ReNew Energy Global (RNW) Q1 Earnings call transcript Aug 16, 2025

In the recent earnings call for the first quarter of fiscal year 2025, ReNew Power Limited showcased a strong performance and outlined strategic plans for future growth. The call, led by Founder, Chairman, and CEO Sumant Sinha, emphasized key themes of growth, shareholder value, and environmental, social, and governance (ESG) commitments.

Growth and Shareholder Value

ReNew Power has been on a remarkable growth trajectory, with significant wins in auctions for renewable energy projects. The company has already converted 2.2 gigawatts of these wins into Power Purchase Agreements (PPAs), with the majority expected to be finalized in the coming months. This growth strategy is focused on accessing the cheapest sources of capital and securing projects with returns materially above the company's cost of capital. The recent auction wins are expected to generate returns higher than historical averages, signaling a positive trend for the company.

ESG Commitments and Sustainability

ReNew Power is committed to sustainability and has recently filed its annual 20-F report in compliance with the Sarbanes-Oxley Act (SOX) requirements. The company's inaugural integrated report, a testament to its ESG vision and performance, was also highlighted during the call. ReNew Power has achieved carbon neutrality for Scope 1 and 2 emissions for the fourth consecutive year and has made significant strides in safety, sustainability, and social responsibility. The company has also set a target to avoid 16 million tonnes of greenhouse gas emissions, save 358,000 metric cubes of water, and positively impact over 475,000 lives through its socioeconomic programs.

Financial Performance and Outlook

The earnings call also provided insights into the company's financial performance and outlook. Despite a slightly lower Planned Loss Factor (PLF) in the first quarter, ReNew Power remains optimistic about its annual EBITDA guidance. The company has executed 500 megawatts of capacity so far in the financial year and is well advanced on many other construction projects. Safety remains a top priority, with ReNew Power recently receiving a 5-star safety rating from the British Safety Council for one of its projects.

Capital Discipline and ESG Integration

ReNew Power's strategic approach to capital discipline and accessing the cheapest sources of capital, both for equity and debt, sets it apart from competitors. The company's focus on in-house teams for Engineering, Procurement, and Construction (EPC), Operations and Maintenance (O&M), and digital platforms has provided significant differentiation. ReNew Power's recent move into manufacturing has become a competitive advantage, providing a secure source of modules and ensuring module availability at the right cost.

Future Outlook and Challenges

Looking ahead, ReNew Power is focused on executing its growth strategy while maintaining a disciplined approach. The company aims to secure projects with lower risk and higher returns, with a commitment to maintain its FY'25 guidance. Challenges, such as the impact of weather conditions and the need for asset recycling, were also acknowledged during the call. However, ReNew Power remains confident in its ability to navigate these challenges and continue its growth trajectory.

In conclusion, ReNew Power's earnings call highlighted the company's strong performance, strategic focus on growth and shareholder value, and commitment to ESG principles. With a robust pipeline of projects and a disciplined approach to capital deployment, ReNew Power is well-positioned to continue its growth in the renewable energy sector.