ACME Solar shares fell as much as 1% on August 26, touching a day low of Rs 395.25 on the NSE, even as it signed a new railway power deal.

That might sound odd. The company just landed a fresh long-term contract, yet the stock still slipped in early trade. In the market, this occasionally occurs.

A deal can be good news for the business over the long run, but if it doesn’t move the needle for near-term earnings, traders don’t always react to it right away.

ACME Marigold Urja Private, a wholly owned unit of ACME Solar Holdings, signed a power purchase agreement with Northeast Frontier Railway. The deal covers a 130 MW round the clock renewable energy project. It will run for 25 years, with power supplied at a fixed rate of Rs 4.35 per unit throughout that period.

The project itself was awarded through REMC, while the actual agreement was signed directly with Northeast Frontier Railway. Supply under the contract is set to begin from February 25, 2029, giving the company a few years to build out the capacity before the clock starts.

This isn’t ACME Solar’s first big renewable win this year. The company had earlier bagged a separate 300 MW firm renewable power project that also came with 1.2 GWh of storage capacity attached.

Between these deals, ACME Solar continues to expand a portfolio that already crossed 6,970 MW in operational and under construction capacity as of last year, spanning solar, wind, and hybrid projects.

As of 13:07 pm, ACME Solar shares were trading at Rs 396.95 on the NSE, down 0.59% for the day. The stock had opened at Rs 405.00 against a previous close of Rs 399.30, and remains not too far from its 52 week high of Rs 411.50 touched just two days earlier.

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