India’s renewable energy story is entering a new phase as building solar and wind capacity is no longer enough. The next challenge is storing that power when the sun sets and the wind slows. That is where Battery Energy Storage Systems (BESS) are becoming indispensable.
According to the Central Electricity Authority, India will require 236 gigawatt (GWh) of battery storage by FY32. This will take the country’s total energy storage requirement to 411 GWh, a sharp jump from just 34.7 GWh in FY27E.
The policy backdrop is equally compelling. The government has introduced viability gap funding for grid-scale BESS, extended transmission charge waivers for eligible storage projects, and mandated at least 2 hours of energy storage alongside new renewable energy projects to improve grid reliability.
The numbers reflect this shift. India’s BESS market is expected to expand from around 1.1 GWh in 2025 to 236 GWh by FY32, making it one of the world’s fastest-growing storage markets. For companies building large-scale BESS capacity, this is no longer just an emerging opportunity; it is a multi-year structural growth cycle.
Against this backdrop, this article examines three companies with some of the largest BESS capacities currently under construction in India.
#1 Waaree Energies: Scaling up India’s First 20 GWh Integrated Advanced Cell Gigafactory
Waaree Energies is not only India’s largest solar module manufacturer but also the nation’s leading solar retail brand. The company accounts for nearly one in every six solar installations across the country. The company’s module manufacturing capacity stands at 25.8 GW.
The ‘Waaree Unbound’ Shift: Vertical Supply Chain Integration
Currently, the company is undergoing a strategic transformation termed “Waaree Unbound 2.0”. This initiative aims to shift Waaree from a solely solar module manufacturer to a fully integrated energy transition ecosystem.
This expansion relies on two main pillars. Waaree is taking control of its entire supply chain to improve cost competitiveness and ensure supply reliability. This involves integrating backwards into manufacturing solar cells, ingots, wafers, and even polysilicon. Through this, Waaree expects its Total Addressable Market to expand by 4x to US$4 trillion by 2035.
To support this, it recently acquired a stake in a polysilicon company in Oman to secure a fully traceable, non-Chinese supply chain. Waaree is expanding its clean energy portfolio to include adjacent infrastructure. This includes manufacturing solar inverters, grid transformers, BESS, and green hydrogen electrolyzers.
Scaling up the BESS Gigafactory in Gujarat to 20 GWh Capacity
To capture BESS demand, Waaree is building India’s first fully integrated Advanced Cell Chemistry cell-and-pack gigafactory in Gujarat. It is investing ₹10,000 crore for this build-out. The company is targeting a total BESS capacity of 20 GWh by FY28.
Of this, 3.5 GWh of capacity (Phase 1) is expected to be commissioned in the current financial year. A further 16.5 GWh of capacity will be added by FY28. The plant will produce Lithium Iron Phosphate cells, battery packs, and fully containerized BESS solutions.
These energy storage solutions will target multiple end users, including large-scale utilities, data centers, semiconductor companies, commercial and industrial clients, and residential rooftops. They can also be deployed alongside their solar modules and inverters to provide a complete, one-stop ecosystem.
Management is optimistic about the financial viability of the BESS segment. It expects the business to generate healthy margins of 18% to 20% based solely on current market conditions, without factoring in any additional government policy support or production-linked incentives.
FY26 Financials: Net Profit Doubles to ₹3,884 Crore
Turning to its financials, revenue grew by 83.7% year-on-year to ₹26,536.8 crore, driven by robust order execution. Operating EBITDA grew by 117% to ₹5,908.6 crore. The operating EBITDA margin improved significantly to 22.27%, up from 18.84% in the previous financial year. Consequently, net profit more than doubled (up 101.45%) to ₹3,884.2 crore.
Waaree currently boasts an order book of approximately ₹53,000 crore. It is worth noting that this figure does not even include their retail business, which accounts for roughly 20.8% of total revenues. Additionally, the company has an active project pipeline of over 100 GW. It has guided to ₹7,000-7,700 crore in EBITDA in FY27, with margins of 20-25%.
