Nomura Prefers ACME Solar Over NTPC Green as Indian Storage Demand Grows

what happened

Nomura has initiated coverage of two Indian renewable developers, according to Moody's, rating ACME Solar Holdings Buy with a target of Rs 505 and NTPC Green Energy Neutral with a target of Rs 100. The Japanese brokerage favours ACME, betting that batteries and round-the-clock supply will gain value as India expands its clean power fleet.

Nomura forecasts ACME Solar's revenue compounding at 66% a year and EBITDA at 65% between FY27 and FY29, supported by 4.3 GW of contracted additions. More than half of its roughly 8.4 GW portfolio is tied to firm, dispatchable projects that pair generation with storage, and about 3 GW is already running.

For NTPC Green, Nomura expects revenue and EBITDA to rise at annual rates of 74% and 72% over the same period, helped by its parent's build experience and cheap borrowing. The main caveat is grid access: transmission bottlenecks could slow commissioning and hold back additions below the company's 60 GW target by FY32.

why it matters

According to market reports, tenders backed by grid storage rose from 22% of the total in FY2021–22 to 87% in FY2025–26, so developers are increasingly judged on commissioning speed and storage integration rather than announced megawatts. Investors should separate operating assets from the pipeline, since cheaper batteries and earlier storage commissioning could lift returns.

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