ACME Solar Holdings Ltd Management Discussions

Global Economy Overview

In CY 2024, several structural challenges, such as weak investment, slow productivity growth and elevated debt levels in several economies continued to impact the global economy. Additionally, subdued growth in parts of Asia and Europe, prolonged geopolitical conflicts and a sluggish recovery in Chinas consumption and real estate sectors weighed on global economic activity. As a result, the global economy grew by 3.3% in CY 2024, slightly below the 3.5% recorded in the previous year. On a brighter note, inflationary pressures showed signs of easing, with global inflation declining to 5.7% in CY 2024 from 6.6% in CY 2023, driven by gradual monetary policy tightening and the continued recovery of supply chains.

Outlook

Looking ahead, the global economic outlook reflects a cautiously stable trajectory. Global GDP is projected to grow by 2.8% in CY 2025, with a marginal improvement to 3.0% in CY 2026. Geopolitical tensions and trade tensions remain sources of uncertainty. Inflation is projected to continue its downward trend, reaching 4.3% in CY 2025 and 3.6% in CY 2026. According to IMF, achieving price stability in the near future could prove difficult, as services inflation remains persistent in many regions, higher tariffs are pushing up inflation in the United States, and there are potential risks from divergent monetary policy responses across major economies.

In this context, central banks and policymakers are expected to balance inflation containment with the need to sustain growth. Fiscal support is likely to remain targeted, with many governments focusing on infrastructure, energy transition, and social spending to foster resilience. Emerging markets may face tighter financial conditions and capital flow volatility amid fluctuating investor sentiment. Meanwhile, technological advancements and the accelerating adoption of AI, automation and green technologies offer new avenues for productivity gains, potentially offsetting some structural drags. Overall, while global economic growth is projected to moderate, a mix of prudent policy management and innovation-driven investment could support a more balanced recovery over the medium-term.

World Global GDP Growth Projection

Indian Economy Overview

Against the backdrop of tepid global growth, the Indian economy also slowed down from 9.2% GDP growth in FY 2024 to a provisional estimate of 6.5% in FY 2025. Yet it remained the fastest-growing large economy in the world. This was supported by a strong 7.4% expansion in the January-March quarter of FY 2025 · the highest in four quarters.

This performance was anchored in robust macroeconomic fundamentals, timely and proactive policy responses, and sustained public sector-led capital investment.

Although Reserve Bank of India estimates real GDP growth, at 6.5% for FY 2026, India remained the fastest-growing major economy. On the demand side, growth was supported by a recovery in consumption and an improvement in net exports.

On the supply side, a buoyant services sector and a rebound in agricultural output drove growth.

Inflationary pressures eased over the year, supported by softening input costs, targeted supply management measures by the government and the ongoing impact of earlier monetary tightening. Headline inflation averaged 4.6% in FY 2025, down from 5.4% in the previous year.

Outlook

For FY 2026, the prospects of the Indian economy remain promising. This is supported by a pickup in consumption demand, the governments continued thrust on capex while adhering to the path of fiscal consolidation, healthy balance sheets of banks and corporates, easing financial conditions, continuing resilience of the services sector and strengthening of consumer and business optimism, besides sound macro-economic fundamentals.

On the inflation front, the Reserve Bank of Indias (RBI) Monetary Policy Committee (MPC) anticipates inflation to moderate in FY 2026, supported by a favourable outlook for food prices. Reflecting this optimism, the Central Bank has revised its headline inflation projection downward to 3.7% for the whole FY 2026, compared to its earlier estimate of 4% in April 2025. The Central Bank views the risks to the inflation trajectory as evenly balanced.

However, uncertainty about global trade postprotectionist measures, protracted geopolitical tensions and global financial market volatility pose downside risks to the growth outlook and upside risks to the inflation outlook.

6.5%

Indias Estimated Real GDP Growth in FY 2025

Industry Overview

Global Power Sector

Global energy demand grew by 2.2% in CY 2024, surpassing the decades average and reflecting a robust recovery across emerging economies, industrial activity, and increasing electrification.

This growth occurred despite macro-economic uncertainties and underlines the accelerating pace of energy transition, led largely by renewables, nuclear energy, and digital infrastructure. Renewable energy accounted for the largest share of global energy supply growth, followed by natural gas, coal, oil and nuclear.

Electricity demand increased by 4.3% in CY 2024, exceeding the rate of global GDP growth. This surge was primarily due to record temperatures, electrification efforts, and digitalisation. While unusually hot weather accounted for 0.7% of this growth, emerging factors like Electric Vehicles (EVs), data centres, and heat pumps also significantly contributed. These emerging drivers added 0.7%

(195 TWh) to global demand growth in CY 2024, a slight rise from their 0.6% (174 TWh) contribution in CY 2023.

Indian Power Sector

As the fastest-growing major economy in the world, India faces the dual challenge of sustaining rapid economic expansion while keeping emissions in check and advancing towards its net zero ambitions.

The per capita electricity consumption surged to 1,395 kWh in FY 2024, reflecting a 38% increase from 1,010 kWh in FY 2015. The sector demonstrated resilience by being able to reduce both monthly energy and peak demand shortages to an average of 0.09% and 0.03% in FY 2025.

Per capita Electricity Consumption

(in kWh)

Share of Energy Demand Growth by Source (Global), CY 2024

E: Estimate F: Forecast Source: CEA

According to the NEP, Indias power sector is experiencing robust growth, with peak power demand forecast to increase by CAGR of 6% from FY 2025 to FY 2032.

This can be attributed to rapid economic development, ongoing electrification across sectors and rising use of digital technologies and air conditioning.

Policy initiatives like 24x7 power for all and the SAUBHAGYA scheme for universal electricity access are significantly contributing to increased energy consumption.

Coal remains the dominant source in the countrys power mix, but the share of renewables is expanding rapidly and is projected to grow from 22% in FY 2025 to 35% by FY 2027, led by solar PV, as the country strives to decouple growth from emissions.

Installed Capacity Breakup

(% share of total capacity)

Growing Power Demand in India

Indias ability to meet surging electricity demand while scaling up clean energy and strengthening grid resilience will be crucial for aligning its power sector with national climate goals and its commitment to achieve net zero emissions by 2070.

