ReNew Energy Global Q3 2025 Earnings Report

ReNew Energy Global EPS Results

• Actual EPS: -$0.11
• Consensus EPS: -$0.04
• Beat/Miss: Missed by -$0.07
• One Year Ago EPS: N/A

ReNew Energy Global Revenue Results

• Actual Revenue: $248.00 million
• Expected Revenue: $20.22 billion
• Beat/Miss: Missed by -$19.97 billion
• YoY Revenue Growth: N/A

ReNew Energy Global Announcement Details

• Quarter: Q3 2025
• Date: 2/18/2025
• Time: After Market Closes
• Conference Call Date: Wednesday, February 19, 2025
• Conference Call Time: 8:30AM ET

ReNew Energy Global (NASDAQ:RNW) generates power through non-conventional and renewable energy sources in India. The company operates through two segments: Wind Power and Solar Power. It develops, builds, owns, and operates utility scale wind and solar energy, hydro energy, and utility-scale firm power projects, as well as distributed solar energy projects that generate energy for commercial and industrial customers. The company provides engineering, procurement, and construction services; operation and maintenance services; consultancy services; and sells renewable energy certificates. ReNew Energy Global Plc was founded in 2011 and is based in London, the United Kingdom.

ReNew Energy Global Q3 2025 Earnings Call Transcript

Presentation

[Operator]

Thank you for standing by and welcome to the Renu 3Q twenty twenty five Earnings Report. All participants are in listen only mode. There will be a presentation followed by a question and answer session. I would now like to hand the conference over to Mr. Anunay Shahi.

[Operator]

Please go ahead.

[Anunay Shahi, SVP - Corporate Finance at ReNew Energy Global]

Thank you. Good morning, everyone, and thank you for joining us. We put out a press release announcing our results for fiscal twenty twenty five third quarter ended 12/31/2025, last night and a copy of the press release and the earnings presentation is available on the Investor Relations section on Renu's website at www.renew.com. With me today are Suman Sinha, our Founder, Chairman and CEO Kailash Vazwani, IHR's CFO and Beshali Niram Sinha, Co Founder and Chairperson Sustainability. After the prepared remarks, which we expect will take about half an hour, we will open the call for questions.

[Anunay Shahi, SVP - Corporate Finance at ReNew Energy Global]

Please note, our Safe Harbor statements are contained within our press release, presentation materials and materials available on our website. These statements are important and integral to all our remarks. There are risks and uncertainties that could cause our results to differ materially from those expressed or implied by such forward looking statements. So we encourage you to review the press release we furnished in our Form six K and the presentation on our website for a more complete description. Also contained in our press release, presentation materials and the annual report are certain non IFRS measures that we reconcile to the most comparable IFRS measures and these reconciliations are also available on our website in the press release, presentation details and our annual report.

[Anunay Shahi, SVP - Corporate Finance at ReNew Energy Global]

It's now my pleasure to hand it over to Sumant.

[Sumant Sinha, Founder, Chairman & CEO at ReNew Energy Global]

Yes. Thank you, Anunay. Good morning, everybody, and good evening or good afternoon. Glad to have you all on our earnings call for the third quarter of fiscal twenty twenty five. Before we get into our business and the updates for the quarter and the nine months, let me give a short overview of the macro environment related to our industry in the past three months.

[Sumant Sinha, Founder, Chairman & CEO at ReNew Energy Global]

In India, the GDP growth rate, which had declined to 5.4% in Q2 fiscal twenty twenty five, is expected to again pick up from Q3. Inflation is also benign with RBI cutting rates by 25 basis points earlier this month after a fairly long period of time. With further cuts, rate cuts being anticipated during the year. We anticipate that Indian domestic banks should pass on these benefits to borrowers like us, thereby reducing borrowing costs for infrastructure companies and making projects more attractive. Power demand has also increased from December 2024 and the recent union budget also had a strong focus on boosting consumption, which is encouraging.

[Sumant Sinha, Founder, Chairman & CEO at ReNew Energy Global]

The renewable energy environment looks promising with more than 50 gigawatts of renewable energy capacity already auctioned during the year. Therefore, while The U. S. Equity markets for renewable energy companies remain challenging, the underlying fundamentals governing renewable energy in India continue to remain quite robust. Let me now turn to updates about RENEW.

[Sumant Sinha, Founder, Chairman & CEO at ReNew Energy Global]

RENEW has now entered the fifteenth year of its operations and we proudly celebrated our anniversary recently. From our modest beginnings in 2011, we have expanded our footprint to almost 11 gigawatts of commissioned capacity. I extend my heartfelt appreciation to all of our shareholders, our employees, customers, lenders, advisors, whose unwavering support has been instrumental in our journey since day one. Now let me turn to highlights from our business on Page six of the presentation. Over the years, we have maintained our leadership in project execution and commissioning greenfield projects.

[Sumant Sinha, Founder, Chairman & CEO at ReNew Energy Global]

I am pleased to report that we have achieved one of the highest year to date megawatt commissioning with approximately 1.3 gigawatts and an additional 150 megawatt hours of batteries commissioned so far this fiscal year and a total of 2.6 gigawatts delivered since December 2023. With this, our operational portfolio now stands at 10.8 gigawatts with a 26% increase year on year. Our total committed portfolio now stands at 17.4 gigawatts, representing an impressive 27% growth year on year and an additional 1.1 gigawatts since the last earnings call. We have secured 3.9 gigawatts of renewable energy capacity and 600 megawatt hours of BEST through auctions so far this fiscal year, bringing our total pipeline to approximately 24 gigawatts plus two gigawatt hours of batteries, representing one of the largest renewable energy portfolios in India. A notable trend this year has been the strategic shift towards more complex projects with the majority of our auction wins this fiscal originating from such projects.

[Sumant Sinha, Founder, Chairman & CEO at ReNew Energy Global]

While we are not aggressively seeking additional capacity in the near term, we continue to adopt a disciplined approach targeting auctions that offer attractive return profiles. With the decline in battery prices, the market has seen increasing number of battery plus solar solutions auctions. We are excited to announce that we won our first solar plus battery energy storage system tender this year. We remain confident in meeting our targeted megawatt installations by the end of the year. This includes about 600 megawatts, which is subject to timely regulatory approvals and build out of transmission infrastructure.