Waaree Share Price
#2 Pace Digitek: How In-House Integration Saves 30% on Import Overheads
Pace Digitek is an end-to-end integrated infrastructure platform, primarily serving two major sectors: Energy and Telecom & Information and Communication Technology. Pace’s business spans manufacturing, Engineering, Procurement, and Construction (EPC) execution, operations and maintenance, and Build-Own-Operate (BOO) services.
The company has established a strong presence in the renewable energy integration and energy storage markets. It manufactures Lithium-Ion batteries, containerized BESS, Power Conversion Systems, and Energy Management Systems (EMS). Pace holds a competitive edge.
It claims to be one of the select Indian firms offering manufacturing, EPC execution, and EMS capabilities under one roof. Additionally, through its Network Operating Center, around 200 engineers monitor field operations remotely. This capability enabled it to secure a 250 MWh order from L&T in January 2026. L&T previously sourced BESS components from China.
Scaling up the Bidadi Plant to 10 GWh BESS Capacity
Pace currently operates a BESS manufacturing capacity of 2.5 GWh at its facility in Bidadi, Karnataka. In FY26, the plant’s capacity utilization stood at approximately 80%. The company is rapidly expanding its operations to 10 GWh to meet growing demand.
BESS capacity is expected to rise to 5 GWh by July 2026. Furthermore, infrastructure work has already been completed to reach an operational capacity of 10 GWh by October 2026. The company is further backward-integrating this capacity by adding a container-fabrication facility and battery-chemistry capabilities.
In-House Integration to Lift Efficiency by 5%
It has built an in-house container fabrication facility, which will be operational from July 2026. This move mitigates the logistical challenges of importing containers by sea. It is expected to save around 30% in import overheads, improving overall operating efficiencies by 4% to 5%.
Currently, the company primarily imports lithium iron phosphate cells from China, but it plans to announce its own cell manufacturing operations soon. At present, cells account for 60-65% of the total BESS system cost of US$48-50 per kWh. And for assembled battery containers, they get about $82-$84 per kWh.
Order Book Analysis: The ₹8,855 Crore Energy Pipeline
As of 25 May, 2026, the Energy and BESS segment constitutes 78.1% (₹8,855 crore) of Pace’s total order book (₹11,338 crore). The BESS business is executed through three main channels: BOO (50.1% of the order book), EPC (49.8%), and Product Supply (0.1%).
Notably, in FY26, Pace set a national record by manufacturing and delivering 178 grid-scale BESS containers within India. It aims to expand its BESS footprint, both domestically and globally. Pace is developing kilowatt-scale prototype solutions for the Commercial & Industrial sector.
This is driven by state policies in Maharashtra, Gujarat, and Rajasthan, which mandate BESS installations for solar grids exceeding 50 MW. In the export market, the company has signed an exclusive agreement with Japan’s NEC group to supply BESS solutions to several African regions. It expects this partnership to generate 300-500 MWh of orders during FY27.
Margin Pressures: FY26 Profit Rises Despite EBITDA Compression
Turning to its financials, revenue grew by 8.3% year-on-year to ₹2,641.3 crore, driven by a larger contribution from energy-sector orders. EBITDA dipped by 5.5% to ₹455.2 crore, while margins contracted 260 bps to 17.2%. Nonetheless, net profit grew 10.1% year-on-year to ₹307.3 crore. It has guided to ₹3,200-3,400 crore in revenue in FY27 and ₹4,000-4,200 crore in FY28.
Pace Digitek Share Price
#3 Acme Solar Holdings: Capitalizing on the ₹6 Merchant Power Arbitrage
Acme Solar is one of the largest Renewable Energy Independent Power Producers (IPPs) in India. It operates a diversified energy business that spans solar, wind, BESS, hybrid, and Firm and Dispatchable Renewable Energy (FDRE) projects.