Global RE Landscape

In November 2024, COP29 in Baku, Azerbaijan, gathered diverse global stakeholders to bolster inclusive climate action. Developed nations agreed to help channel at least USD300 billion annually to developing countries by 2035 for climate change support, and all remaining elements of the Paris Agreement, including Article 6 on carbon markets, were finalised.

Global renewable energy capacity grew by 15.1% in CY 2024, largely driven by solar. At the current pace of growth, renewable capacity is expected to grow by 2.7x with 5,500 GW of new renewable capacity becoming operational by 2030 surpassing global ambitions by 25%.

In CY 2024, global solar PV installations set a new record, with total capacity addition reaching 597 GW, marking a 33% increase over CY 2023 and an additional 148 GW compared to the preceding year.

Notably, solar accounted for 81% of all new renewable capacity added worldwide during CY 2024. The IEA projects an average annual solar generation growth of 25% between 2022 and 2030 to meet the Net Zero Emissions Scenario by 2050, requiring over a threefold increase in annual capacity deployment.

7 TW

Global Solar Capacity Expected to be Achieved by 2030

Global wind energy installations reached a robust growth of 117 GW in CY 2024, highlighting the industrys growing role in providing a secure, clean and reliable electricity supply. Global cumulative wind capacity has now reached 1,136 GW, spread across all continents. While new installations in CY 2024 were concentrated in the top five markets of China, the US, Brazil, India and Germany, emerging markets such as Uzbekistan, Egypt and Saudi Arabia showed strong performance.

New installations are projected to reach 138 GW in CY 2025, with an additional 981 GW expected by 2030. This averages 164 GW annually and reflects an 8.8% CAGR from 2025 to 2030, aligning with the COP28 goal to triple renewable energy capacity by 2030 as a key climate change mitigation measure.

981 GW

Global Wind Capacity Addition Expected between 2025-2030

In FY 2025, the global energy storage sector witnessed strong momentum, driven by the urgent need to support the rapid expansion of renewable energy. According to IEA, achieving the COP28 goal of tripling global renewable capacity by 2030 will require a 15-fold increase in energy storage, amounting to around 1,500 GW. The IEA projects that grid-scale battery storage alone must grow 35-fold between 2022 and 2030, reaching nearly 970 GW, with 170 GW expected to be added in 2030. This surge is vital to address the variability of solar and wind generation and ensure grid stability.

970 GW

Grid Scale Battery Storage Capacity Expected till 2030

Indian RE Landscape

As India fast-tracks its journey towards a sustainable future, the Renewable Energy (re) sector continues to witness remarkable expansion. This momentum is underpinned by the Government of Indias long-term vision as outlined in the Panchamrit strategy at the COP26 summit in Glasgow (2021). This comprehensive five-point climate action agenda now serves as the backbone of Indias RE strategy.

The key commitments of Panchamrit are:

• Increasing Non-fossil Fuel Capacity by 500 GW by 2030

• Sourcing 50% of Indias Energy Requirements from Renewable Energy by 2030

• Reducing Total Projected Carbon Emissions by One Billion Tonnes from now to 2030

• Reducing the Carbon Intensity of the Economy by 45% by 2030, when compared to 2005 Levels

• Achieving Net Zero Emissions by 2070.

These commitments have shaped policy, investments and sectoral priorities, driving Indias rapid progress in renewable energy.

Building on this vision, in FY 2025, solar and wind installations reached new highs, supported by initiatives such as the Pradhan Mantri Suryodaya Yojana and the PM Surya Ghar Muft Bijli Yojana (which alone saw 10 lakhs installations completed)¹. Annual capacity addition in India soared to 29.53 GW, bringing the total installed RE capacity to 220.10 GW as on 31^st March 2025 - a substantial increase from 190.57 GW in the previous year².

Additionally, in line with the MNREs directive to tender 50 GW annually of renewable capacity each year to achieve the target of installing 500 GW of non-fossil capacity by 2030, India auctioned a record over 60 GW of renewable capacity in FY 2025. This increase was largely supported by a rise in complex tenders.

Indias progress in the RE space is evident in its global ranking·now fourth worldwide for a total installed renewable energy capacity of 220.10 GW³.

Renewable Capacity Addition Over Years (GW)

	FY21	FY22	FY23	FY24	FY25
¦ Bio Power	0.29	0.37	0.12	0.14	0.64
¦ Small-Hydro	0.11	0.06	0.10	0.06	0.10
¦ Large Hydro	0.51	0.51	0.13	0.08	0.80
¦ Wind	1.56	1.11	2.28	3.26	4.15
¦ Solar	5.46	13.91	12.78	15.03	23.84

Solar

The domestic solar energy sector remained a central pillar of Indias RE ambitions in FY 2025. Over the past ten years (2015-25), installed solar capacity surged by an impressive 28-fold. As of March 2025, Indias solar power capacity had reached ~105.7 GW, contributing about 22.2% to the countrys total installed power capacity. This marks a significant increase from March 2024, when solar power accounted for 18.5% of the total installed capacity.

In terms of renewable energy, solar power comprised around 48% of the total installed renewable capacity by the end of FY 2025.

28x

Installed Solar Capacity Surge from over the Last 10 years till FY 2025

Wind

As of 31^st March 2025, Indias cumulative installed wind power capacity stood at 50.0 GW, positioning the country as the fourth largest globally in terms of installed wind energy capacity. Wind energy contributes over 10% to Indias total installed power generation capacity, underscoring its pivotal role in the nations renewable energy landscape.

The Indian wind energy sector has cultivated a robust domestic manufacturing ecosystem, boasting an annual production capacity of around 18 GW.

This industrial strength is supported by a diverse mix of joint ventures, subsidiaries of international firms, and indigenous companies, all contributing to the sectors growth.

The Wind Energy Market in India is projected to grow at a CAGR exceeding 13.6% between FY 2025 and FY 2032, driven by favourable government policies, increasing investments in new wind power projects and the decreasing cost of wind energy.

The country is actively exploring its offshore wind potential along its 7,600 km coastline, aiming to achieve 30 GW of offshore installations by 2030, particularly off the Gujarat and Tamil Nadu coasts.

