ReNew Energy plc(US:RNW)2025-08-14 13:30Financial Data and Key Metrics Changes - The company reported an adjusted EBITDA of INR 27.2 billion, representing a 43% year-over-year growth [6] - Profit after tax for the quarter was INR 5.1 billion, exceeding the profit for the entire fiscal year 2025 [6] - The leverage at the operating asset level was around 5.7 times EBITDA, which is below the six times threshold set by the company [14] Business Line Data and Key Metrics Changes - The manufacturing business produced 900 megawatts of modules and 400 megawatts of cells in the quarter, contributing INR 5.3 billion to adjusted EBITDA [7][10] - The operational capacity of the manufacturing business is 6.4 gigawatts for modules and 2.5 gigawatts for cells [7] - The company revised its FY 2026 adjusted EBITDA guidance from the manufacturing business upwards to INR 8 billion to 10 billion [8] Market Data and Key Metrics Changes - The company commissioned around 2.25 gigawatts of renewable energy capacity, marking a 23% growth in its portfolio after adjusting for asset sales [5] - Year-to-date, the company has commissioned more than 700 megawatts, with over 650 megawatts of solar capacity and about 50 megawatts of wind [9] Company Strategy and Development Direction - The company aims to be a global leader in clean energy and is focused on improving margins and capital discipline to create shareholder value [4][5] - The company plans to complete the construction of 1.6 to 2.4 gigawatts of capacity in fiscal 2026 and is selective in bidding for future growth [6][23] - The company is committed to its ESG initiatives, having reduced Scope one and Scope two emissions by 18.2% from the FY 2022 baseline [8][17] Management's Comments on Operating Environment and Future Outlook - Management noted that while there are factors beyond their control, they remain focused on executing their strategy and improving operational efficiency [5] - The bidding environment is steady, with the government aiming for 500 gigawatts by 2030, but competition has become more irrational, affecting win ratios [32][33] - Management expressed optimism about signing PPAs from the current pipeline in the fiscal year [9] Other Important Information - The company received a final, revised non-binding offer at USD 8 on July 3, with ongoing discussions expected to update shareholders by September 30, 2025 [14] - The company secured a significant investment from British International Investments for over USD 100 million for a 10% stake in the solar manufacturing business [10] Q&A Session Summary Question: Inquiry about manufacturing business production volumes - The company sold almost 700 megawatts of modules to third parties in Q1 FY 2026, with a balance used for internal consumption [28] Question: Expectations for the back half of the year regarding sales - The company anticipates continued contribution from third-party sales throughout the year, with visibility on guidance provided [31] Question: Update on the bidding environment - The bidding environment remains steady, with the government auctioning 50 to 70 gigawatts annually, but competition has become more aggressive [32][33] Question: Key issues facing the renewable sector - Management noted occasional delays in transmission infrastructure and land acquisition as key issues, but overall capacity addition is proceeding at a reasonable pace [43][44] Question: Participation in recent ammonia tenders - The company did not participate in the ammonia tenders due to concerns over contract structures and the need for selective bidding [51][52]