ReNew Energy Global plc Class A Ordinary Shares 2027 Q1 Earnings Call

Thank you. Good morning, everyone, and thank you for joining us today. We have put out a press release announcing our results for the first quarter of fiscal year 2027. A copy of the press release and the earnings presentation are available in the IR section of ReNew's website at www.renew.com. With me today are Sumant Sinha, our founder, chairman, and CEO, Kailash Vaswani, our CFO, and Vaishali Nigam Sinha, co-founder and chairperson, sustainability. After the prepared remarks, which we expect will take 20 to 25 minutes, we will open the call for questions. Please note that 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.

Therefore, we encourage you to review the press release and the presentation on our website for a more complete description. Also contained in our press release presentation materials and 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 materials, and our annual report. With that, it is now my pleasure to hand it over to our founder, chairman, and CEO, Sumant.

Over to you, Sumant. Yes, thank you, Anunay.

Good morning, good afternoon, and good evening, everybody. I am glad to have you all on our earnings call for the first quarter of fiscal year ended March 2027. After a terrific fiscal 2026, where we reported our highest ever EBITDA and PAT, we continue to deliver on our promise of profitable growth in spite of the uncertain global macroeconomic situation and grid-related challenges in India. We also continue to be disciplined in our approach towards judicious use of capital and allocating capital only towards the highest return opportunities. Turning to highlights for this quarter. Our focus towards executing at scale continues as we delivered a 26% growth in our operating portfolio year-over-year. We have commissioned over one gigawatt to date in the current fiscal, which includes over 600 megawatts in Q1 itself.

Our overall committed portfolio now stands at 20.5 gigawatts and includes 1.7 gigawatts of BESS, and our total pipeline is at approximately 27 gigawatts. We also continue to execute our capital recycling plans. in June 2026, we closed the sale of 100 megawatt Tamil Nadu solar asset and received the proceeds. In August 2026, we also signed definitive documents for the sale of over 1 gigawatt of assets, which is expected to generate $190 million of cash flow to equity on closing. These transactions underline the quality of our asset base and our ability to continuously find buyers and attractive valuations. Additionally, we have 6.5 gigawatts of module and 2.5 gigawatts of cell capacity that is currently operational, and a 4 gigawatt cell facility of TOPCon that is expected to be fully operational by the end of the current fiscal year.

We have also filed our Form 20-F for FY 2026 and published our third integrated report with the theme Beyond Boundaries: Decarbonising Value Chains to Deliver Climate Value at Scale, in line with international reporting standards. Coming to our financial performance, in this quarter, we have delivered adjusted EBITDA growth of around 12%, with INR 30.4 billion adjusted EBITDA, including INR 5.7 billion contribution from our manufacturing business. Our profit after tax increased by 16% year-over-year, with INR 6 billion for Q1 of fiscal 2027, along with INR 12.8 billion in CFE. Our DSO continues to reduce as we expand our portfolio and legacy issues continue to get resolved. Subsequent to the end of the quarter, we received INR 57 billion from the Andhra Pradesh DISCOM, taking our DSOs as of July end to 54 days, 17 days lower than the Q1 FY 2027 DSO number of 71 days.

Let me now hand over to Kailash to take us through the next 7 pages.

Thank you, Sumant. Before turning to our operating performance, I would like to briefly address the take-private transaction announced on August 11, 2026. ReNew entered into a binding transaction agreement with the consortium comprising of CPP Investments and Sumant Sinha for the proposed take private of ReNew.

The proposed acquisition is expected to be effected through a U.K. scheme of arrangement and will be voted on by the non-consortium shareholders. Non-consortium shareholders may either receive cash of $7.02 per share by transferring their shares to CPP Investments or its designated affiliates, or subject to certain conditions, elect to roll over and remain shareholders. The specialty committee, comprising of independent directors, having received Rothschild & Co's opinion that the cash offer is fair from a financial point of view to the non-consortium shareholders, considers the cash offer and transaction agreements fair and reasonable, and intends to unanimously recommend that shareholders vote in favor of the scheme. Further details on the scheme's timing will follow in due course. Turning back to presentation on slide 13 on the industry backdrop. The electricity demand increase continues to support renewable energy growth.

Renewables contributed 86% of overall power capacity addition in Q1 FY 2027, with 14 gigawatts of renewable energy capacity added. This included 12 gigawatts of solar and 1 gigawatt of wind and hydro each. Coming to the demand side, peak demand has already touched around 271 gigawatts in FY 2027. Overall electricity demand in July 2026 was up 11% year-on-year and was up 9% year-on-year for April to June period. Demand is also increasing more in non-solar hours, which supports higher battery installations. Installed renewable energy capacity, including large hydro, stood at 289 gigawatts as of June 30, 2026. This includes 162 gigawatts of solar and 57 gigawatts of wind. We believe this reinforces the continued structural growth of renewable energy in India. Additionally, Q1 also saw strong industrial production growth numbers fueled by higher demand in all sectors of the industry.

In fact, the overall index of industrial production grew by about 7.3% in June. Additionally, the rupee appreciated slightly versus the US dollar as the government's foreign currency non-resident scheme, which is the FCNR scheme, produced over $52 billion of fresh inflows. Having said all of the above, grid build-out continues to be a drag on the entire industry, with certain projects, including ours, particularly in the state of Rajasthan, having temporary connectivity, facing curtailment challenges. We are hopeful that coupled with build-out of certain lines in Rajasthan, some central government support, these issues will get resolved over the next few months. Turning to business updates on slide 14. On project execution and our delivery remains dearest and on track. We have already delivered over 1 gigawatt of commissioned megawatts during the year and are on track to deliver the projects that are due to be commissioned during the year.

For solar, in addition to the megawatts commissioned so far, more than 250 megawatts has been erected and is in final stages of commissioning. More than 50% of the modules required for the balance execution in rest of FY 2027 are already at site, with the balance secured through in-house production. Silver pricing exposure is also hedged for fiscal 2027. For BESS, 100% of the pricing is locked in at attractive rates, and about 25% has already reached project sites. For wind, 100% of wind turbines required for the year are locked in within budgeted levels. Land is also largely tied up or acquired for the execution requirements of the next 12 months. Turning to updates from our C&I business on slide 15. We are very excited by and continue to expand our C&I footprint across India.

Our C&I portfolio currently stands at 2.9 gigawatts, including 2.6 gigawatts of commissioned capacity over 5 states, and we commissioned 330 megawatts year to date at the C&I segment. We are also well-placed to participate in new business opportunities such as supply to data centers. Our business is concentrated on larger projects, and we have excellent relationship with technology companies and hyperscalers. For example, Amazon, Microsoft, and Google collectively account for around half of the contracted offtake in our C&I business. As you may also recall, a LeapFrog-led consortium has invested $95 million of equity in our C&I business for 11.3% stake. Turning to our manufacturing business on slide 16. In manufacturing, we have one of the highest integrated capacities in India. Our manufacturing business has continued its profitable journey in the current fiscal year as well, with an external order book standing at approximately 1.1 gigawatts.