18 GW per annum

Domestic Wind Turbine Manufacturing Base

Energy Storage

Indias swift shift to clean energy needs equally fast growth in energy storage. Standalone Energy Storage Systems (ESS) are proving vital for this. As the nation quickly increases its use of variable renewable energy, Standalone ESS provides a reliable way to manage inconsistent renewable output, stabilise the grid and make energy use more efficient.

Indias Standalone Energy Storage System (ESS) tenders surged from 1.3 GWh in 2022 to 21.5 GWh by March 2025. This rapid acceleration was fuelled by the Viability Gap Funding (VGF) scheme, which offers up to 30% capital expenditure support, leading to significant tariff reductions (that is, roughly 40% reduction in tariffs in recent Maharashtra and Rajasthan BESS tenders compared to non-VGF projects). Standalone ESS is critical for Indias clean energy transition as it helps manage intermittency of renewable energy while ensuring grid stability as an independent asset.

As per CEA National Electricity Plan, the storage requirements of the grid is estimated to be 411 GWh by 2032. BESS projects are expected to contribute 236 GWh towards this requirement with balance 175 GWh being met by pumped storage projects. Declining cost of lithium-ion batteries (global average USD 115/kWh in CY 2024) provides improved economic viability and reduced capital costs while proactive government initiatives supporting energy storage deployment, including mandatory two-hour co-located energy storage system equivalent to 10% of the installed solar capacity for future solar projects to accelerate deployment, will support this growth. While regulatory uncertainties regarding BESS operations and ownership may pose challenges, the market is poised for significant opportunities due to ongoing technological advancements in battery storage and Indias ambitious target of achieving 500 GW of renewable energy capacity by 2030.

India also has a Pumped Hydro Storage (PHS) potential of 181 GW (including both on-river and off-river). Currently 4.7 GW of PHS projects are operational and CEA envisages 27 GW of PHS capacity by 2032. This expansion is powered by an increasing emphasis on the development of a robust energy infrastructure, rising private and public sector participation and the promotion of sustainable energy solutions.

6,500 MWh

Standalone BESS Tenders in FY 2025

28.4%

CAGR of Indian PHS Capacity Addition till 2032

148.3%

CAGR of Indian BESS Capacity Addition till 2032

Wind Solar Hybrid and Firm and Dispatchable RE

MNRE is actively encouraging hybrid and dispatchable renewable energy solutions to tackle the issue of intermittency and boost renewable integration into the grid. Initiatives like National Wind-Solar Hybrid Policy (2018) and FDRE and RTC tenders by REIAs are playing a major role in industrys shift towards complex RE projects. In FY 2025, Solar + BESS, hybrid and FDRE constituted >57% of all capacity tendered. This shift addresses one of the biggest hurdles for renewables i.e. consistent power delivery, enabling them to serve not just as alternatives but as dependable sources for both base-load and peak-load demand.

While traditional solar (25-30% CUF) and wind (30-35% CUF) projects offer fluctuating energy output, making it challenging for utilities to manage demand surges and grid stability. Hybrid projects boost efficiency with CUFs exceeding 40%, leveraging the complementary nature of wind and solar. FDRE/ RTC projects further offer the solution to meet the demand as per demand load curve/peak power requirement with a 50-80% CUF and 90% availability during peak hours using storage or capacity overbuild making them comparable to thermal power in reliability.

In addition to above mentioned initiatives, ministry and regulatory authorities have formulated standards for technical operations, tariff determination and bidding guidelines, to foster clarity, scalability and investment in these projects.

As on 31^st December 2024, WSH projects of aggregate capacity 36 GW are under construction in the country.

While conventional solar installations typically maintain tariffs around INR 2.5-2.7/kWh, WSH and FDRE projects are edging higher, into the INR 3-5/kWh range, reflecting their added reliability and enhanced service profiles. FDRE tenders are emerging as a compelling alternative to new or under-construction thermal power projects.

Unlike thermal plants, which involve high capital investments of INR 90-120 million per MW, high fuel costs and are frequently delayed due to cost overruns and commissioning challenges, FDRE projects offer a more economical and time-efficient solution, typically being completed within 24 to 30 months. These projects also provide greater flexibility through diverse delivery options such as peak-time supply, time-block dispatch, and round-the-clock power, customisable to grid demand-based on technology configurations and battery storage capacity. In addition, while thermal projects carry tariff rates around INR 4.50-5.50/kWh with variable costs likely to rise due to increasing coal prices, FDRE can deliver reliable and cost-effective round-the- clock power. Altogether, FDRE represents a smart, stable, and adaptable approach to meet Indias growing energy demands.

Highlights of the Union Budget 2025-26

In the Union Budget 2025-26, there is a clear emphasis on advancing renewable energy in India. Allocation for the Ministry of Power was increased to INR 218,470 million up from INR 198,450 million in the previous budget. In addition, Ministry of New and Renewable Energy saw a substantial rise to INR 265,490 million up from INR 172,980 million in the previous budget.

To support the countrys energy transition, the Budget has included provisions for expanding clean energy infrastructure, promoting decentralised energy solutions, supporting research and development and encouraging international collaboration.

Key Takeaways for the Renewable Energy Sector:

• Launched the National Manufacturing Mission to establish India as a global manufacturing hub for clean energy, generate ~3 million green jobs and strengthen Indias position in solar exports.

• Allocation towards renewable energy generation has increased with

INR 242,000 million being allocated towards solar energy schemes.

• Increase in PM Surya Ghar Muft Bijli Yojana allocation to INR 200,000 million versus INR 110 ,000 million in revised estimates last year.

• 100% increase in green hydrogen allocation.

• Launch of the Nuclear Energy Mission for the research and development of Small Modular Reactors (SMR) with an outlay of INR 200,000 million.

• India aims to set up nuclear capacity of 100 GW by 2047, building from the current 8.2 GW (3.1% of national electricity generation in FY 2025).

• Introduced 100% exemptions on Basic Customs Duty (BCD) for 25 critical minerals that are not available domestically, covering essential materials such as cobalt, lithium, zinc and lead.