[Sumant Sinha, Founder, Chairman & CEO at ReNew Energy Global]

Our manufacturing facility continues to expand towards its full potential and is now producing about 10 megawatts per day of modules. Additionally, we have been able to secure an aggregate order book of about two gigawatts till date, doubling it in a quarter. These modules and cells are expected to be delivered over the course of the next fiscal. Our manufacturing facilities are produced by this time in aggregate about 3.6 gigawatts of modules and about 300 megawatts of cells till date. Continuing our path towards world class ESG practices, RENEW was also recognized as India's highest rated pure play renewable energy company by SLP.

[Sumant Sinha, Founder, Chairman & CEO at ReNew Energy Global]

Let me now hand it to Kailash for finance and other highlights.

[Kailash Vaswani, Chief Financial Officer at ReNew Energy Global]

Thanks, Sumant. Turning to Page seven, we are committed to bringing in efficiency in our operations and reducing costs, while we continue to deliver profitable growth. This quarter, we saw 500 basis points improvement in margins, primarily driven by our cost optimization initiatives and lower provisioning than the previous comparable quarter. Our DSOs, which is Debtors to Sales Outstanding, saw a twenty two day reduction from Q2 of this year, solidifying our balance sheet and improving our cash flows. WindPLF trended lower this year compared to last year, due to which we have reduced the FY 2025 EBITDA guidance range to INR 74,000,000,000 to INR 78,000,000,000 and the cash flow to equity guidance to INR 11,000,000,000 to INR 13,000,000,000.

[Kailash Vaswani, Chief Financial Officer at ReNew Energy Global]

When providing guidance for the current fiscal year, we assume weather similar to FY 2024, while actually we have experienced lower wind PLFs almost every quarter and fourth quarter is also below the same quarter in the prior year so far. Lastly, the new shareholders have received a non binding offer by a consortium comprising of CPP Investments, Masdar, Adia and Suman Sinha. These special committee comprising of independent directors and advised by Rothschild and Linklater have been in discussion with the consortium regarding the offer. While we understand that our stakeholders are eager to know what's going on, however, you will appreciate that currently we cannot comment on the timing or status of the process and we will report to the market as soon as there is a development at our end. We will not be able to comment further on the offer at this stage.

[Kailash Vaswani, Chief Financial Officer at ReNew Energy Global]

Let me turn it back to Sumant.

[Sumant Sinha, Founder, Chairman & CEO at ReNew Energy Global]

Yes. Thanks, Kailash. Turning to Page nine, I'm happy to report that we have been able to increase our operating megawatts by about 26% year on year and our total operating portfolio now stands at 10.8 gigawatts. During the last twelve months, we have been able to commission over 2.6 gigawatts and have commissioned about 1.3 gigawatts so far in this fiscal year. In addition, our total contracted portfolio has grown by about 27% to 17.4 gigawatts.

[Sumant Sinha, Founder, Chairman & CEO at ReNew Energy Global]

During the year, we signed PPS for approximately 3.8 gigawatts of RE capacity and our committed capacity is now 17.4 gigawatts along with 800 megawatt hours of BES. While the auction market provides ample opportunity to grow, we continue to be disciplined in our approach to bidding. We are selective and conservative in our bidding and so far this year have managed to secure 3.9 gigawatts of RE in the current fiscal year along with another 600 megawatt hours of BESS. We do see that batteries will play a significant role in providing grid balancing in the future and provide flexibility to grow with more certainty on returns. We have won our first Solar Plus best bid in the current fiscal and will continue to focus on these bids as well.

[Sumant Sinha, Founder, Chairman & CEO at ReNew Energy Global]

Our capital recycling program also continues as earlier as we signed an agreement to sell a 300 megawatt secchi solar asset with the transaction expected to close by March 2025 with valuations in line with our past capital recycling transactions. Turning to Page 10, execution remains our core strength and time and again we have demonstrated our ability to build large scale projects efficiently and within budgeted costs. On the solar construction front, we have already commissioned eleven twenty megawatts this year with an additional 175 megawatts in the final stages of regulatory approvals. Moreover, 400 megawatts of solar projects are fully erected and will move towards COD approvals. The Peak Power project has also been commissioned under the PPA and we have also commissioned almost 800 megawatts of our RTC project.

[Sumant Sinha, Founder, Chairman & CEO at ReNew Energy Global]

In the Wind segment, we have commissioned 140 megawatts year to date with another 500 megawatts of turbines already installed and ready for grid connection. While most of the work has been completed at our end, large pile connectivity and administrative hassles could have a minor impact on the commissioning timelines. Our manufacturing business is turning out to be a significant competitive advantage for us. On one hand, we get access to uninterrupted supply of high efficiency modules. On the other hand, external sales enable in generating cash for the company and help derisk the business.

[Sumant Sinha, Founder, Chairman & CEO at ReNew Energy Global]

The business generated an EBITDA of approximately INR $560,000,000 in Q3 of fiscal twenty twenty five. Our manufacturing facilities have produced an aggregate of 3.6 gigawatts of modules to date and is approaching an average daily production rate of nearly 10 megawatts every day. As we ramp up production, our sales team has played a crucial role in securing contracts for surplus capacity. To date, we have secured an external order book of two gigawatts, which includes 1.1 gigawatts of sales plus modules, a volume we aim to deliver over the next fiscal year. Lastly, our cell facility started commercial production in the current year in the current quarter and has already doubled has already produced over 300 megawatts of cells.

[Sumant Sinha, Founder, Chairman & CEO at ReNew Energy Global]

We have achieved an industry leading efficiency of 23.2 for our cells, underlining our commitment to quality and high standards. I will now hand it back to Kailash to go through the finance section.

