ReNew Energy Global plc - Ordinary Shares (RNW) Q1 Earnings call transcript Aug 16, 2025

ReNew Power, a leading renewable energy company in India, recently held its 1Q FY'25 earnings call, providing insights into the company's performance and strategic direction. The call, led by CEO Sumant Sinha, offered a comprehensive overview of the company's achievements, challenges, and future plans.

Financial Performance and Growth

ReNew Power reported a solid financial performance, with revenue growth of over 24% compared to the same period last year. Despite a slight dip in PLFs impacting revenues, the company's adjusted EBITDA increased by INR 400 million. The company's capital discipline and focus on low-risk projects have contributed to a leverage ratio well below the 6x threshold.

The company's strategy of pursuing growth while maintaining shareholder value has been evident in its recent auction wins, which are expected to generate returns higher than the historical average. ReNew Power's focus on accessing the cheapest sources of capital and exploring high-return opportunities has positioned the company well for future success.

ESG Commitments and Sustainability

ReNew Power's commitment to sustainability was highlighted in the call, with the company's inaugural integrated report showcasing its efforts in safety, sustainability, and social responsibility. The company avoided 16 million tonnes of greenhouse gas emissions and sourced 41% of electricity from clean sources, underscoring its dedication to reducing carbon emissions and promoting sustainable practices.

Manufacturing and Supply Chain

ReNew Power's manufacturing capabilities have emerged as a significant competitive advantage, with the company securing a 5-star safety rating for one of its projects. The company's module manufacturing is now fully met from its own facilities, and it has started securing external sales contracts for module supply, ensuring surplus capacity is put to good use.

Future Outlook and Challenges

Looking ahead, ReNew Power remains optimistic about its future growth prospects, with a focus on executing 1.9 to 2.4 gigawatts of capacity in FY'25. The company is also exploring opportunities in asset recycling and has started discussions with potential buyers. However, challenges such as weather variations and regulatory uncertainties remain, underscoring the need for a disciplined approach to capital deployment and risk management.

Investor Engagement and Stakeholder Relations

During the call, investors and analysts had the opportunity to ask questions, providing valuable insights into their concerns and priorities. ReNew Power's management team responded with transparency and confidence, demonstrating a strong commitment to investor relations and stakeholder engagement.

Conclusion

ReNew Power's earnings call provided a comprehensive overview of its financial performance and strategic direction. The company's focus on growth, shareholder value, and sustainability, along with its manufacturing capabilities and strategic partnerships, position it well for future success. The challenges facing the renewable energy sector, including weather variations and regulatory uncertainties, will require careful navigation, but ReNew Power's disciplined approach and strategic vision bode well for its future prospects.