Growth Drivers

Rising Power Demand

Indias electricity consumption has expanded at a compound annual growth rate (CAGR) of 5.3% from Fiscal 2020 to Fiscal 2025, with a sharper surge of 7.2% observed during the post-pandemic years (FY 20222025). Peak power demand jumped from 196 GW in Fiscal 2020 to 250 GW in Fiscal 2025, marking an average growth of 5.0%. This sustained upswing is driven by factors such as economic development, seasonal fluctuations and a rise in the countrys average daily temperatures over the past decade.

Indias power demand is tightly linked to its economic performance, with rapid GDP growth, averaging 5.5% over the past decade, driving energy needs.

As the fastest-growing economy globally, demand is being boosted by initiatives such as railway electrification, expansion of metro networks, increasing electric vehicle adoption, and heightened activity in infrastructure, manufacturing, and data centre sectors. Over the next five years, electricity consumption is projected to grow at a CAGR of 5.56.0%, supported by capital investment in infrastructure, robust economic fundamentals, and improvements to transmission and distribution systems. Government- led reforms aimed at strengthening state distribution utilities are expected to enhance power supply quality, further stimulating demand. Peak electricity demand is anticipated to rise at an annual CAGR of 6.0% from Fiscal 2025 to 2030, reaching ~335 GW by Fiscal 2030, driven by ongoing urbanisation, high temperatures, economic momentum, and large-scale infrastructure development.

Projected Demand

Declining Tariffs and Solar Module Prices

Global solar module prices, a major component of total system costs, have dropped sharply, falling from USD 1.8 per watt-peak in 2010 to a historic low of just USD 0.1 per watt-peak in recent times. This dramatic decline has been driven by a combination of technological advancements, economies of scale and an imbalance in global supply and demand. Similarly, inverter prices have plummeted, further reducing overall system costs.

This sustained downward trend in module prices is expected to spur continued growth in solar power capacity, with prices projected to remain relatively stable in the medium term due to a supply glut and subdued international demand·a pattern that reflects the recent domestic market dynamics.

In FY 2025, the solar power tariffs saw a small drop with the tariff for standalone solar projects remaining in the range of INR 2.48-2.70/kWh.

Fiscal and Policy Incentives

The MNRE has set an annual bidding trajectory for 50 GW of renewable energy capacity (including at least 10 GW wind) from FY 2024 to FY 2028 to meet its ambitious 2030 targets. Furthermore, the successful commissioning of central-level allocations under the National Solar Mission (including NVVN Batch II,

JNNSM Phase II Batch III and IV), alongside the development of solar parks, further underscores the governments strong focus on solar power as a key pillar of its climate change strategy and its goal of achieving 500 GW renewable energy capacity.

The Production Linked Incentive (PLI) scheme has facilitated the establishment and expansion of manufacturing units to boost production. Under the National Programme on High Efficiency Solar PV Modules, it aims to achieve gigawatt-scale manufacturing capacity with an outlay of INR 24,000 crores. Intra-state Green Energy Corridors have also been developed to support renewable energy transmission.

The Government of Indias robust policy interventions have significantly bolstered the Wind-Solar Hybrid segment. Wind and solar resources exhibit complementary generation patterns, enabling a more reliable, near 24x7 power supply when integrated with energy storage for Round-the-Clock (RTC) delivery, mitigating intermittency.

A combination of increased Renewable Purchase Obligation (RPO) targets, Viability Gap Funding (VGF), Inter-State Transmission System (ISTS) waivers, Production-Linked Incentives (PLI) and solar park schemes has created a conducive environment for the development of wind and solar power projects.

Focus on Energy Storage Systems (ESS) and Complex Solutions

Energy storage technologies enhance grid stability by storing excess energy when demand is low and releasing it during peak times. The lithium based battery solutions are quickly progressing, with constant breakthroughs and trends shaping its future. These include notable emerging trends in materials, cell designs, manufacturing processes, and alternative battery technologies.

Between 2020 and 2024, the cost of lithium-ion batteries dropped by around 30%, falling from USD 160-170 per kWh to USD 110-120 per kWh and is attributed to improvements in battery technology, lower prices of key raw materials like lithium, cobalt, and nickel, and a rapid expansion in manufacturing capacity. This decline has increased viability and attractiveness of BESS in future power projects as seen high participation by industry players in storage tenders. Beyond 2030, battery costs are expected to fall even further, and solid-state batteries should be commercially available, promising significant performance improvements.

The Government is actively promoting domestic battery manufacturing, targeting a battery production capacity of 200 GWh by 2030.

As part of the 2025-26 Budget, a full exemption from Basic Customs Duty (BCD) has been introduced for 25 critical minerals not available domestically, including essential inputs such as cobalt, lithium, zinc and lead.

Beyond these supply-side incentives, the energy storage sector is also being propelled by policy and market-driven enablers. The Ministry of New and Renewable Energy (MNRE) has mandated the inclusion of a minimum two-hour co-located energy storage system (ESS), equivalent to 10% of the installed solar capacity, in upcoming tenders. Concurrently, there has been growing interest in standalone ESS projects and integrated configurations such as Firm and Dispatchable Renewable Energy (FDRE) and Round-the-Clock (RTC) projects.

Firm and Dispatchable Renewable Energy (FDRE) projects are designed to deliver reliable, on-demand power by integrating variable renewable sources like solar and wind with energy storage systems.

This configuration ensures a consistent supply of electricity, even when natural conditions are unfavourable, thereby enhancing grid stability and reducing reliance on fossil fuels. Round-the-Clock (RTC) projects take this a step further by guaranteeing 24/7 power availability through a mix of renewable sources and storage, often complemented by flexible generation assets. These models are pivotal in Indias transition to a low-carbon energy system, offering utilities and industries dependable green power at competitive tariffs.

In FY 2025, ~17 GW of bids out of the total 60 GW were for plain vanilla solar projects. Wind-solar hybrid projects accounted for another 16 GW, with the remaining capacity dedicated to standalone ESS and complex configurations like FDRE and RTC.

Availability of Low-cost Financing

Low-cost financing is pivotal to accelerating the deployment of utility-scale renewable energy in India, especially as the country targets 500 GW of non-fossil fuel capacity by 2030. Recognising this, the government has given priority sector lending status to renewable energy sector and institutions like REC, PFC and IREDA provide easier access to capital at competitive rates.

