Highest Upside

ACME Solar Holdings (ACME) posted an in-line performance in 2QFY26, with revenue of INR4.7b (3% beat). 2QFY26 benefitted from healthy generation leading to EBITDA coming in line with our estimate of INR4b. Adj. PAT of INR1.1b was 13% above our estimate, aided by higher-than-expected other income.

Massive Scale-Up Ahead in Battery Storage: India’s BESS capacity currently stands at 204.5 MW / 505.6 MWh, but the Central Electricity Authority targets 41 GW / 236 GWh by FY31-32.

Acme Solar (ACME) remains our top pick in the Power/Renewables space, with the stock up 45% in the last six months.

Valuations inexpensive: Over the last eight months, MAHGL’s share price has corrected ~30%, with the stock now trading at 11x FY27E P/E.

Black & White

MAHGL is set to deliver robust earnings growth, driven by aggressive CNG network expansion, improving throughput at existing stations, and strategic land tie-ups that strengthen long-term visibility.

Mahanagar Gas (MAHGL)’s 1QFY26 adj. EBITDA margin of INR9.7/scm was below our est. of INR10.6/scm (reported EBITDA: INR12.9/scm).

Acme reported Q2FY26 results in line with our estimates, with revenue at INR 4.7bn (+80% YoY) and EBITDA at INR 4bn (+81% YoY) led by higher PLF (24.1% vs 22.2% YoY) and incremental capacity addition. Operational capacity stood at 2.9GW (vs. 2.5GW YoY).

ACME has had an impressive beginning to FY26 with revenue of INR 5.1bn (+65% YoY), EBITDA at INR 4.6bn (+68% YoY), and PAT of INR1.3bn.

ACME reported a strong set of numbers – revenue grew 65% YoY to ~INR 5bn, EBITDA surged 117% YoY to INR 4.4bn with healthy EBITDA margin of ~90%, adj. PAT stood at INR 1.4bn (vs. INR 0.5bn loss in Q4FY24.

ACME Solar Holdings (ACME) reported a robust performance in 1QFY26, with EBITDA growth of 68% YoY/5% QoQ to INR4.6b (3% beat), driven by capacity additions and improved capacity utilization factor (CUF).

Multiple projects being commissioned contribute to building a strong execution track record: ACME Solar Holdings (Acme)’s operational capacity currently stands at 2.9GW vs. only 1.3GW at the time of IPO.

We recommend a BUY rating on the stock, with a target price of Rs 242/share reflecting 10% upside potential from the CMP.

Power Grid is riding on transmission tailwinds, as India is augmenting its transmission infrastructure to integrate renewables into the grid. It racked-up projects worth >INR 1trn in FY25; it won 24 transmission projects in bids with estimated cost of INR 920bn.

We maintain our BUY recommendation on the stock with a target price of Rs 1,920/share, offering 27% upside from the current levels.

We maintain our BUY rating on the stock.

Power Grid had a strong FY25, adding projects worth >INR 1trn (project cost) to its kitty. It had an impressive run in competitive bids, winning 24 transmission projects (market share of >50%) with estimated cost of INR 920bn; the most notable was Khavda-Nagpur HVDC project worth INR 250bn.

India is augmenting its transmission infrastructure to integrate renewables into the grid and Power Grid is a leading player in India’s transmission capex story, with >50% market share in transmission bids over the last 2 years.

NTPC – the largest thermal power player in India, is looking to add shades of green to its portfolio. It has substantial capacity addition plans on both thermal and renewables front.

We attended NTPC’s analyst meet (on 18 Aug’25). In a bid to play a key role in India’s energy transition, NTPC, a thermal power giant, is transforming itself into a diversified power genco.