What Caused ACME Solar’s Net Profit to Plummet Over 64% in FY25?
Click to start listening
Synopsis
ACME Solar Holdings Limited faces significant challenges as it reports a staggering <b>64%</b> decline in net profit for FY25. Despite rising revenues and strong operational progress, the company's profit margins have suffered. Discover the factors behind this downturn and the steps ACME is taking to enhance its resilience.
Key Takeaways
- ACME Solar's net profit for FY25 decreased by 64%.
- Revenue from operations rose significantly by 65% in Q4 FY25.
- Finance costs increased to Rs 205.5 crore.
- The company launched a major 1,200 MW solar project.
- Focus on hybrid energy solutions is a key strategy moving forward.
Mumbai, May 20 (NationPress) - The renewable energy firm ACME Solar Holdings Limited, based in Gurugram, has experienced a drastic year-on-year (YoY) decline of over 77% in its consolidated net profit, which fell to Rs 122 crore during the March 2025 quarter (Q4 FY25). This represents a significant drop from a net profit of Rs 532.3 crore in the same quarter of the previous financial year, as reported in its stock exchange filing.
For the entire financial year (FY25), ACME Solar's net profit plummeted by approximately 64%, totaling Rs 250.8 crore, down from Rs 697.7 crore in FY24.
The steep decline in profitability occurred despite a notable increase in revenue. The company reported revenue from operations of Rs 486.88 crore in Q4, a substantial rise from Rs 295.16 crore a year earlier, indicating a YoY growth of nearly 65%.
Total income also rose significantly to Rs 539.2 crore in Q4 FY25, compared to Rs 318 crore during the same quarter last fiscal year, reflecting a 69.56% increase.
However, finance costs surged to Rs 205.5 crore, up from Rs 177.3 crore during the same period last fiscal, marking a rise of about 15.90%.
Moreover, depreciation and amortization costs escalated sharply to Rs 102.2 crore, a 66.99% increase from Rs 61.2 crore in Q4 FY24.
Despite this profit downturn, the company emphasized its robust operational advancements.
Chairperson and Managing Director Manoj Kumar Upadhyay remarked that FY25 was a 'remarkable year' for ACME Solar, noting the expansion of its operational portfolio and the commissioning of its largest single-location project, a 1,200 MW SECI ISTS solar project.
He further stated that the company is now experiencing enhanced earnings performance, with Q4 revenue surging by 70% YoY to Rs 539 crore and EBITDA soaring 118% to Rs 488 crore.
Upadhyay also highlighted that ACME's emphasis on hybrid and firm-dispatchable renewable energy (FDRE) solutions is bolstering the resilience of its business.
Point of View
It is crucial to recognize the broader implications of ACME Solar’s financial performance. While the significant profit decline raises concerns, the company’s commitment to expanding its operational footprint and focusing on innovative energy solutions reflects a strategic vision that aligns with national goals for renewable energy. As the transition to sustainable energy continues, ACME's resilience and adaptability will be vital in navigating the evolving market landscape.
NationPress
09/06/2025
Frequently Asked Questions
What led to ACME Solar's profit decline?
ACME Solar's profit decline was primarily due to rising finance costs and increased depreciation and amortization expenses, despite a significant revenue increase.
How much did ACME Solar's revenue increase?
ACME Solar's revenue from operations increased by nearly 65% in Q4 FY25, rising to Rs 486.88 crore.
What is the significance of ACME's projects?
ACME's largest single-location project, a 1,200 MW SECI ISTS solar project, signifies its commitment to expanding its operational portfolio in the renewable energy sector.
What strategies is ACME Solar implementing?
ACME Solar is focusing on hybrid and firm-dispatchable renewable energy solutions to enhance business resilience.
What was ACME Solar's net profit for FY25?
ACME Solar's net profit for FY25 was Rs 250.8 crore, a decline of approximately 64% from the previous financial year.