[Kailash Vaswani, Chief Financial Officer at ReNew Energy Global]

Thanks, Sumant. Turning to Page twelve, our operational portfolio has seen a 26% year over year increase in megawatts, underscoring the strength of our EPC execution capabilities. Our cost optimization efforts are showing results and EBITDA margins have expanded significantly from 75% to 80% in the current quarter and improved by two forty basis points for the nine month period ended December. Adjusted EBITDA rose by 11% year on year, primarily impacted by weaker than expected wind performance. We also continue to see improvement in DSOs.

[Kailash Vaswani, Chief Financial Officer at ReNew Energy Global]

Our DSOs now stand at seventy two days, our lowest ever and a twenty two day reduction over the previous quarter. If you look at the year on year EBITDA walk, while newly commissioned projects contributed an additional INR 2,800,000,000.0 in revenue, but lower than expected wind resource led to a revenue reduction relative to guidance of INR 1,600,000,000.0 for the quarter. Furthermore, asset sales during the period resulted in a comparative revenue reduction of approximately INR 900,000,000, partially offset by the INR 1,100,000,000.0 savings in the quarter that we achieved through our cost optimization initiatives such as internalization of O and M that was earlier outsourced to win OEMs, SG and A reduction and a reduction in discretionary spend along with the lower one off impact. Let me now turn to page 13. All of India has been impacted by poorer wind resource in fiscal twenty twenty five compared to last year, details of which are there on page 23.

[Kailash Vaswani, Chief Financial Officer at ReNew Energy Global]

While we based our initial guidance on weather being similar to fiscal twenty twenty four, however, wind PLFs have been below fiscal twenty twenty four levels and solar PLFs have also been slightly lower. While our cost optimization initiatives have helped mitigate this impact onward, we still have to make a revision to our FY twenty twenty five EBITDA guidance due to the RUB 4,700,000,000.0 impact on account of weather. In Q3 FY twenty twenty five, portfolio level wind PLF stood at 13.5%, a decline from 17% over the previous year. During the first nine month period, absolute wind payoffs have fallen by almost two forty basis points. Although wind performance has been lower than anticipated, our cost optimization initiatives have helped mitigate part of the impact due to savings of RMB2 billion in the first nine months of the current fiscal year.

[Kailash Vaswani, Chief Financial Officer at ReNew Energy Global]

Turning to Page 14, in spite of the lower than expected EBITDA performances, we continue to be committed towards being disciplined in our leverage. Our operating project leverage ratio continues to be below 6x using trailing twelve month EBITDA rather than the run rate figures, which under normal weather conditions should improve slightly. Let me now hand it over to Vaishali for comments on ESG.

[Vaishali Sinha, Cofounder of ReNew & Chairperson of Sustainability at ReNew Energy Global]

Thank you, Kailash. Turning to Page 16 and reviewing advancements in Venue's ESG initiatives and targets now. 2024 has been a stark reminder of our climate reality. With global temperature surpassing the 1.5 degrees centigrade threshold, the importance of sustainability has never been more evident. At Renew, we remain unwavering in our commitment to this call.

[Vaishali Sinha, Cofounder of ReNew & Chairperson of Sustainability at ReNew Energy Global]

Over the last quarter, we have made significant strides in the following areas: ESG ratings, RENEW's performance in the highly regarded S and P Global corporate sustainability assessment has been a major highlight for us in this quarter. We became the highest rated pure play renewable energy company in India by achieving our highest ever score of 73 out of 100. Additionally, we made history as the first company from India's electric utility sector to be included in the prestigious S and P Global CSA yearbook. Green certifications. Renew's Jaipur manufacturing plant achieved the highly acclaimed LEED Gold Certification, further reinforcing our commitment to a green and sustainable set of operations.

[Vaishali Sinha, Cofounder of ReNew & Chairperson of Sustainability at ReNew Energy Global]

Leadership Awards. In the past quarter, Renew has received nationwide recognition from leading publications and organizations. We were named company of the year by First View for our business excellence, innovation and renewable energy leadership. Our solar, wind and hybrid plants secured the CII Performance Excellence Awards, while Financial Express honored us as the winners in the Clean Energy Champion category at the GreenSARTHI Awards. Now turning to Slide 17 to review the progress made across our ESG targets.

[Vaishali Sinha, Cofounder of ReNew & Chairperson of Sustainability at ReNew Energy Global]

Renew remains committed to achieving its SPTI validated net zero target. The development of our decarbonization roadmap for manufacturing is underway. And we are advancing efforts to reduce Scope three emissions through the ongoing assessment of a sustainable supply chain, which includes detailed supplier ESG assessments, target setting and advanced monitoring. Social responsibility is integral to our business, driving community stewardship, volunteerism and equitable development. This commitment propels us towards our goal of impacting 2,500,000 lives by 02/1930 with the programs already reaching over 1,400,000 lives impacted.

[Vaishali Sinha, Cofounder of ReNew & Chairperson of Sustainability at ReNew Energy Global]

In quarter three, we made considerable progress in this regard. We distributed 163,000 blankets to those who needed them the most. Solar electrification of 46 schools is underway and 55 digital labs have been established across the country. As part of our solar panel work program, we are upskilling women and a total of five ninety five women have been trained to date with 150 completing this training in quarter three. As part of our company wide sustainability targets, we remain on track to achieve both our short and long term rating goals.

[Vaishali Sinha, Cofounder of ReNew & Chairperson of Sustainability at ReNew Energy Global]

These ratings underscore the impact of our first integrated report, and we look forward to building on this momentum and reporting our progress with the release of our second integrated report in 2025. I will now ask Kailash to cover guidance.

[Kailash Vaswani, Chief Financial Officer at ReNew Energy Global]

Thank you, Visha Lee. Coming to our guidance, we are reaffirming our megawatt guidance for the year, which includes 600 megawatts, the commissioning of which is dependent on timely regulatory approval and timely build out of the transmission infrastructure. While we have a good handle on execution, we are impacted by weather and its seasonality. We are lowering the range of our full year 2025 expectation on adjusted EBITDA and cash flow to equity guidance. On the other hand, we are happy to update the run rate guidance for our target portfolio of 17.4 gigawatt, which is up 1.1 gigawatts since the last quarter.

