ReNew Energy Global Plc Q1 FY2026 earnings call

• The company continues to pursue being a global leader in clean energy and recently filed its 20-F and second integrated report.
• Since July last year, around 2.2 gigawatts of renewable energy capacity has been commissioned, marking a 23% growth in the portfolio after asset sales. Signed PPAs for 3.7 gigawatts of installed renewable energy capacity.
• Solar manufacturing facilities are fully ramped up, producing over 10 megawatts of modules and 5 megawatts of cells daily. Secured a marquee investment from British International Investments for over USD 100 million. Construction of a new 4-gigawatt TOPCon cell facility is underway.
• Demonstrated ESG commitments: reduced Scope 1 and 2 emissions by 18.2% from the FY '22 baseline, saved 540,372 cubic meters of water (51% improvement), 16% gender diversity in the workforce, 12% in STEM roles, and Board composition with 40% women and 60% independent directors.

The company has two main segments. The IPP business delivered an adjusted EBITDA of INR 27.2 billion, a 43% year-over-year growth, with a profit after tax of INR 5.1 billion in the first quarter of FY '26. The leverage at the operating asset level is well below the 6x threshold. The manufacturing business has an operational capacity of 6.4 gigawatts of modules and 2.5 gigawatts of cells. It produced 900 megawatts of modules and 400 megawatts of cells in the quarter, contributing INR 5.3 billion to adjusted EBITDA. The company is revising its FY '26 adjusted EBITDA guidance for the manufacturing business upwards to INR 8 billion to INR 10 billion.

• Reiterates FY '26 megawatt guidance to complete construction of 1.6 to 2.4 gigawatts of capacity.
• Adjusted EBITDA guidance remains INR 87 billion to INR 93 billion if weather and asset sales align.
• Manufacturing business adjusted EBITDA guidance revised to INR 8 billion to INR 10 billion.
• Expect cash flow from equity to be INR 14 billion to INR 17 billion.

• Factors beyond control that could materially affect results.
• Bidding environment with irrational competition leading to lower return expectations.
• Concerns about contract structuring in green ammonia tenders, such as short PPAs and lack of law change pass-through.

Q: Could you share how many megawatts were delivered in fiscal Q1 and plans for the remaining quarters?

A: In Q1 FY '26, sold almost 700 megawatts of modules to third party and 1.2 megawatt of cells. Expect third-party sales to continue but extent to be seen.

Q: How is the bidding environment evolving?

A: Bidding environment steady, but competition is irrational with lower return expectations. The company is disciplined and will only bid if meets hurdle rate.

Q: What are the key issues affecting renewable execution?

A: Transmission infrastructure sometimes lags, but not substantial. Transformer shortages manageable with advance ordering; land acquisition is a key issue.

Q: Views on wind execution in India?

A: Still expect around 5 gigawatts of wind, maybe slightly more in future but not exceeding significantly.

Q: Plans for solar manufacturing wafers?

A: Waiting for government policy on wafers; will consider if policy supports.

Q: Did ReNew participate in ammonia tenders?

A: Did not participate as contracts were not appropriately structured (short PPAs, no law change pass-through).