Q1 2027 Renew Energy Global PLC Earnings Call Transcript
Key Points
- Delivered 26% YoY growth in operating portfolio, commissioning over 1 GW in FY27 YTD, including 600 MW in Q1.
- Adjusted EBITDA grew 12% YoY to INR30.4 billion, with PAT up 16% YoY to INR6 billion.
- Capital recycling executed successfully: closed sale of 100 MW solar asset and signed definitive agreements for ~1 GW sale expected to generate $190 million cash flow to equity.
- Manufacturing business delivered strong Q1 with INR5.7 billion adjusted EBITDA at 34% margin, supported by an external order book of ~1.1 GW.
- DSO improved significantly to 54 days as of July end, down 17 days from Q1 FY27, aided by INR57 billion receipt from Andhra Pradesh Discom.
- C&I portfolio expanded to 2.9 GW, with 330 MW commissioned YTD, and strong relationships with hyperscalers like Amazon, Microsoft, and Google.
- Reiterated FY27 guidance with adjusted EBITDA of INR103-109 billion and cash flow to equity of INR18-22 billion, reflecting confidence in execution.
- Grid curtailment challenges, particularly in Rajasthan, negatively impacted solar PLF, with about half of the decline attributed to curtailment.
- Solar PLF declined 220 basis points YoY in Q1, partly due to weather and partly due to curtailment, affecting generation.
- Manufacturing margins contracted to 34% from 40% YoY, with expectations of further normalization as new capacity comes online.
- Uncertainty in manufacturing profitability due to ALMM extension and increased supply, leading to conservative full-year guidance.
- Net debt remains high at INR671 billion, with leverage at 5.7x for operational projects, though management is committed to reducing it.
- Take-private transaction introduces uncertainty, with completion expected only by Q1 2027 and subject to regulatory approvals.
- Curtailment compensation for non-availability of transmission is not guaranteed, with discussions ongoing but no conclusion yet.
Thank you for standing by, and welcome to the Renew Power Renews 1Q FY27 earnings report.
(Operator Instructions)
I would now like to hand the conference over to Anunay Shahi. Thank you, and over to you.
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.
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