CME Solar Holdings reported a significant decline in its consolidated net profit for the September quarter (Q2 FY25), falling over 60% to Rs 15.29 crore, compared to Rs 38.63 crore in the same period last year. The drop in profit was attributed primarily to lower revenues, with total income falling to Rs 295.14 crore, down from Rs 356.95 crore in Q2 FY24.
The company’s profit before tax (PBT) witnessed a sharp 76.5% year-on-year (YoY) decrease, standing at Rs 18.15 crore for the quarter. Additionally, EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) dropped 20.74%, from Rs 323 crore in Q2 FY24 to Rs 256 crore in Q2 FY25. The EBITDA margin also saw a slight reduction, which the company attributed to an increase in manpower expenses and lower asset base following the monetization of 369 MW in H2 FY24.
On a half-yearly basis, ACME Solar’s consolidated net profit declined by 86.21%, from Rs 120.96 crore in H1 FY24 to Rs 16.68 crore in H1 FY25. Revenue from operations also fell by 17.76% YoY, amounting to Rs 569.23 crore.
Despite these challenges, ACME Solar has managed to improve its operational performance. The company reported a higher capacity utilization factor, which increased from 23.3% in H1 FY24 to 24.6% in H1 FY25, thanks to initiatives focused on preventive and predictive maintenance. Additionally, plant availability has improved marginally from 99.2% to 99.3% during the same period. The implementation of dry cleaning robots for module cleaning has also contributed to enhanced operational efficiency.
The company, which operates a diverse portfolio across solar, wind, hybrid, and Firm and Dispatchable Renewable Energy (FDRE) projects, is one of the top 10 renewable energy independent power producers in India. With an operational capacity of 2,540 MW and an under-construction capacity of 4,180 MW, ACME Solar continues to expand its footprint in the renewable energy sector.
Following these results, the company’s stock fell by 5.34% to Rs 244.50. The company’s shares had debuted on the stock market on November 13, 2024, listing at Rs 259, which represented a 10.38% discount to the issue price of Rs 289.
ACME Solar Holdings is committed to further strengthening its renewable energy infrastructure while navigating challenges in the renewable sector.