Global brokerage Nomura has started coverage on Acme Solar Holdings with a 'Buy' rating and a target price of ₹505. This suggests a potential upside of about 21% from its current price of ₹418 as of October 19, 2026. In contrast, Nomura assigned a 'Neutral' rating to NTPC Green Energy with a target price of ₹100. This indicates a 14% upside from its current market price of ₹88 on the same date.
Key Details
Nomura's analysis shows a major shift in India's renewable energy sector. As solar and wind capacity grows, the need for energy storage and reliable power delivery during peak demand is becoming critical. The brokerage believes this shift towards firm and dispatchable renewable energy will create growth opportunities for developers investing in battery storage and projects that can supply power beyond peak solar periods.
According to the International Renewable Energy Agency (IRENA), India had the world's third-largest installed renewable energy capacity, excluding hydropower, in 2025. The country's renewable capacity, excluding hydro, grew from 46 GW in FY16 to 223 GW in FY26. Additionally, the share of renewables in electricity generation rose from about 1% in FY06 to 17% in FY26. However, the growing reliance on intermittent renewable sources has created challenges for grid management. This has led to potential curtailment of solar power generation during peak daylight hours.
Background
Nomura noted that the percentage of tenders supported by grid storage jumped from 22% in FY22 to 87% in FY26. This highlights the increasing importance of storage solutions in India's renewable energy market. The firm expects that NTPC Green Energy's revenue and EBITDA will grow at compound annual growth rates (CAGRs) of 74% and 72%, respectively, from FY26 to FY29.
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The ratings from Nomura could affect investor sentiment toward renewable energy stocks, especially in the solar sector. Acme Solar may attract more interest from investors looking for growth opportunities. Meanwhile, NTPC Green could face scrutiny over its execution risks. Investors will keep an eye on further developments in India's renewable energy policies and market dynamics as companies adapt to changing demands.
Based on reporting by: livemint.com, moneycontrol.com