ACME Solar Shares Record Significant 20% Year-to-Date Gains, Analysts Predict Further Upside

ACME Solar Shares See Healthy Upside Amid Market Weakness

ACME Solar Holdings shares have gained about 21% year-to-date (YTD) despite a weak stock market sentiment caused by the Middle East conflict, crude oil price hike, foreign capital outflow, and the rupee's fall to record low levels. The power stock has seen some profit booking lately, with a 5% decline in May so far after posting gains for the last three consecutive months. On Tuesday, 12 May, the ACME Solar share price declined more than 1% in intraday trade.

However, the ongoing correction in the stock price may present an opportunity to buy. Global brokerage firm HSBC and domestic brokerage firm Motilal Oswal Financial Services have both issued buy calls on the stock.

ACME Solar's Q4 numbers were largely on expected lines. The company's Q4FY26 Profit After Tax (PAT) rose by 12.93% year-on-year to ₹139.32 crore, while total income at ₹547.85 crore saw a healthy jump of 12.52% YoY. Operating profit increased by 15.95% to ₹370.38 crore, while operating margin climbed by 3.04% to 67.61%.

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HSBC has a buy call on the stock, with a target price of ₹370. The global brokerage firm increased its target price from ₹350 on 8 May. HSBC believes that ACME Solar is in a high-growth phase, adding significant capacity over the next two years. The company is strategically evolving from a pure-play solar provider to a more complex firm and dispatchable renewable energy (DRE) projects, which require a combination of solar, wind, and battery storage capacity.

Motilal Oswal Financial Services also has a buy call on the stock with a target price of ₹410. The domestic brokerage firm has incorporated the merchant BESS capacity additions for FY27/FY28, resulting in a 6%/4% increase in its EBITDA estimates. Motilal said that the pace of commissioning against FY27 guidance of 1.5GW RE capacity addition, the progress of targeted 10GWh BESS capacity by end-FY27, and merchant spreads from BESS and their contribution to earnings in FY27 are the key monitorables for the stock.

However, some technical experts suggest that investors should wait for some more correction before initiating fresh long positions. ACME Solar has already witnessed a stellar rally over the last 2–3 months, and fresh long positions should be avoided at current levels. The stock is now showing signs of exhaustion near higher levels, which also aligns with the yearly pivot resistance zone. Moreover, RSI has formed a bearish divergence, indicating weakening momentum in the ongoing up move. On the downside, ₹275 will act as immediate support, while ₹306 remains the immediate resistance level.

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