ReNew Energy Global (RNW) Q4 2025 Earnings Call June 16, 2025 08:30 AM ET Company Participants Anunay Shahi - SVP - Corporate Finance & Investor RelationsSumant Sinha - Founder, Chairman & CEOKailash Vaswani - CFOVaishali Sinha - Cofounder - Renew & Chairperson - Sustainability Conference Call Participants Justin Clare - MD & Research AnalystMaheep Mandloi - Director, Senior Clean Energy Equity Research Analyst Operator Thank you for standing by, and welcome to the Renew Power Private Limited Q4 and FY 'twe ...

Financial Data and Key Metrics Changes - The company reported a profit before tax of INR 10 billion, representing a 23% increase year-on-year [10] - Adjusted EBITDA for Q4 FY 2025 was INR 22.1 billion, a 32% increase compared to the previous year, driven by cost optimization and asset sales [21] - The EBITDA margin for the IPP business improved to almost 83%, up from just over 80% last year [9] Business Line Data and Key Metrics Changes - The total operating megawatts reached 11.2 gigawatts, a 17% increase year-on-year, and a 21% increase on a like-for-like basis after excluding asset sales [6] - The contracted portfolio now stands at 18.5 gigawatts, an 18% increase from the previous year [7] - The manufacturing business contributed around INR 4.2 billion to the consolidated EBITDA for FY 2025 [19] Market Data and Key Metrics Changes - The company secured a 14% market share in the bids participated in, winning 4.8 gigawatts plus 800 megawatt hours of BEST [8] - The macro environment in India remains robust, with over 50 gigawatts of auctions expected annually, maintaining attractive IRRs [7] Company Strategy and Development Direction - The company plans to expand its cell facility by an additional 4 gigawatts, aligning with its module manufacturing capacity [8] - The focus remains on capital recycling and judicious capital allocation to improve returns and support growth [16][27] - The company aims to build large land banks along with connectivity to enhance project delivery [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the renewable energy sector's growth in India, despite geopolitical and economic challenges [10] - The company anticipates continued growth in energy demand and a supportive regulatory environment for renewable energy [11][12] - The guidance for FY 2026 expects adjusted EBITDA between INR 87 billion to INR 93 billion, assuming similar weather patterns to FY 2025 [36] Other Important Information - The company achieved a top ESG rating, scoring 84.35 in the LSEG ESG rating, and was recognized in the Sustainalytics top-rated ESG companies list [31] - The company has impacted 1.7 million lives through its social responsibility initiatives, aiming for 2.5 million by 2030 [34] Q&A Session Summary Question: What are the assumptions for PLF in fiscal 2026? - Management expects PLF levels to be similar to those in FY 2025, at the lower end of the guidance range [42] Question: What are the expectations for module sales in FY 2026? - The company anticipates a mix of DCR and non-DCR sales, with a significant portion of the 1.4 gigawatt order book expected to be fulfilled throughout the fiscal year [44] Question: How will the Topcon facility be financed? - The financing plan includes 70% debt and 30% equity, similar to previous expansions, with ongoing discussions with lenders [46] Question: Are there plans to sell modules outside of India? - Currently, the contracted sales are primarily for the Indian market, with plans to build a presence in international markets [51] Question: How will the company take advantage of declining interest rates? - The company plans to refinance existing debt opportunistically and will benefit from lower rates on new debt for expansion projects [56]

ReNew Energy Global PLC (RNW) came out with quarterly earnings of $0.10 per share, beating the Zacks Consensus Estimate of $0.07 per share. This compares to earnings of $0.02 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 42.86%. A quarter ago, it was expected that this company would post a loss of $0.04 per share when it actually produced a loss of $0.11, delivering a surprise of -175%.Over the last four quarters, the compan ...

Q4 FY25 Results Presentation June 16, 2025 1 Disclaimer This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended and the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally are identified by the words "believe," "project," "expect," "anticipate," "estimate," "intend," "strategy," "future," "opportunity," "plan," "may," "should," "will," "would," "will be," "will continue," "will likely ...