Navigating Rajasthan’s 2.3 GWh Storage Portfolio
At the end of FY26, ACME has an operational generation capacity of about 3.0 GW and a BESS capacity of approximately 2.3 GWh. This BESS capacity is among the largest in India to date. This capacity is spread across three projects in Rajasthan: Acme Surya Power (787 MWh), Acme Sun Power (963 MWh), and Acme Suryodaya (602 MWh).
The company is rapidly expanding its footprint, with a generation portfolio of 5.0 GW currently under development. Acme aims to reach 20 GWh of BESS capacity by 2030. Currently, the 5.0 GW under-construction generation portfolio will require installing 17 GWh of BESS. Of the total, the company plans to commission around 10 GWh of battery capacity in FY27.
From a technical standpoint, the batteries are performing optimally, delivering a Round Trip Efficiency of 88% to 90%, and are slated to run for an impressive 8,000 to 10,000 cycles. A major part of ACME’s strategy is pre-commissioning its batteries ahead of the actual solar generation plants.
Capturing the ₹6 Merchant Power Tariff Arbitrage
ACME is currently monetizing its 2.3 GWh commissioned BESS through the merchant market and short-term contracts. The company purchases conventional power from the grid during cheaper non-peak hours (around ₹2 per unit) and sells it during peak hours (around ₹8 or more per unit). Effectively, Acme captures a tariff arbitrage of approximately ₹6 per unit.
Thus, Acme is deploying batteries at its operational Central Transmission Utility substations (such as Fatehgarh-1/2 and Bikaner 3), providing 2.5 GW of ready-to-sell battery connectivity. This also helps the company save on construction interest costs while generating early cash flow from the batteries.
Financial Review: Net Profit Nears ₹500 Crore Mark
Coming to its financials, total revenue grew by 59.2% year-on-year to ₹2,507 crore, driven by capacity additions and higher capacity utilization. EBITDA grew by 61.2% to ₹2,265 crore with a margin at 90.3%. Consequently, net profit nearly doubled (up 98.5%) to ₹498 crore.
Acme Share Price:
Here’s a summary of where each of these companies is at this juncture:
Particulars Waaree Pace Digitek Acme Solar
BESS Capacity (GWh) 20 10 20
By When FY28 October 2026 FY30
Revenue (₹ crore) 26,536.8 2,641.3 2,507
Net Profit (₹ crore) 3,884.2 307.3 498
Order Book (₹ crore) 53,000 11,338 NA
Revenue Visibility (~) 2 years 4 years NA
Source: Management Commentaries and Investor Presentations
The table shows that Waaree and Acme lead with the largest BESS pipeline at 20 GWh each, while Pace has 10 GWh under development.
Structural Valuation: Returns Analysis vs Peer Averages
With superior profitability, Waaree has higher Return on Capital Employed (ROCE) and Return on Equity (ROE) than Pace and Acme. Valuation-wise, Waaree and Pace are trading at a discount to the industry median P/E multiple, while Acme is trading at a premium.
Peer Comparison (X)
Company Price-to-Earnings Multiple Return Ratios
Company Industry ROCE (%) ROE (%)
Waaree 21.0 31.1 38.8 32.8
Pace Digitek 15.6 16.5 21.3 17.6
Acme 54.5 24.7 8.9 10.4
Source: Screener.in (Data as of 03 July 2026)
To conclude, the battery storage opportunity in India is shifting from policy announcements to on-ground execution.
Among the three companies, Waaree stands out with the largest planned BESS capacity, strong profitability, and a sizeable order book supporting future growth. Pace offers the fastest capacity ramp-up with vertical integration, while Acme is using battery storage to enhance returns from its renewable portfolio.
Their ability to execute projects on schedule, secure cell supply, and manage margin trends will determine who captures the largest share of India’s rapidly expanding BESS market.
Key red flags that can impact these businesses include margin compression from rising silver and copper costs, logistics disruptions, delayed facility execution, regulatory uncertainty slowing domestic demand, and the risk of industry overcapacity. That said, these names could be kept in your watchlist to track their execution.
Report by Madhavendra
Source : Financial Express
No comments:
Post a Comment