Summary of ReNew's Q1 FY 2027 Earnings Call

1Key Financial Results and Metrics

Total Income: INR 47.9 billion, up 14% year-on-year.

Revenue: INR 44.6 billion.

Adjusted EBITDA: INR 30.4 billion, a 12% increase year-on-year, with an EBITDA margin of 66.1%.

Profit After Tax: INR 6 billion, up 16% year-on-year.

Cash Flow to Equity (CFE): INR 12.8 billion.

Days Sales Outstanding (DSO): Improved to 54 days post-quarter, down from 71 days at the end of Q1.

Net Debt: INR 671 billion, with a net debt to trailing 12 months adjusted EBITDA ratio of 5.7x.

2Strategic Updates and Business Highlights

Operating Portfolio Growth: 26% year-over-year growth, with a total committed portfolio of 20.5 gigawatts, including 1.7 gigawatts of Battery Energy Storage Systems (BESS).

Asset Sales: Completed the sale of a 100-megawatt solar asset and signed agreements for an additional 1 gigawatt, expected to generate $190 million in cash flow.

Manufacturing Performance: External sales revenue from modules and cells was INR 16.4 billion, with an adjusted EBITDA margin of 34%.

C&I Business Expansion: Portfolio stands at 2.9 gigawatts, with significant contracts from major technology companies like Amazon, Microsoft, and Google.

3Forward Guidance and Outlook

FY 2027 Adjusted EBITDA Guidance: INR 103 billion to INR 109 billion, including INR 10 billion to INR 12 billion from manufacturing.

Construction Expectations: Anticipate constructing between 1.6 to 2.4 gigawatts during FY 2027.

Run Rate Adjusted EBITDA: Expected to be INR 134 billion to INR 140 billion for the total committed renewable energy portfolio.

4Bad News, Challenges, or Points of Concern

Grid Challenges: Ongoing curtailment issues, particularly in Rajasthan, impacting solar performance and contributing to a decline in Plant Load Factor (PLF).

Market Uncertainty: Potential decline in manufacturing margins due to increased production capacity and market conditions.

Take-Private Transaction: While the transaction is progressing, it introduces uncertainty regarding regulatory approvals and timelines.

5Notable Q&A Insights

Take-Private Timeline: Expected to complete in Q1 2027, with regulatory approvals anticipated to take 3-4 months.

PLF Decline Factors: Approximately half of the PLF decline attributed to curtailment and half to weather-related issues.

BESS Strategy: Plans to utilize commissioned BESS projects as merchant plants for short-term arbitrage before integrating them into existing PPAs.

Asset Sales: Discussions regarding potential sales of hydro plants as part of asset recycling efforts, though specific details remain under NDA. This summary encapsulates the key takeaways from ReNew's earnings call, highlighting both the company's achievements and the challenges it faces in the current market environment.