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for ReNew Energy Global PLC despite lower revenues, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - The upcoming earnings report is expected to show quarterly earnings of $0.07 per share, reflecting a significant year-over-year increase of +250% [3]. - Revenues are projected to be $291.8 million, which is a decrease of 1.8% compared to the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analyst expectations [4]. - A positive Earnings ESP of +100% suggests that analysts have recently become more optimistic about the company's earnings prospects [12]. Historical Performance - In the last reported quarter, ReNew Energy Global was expected to post a loss of $0.04 per share but instead reported a loss of $0.11, resulting in a surprise of -175% [13]. - Over the past four quarters, the company has only beaten consensus EPS estimates once [14]. Predictive Indicators - A positive Earnings ESP combined with a Zacks Rank of 2 indicates a high likelihood of beating the consensus EPS estimate [12]. - Stocks with a positive Earnings ESP and a solid Zacks Rank have historically produced a positive surprise nearly 70% of the time [10].

Financial Data and Key Metrics Changes - The company reported a 500 basis points improvement in margins due to cost optimization initiatives and lower provisioning compared to the previous quarter [19] - Adjusted EBITDA rose by 11% year-on-year, although impacted by weaker than expected wind performance [31] - The company revised its FY25 EBITDA guidance to INR 74 million to INR 78 million, and cash flow to equity guidance to INR 11 billion to INR 13 billion due to lower wind PLFs [19][34] Business Line Data and Key Metrics Changes - The operational portfolio increased by 26% year-on-year, now standing at 10.8 gigawatts, with 2.6 gigawatts commissioned in the last 12 months [12][22] - The total committed portfolio grew by 27% year-on-year to 17.4 gigawatts, with an additional 1.1 gigawatts secured since the last earnings call [13][22] - The manufacturing facility is producing about 10 megawatts per day of modules, with an aggregate order book of about 2 gigawatts [16][28] Market Data and Key Metrics Changes - The renewable energy environment in India remains robust, with over 50 gigawatts of renewable energy capacity auctioned during the year [10] - Wind PLFs for the portfolio stood at 13.5%, a decline from 17% over the previous year, impacting revenue [35] - The company has secured 3.9 gigawatts of renewable energy capacity and 600 megawatt hours of battery energy storage systems (BESS) through auctions this fiscal year [13][23] Company Strategy and Development Direction - The company is adopting a disciplined approach to bidding, focusing on auctions that offer attractive return profiles [14] - There is a strategic shift towards more complex projects, with a focus on solar plus battery energy storage systems [14][24] - The company aims to meet its targeted megawatt installations by the end of the year, including 600 megawatts subject to regulatory approvals [15][46] Management's Comments on Operating Environment and Future Outlook - Management noted that while the US equity markets for renewable energy companies remain challenging, the fundamentals in India are strong [10] - The company anticipates further reductions in borrowing costs due to recent rate cuts by the RBI, which should benefit infrastructure companies [8][9] - Management expressed confidence in meeting targeted installations and highlighted the importance of battery solutions for future growth [24][60] Other Important Information - The company was recognized as India's highest-rated pure play renewable energy company by S&P [17][38] - The manufacturing facility achieved an industry-leading efficiency of 23.2% for its cells [30] - A consortium has made a non-binding offer to acquire the company, which is under evaluation by a special committee of independent directors [20][21] Q&A Session Summary Question: What caused the lower wind PLF in Q3? - Management indicated that the reduction was entirely due to significantly lower wind speeds in Q3, with expectations for Q4 to trend closer to normal [50][51] Question: What is the outlook for project finance rates? - Management noted that while some benefits from lower rates are being seen, significant reductions have not yet been fully realized across the portfolio [53][54] Question: How do battery plus solar solutions compare in returns to traditional solar projects? - Management stated that battery plus solar solutions are expected to yield attractive returns, especially as battery prices continue to decline [58][60] Question: What is the current production rate for solar cells and modules? - The company is producing between 10 and 11 megawatts per day of modules and 3.5% to 4 megawatts per day of cells [63][64] Question: Are there concerns regarding patent issues with solar technology? - Management indicated that there are no expected impacts from patent issues as the company does not export to the US market [69] Question: What is the status of the 300 megawatt asset sale? - Management confirmed that the sale is in line with past capital recycling initiatives [71] Question: How is the company addressing land and transmission challenges? - Management stated that connectivity issues are minimal for their projects, and while land remains a challenge for wind projects, they have secured sufficient connectivity for their pipeline [77][81] Question: What is the company's approach to O&M costs? - Management explained that they are increasingly internalizing O&M for solar projects and renegotiating contracts for wind projects to reduce costs [128][130]