International partnerships·highlighted during Indias G20 Presidency·have emphasised blended finance and multilateral support for emerging technologies like offshore wind, green hydrogen, and energy storage.

Innovative instruments such as green bonds, Infrastructure Investment Trusts (InvITs), and public- private partnerships have helped to de-risk projects and crowd in private capital. Additionally, robust regulatory framework and improved credit ratings would help in enhancing investor confidence.

Together, these efforts are shaping a more robust financial ecosystem that supports the scale and speed required for Indias clean energy transition.

Technological Advancements

The solar power sector has seen significant gains in efficiency due to the latest technological advancements, especially in mono-facial and bifacial module designs. Bifacial modules, with a reflective back or dual panes of glass holding the solar cells in place, help optimise power generation and maximise energy output while minimising resource consumption.

Additionally, industry is adopting TOPCon (Tunnel Oxide Passivated Contact) solar technology which facilitates greater energy capture. Furthermore, the technology can be easily integrated into existing PERC production lines with minimal equipment upgrades.

Indias solar cell and module imports declined by 35.1% in the Q1 CY 2025 as the country moves towards self-reliance in solar manufacturing. The industry is gradually transitioning from p-type to n-type solar cell technologies (TOPCon, HJT and back contact), which deliver even higher efficiency and cost reductions despite challenges in material intensity for critical minerals.

Favourable Conditions for Wind capacity

FY 2025 marked a major milestone for Indias wind energy sector, with cumulative installed capacity surpassing the 50 GW mark. The year recorded a robust addition of 4.15 GW·one of the strongest annual performances to date. This momentum is largely driven by advances in turbine technology, particularly the adoption of larger, more cost-efficient 3 MW machines, now becoming the industry standard.

Policy measures have also played a pivotal role. Stricter enforcement of Renewable Purchase Obligations (RPOs) and the increasing deployment of hybrid renewable energy projects are expected to accelerate capacity growth through the remainder of the decade. At this pace, Indias wind capacity is projected to reach 121 GW by 2032. Currently, the countrys Wind Turbine Manufacturing (WTG) capacity stands at 18 GW annually.

In parallel, India has set its sights on scaling offshore wind, targeting 30 GW of capacity by 2030. With an estimated offshore potential of around 70 GW, Gujarat and Tamil Nadu have emerged as key regions thanks to their favourable coastal conditions. Comprehensive techno-commercial evaluations and preliminary resource assessments are already underway in both states, laying the foundation for future development.

Corporate Overview

ACME Solar Holdings Limited (ASHL), a part of the ACME Group, is a leading player in Indias renewable energy sector. We operate a diversified portfolio of 6,970 MW^{1 2 3 4 5 6} (operational and under construction) across solar, hybrid, firm and dispatchable renewable energy (FDRE) and wind solutions.

Our integrated model covers the entire project lifecycle - from business development to acquiring land and connectivity to project development and Operations and Maintenance (O&M).

During the reporting year, we added 1.9 GW of new projects through competitive bidding, which brings our under-construction portfolio to roughly 4.43 GW. A key milestone has been the commissioning of our 1.2 GW ISTS facility in Rajasthan, which now ranks among the largest single-site renewable energy facilities in India. Post 31^st March 2025, 350 MW of project capacity has been commissioned taking the total operational capacity to 2,890 MW.

We have been awarded the Solar Pinnacle Award 2024-25, by the Independent Power Producer Association of India for the Largest Solar Power Plant in Rajasthan.

1Since 31^st March 2025, ACME Solar has won bids for 550 MWh of Standalone

BESS projects

2As at 31^st March 2025

3Power Purchase Agreement

4Letter of Award

5Post 31^st March 2025, 350 MW of project capacity has been commissioned taking the total operational capacity to 2,890 MW

6FY28 Estimate

Steadily improving the offtaker profile from a 37% central offtake in FY 2024 to a projected 86% central off-take in FY 2028.

Technology Split basis Operational Capacity

Diversifying operational portfolio from a pure play solar in FY 2025 to a multi technology mix consisting of solar, wind, FDRE and hybrid energy solutions.

A Fully Integrated IPP

We operate as an Independent Power Producer (IPP), with end-to-end integrated capabilities for handling tenders, land acquisition, design, engineering, procurement, construction as well as operations and maintenance. This comprehensive approach, coupled with a diversified portfolio, positions us in the drivers seat to capitalise on emerging opportunities in Indias power sector.

Strategic contracts with government entities support our long-term revenue visibility, while access to diversified funding sources enhances our financial resilience. Backed by a committed leadership team, ASHLs self-sufficient IPP model drives operational efficiency through design optimisation and value engineering.

Key Developments of FY 2025

• Listed on the BSE and the NSE.

• Successfully operationalised one of Indias largest single-site solar power plants in Jaisalmer, Rajasthan, with a contracted capacity of 1,200 MW

• Won 1,900 MW projects during the year, Expanding the Total Portfolio to 6,970 MW¹ including 1,300 MW of Complex Hybrid and Firm Dispatchable Renewable Energy (FDRE) projects by reputed offtakers such as SECI, SJVN, NHPC and NTPC

• Refinancing Debt of Operational Projects, thereby resulting in ~75 basis points debt cost reduction for Refinanced projects

• Financing of ~INR 165,151 million for 1,700 MW of new projects

• Credit rating upgraded to CRISIL A+/ Positive

• 1,890 MW of PPAs signed during the year comprising 1,590 MW FDRE and 300 MW hybrid capacity

• Declared interim dividend of INR 0.20/Share for FY 2025

Strategic Growth Roadmap

We are fully committed to reinforce our position in Indias clean energy journey, aiming to achieve 10 GW of operational contracted renewable energy capacity by 2030. We focus on developing robust, high-performance infrastructure to deliver sustainable value to our stakeholders.

Target to have a portfolio of 10 GW generation capacity and 15 GWh BESS capacity by 2030

Complex RE projects will continue to drive the capacity addition in our portfolio, with energy storage strategically integrated to enhance overall returns.

As of 31^st March 2025, the company has a robust pipeline of projects under construction, including 450 MW nearing commissioning, 1,890 MW signed PPAs, and 2,090 MW with LoA. Basis this, the installed capacity is estimated at ~12 GWp of renewable energy generation and 10 GWh BESS by FY 2028, translating into a ~40% CAGR between FY 2025 and FY 2028 on contracted capacity basis.

