Global brokerage Nomura has initiated coverage on Acme Solar Holdings with a Buy rating and a target price of ₹505, implying an upside of around 21% from the current market price of ₹418 as of 19 October 2026. It has assigned a Neutral rating to NTPC Green Energy, with a target price of ₹100, implying a 14% upside from its current market price of ₹88 (as of 19 October 2026).
The brokerage’s assessment highlights a key shift underway in India’s renewable energy sector: as solar and wind capacity expands, the ability to store electricity and deliver power during peak demand is becoming increasingly important.
Nomura believes this transition towards firm and dispatchable renewable energy could create growth opportunities for developers investing in battery storage and in projects that can supply power beyond peak solar periods.
Why energy storage is becoming crucial
India had the world’s third-largest installed renewable energy capacity excluding hydropower in calendar year 2025, according to the International Renewable Energy Agency (IRENA). The country’s renewable capacity, excluding hydro, expanded from 46 GW in FY16 to 223 GW in FY26, while renewables’ share of electricity generation rose from around 1% in FY06 to 17% in FY26.
However, greater reliance on intermittent renewable sources has created challenges for grid management. Solar power generation can exceed demand during daylight hours, while electricity consumption often peaks later in the day. This mismatch can lead to solar power curtailment, fluctuating thermal plant utilisation and higher operating costs.
Energy storage can help address this imbalance by storing surplus electricity for use when renewable generation falls. Nomura noted that the share of tenders backed by grid storage increased from 22% in FY22 to 87% in FY26, reflecting the growing importance of storage in India’s renewable energy build-out.
Against this backdrop, the brokerage sees opportunities in companies developing storage-backed renewable projects, although execution and infrastructure constraints remain important considerations.
Acme Solar: Nomura’s preferred pick with a Buy rating
Nomura initiated coverage on Acme Solar with a Buy rating and a target price of ₹505, valuing the company at 10.2 times its estimated December 2028 enterprise value to EBITDA.
The brokerage expects Acme Solar’s revenue and EBITDA to grow at compound annual growth rates (CAGRs) of 66% and 65%, respectively, between FY26 and FY29. It sees three key drivers behind this outlook.
First, the commissioning of firm and dispatchable renewable energy (FDRE) projects could support growth and equity returns. These projects are designed to provide more dependable power supply by combining renewable generation with solutions such as energy storage.
Second, declining battery energy storage system (BESS) prices could improve project economics. Acme Solar aims to install 25 GWh of battery storage capacity, with the brokerage noting that early commissioning could also allow the company to participate in merchant and short-term power markets.
Third, the company’s project pipeline offers visibility into future growth. Of its total 8.4 GW portfolio, 5.4 GW remains under execution, while power purchase agreements have been signed for 4.3 GW of capacity.
Nomura’s Buy call rests on Acme Solar’s transition from a conventional solar independent power producer into a platform capable of delivering power more consistently, alongside the commissioning of its large project pipeline.
NTPC Green Energy: Growth prospects offset by execution risks
Nomura initiated coverage of NTPC Green Energy with a Neutral rating and a target price of ₹100, valuing the company at 13.3 times its estimated December 2028 enterprise value-to-EBITDA.
The brokerage forecasts revenue and EBITDA CAGRs of 74% and 72%, respectively, between FY26 and FY29. Its growth outlook is supported by a pipeline that includes 16 GW of awarded capacity, as well as memoranda of understanding with public-sector companies and state entities.
As the renewable energy arm of NTPC, the company also benefits from its sovereign backing, which Nomura believes provides access to a lower cost of debt than that available to some private-sector peers.
Storage is another part of its expansion strategy. NTPC Green plans to install around 34 GWh of battery storage capacity and contract pumped storage projects, which could support its next phase of renewable energy growth.
However, Nomura cautioned that tight transmission availability could delay project execution. The brokerage has therefore factored in lower capacity additions than the company’s guidance, tempering its view despite the strong growth pipeline.
Acme Solar vs NTPC Green: What Nomura’s ratings indicate
Nomura’s differing ratings reflect its assessment of the two companies’ growth opportunities, valuations and execution risks. Acme Solar’s Buy rating is underpinned by its transition towards dispatchable renewable power, its battery storage ambitions, and its project pipeline. NTPC Green’s Neutral rating reflects its substantial growth potential alongside concerns about transmission constraints and the pace of capacity additions.
For investors tracking India’s renewable energy stocks, the report puts the spotlight on a sector where future growth may depend not only on adding generation capacity, but also on ensuring that electricity can be stored and delivered when required.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