分组1 - ReNew Energy Global PLC reported a quarterly loss of $0.11 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.04, and compared to a loss of $0.10 per share a year ago, indicating an earnings surprise of -175% [1] - The company posted revenues of $248 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 6.34%, but showing an increase from year-ago revenues of $232 million [2] - Over the last four quarters, the company has surpassed consensus EPS estimates only once, while it has topped consensus revenue estimates two times [2] 分组2 - The stock has underperformed the market, losing about 4.4% since the beginning of the year, while the S&P 500 gained 4% [3] - The current consensus EPS estimate for the coming quarter is $0.03 on revenues of $311.35 million, and for the current fiscal year, it is $0.15 on revenues of $1.22 billion [7] - The Zacks Industry Rank for Alternative Energy - Other is currently in the top 32% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

Financial Performance - Total Income for Q3 FY25 was INR 21,198 million (US$ 248 million), an increase of 9.9% year-over-year[11] - Total Income for the first nine months of FY25 was INR 75,911 million (US$ 887 million), an increase of 4.8% year-over-year[13] - Adjusted EBITDA for Q3 FY25 was INR 13,882 million (US$ 162 million), an increase of 11% year-over-year[30] - Adjusted EBITDA for the first nine months of FY25 was INR 57,070 million (US$ 667 million), an increase of 8.9% year-over-year[30] - Net loss for Q3 FY25 was INR 3,879 million (US$ 45 million), compared to a net loss of INR 3,216 million (US$ 38 million) for Q3 FY24[27] - Net profit for the first nine months of FY25 was INR 1,454 million (US$ 17 million), compared to INR 3,538 million (US$ 41 million) for the first nine months of FY24[28] Electricity Sales - Total electricity sold in Q3 FY25 was 4,125 million kWh, an increase of 12.6% over Q3 FY24[8] - Total electricity sold in the first nine months of FY25 was 16,561 million kWh, an increase of 11.7% over the first nine months of FY24[9] Cash Flow and Liquidity - Cash generated from operating activities for Q3 FY25 was INR 18,485 million (US$ 216 million), a decrease of 1.9% from INR 18,850 million (US$ 220 million) in Q3 FY24[35] - Cash used in investing activities for Q3 FY25 was INR 21,132 million (US$ 247 million), significantly lower than INR 40,400 million (US$ 472 million) in Q3 FY24, primarily for renewable energy projects[36] - Cash generated from financing activities for Q3 FY25 was INR 6,143 million (US$ 72 million), down from INR 53,028 million (US$ 620 million) in Q3 FY24 due to lower project financing proceeds[37] - Total receivables as of December 31, 2024, were INR 23,669 million (US$ 277 million), with Days Sales Outstanding (DSO) improving to 72 days from 86 days year-on-year[43] - Cash Flow to Equity (CFe) for Q3 FY25 was INR 765 million (US$ 9 million), a decrease of 68.1% from INR 2,392 million (US$ 28 million) in Q3 FY24[44] - As of December 31, 2024, the liquidity position included cash and bank balances of INR 84,070 million (US$ 983 million)[41] Debt and Capital Expenditure - Net debt as of December 31, 2024, was INR 639,279 million (US$ 7,473 million), which includes convertible debentures from joint venture partners[42] - Capital expenditure for Q3 FY25 was INR 26,496 million (US$ 310 million), with a total of 7 MWs of wind and 552 MWs of solar projects commissioned[39] Strategic Developments - A non-binding proposal was received from a consortium for the acquisition of the entire issued share capital of the company at US$ 7.07 per share[58] - The company is exploring strategic capitalization opportunities, including the proposal from the consortium, with discussions ongoing[59] - ReNew's clean energy portfolio reached approximately 17.4 GWs as of February 18, 2025, making it one of the largest globally[67] Year-over-Year Comparisons - Total revenue for the three months ended December 31, 2024, was INR 18,472 million (USD 216), representing a year-over-year increase from INR 15,993 million[73] - Total income for the nine months ended December 31, 2024, was INR 75,911 million (USD 887), up from INR 72,414 million in the previous year[73] - The company reported a loss of INR 3,879 million (USD 45) for the three months ended December 31, 2024, compared to a loss of INR 3,216 million in the same period last year[73] Financial Position - Cash and cash equivalents increased to INR 27,021 million (USD 251) as of March 31, 2024, from INR 21,482 million[70] - Total assets decreased to INR 873,935 million (USD 11,212) as of March 31, 2024, from INR 959,175 million[71] - Total liabilities amounted to INR 752,238 million (USD 9,740) as of March 31, 2024, down from INR 833,245 million[71] - The company’s interest-bearing loans and borrowings (principal portion) were INR 647,316 million (USD 7,455) as of March 31, 2024[70] - ReNew's equity attributable to equity holders of the parent was INR 105,217 million (USD 1,260) as of March 31, 2024[70] Operational Performance - The company is focused on expanding its market presence and enhancing its clean energy solutions through digitalization and storage technologies[67] - For the three months ended December 31, 2024, the company reported a profit before tax loss of INR 3,879 million, compared to a loss of INR 3,216 million in the same period of 2023[75] - Adjusted EBITDA for the nine months ended December 31, 2024, was INR 57,070 million, an increase from INR 52,406 million in the same period of 2023, reflecting a growth of approximately 8.5%[77] - Cash generated from operations for the nine months ended December 31, 2024, was INR 48,094 million, down from INR 51,714 million in 2023, indicating a decrease of about 7.5%[75] - The company experienced a net cash used in investing activities of INR 81,572 million for the nine months ended December 31, 2024, compared to INR 133,272 million in the same period of 2023, showing a reduction of approximately 38.9%[75] - Net cash generated from financing activities for the three months ended December 31, 2024, was INR 6,143 million, a significant decrease from INR 53,028 million in the same period of 2023[75] - The total cash and cash equivalents at the end of the period for December 31, 2024, stood at INR 21,482 million, down from INR 55,911 million at the end of December 31, 2023[75] - The company reported finance costs of INR 12,609 million for the three months ended December 31, 2024, compared to INR 11,509 million in the same period of 2023, reflecting an increase of approximately 9.5%[75] - The company’s interest income for the nine months ended December 31, 2024, was INR 3,512 million, a decrease from INR 4,240 million in the same period of 2023, indicating a decline of about 17.2%[75] - The company reported a decrease in trade receivables by INR 1,356 million for the nine months ended December 31, 2024, compared to an increase of INR 6,837 million in the same period of 2023[75] - The company’s cash flows from operating activities for the three months ended December 31, 2024, were INR 18,486 million, a slight decrease from INR 18,850 million in the same period of 2023[75]

