ReNew Energy's Q3 2025: Contradictions in Wind Performance, Manufacturing Plans, and Revenue Strategies

These are the key contradictions discussed in ReNew Energy Global Plc's latest 2025 Q3 earnings call, specifically including: Wind Power Performance and Plant Factor (PLF) Expectations, Manufacturing Expansion Plans, and Module Production and Sales Strategy:



Capacity Commissioning and Portfolio Growth:
- ReNew Energy Global Plc commissioned approximately 1.3 gigawatts of new capacity in the fiscal year 2025 so far, with a total of 2.6 gigawatts delivered since December 2023.
- The operational portfolio increased to 10.8 gigawatts, representing a 26% year-on-year increase.
- This was driven by the company's leadership in project execution and greenfield project commissioning, despite challenging weather conditions.

Financial Performance and Profitability:
- ReNew achieved a 500 basis points improvement in margins, primarily due to cost optimization initiatives and reduced provisioning costs.
- Adjusted EBITDA rose by 11% year-on-year, though it was impacted by weaker than expected wind performance.
- The improvement in profitability was due to strategic cost reductions and efficiencies.

Wind PLF and Performance Challenges:
- Wind PLFs (plant load factors) experienced a decline, with Q3 PLF at 13.5% compared to 17% the previous year.
- The reduction was due to significantly lower wind speeds, particularly in the months of October and November.
- Future wind speeds are expected to normalize, but January and February continued to see below-average wind conditions.

Solar and Battery Energy Storage System (BESS) Focus:
- ReNew won its first solar plus battery energy storage system tender and continues to focus on these bids.
- Battery prices have significantly reduced, making these solutions more attractive.
- The shift towards more complex projects with battery integration is driven by market demands and cost efficiencies.