[Kailash Vaswani, Chief Financial Officer at ReNew Energy Global]

With that, we'll be happy to take questions.

[Operator]

Thank Your first question comes from Justin Blair with Roth Capital Partners.

[Justin Clare, MD & Research Analyst at Roth Capital Partners, LLC]

Hi, thanks for taking my questions here.

[Justin Clare, MD & Research Analyst at Roth Capital Partners, LLC]

So first off,

[Justin Clare, MD & Research Analyst at Roth Capital Partners, LLC]

I wanted to start with some of the wind PLF. Q3, the PLF was lower than it has been historically here. I was wondering, is this just the result of lower wind speeds in India broadly? Was there any other issue or any factors in terms of the performance of your specific projects? And then wondering if you could just talk about how you've seen wind PLS trend into Q4 and

[Justin Clare, MD & Research Analyst at Roth Capital Partners, LLC]

whether

[Justin Clare, MD & Research Analyst at Roth Capital Partners, LLC]

or not we're seeing a return to kind of historical averages?

[Sumant Sinha, Founder, Chairman & CEO at ReNew Energy Global]

Hi,

[Sumant Sinha, Founder, Chairman & CEO at ReNew Energy Global]

Justin. Look, the PLF reduction was entirely on account of wind. Wind speeds in Q3 were significantly lower. And so you should assume that the entire delta and PLF as an account of wind speed differentials from the long term averages. That is really what caused the decline in revenue along with that.

[Sumant Sinha, Founder, Chairman & CEO at ReNew Energy Global]

So far wind speeds are in Q4. It's always obviously early to comment on it. Are getting closer back to normal. So I would say they're not entirely back to normal, but they are certainly not as quite as bad as they were in Q3. So that's where we are right now.

[Justin Clare, MD & Research Analyst at Roth Capital Partners, LLC]

Got it. Okay. And then wanted to see, you mentioned that rates could be lower than India here. I was wondering where you think rates could settle for your project finance, what you think the outlook is there? And then how much of your debt do you think could be could benefit from lower rates here in the near term?

[Justin Clare, MD & Research Analyst at Roth Capital Partners, LLC]

And if you could potentially quantify what the potential impact might be, that could be helpful.

[Sumant Sinha, Founder, Chairman & CEO at ReNew Energy Global]

Yes, sure. I can take that, yes.

[Kailash Vaswani, Chief Financial Officer at ReNew Energy Global]

So Justin, as far as the rate reduction is concerned, so we're yet to see the transmission of that from the lenders into their lending rates. But whether we have rates which are linked to short term benchmarks like three month treasury bills, there we have started seeing the benefit of that because the short term rates have started reducing. But that would be a small component of our portfolio. I think the overall the variable rate part of the portfolio, you will see some reduction happen, which is around 30%, thirty five % of our portfolio would be borrowing from domestic institutions where some part of this benefit we will see. But as when the transition happens, how much will happen that will be known as more time goes by.

[Kailash Vaswani, Chief Financial Officer at ReNew Energy Global]

Right now we've not seen any bank significantly cut their marginal cost lending rates, which is the MCLR. And hence, we've not benefited on a large part of our portfolio, but on a small part, this could be less than 10%, which was linked to very short term rates. We start seeing that benefit. But that is in any case, that was more of a leading indicator. Those rates have in any case gone down and hence, we got that benefit earlier before the rate cut also happened.

[Sumant Sinha, Founder, Chairman & CEO at ReNew Energy Global]

And Kailash, the long term outlook,

[Sumant Sinha, Founder, Chairman & CEO at ReNew Energy Global]

is it an outlook?

[Kailash Vaswani, Chief Financial Officer at ReNew Energy Global]

So long term outlook, again, with inflation coming, being tamed in and government's hope to be on encouraging more growth, also encouraging more consumption. I think there would be continued reduction in rates which is likely to happen. Only caveat there is obviously the currency where to some extent given that the rupee had appreciated quite sharply against the dollar, that could be one thing which will be playing on the government's mind in terms of how much to reduce and how fast to reduce, because obviously then that will result in a flight of capital.

[Justin Clare, MD & Research Analyst at Roth Capital Partners, LLC]

Got it. Okay. And then just one more, curious on the battery plus solar solutions here. I was wondering if you could talk about the anticipated product returns and how those compare to plain vanilla solar projects or more complicated around the clock projects? Just how attractive do you see the returns there?

[Sumant Sinha, Founder, Chairman & CEO at ReNew Energy Global]

Yes. I think a lot depends on the assumptions that you make on the pricing of batteries, obviously, when you make the bid. Now prices of batteries have continued to go down quite substantially as we all know. And so therefore, wherever we have batteries and whatever batteries we have in our portfolio, looking attractive because the assumptions that we've made on pricing were relatively conservative. And because of the reduction in pricing, we are sort of looking at, I think, attractive returns on those.

[Sumant Sinha, Founder, Chairman & CEO at ReNew Energy Global]

I would say that plain Manila Solar

[Sumant Sinha, Founder, Chairman & CEO at ReNew Energy Global]

probably, in a way gives

[Sumant Sinha, Founder, Chairman & CEO at ReNew Energy Global]

us just the lower returns of the three and then you have solar plus storage and then you have the FDRE bids, which are probably the highest return. The delta between them is probably in terms of IRR is maybe 3%, two % to 3% or thereabouts with Solar plus best being somewhere in the middle. But eventually when we get to execute the projects, it may be that best prices have gone down to a level that we actually end up doing quite well on those projects as well.

[Justin Clare, MD & Research Analyst at Roth Capital Partners, LLC]

Got it. That makes sense. Okay. Thank you.

[Operator]

Your next question comes from Maheep Manloy with Mizuho.