Further, we continue to advance our strategic roadmap to achieve approx. 17 GWp of installed and 15 GWh of BESS capacity by 2030. This scale-up will assist us to maintain our position as one of Indias leading clean energy platforms, supporting the energy transition with reliable, dispatchable renewable power.

1Since 31^st March 2025, ACME Solar has won bids for 550 MWh of Standalone BESS projects.

2Post 31^st March 2025, 350 MW of project capacity has been commissioned taking the total operational capacity to 2,890 MW.

Operational Performance¹

Power generation was up by 55.2% driven by capacity addition of solar 1,200 MW ISTS projects in Rajasthan and higher CUF.

We have established a landmark 1,200 MW InterState Transmission System (ISTS) project, strategically distributed across four of our Special Purpose Vehicles (SPVs): ACME Deogarh, ACME Phalodi, ACME Raisar and ACME Dhaulpur. This project contributes ~47% to our operational portfolio and delivers one of the highest Capacity Utilisation Factors (CUFs) of over 30% annually for all assets held. This markedly enhances our overall energy generation profile, demonstrating our capability to ensure a reliable supply of renewable energy.

? Read more on Pg. 14

Financial Performance Consolidated Financial Performance Revenue

Parameters	FY24	FY25	Change (%)
Revenue from Operations	13,193	14,051	7
Other Income	1,470	1,701	16
Total Revenue	14,663	15,752	7

In FY 2025, total revenue increased to INR 15,752 million from INR 14,663 million in the previous fiscal year. When adjusted for divestment of assets in FY 2024, total revenue increased by 32.3% from INR 11,906 million in FY 2024. The growth was primarily driven by contributions from the newly commissioned 1,200 MW plant, as well as the first full-year revenue impact from the plant commissioned in Q4 FY 2024. This was partially offset by the decrease in revenue associated with the divestment of 369 MW of assets during FY 2024.

Other income saw an uptick during the current fiscal year, primarily driven by higher interest earnings from bank deposits.

Expenses

Parameters	FY24	FY25	Change (%)
Employee Benefits Expense	590	649	10
Finance Costs	7,673	7,592	(1)
Depreciation and Amortisation Expense	3,081	2,873	(7)
Other Expenses	1,711	1,048	(39)
Total Expenses	13,055	12,162	(7)

Employee benefit expenses rose during the fiscal year, primarily due to an increase in headcount following the transfer of the O&M and EPC business, along with the associated personnel from ACME Cleantech Solutions Private Limited to ACME Solar Holding Limited and hiring of additional manpower in line with our growth. Other expenses were elevated in FY 2024, primarily due to one-time regulatory charges, and impairment loss on fixed assets. The finance cost remained constant due to refinancing of existing debt at lower cost and repayment of debt via IPO proceeds.

EBITDA, PAT and Cash PAT

Parameters	FY24	FY25	Change (%)
EBITDA	12,362	14,055	14
PAT	6,978	2,508	(64)
Cash PAT1 2	2,572	5,591	117

EBITDA rose to INR 14,055 million in FY 2025, up from INR 12,362 million in the previous year, driven by improved operating performance and full year operations of capacity added in previous year.

High profit after tax in FY 2024 was on account of consideration received from divestment of assets.

On adjusting for divestment of assets, the PAT was INR 644 million which improved to INR 2,508 million in FY 2025 marking a 290% annual increase. Cash PAT also saw significant growth, rising from INR 2,197 million in FY 2024 to INR 5,591 million in FY 2025.

Balance Sheet

Parameters	FY24	FY25	Change (%)
Asset Base	113,904	155,067	36
Gross Debt	82,176	104,227	27
Net Worth	25,909	45,093	74

Our asset base expanded to INR 155,067 million in FY 2025, up from INR 113,904 million in FY 2024, primarily due to the 1,200 MW ISTS project and expenditure on other projects. Correspondingly,

1FY 2024 numbers have been adjusted to factor in the impact of sale of 369 MW assets.

2Cash PAT has been computed as PAT + Depreciation +/(-) Exceptional items.

gross debt increased to INR 104,227 million in FY 2025 from INR 82,176 million in the previous year, driven by term loans secured for the ISTS projects and other under-construction assets within our development pipeline. Net worth also improved in FY 2025, supported by a successful equity raise through the IPO route which was partially used for repayment of debt.

Key Ratios

Parameters	FY24	FY25	Change (%)
Operational Net Debt/ EBITDA1	4.4	4.4	1
Net Debt/Net Worth2	2.6	1.7	(36)
DSO3	93	42	(55)
Interest Coverage Ratio4	1.6	1.9	15
Current Ratio	2.2	2.9	30
Debt to Equity Ratio	3.2	2.3	(27)
Operating Profit Margin (%)	84.3	89.2	6
Net Profit Margin (%)	47.6	15.9	(67)

Net Debt to EBITDA held steady at 4.4x for both FY 2024 and FY 2025, remaining well within guidance of 5.5x. Net Debt to Net Worth decreased to 1.7x from 2.6x in previous financial year, primarily due to successful equity raise, which strengthened our balance sheet. Days Sales Outstanding (DSO) improved significantly to 42 days in FY 2025 compared to 93 days in FY 2024, indicating enhanced collections and better recovery of outstanding dues.

Interest coverage ratio increased due to reduction of debt on account of repayment of existing loans from IPO proceeds, reduction in cost of debt due to refinancing of debt of operational projects at a lower rate of interest and increase in revenue and EBITDA on account of commissioning of new projects. Current ratio increased due to improved liquidity on account of the fund raise from the IPO. Debt to equity ratio decreased on account of improved liquidity due to fund raise from the IPO.

Operating profit margin improved on account of favourable operating leverage and optimised operational efficiency.

High net profit margin FY 2024 was on account of consideration received from divestment of assets. On adjusting for divestment of assets, the net profit margin was 5.4% which improved to 15.9% in FY 2025.

