Nomura Sees Strong Upside Potential in ACME Solar Holdings and NTPC Green Energy
October 24, 2026
Japanese brokerage firm Nomura has initiated coverage on domestic renewable energy majors ACME Solar Holdings and NTPC Green Energy, expressing strong broker confidence in the sector’s capacity to ride India’s expanding green energy transition. The global financial services company projected up to 26 per cent upside potential for ACME Solar Holdings and nearly 19 per cent for NTPC Green Energy.
While rapid power demand growth continues to accelerate clean energy adoption across the country, sector operations are increasingly exposed to structural challenges, including power evacuation constraints, grid stability issues, and elevated energy storage requirements. Nomura highlighted ACME Solar’s battery-backed operational strategy and NTPC Green Energy’s massive project development pipeline as primary catalysts for sustained earnings growth. However, the broker signaled a clear preference between the two models, assigning a ‘Buy’ rating to ACME Solar while placing a ‘Neutral’ stance on NTPC Green Energy.
Nomura initiated coverage on ACME Solar Holdings with a ‘Buy’ rating and set a target price of ₹505 per share, implying a 26 per cent upside from recent market levels. The rating reflects optimism around ACME’s strategic push into Firm and Dispatchable Renewable Energy (FDRE) and utility-scale Battery Energy Storage Systems (BESS).
ACME is targeting up to 25 GWh of BESS capacity to mitigate power generation volatility and address peak-period grid pricing dynamics. Out of an overall 8.4 GW portfolio, the company holds Power Purchase Agreements (PPAs) signed for 4.3 GW of capacity under active construction.
Nomura values ACME Solar at 10.2x one-year forward EV/EBITDA based on December 2028 projections, offering an attractive entry point alongside an expected 65% EBITDA CAGR through FY26–FY29.
Conversely, Nomura assigned a ‘Neutral’ rating to NTPC Green Energy with a target price of ₹100 per share, reflecting approximately 19 per cent upside potential. While acknowledging NTPC Green’s position as a public sector power powerhouse, Nomura pointed to elevated current market valuations and operational execution bottlenecks.
The company aims to expand its total operational footprint to 60 GW by FY32, backed by state-level Memorandums of Understanding (MoUs) and state-owned enterprise partnerships. It is also planning 34 GWh of BESS and pumped hydro storage assets.
The brokerage expects a 72% EBITDA CAGR from FY26 to FY29, supported by rapid capacity additions.
High relative trading multiples (with a forward EV/EBITDA of 13.3x) and transmission connectivity delays leave minimal margin for execution risks, limiting short-term upside.The initiated coverage highlights a wider paradigm shift in India’s power sector dynamics.
As variable renewable power capacity grows, simple solar and wind generation are giving way to hybrid, round-the-clock (RTC), and battery-integrated power purchase structures. Energy developers capable of deploying battery storage assets efficiently are better positioned to capture firm power tariffs and de-risk grid integration challenges.