[Maheep Mandloi, Equity research - Renewables & Clean Energy at Mizuho Financial Group]

Hey, good morning from O'Hare and thanks for the questions. First, just on the solar manufacturing that you guys have, I think on the last call, you said you're at 10 megawatt per week run rate. Could you just remind us what the run rate is on the sell in module for you guys and how to think about the backlog? How much of that should be do you expect revenue recognition and on a quarterly basis going forward here? Thanks.

[Sumant Sinha, Founder, Chairman & CEO at ReNew Energy Global]

Yes. So look, I think I'll talk about the production and I'll ask Kailash to answer on the revenue part. On the production part, we are sort of between 10 megawatts and 11 megawatts right now per day of modules. That's the rate that we are producing at right now. So if you want to analyze that, assume three fifty workdays, then you get a sense of where the megawatts is from an overall standpoint.

[Sumant Sinha, Founder, Chairman & CEO at ReNew Energy Global]

The eventual goal is to get that to over twelve, thirteen megawatts a day. So we are sort of moving in that direction quite well, given that some part of our module capacity was commissioned fairly recently. On the cell side, we are close to we are producing between 3.5 megawatts to four megawatts every day right now. And that is something that again is getting close to what the expected production rate was or needs to be on a steady state basis. And the more important thing almost there is that the efficiency levels on sales is actually among the highest in the country right now.

[Sumant Sinha, Founder, Chairman & CEO at ReNew Energy Global]

So our team has been able to really stabilize the plant at a fairly high operating efficiency level. So that's positive. On the revenue side, Kailash, would you like to take that?

[Kailash Vaswani, Chief Financial Officer at ReNew Energy Global]

Yes, sure. So again, Mahesh, just to clarify, most of the revenues from captive sales, which happens to the Renewable Energy arm of renew, that is all capitalized into the balance sheet because obviously it's within the groups and consolidation it gets knocked off. So for third party is what we have reported our numbers for the first time this time. So for the first nine month period, which was largely most of the sales happened in the quarter, we had INR 3,400,000.0 of revenues and around INR INR 600,000,000 of EBITDA that for the current period. And going forward, obviously, as in when third party sales has happened, then similar amounts would then be reported for the third party portion only.

[Maheep Mandloi, Equity research - Renewables & Clean Energy at Mizuho Financial Group]

Got you. And maybe just a follow-up on the module side. We see a lot of Chinese companies or maybe U. S. Companies also claiming ownership of Topcon patents and bunch of lawsuits and not in India, but other regions.

[Maheep Mandloi, Equity research - Renewables & Clean Energy at Mizuho Financial Group]

But is that a concern for you? Are you seeing any of those port over to the Indian market?

[Kailash Vaswani, Chief Financial Officer at ReNew Energy Global]

I

[Kailash Vaswani, Chief Financial Officer at ReNew Energy Global]

think

[Kailash Vaswani, Chief Financial Officer at ReNew Energy Global]

Yes. I was

[Kailash Vaswani, Chief Financial Officer at ReNew Energy Global]

just saying that, see, BNEMEK is not mostly companies who are exporting into The U. S. That's where most of these actions were taken given that we do not have any exposure to The U. S. Market in terms of exports.

[Kailash Vaswani, Chief Financial Officer at ReNew Energy Global]

We didn't see any we don't plan expect to have any such impact.

[Maheep Mandloi, Equity research - Renewables & Clean Energy at Mizuho Financial Group]

Got it. And just one last one. On the 300 megawatt sales transit, I'm not sure if you talked about it, but could you talk about the multiples you're expecting on those or if they're in line or better than what we saw in the past sales you had?

[Kailash Vaswani, Chief Financial Officer at ReNew Energy Global]

Yes, Maheep. So it's commented obviously in the present business from Gabe, but basically it's in line with our past recycling initiatives.

[Maheep Mandloi, Equity research - Renewables & Clean Energy at Mizuho Financial Group]

Got you. Sorry, I missed that. But no, appreciate the color.

[Maheep Mandloi, Equity research - Renewables & Clean Energy at Mizuho Financial Group]

Thanks.

[Operator]

Your next question is from Nicole Nagania with Bernstein.

[Nikhil Nigania, Director at Bernstein]

Thank you for taking my question. My first question is on the broader renewables space. While the government is pushing on their plans, we are hearing some headwinds, land availability for wind, transmission access, which seems to be alluded in the presentation as well and even PPA signing. So if you could share some color on these aspects, is venue facing similar challenges or how does this public see it on these aspects?

[Sumant Sinha, Founder, Chairman & CEO at ReNew Energy Global]

Yes, hi. So I think that the allusion that we made to transmission issues really is a very sort of small issue, which is that there is a bay that we're connecting to in one of our projects. That bay is getting ready a month later than it was supposed to. And because of the March 31 deadline for commissioning, therefore it sort of puts a little bit of a question mark on or ambiguity on whether that is going to then get done before March 31 or not, whereas we're going to be fully ready from our side. But whether it happens on March 31 or if not, then it will happen ten days later.

[Sumant Sinha, Founder, Chairman & CEO at ReNew Energy Global]

So that is not such a big issue from our overall revenue generation standpoint and so on. And the bigger issues that you're addressing or you're raising are around LAN and general connectivity, availability and PPS ID. So let me try to address those quickly. So as far as we are concerned on transmission, we have got all the connectivity for all of the 24 odd gigawatts of pipeline that we have got fully in hand. So we don't have any issues around connectivity right now.

[Sumant Sinha, Founder, Chairman & CEO at ReNew Energy Global]

And in fact, we have surplus connectivity. I think as you had yourself written in a report some time ago, we have surplus connectivity and therefore any new bids that happen, we'll actually be in really good position to use some of that land based connectivity that we have to win those auctions. Now, we are also able based on the connectivity's commissioning dates, we are also able to in some ways smooth out our execution of this 24 odd gigawatts over the next few years' time. Now there may be delays in some of the connectivity coming up by a few months here and there, but by and large, the delays are not more than that. And therefore, if you plan your execution out reasonably well in terms of which projects going to which substations and so on, by and large, those get delivered.