The success of our IPO has bolstered liquidity, further strengthened by the refinancing of debt of operational projects, thereby reducing borrowing costs by 75 basis points and financing of ~INR 165,151 million for 1,700 MW capacity. In addition, prudent utilisation of IPO proceeds has helped us deleverage the balance sheet through prepayment of INR 20,699 million of debt in the fiscal. In February 2025, we received a CRISIL A+/Positive credit rating upgrade.

Standalone Financial Performance

Parameters	FY24	FY25
Revenue from Operations	4,708	13,521
Other Income	1,336	1,597
Total Revenue	6,045	15,118
Cost of Material Consumed	3,772	7,890
Other Construction Expenses	629	1,186
Employee Benefits Expense	682	1,363
Other Expenses	183	397
Total Expenses	5,265	10,836
EBITDA	780	4,283
Finance Cost	1,796	1,763
Depreciation & Amortisation Expense	0	0
Profit/Loss Before Exceptional Items	(1,016)	2,520
Exceptional Items	6,198	12
Profit Before Tax	5,181	2,531
Tax Expense	986	644
Profit After Tax	4,196	1,888

On a standalone basis, EBITDA from EPC and O&M operations increased from INR 780 million in FY 2024 to INR 4,283 million in FY 2025. This underscores the enhanced profitability and operational efficiency of our EPC and O&M segments.

Key Ratios

Parameters	FY24	FY25	Change (%)	Reason
DSO	66	528	701	Due to increase in sales
Inventory Turnover Ratio	NA	462	NA	NA
Interest Coverage Ratio	0.4	2.4	460	Prepayment of Holdco loan
Current Ratio	1.2	1.8	54	Increase in current assets primarily due to improved liquidity/ loan to subsidiaries
Debt to Equity Ratio	0.6	0.5	(21)	Increase in equity due to fresh issue of shares at premium during the IPO
Operating Profit Margin (%)	13	28	120	Due to increase in sales
Net Profit Margin (%)	89	14	(84)	Due to decrease in profitability

Strategic Priorities

Market Leadership through Portfolio Expansion and Diversification

Focus Areas

• Targeting a 10 GW operational contracted renewable energy portfolio by 2030.

• Strategic business pivot from conventional solar to an integrated renewable energy portfolio.

• Achieving a significant leadership position in providing firm, dispatchable power through utility-scale projects.

• Scaling up the standalone BESS portfolio, thereby offering grid stability with faster capex to revenue cycle and low land and connectivity requirement.

• Developing integrated organisational capabilities for effective bidding.

• Seamless adaptation of technology and engineering for operational excellence.

Execution Excellence through Integrated

Project Management

Focus Areas

• Centralised and collaborative project teams to oversee end-to-end project management, from development to execution.

• Advanced resource assessment, including land acquisition, securing grid connections, and robust project-level workforce and supply chain planning.

• Strong supplier relationships and a diversified supplier base, ensuring capital expenditure lock- in with a competitive advantage through early ordering and economies of scale.

• Leverage vertical integration capabilities of the ACME Group.

• Best-in-class project location selection with optimal techno-commercial configurations to enhance baseline project returns.

Operational Efficiency through Technological Intervention Focus Areas

• Innovative Value Engineering approach to boost operational efficiency amidst a rapidly evolving technology landscape.

• Optimised power generation through deployment of the latest technology modules, such as Bifacial, TopCon, and carefully balancing solar, wind, and battery proportions.

• Implementation of operational efficiency measures, including portfolio-wide robotic cleaning technology.

• Digital transformation of the portfolio via SCADA systems for centralised and decentralised control management.

• Deployment of next-generation tech, like drone- based monitoring and thermal imaging, to ensure preventative and predictive maintenance.

• Creating long-term value for employees through ESOPs, fostering ownership, alignment with organisational goals, and wealth creation.

• Nurturing existing core competencies while building new ones in innovation, technology and digital transformation.

• Focusing on inclusive growth through diversified strategies.

• Providing a safe work environment for all employees.

Progress

88%

Portfolio Covered through Robotic Cleaning

100%

Portfolio Covered through SCADA

Optimised and Well-diversified Capital Management

Focus Areas

• Strengthen financial metrics to ensure sustained value creation for all stakeholder groups.

• Explore various funding sources and optimise capital structure on competitive terms.

• Refinance project costs on efficient commercial terms and longer tenors to enhance profitability.

• Sustained improvement in project-based credit ratings.

Progress

INR 29,000 million

Capital Raised from IPO

75 basis points

Average Reduction of Interest Rates for

Refinanced Projects During the Year

Creation of an Agile and Future-ready Workforce

Focus Areas

• Building organisational capabilities to drive sustained growth.

• Developing next-generation leaders while fostering an entrepreneurial culture among employees.

• Enhancing employee engagement and becoming an employer of choice.

Progress

76.1%

Retention Rate

Environment

As a leading player in the renewable energy sector, our operations are closely aligned with our corporate sustainability goal of sourcing 100% of our energy needs from renewable sources by 2035. To this end, we have set clear objectives and KPIs, ensuring the implementation of robust environmental safeguards throughout the project life-cycle.

Our operational approach prioritises energy efficiency, striving to achieve high energy yield and reliable plant performance. This is supported by in-house EPC and O&M capabilities. We leverage advanced technologies. We leverage advanced technologies to enhance energy efficiency across our operations. These include robotic cleaning systems deployed across 88% of our portfolio, fully digitalised 24/7 operations through a SCADA system, reactive power optimisation and the use of advanced bifacial TOPCon solar modules.

Looking ahead, we remain committed to responsible water usage, with innovative cleaning technologies already implemented in water-stressed regions.

We also apply circular economy practices to ensure proper waste management and focus on biodiversity conservation through targeted efforts.

Read more on Pg. 32

Social

At ASHL, we invest in professional development and continuous learning to empower our employees, j foster growth and build future-ready capabilities across the organisation. Meanwhile, we implement comprehensive policies, including the Health, Safety and Environment (HSE) framework and Human Resources Policy, to encourage a respectful and conducive workplace. Beyond these initiatives,

we drive meaningful social impact through Corporate Social Responsibility (CSR) programmes, such as for tree plantation drives to contribute to both environmental restoration and community engagement.

