Revenue and Profitability Trends
Over the fiscal years ending March 2023 to March 2025, ACME Solar Hold. recorded a consistent increase in net sales, rising from ₹1,294.90 crores in March 2023 to ₹1,405.13 crores in March 2025. This steady growth reflects the company’s expanding operations and market presence in the solar energy sector. Operating profit before depreciation and interest (PBDIT) excluding other income showed some volatility, with a slight dip in March 2024 but an overall upward trajectory, reaching ₹1,235.43 crores in March 2025.
Other income contributed positively, increasing from ₹66.47 crores in March 2023 to ₹170.11 crores in March 2025, bolstering the total operating profit (PBDIT) to ₹1,405.54 crores in the latest fiscal year. However, interest expenses remained substantial, hovering around ₹759 crores in March 2025, slightly lower than previous years but still a significant cost burden.
Profit before tax (PBT) rebounded strongly from a loss in March 2023 to a positive ₹338.04 crores in March 2025, while profit after tax (PAT) followed a similar pattern, recovering from a marginal loss to a profit of ₹250.82 crores. The PAT margin, however, declined from a peak of 52.91% in March 2024 to 17.85% in March 2025, indicating increased costs or other pressures impacting net profitability.
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Balance Sheet and Capital Structure
ACME Solar Hold.’s balance sheet has expanded considerably, with total assets growing from ₹11,939.40 crores in March 2023 to ₹18,140.29 crores in March 2025. This growth is largely driven by increases in net block assets and capital work in progress, reflecting ongoing investments in infrastructure and capacity expansion. The net block rose significantly to ₹11,662.52 crores in March 2025 from ₹6,172.42 crores two years prior.
Shareholders’ funds have also increased markedly, more than doubling from ₹1,900.56 crores in March 2023 to ₹4,510.58 crores in March 2025, supported by a substantial rise in reserves. However, the company’s debt levels remain high, with total debt increasing to ₹10,422.70 crores in March 2025, up from ₹8,657.35 crores in March 2023. This elevated leverage underscores the capital-intensive nature of the business and the reliance on borrowings to fund growth.
Liquidity appears robust, with cash and bank balances surging to ₹2,916.03 crores in March 2025, more than doubling from the previous year. This improvement in cash reserves provides a buffer for operational needs and potential future investments.
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Cash Flow and Operational Efficiency
Cash flow from operating activities has shown a positive trend, increasing from ₹1,263 crores in March 2023 to ₹1,543 crores in March 2025. This steady cash generation is a positive indicator of the company’s operational efficiency and ability to fund day-to-day activities. However, cash flow from investing activities has been negative consistently, reflecting ongoing capital expenditure and expansion efforts, with a significant outflow of ₹3,976 crores in March 2025.
Financing activities have provided substantial inflows in the latest year, amounting to ₹3,408 crores, which likely supported the company’s investment programme and debt servicing. The net cash inflow of ₹975 crores in March 2025 contrasts with a net outflow in the previous year, signalling improved liquidity management.
Despite fluctuations in earnings per share due to changes in equity capital and face value adjustments, the company’s book value per share has shown resilience, although it declined from ₹185.83 in March 2024 to ₹74.54 in March 2025, reflecting the impact of equity restructuring and profit volatility.
Outlook and Considerations
ACME Solar Hold.’s historical performance reveals a company in a phase of growth and transformation, balancing expanding revenues and assets with significant debt and fluctuating profitability. Investors should weigh the company’s strong operational cash flows and asset base against the challenges posed by high leverage and margin compression. The company’s ability to sustain revenue growth while managing costs and debt will be critical for future performance.
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