[Sumant Sinha, Founder, Chairman & CEO at ReNew Energy Global]

As I said, there could be a few months here and there, but the delays are not more than that. So I would say that connectivity is becoming a problem for those companies that have not proactively blocked the connectivity earlier, which fortunately is something that we had done. So therefore connectivity per se is something that is fine for as far as we are concerned. As far as land is concerned, land is a problem in wind. It has always been a problem in wind projects.

[Sumant Sinha, Founder, Chairman & CEO at ReNew Energy Global]

And that is why if you see a lot of our increase in our commissioning is happening out of solar, not so much out of wind. We don't expect that wind is something that is going to exceed maybe five gigawatts a year in the country over the next few years, maybe the next two, three years, you'll probably end up just doing about that much capacity in wind as an industry I'm seeing. And our share within that will be whatever it will be based on our own commissioning plans. So land is definitely a problem and particularly in the last six to nine months, there are a lot of projects have been done in Maharashtra. There were specific issues on account of certain Ministry of Defense issues because of the elections that were coming up and then local law and order problems that I'm sure you've read about in the press.

[Sumant Sinha, Founder, Chairman & CEO at ReNew Energy Global]

And frankly, that has also impacted us in terms of our commissioning timelines. Otherwise, we hopefully would have got some of the wind projects commissioned by this time. So that always is something that we have to bake into our plans that wind projects do take longer to get commission than solar projects very often. And then as far as PPAs are concerned, on the PPA signing, I would say that this year there has been reasonably decent progress on PPA signings given the large backlog or the large amount of bids that have happened in the last two years. The fact that out of the maybe 120, one hundred and 30 gigawatts of bids that have happened in the last in this current financial year and the previous one, there are only maybe 30 to 35 gigawatts of unsigned PPAs, but the balance of it is all got signed.

[Sumant Sinha, Founder, Chairman & CEO at ReNew Energy Global]

So I would say that there is a lot of headroom that is built up now in terms of signed PPAs,

[Sumant Sinha, Founder, Chairman & CEO at ReNew Energy Global]

if you were to look

[Sumant Sinha, Founder, Chairman & CEO at ReNew Energy Global]

at that as another indicator of what capacity additions may happen in the near term. So my sense is that the balanced PPAs will also get signed. And I think at this point, the government is wondering not wondering, but is considering slowing down the pace of bids potentially to allow the old bids to get signed. And that is perfectly fine because the pace of bidding has been extremely rapid. So I think it will give all of us a little bit of breathing room to just reassess where we are and look at our execution pipelines and so on.

[Sumant Sinha, Founder, Chairman & CEO at ReNew Energy Global]

So I think that is a that would be a healthy thing in my opinion. So my sense is all the people eventually will get signed or at least the most amount of them will get signed.

[Nikhil Nigania, Director at Bernstein]

Makes sense. I appreciate the industry color. Second question I had is the solar cell business. I mean, very timely commissioning of the business manufacturing plant. But when we see some peers, we understand you have captive views, but when we see some peers, they talk about sale prices, domestic sale prices being around $0.14 to $0.15 for what we think is for sales, domestic sales.

[Nikhil Nigania, Director at Bernstein]

We were expecting sort of a higher impact of that. So do you see in the coming quarters, it could be a sizable number that the manufacturing business could throw up for profitability?

[Sumant Sinha, Founder, Chairman & CEO at ReNew Energy Global]

For sure, I think cell prices in the market right now are fairly attractive. And we are not selling any cells to ourselves. We are selling modules to ourselves right now. And we are selling cells into the market outside into the external market simply because most of our projects don't require domestic cells at this point. So all of our cells will be going into the external market.

[Sumant Sinha, Founder, Chairman & CEO at ReNew Energy Global]

And so to that extent, we will actually gain from the pricing that is in the market right now. And that will of course start getting reflected in our P and L as we go forward.

[Nikhil Nigania, Director at Bernstein]

Got it.

[Nikhil Nigania, Director at Bernstein]

And one last question

[Sumant Sinha, Founder, Chairman & CEO at ReNew Energy Global]

that you asked We are selling at a lower price than where the market is at, just by the way. So that is not the case. So you should assume that wherever the market is, we are also sort of at the same point.

[Nikhil Nigania, Director at Bernstein]

And one last question I had is, I mean, the dollar has moved much faster than many of us anticipated. So just on the hedging front, wanted to understand both on the debt and the CapEx front. So debt, is it all hedged by swaps or is it options as well? And on the CapEx front also whatever exposure we have, are we hedged on the currency side?

[Kailash Vaswani, Chief Financial Officer at ReNew Energy Global]

Yes, Nikhil. So basically for hedging, we use couple of different instruments. Most of our borrowings from foreign commercial banks or DFIs that are fully hedged using swaps. Some of our bonds also recently when we had the opportunity of seeing lower hedging costs and the rupee was also fairly stable for the longest period of time below 83, we had most of that into full swaps, full currency swaps. We have two bonds, one of them has a call spread, where there is full coverage up to a certain point and beyond that debt exposure, which is, I think, if I remember correctly, that limit is like 90 or 92 in that range, beyond which we have some exposure.

[Kailash Vaswani, Chief Financial Officer at ReNew Energy Global]

And then there is one bond in which we are exposed till the 90 or 92 beyond which we have exposure. So it's like a diversified hedging policy that we follow and we know what our maximum exposure could be and it's again in line with our stated hedging policy which is approved by the Board and Audit Committee.

[Nikhil Nigania, Director at Bernstein]

Thank you. Those are my questions. Thanks for answering.

[Anunay Shahi, SVP - Corporate Finance at ReNew Energy Global]

Thank you.

[Operator]

Your next question comes from Puneet Galati with HSBC.

[Puneet Gulati, Director - Equity Research at HSBC]

Yes. Thank you so much for the opportunity. My first question is, you know, it has been postponed for for the right now. Are you now baking that also in your 17.4 gigawatt guidance of TUH?

