ReNew Energy plc(US:RNW)2025-11-10 14:30Financial Data and Key Metrics Changes - The company reported an adjusted EBITDA of INR 53.5 billion for the first half of fiscal year 2026, representing a 24% year-on-year growth [6] - Revenue increased by over 50% for the first half of the fiscal year compared to the previous year, driven by an increase in megawatts and contributions from third-party sales in the manufacturing business [12] - The company reaffirmed its fiscal year 2026 adjusted EBITDA guidance of INR 87-93 billion [20] Business Line Data and Key Metrics Changes - The manufacturing business produced over 2 GW of modules and over 900 MW of cells in the first half of fiscal year 2026, contributing INR 3.3 billion to adjusted EBITDA for the quarter [7][8] - The manufacturing EBITDA guidance for fiscal year 2026 was revised upwards to INR 10-12 billion [8] - The company commissioned over 2.1 GW of renewable energy capacity since October of the previous year, marking a 22% growth in its portfolio after adjusting for asset sales [5][12] Market Data and Key Metrics Changes - The Indian government reduced the goods and services tax on renewable energy sector items from 12% to 5%, enhancing the affordability of clean energy [5] - The S&P upgraded India's long-term credit rating, which is expected to positively impact the company's borrowing costs [14] Company Strategy and Development Direction - The company continues to focus on profitable growth, project execution, and capital discipline, aiming to deliver returns significantly above its cost of capital [5] - The company is on track to complete the construction of 1.6-2.4 GW of capacity in fiscal year 2026 [6] - The company is expanding its committed portfolio with signed PPAs for 3.8 GW of installed renewable energy capacity over the past four quarters [6] Management's Comments on Operating Environment and Future Outlook - The management noted that while global macroeconomic conditions remain volatile, the situation in India is relatively stable, with low inflation and expectations of further rate cuts by the Reserve Bank of India [4] - The management expressed confidence in the execution of projects and the potential for future growth despite some cyclical lulls in the bidding environment [10][20] Other Important Information - The company achieved a score of 83 out of 100 in the S&P Global Corporate Sustainability Assessment, marking a 14% year-on-year improvement [16][19] - The company published its inaugural climate risk and biodiversity risk reports aligned with TCFD and TNFD frameworks [18] Q&A Session Summary Question: Progress on contracting side and expectations for additional PPA signings - The company has made good progress on PPA signings, with approximately 6 GW of LOAs expected to convert into PPAs over the next six months [24][25] Question: Update on transmission status for projects in the pipeline - Most transmission connectivity is in place, with efforts ongoing to convert existing connectivity to expedite project timelines [27][28] Question: Decline in solar manufacturing margins - The decline in margins was attributed to a higher mix of captive sales and lower realizations in Q2 compared to Q1 [30] Question: Timelines for cell expansion and plans for wafer ingot - The company expects pre-commissioning of the cell expansion by the same time next year, with full commissioning by the end of fiscal 2027 [38] Question: Experience of curtailment during the last quarter - The company experienced curtailment amounting to about INR 100 crore in the first half, linked to projects where backend lines were not ready [51] Question: Plans for refinancing upcoming bonds - The company is working on refinancing plans and will pursue the market offering the lowest cost of capital [74]