY) and PAT growth of +133.24% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Revenue nearly doubled YoY (+89.63%) and PAT grew 133.24% with no one-time items, while cash conversion ran at 2.12x PAT. Blended EBITDA margin compressed ~203 bps YoY on BESS mix, and the build-out is debt- and QIP-funded with negative H1 FCF. Execution is on track against management's FY27 capex (Rs.15,000–20,000 Cr) and BESS (>10 GWh) targets, with no explicit guidance beat recorded this quarter.

Key Investment Insights

Key Positives

• Revenue from operations grew 89.63% YoY to Rs.887.01 Cr
• PAT to owners grew 133.24% YoY to Rs.268.40 Cr (+140.02% vs normalized year-ago base)
• EBITDA of Rs.873.53 Cr was a new quarterly high, +63.64% YoY
• Effective tax rate fell to 24.54% from 29.00% in Q1 and 26.32% a year ago
• H1 CFO of Rs.1,066.59 Cr was 2.12x H1 PAT
• Net debt/equity improved from 2.54x to 1.91x after the Rs.2,762.90 Cr net QIP
• H1 capex of Rs.6,329.21 Cr is on track toward the FY27 Rs.15,000–20,000 Cr guidance (42.19% of the low end)
• Operational BESS scaled from 3.62 GWh (Jul 29) to 4.96 GWh (Oct 1); contracted portfolio rose to 8,370 MW

Risk Factors

• Blended EBITDA margin compressed ~203 bps YoY to 86.74% as BESS power-purchase costs scaled (Rs.70.42 Cr vs nil a year ago)
• Finance costs grew 30.51% YoY to Rs.345.21 Cr; H1 finance costs paid (Rs.1,053.22 Cr) is roughly equal to H1 CFO (Rs.1,066.59 Cr)
• FCF was negative at −Rs.5,262.62 Cr in H1, covered by the QIP and Rs.7,659.40 Cr of net borrowings
• Hitting the high end of the FY27 capex guidance requires H2 run-rate of up to 4.3x the H1 run-rate
• Other income fell 10.14% YoY to Rs.120.07 Cr