Core Viewpoint - ReNew Energy Global PLC (RNW) is showing potential for a bullish breakout due to a recent "golden cross" in its moving averages, indicating a positive trend reversal [1]. Technical Analysis - RNW's 50-day simple moving average has crossed above its 200-day simple moving average, a pattern known as a "golden cross," which is a significant bullish indicator [1]. - The golden cross event consists of three stages: a price bottom, the shorter moving average crossing above the longer one, and the maintenance of upward momentum [1]. - RNW's shares have increased by 26.4% over the past four weeks, suggesting strong upward movement [2]. Earnings Expectations - There have been two upward revisions in RNW's earnings expectations over the past 60 days, with no downward changes, indicating positive sentiment among analysts [3]. - The Zacks Consensus Estimate for RNW has also moved up, further supporting the bullish outlook [3]. Investment Consideration - Given the technical indicators and positive earnings revisions, RNW is recommended for investors to consider adding to their watchlist [3].

Group 1 - ReNew Energy Global PLC (RNW) closed at $6.05, with a 5.2% gain over the past four weeks, and a mean price target of $8.61 suggests a 42.3% upside potential [1] - The mean estimate includes six short-term price targets with a standard deviation of $1.06, indicating variability among analysts; the lowest estimate is $7.31 (20.8% increase), while the highest is $10 (65.3% increase) [2] - Analysts show strong agreement on RNW's ability to report better earnings, with a positive trend in earnings estimate revisions correlating with potential stock upside [4][9] Group 2 - The Zacks Consensus Estimate for RNW's current year has increased by 26.1% over the past month, with no negative revisions [10] - RNW holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates, indicating strong potential for near-term upside [11] - While consensus price targets may not be reliable for predicting exact gains, they can provide a directional guide for price movement [12]