[Kailash Vaswani, Chief Financial Officer at ReNew Energy Global]

So, Puneet, basically the expectation is that that's obviously a long term guidance. So we don't make long term changes into that. It is largely what we've tried to do is that assume the long term forecast, which has been corrected based on the experience of the last few years, but not reflected of every year on year performance, for example. And that way we have tried to estimate the long term guidance. Our expectations continue to remain that wind does move in cycles and this has been an extended cycle, which hopefully will reverse and we should see the dividends on that also.

[Puneet Gulati, Director - Equity Research at HSBC]

Understood.

[Puneet Gulati, Director - Equity Research at HSBC]

And secondly, you also have a lot of unsigned LOAs and why so on did you to the fact that product can get signed. There is also guidance note floating around the field that unsigned LOAs beyond twelve months can will be allowed to lapse. Can you comment on what is your view on that?

[Sumant Sinha, Founder, Chairman & CEO at ReNew Energy Global]

So, I think Puneet, there are lots of conversations obviously that are happening in the government. There is also another school of thought that says that canceling any PPAs will lead to a lot of reputational damage for the government. Then the question also becomes what happens to the connectivity associated with those bids? How does that get allocated? So it's a little bit of a complicated question.

[Sumant Sinha, Founder, Chairman & CEO at ReNew Energy Global]

And also what will happen is that these NOAs or these bids that have happened are bids that predate the ALMM for sales. And so any future bids that happen, which will have to account for domestic sales will be more expensive. And therefore, the chances are that DISCOMS will realize that those earlier bids are actually more attractive. And we'll look to potentially sign those rather than have those getting canceled.

[Puneet Gulati, Director - Equity Research at HSBC]

Yes, that's a good point here. Thanks.

[Puneet Gulati, Director - Equity Research at HSBC]

And currently, if you can also comment on the process of buyback, I know you won't comment much, but what is the next stages should we see on the buyback side?

[Kailash Vaswani, Chief Financial Officer at ReNew Energy Global]

So Puneet, it's not exactly a buyback. It's an offer by a group of shareholders to buy out the investors, the public investors and with the intention of taking the company private. So again, as we said in our earlier remarks that we have got this offer, which is being evaluated by the Specialty Committee, advised by Russia and Linklater. And once there is a new movement, then we will be announcing it.

[Puneet Gulati, Director - Equity Research at HSBC]

Okay. So will the independent board get involved here or

[Puneet Gulati, Director - Equity Research at HSBC]

is there some discussion?

[Kailash Vaswani, Chief Financial Officer at ReNew Energy Global]

Yes, with the Special Committee form which comprises of only independent directors.

[Puneet Gulati, Director - Equity Research at HSBC]

Okay. Understood. And lastly, if you can talk a bit about capacity addition plans for FY twenty six and specifically for projects which you can commission before June of twenty twenty five?

[Kailash Vaswani, Chief Financial Officer at ReNew Energy Global]

Before June of twenty twenty five, in terms of

[Kailash Vaswani, Chief Financial Officer at ReNew Energy Global]

So I think as Shubhrant would say Yes.

[Kailash Vaswani, Chief Financial Officer at ReNew Energy Global]

So there is a 600 megawatts lag, which is what if it spills over, then it would be commissioned within April of FY 2026, which is April 2025. And apart from that, obviously, we have we will be giving out our long term guidance in our June results. I mean, our March results will come out by early June.

[Anunay Shahi, SVP - Corporate Finance at ReNew Energy Global]

Because at least the I think it's difficult to give an estimate right away at this stage. So would advise waiting for FY 2026 guidance that Kailash said will come out along with our March results.

[Puneet Gulati, Director - Equity Research at HSBC]

Got it. Okay, great. That's all from us. Thank you so much and all the best.

[Kailash Vaswani, Chief Financial Officer at ReNew Energy Global]

Thanks, Manit.

[Anunay Shahi, SVP - Corporate Finance at ReNew Energy Global]

I think we have one question from Ankit Mittal of SBIR Netural Fund. And maybe you want to go ahead.

[Operator]

One moment. I'll announce the next question. One moment.

[Operator]

The next question will come from Anika Mittal of SBI Mutual Fund. Please go ahead.

[Aniket Mittal, Equity Analyst at SBI MUTUAL FUND]

Thank you. Just a couple of questions on the line.

[Sumant Sinha, Founder, Chairman & CEO at ReNew Energy Global]

I couldn't catch that question at all. I don't know whether you guys did, but if you can repeat it, that would be great.

[Aniket Mittal, Equity Analyst at SBI MUTUAL FUND]

I would. Am I audible,

[Sumant Sinha, Founder, Chairman & CEO at ReNew Energy Global]

Prashant? It's sort of you're going in and out a little bit.

[Aniket Mittal, Equity Analyst at SBI MUTUAL FUND]

Okay. Just give me

[Aniket Mittal, Equity Analyst at SBI MUTUAL FUND]

a minute. Yes, sir, the question also of voice mail again?

[Kailash Vaswani, Chief Financial Officer at ReNew Energy Global]

If I can just, Aniket, for someone's benefit, I think I've probably got the question. Correct me if I'm wrong. It's like our PLS decline has been higher compared to some of the other peers. So it's relative. Is it a function of the region where we are present, where we've seen a bigger decline?

[Kailash Vaswani, Chief Financial Officer at ReNew Energy Global]

Is that your question?

[Aniket Mittal, Equity Analyst at SBI MUTUAL FUND]

Yes, that's the question. And again, just to understand, do these pillars now be closer to P90 limits? Those are the assumptions.

[Sumant Sinha, Founder, Chairman & CEO at ReNew Energy Global]

Yes. They're probably closer to P90, although we haven't done the exact math. I don't know what the guidance is or what the estimate is that you've got from the other companies. So I really can't make a comparative statement. I would just tell you that the wind in the month of October and November was drastically lower than it has been in prior years.

[Sumant Sinha, Founder, Chairman & CEO at ReNew Energy Global]

And that could be perhaps because the monsoon got extended and we had fairly warm sort of periods of time at that time. And that's why the usual reversal of wind that takes place from the Southwest to the Northeast that took a lot longer to happen than expected, than it normally does. December was closer to average, still not fully at average and January has been kind of similar to December and February of course is happening right now. So hard to comment. The only other thing I would say is that, at least in North India, this has been a very warm winter and we need temperature differentials between land and sea to increase for the northwest winds to flow.