? Read more on Pg. 36 Governance

At ASHL, we maintain a culture of good corporate governance by implementing well-defined policies, ensuring Board-level oversight and strict compliance with legal and regulatory standards. Our governance framework includes robust risk management, information security protocols and Code of Conduct and Ethics for employees, supported by regular training and audits. We continue to adapt to legislative changes and uphold a zero-tolerance approach to non-compliance.

? Read more on Pg. 40 Risk Management

Risk management is an ongoing endeavour at ASHL. We have implemented a robust risk management framework that enables us to identify, analyse and mitigate risks effectively. This proactive approach advances our strategic objectives and enables us to drive sustainable value creation.

Our Identified risks are as follows:

Market Position Impact

Abrupt technological changes, adverse change in regulatory landscape, increasing competition in the renewable energy sector could adversely impact future prospects and market share.

Risk Mitigation

• Continuous adoption of latest technologies (Topcon modules, SCADA systems, robotic cleaning)

• Healthy project pipeline of under-construction and planned projects

• Diversified portfolio including hybrid and FDRE projects

Policy and Regulatory Impact

Changes in government renewable energy policies, subsidy structures or tax incentives can have a negative impact on project viability and returns across subsidiaries/SPVs.

Risk Mitigation

• Dedicated regulatory team to track policy developments and change in laws and regulations

• Geographical diversification of projects to minimise exposure to state-specific policies

• Dynamic business model to adjust to regulatory changes

• Contractual safeguards in the Power Purchase Agreements (PPAs) to address change in policies and potential exigencies

Technology

Impact

Rapid changes in the technological landscape can challenge our growth prospects.

Risk Mitigation

• Use of TopCon bifacial modules and 3.3-4 MW wind turbines to enhance operational efficiency

• We are transitioning from pure play solar to a balanced mix of solar and FDRE and Hybrid projects

• Optimising configurations of FDRE project through reduction of wind component, thereby improving the stability of generation profile.

• Increasing investments for advanced Operations & Maintenance (O&M), predictive maintenance and digital monitoring to maximise plant uptime and ensure cost-efficiency

Offtake and Power Purchase Agreements Impact

Uncertain power off-take from our projects may impact our operations.

Risk Mitigation

• The average power demand and peak power demand is growing at a healthy 6-7% and mirrors GDP growth, providing significant headway for capacity addition and continuous growth

• We sell power to state and centre backed utilities to supply power through 25-year long term PPAs

• 86% of our portfolio is with central off-takers, having strong credit profile

• Portfolio diversification and long-term PPAs result in visibility and certainty in revenue through sustained operations

Raw Material Availability Impact

Dependence on global supply chains for cells, turbines, batteries, etc. and adverse currency movements may impact raw material availability at the right price.

Risk Mitigation

• Diversified vendor and supplier database for sustained supply chain management

• Achieved economies of scale through effective supply chain management across portfolio, enabling us to retain our competitive edge and address cost dynamics in the market

• Minimised exposure to forex risk and adverse currency movements with appropriate hedging

• Risks and contingencies are factored into project planning and budgeting

• Early ordering of long lead items ensuring timely implementation of the project

Project Management and Project Execution Impact

Delays in project implementation could lead to cost overruns, delayed revenue realisation and penalties, affecting overall Group performance.

Risk Mitigation

• We have developed end-to-end capabilities for project management and execution, through dedicated and expert project management teams

• Proactive project tracking from concept to commissioning stage

• Land Acquisition expertise with experienced in-house teams

• Secured connectivity for the entire under construction portfolio as well as the future bid pipeline

• Just in time ordering of short lead items thereby optimising project cost and capex outflow

Receivables and Collections Impact

Delays in payments against power supply may negatively impact the working capital/cashflow.

Risk Mitigation

• Schemes such as Late Payment Surcharge (LPS) have resulted in significant reduction in industry wide receivables - reducing from ~INR 1.4 lakhs crores in June 2022 to ~INR 53,000 crores in March 2025

• Projects are backed by 25-year PPAs with central off-takers like NTPC, SECI, SJVN and NHPC, assuring credibility of projects

• In-built payment security mechanism in PPAs (for instance - Letter of Credits) to ensure timely payment from discoms

• Reduced demonstrated days of sales from 93 in FY 2024 to 42¹ in FY 2025. Further improvement expected with higher share of central off-takers

Financing Risk (includes Interest Risk)

Impact

Reliance on long-term debt for project implementation exposes us to Interest Rate risk and risk of failure to repay or service debt.

Risk Mitigation

• Regular broadening of our lender base remains a strategic priority to enhance our ability to raise debt on competitive terms

• Implemented prudent debt management practises for meeting our debt obligations over the last 15 years

• Strong Project Finance team ensures proper funding arrangements with lenders for timely mobilisation and execution of projects

• Project funding is done with appropriate debt- equity mix, which provides sufficient coverage for debt servicing. The long term cashflows and debt serviceability and return metrics are stable and provide adequate protection from interest rate volatility through stable long term cashflows

• Refinancing done to optimise the borrowing costs post COD and basis stable cashflows from projects and credit rating profile of ACME Solar

• Operational Net Debt/Run-rate EBITDA ceiling cap guidance of 5.5x

Internal Control Systems

ACME Solar incorporated a robust internal control system that aligns with the size and nature of its business and the complexity of its operations. These controls help ensure efficient use of resources and complete compliance with applicable laws and regulations. The control framework is reviewed by the Board appointed Audit Committee consisting of Independent Directors who are experts in their respective fields. Policies and procedures are regularly reviewed and updated to reflect emerging business requirements and regulatory changes. ACME Solars internal audit process is strong, providing assurance on the adequacy and effectiveness of internal controls. The committee reviews findings from internal investigations into suspected fraud, irregularity, or material failures in control systems, ensuring such matters are promptly reported to the Board.

Days of Sales O/S calculated as trade receivables excluding unbilled revenue divided by revenue from operations less unbilled revenue times number of days in the period. Calculation of DSO as of FY 2025 excludes INR 486 million of O/S dues from AP discom which shall be recovered in 5 EMIs as per APERC ruling in favour of the project company. 7 out of 12 installments have been received to the tune of INR 650 million. DSO (as Billed) would be 56 days if INR 486 million related to the AP dues are included in receivables for FY 2025.