[Sumant Sinha, Founder, Chairman & CEO at ReNew Energy Global]

And that is something that we have not seen as much this winter. And so that I think also has caused this lack of wind this period of time.

[Aniket Mittal, Equity Analyst at SBI MUTUAL FUND]

Understood. And the other question was just as I look at your pipeline, right, increasingly it's becoming more FTR and hybrid heavy. And in your presentation, also thought about the fact that the capacity that you're trying to put up is subject to change, which probably implies that you're looking at battery versus storage over here. Could you just give us some broad ballpark in terms of how do we look at the capacity additions for the incremental hybrid project? What sort of configuration are you thinking about in terms of wind solar hybrid?

[Aniket Mittal, Equity Analyst at SBI MUTUAL FUND]

For example, the SGV and DRE clearly seeing the people here sort of having a relook at that window there. So just some color over there will be fairly helpful.

[Sumant Sinha, Founder, Chairman & CEO at ReNew Energy Global]

Yes. So the configuration is a function of the bid requirement as well as sometimes you have the ability of in certain bids also buying a certain amount from the market and also a function of obviously the pricing of wind, solar and storage. So all of those things impact the configuration. Now at the time that we've been in some of these bids, the pricing was at a certain level and we came up with a certain configuration based on that, the pricing as well as of course all the other parameters that I was talking about earlier, which are the bid requirements and specifications. Now as time has elapsed or is elapsing, some of those relative pricing levels change.

[Sumant Sinha, Founder, Chairman & CEO at ReNew Energy Global]

And as I said, for example, first of all, solar prices have come down quite dramatically over the last couple of years. So any bids that happened two years ago, for example, would now have a different configuration because the price of solar has come down. The same thing with batteries. Battery costs have also come down quite dramatically in the last year or so. And so therefore, what we have required more wind earlier potentially can do will actually get more optimized or lead to higher returns now with a higher degree of solar and storage and a lower amount of wind.

[Sumant Sinha, Founder, Chairman & CEO at ReNew Energy Global]

So this is a dynamic situation in every bid And obviously at the time that we signed the PPAs when we have to fix the final configuration. And so at that time we rework the models and the basis that we come up with what is the best model, what is the best configuration at that given point in time based on all the costing and so on. So that and that changes as I said. So because the cost of solar and storage have been coming down, therefore, we are moving more towards solar and storage in these FDI bids and less wind.

[Aniket Mittal, Equity Analyst at SBI MUTUAL FUND]

Okay. And the other question was on the OEM part. I think I last mentioned in the remarks that one of the reasons declining OEM has been the internalization that we've been doing. So if you could provide some color on that, how much of the O and M is now being done internally? What's the scope of that going forward?

[Aniket Mittal, Equity Analyst at SBI MUTUAL FUND]

And how do we look at the O and M expense portion?

[Sumant Sinha, Founder, Chairman & CEO at ReNew Energy Global]

Yes. So you're okay. Carry on, Kailash. Please go ahead.

[Kailash Vaswani, Chief Financial Officer at ReNew Energy Global]

Yes. No, so again, just to answer the question, basically for solar, we do all the O and M in house. For wind, whether we have legacy asset, we have legacy long term O and M contracts with the OEMs. Now many of those cases, they're always sticky contracts, so it was quite difficult to get out of those. So whenever we were not able to get out, what we tried to do is we reduced the pricing, we negotiated the pricing, and accordingly, we got some savings.

[Kailash Vaswani, Chief Financial Officer at ReNew Energy Global]

And whether we could, whether the fee O and M period was over and where there was no such long term arrangement in place, in those cases, we have started doing the O and M in house for these projects. Exact numbers we can circle back, but largely that's what we are seeing. Now this year what we have seen is the benefits largely are growing on account of both the reduction in the O and M cost that we had and because we had built certain O and M equalization reserves in the past just to iron out the difference between the free O and M period and the paid O and M period, because we had a reduction in the O and M cost, we were able to write back some of those reserves because those are no longer needed. And hence, there was that benefit that we saw in the current nine month period.

[Aniket Mittal, Equity Analyst at SBI MUTUAL FUND]

Got it. Just one last question. In terms of the external module sales you did this quarter, what's the quantity for other volume?

[Sumant Sinha, Founder, Chairman & CEO at ReNew Energy Global]

Sorry, what was the question?

[Aniket Mittal, Equity Analyst at SBI MUTUAL FUND]

Maybe I can jump.

[Sumant Sinha, Founder, Chairman & CEO at ReNew Energy Global]

Yes, Amit, go ahead.

[Anunay Shahi, SVP - Corporate Finance at ReNew Energy Global]

Sumant, the question is what was the quantity of external modules in the third quarter?

[Sumant Sinha, Founder, Chairman & CEO at ReNew Energy Global]

Okay, go ahead.

[Anunay Shahi, SVP - Corporate Finance at ReNew Energy Global]

So Aniket, it was a little north of 200 megawatts of external sales that we booked for in Q3.

[Aniket Mittal, Equity Analyst at SBI MUTUAL FUND]

Okay. Those are the questions I have. Thank you.

[Operator]

Thank you. There are no further questions at this time. That does conclude our conference for today. Thank you for participating. You may now disconnect.

Participants

Executives

• Anunay Shahi, SVP - Corporate Finance
• Sumant Sinha, Founder, Chairman & CEO
• Kailash Vaswani, Chief Financial Officer
• Vaishali Sinha, Cofounder of ReNew & Chairperson of Sustainability

Analysts

• Justin Clare, MD & Research Analyst at Roth Capital Partners, LLC
• Maheep Mandloi, Equity research - Renewables & Clean Energy at Mizuho Financial Group
• Nikhil Nigania, Director at Bernstein
• Puneet Gulati, Director - Equity Research at HSBC
• Aniket Mittal, Equity Analyst at SBI MUTUAL FUND