ReNew reports strong financial results for Q2 FY25 as it increased project commissioning
Total portfolio now totals 16.3 GW, comprising 5.5 GW operational and 5.9 GW of committed solar capacity
Solar module production is ramping up, while 2.5 GW cell capacity is under trial production
Nasdaq-listed Indian clean energy company ReNew Energy Global Plc increased its adjusted EBITDA for Q2 FY25 (period ending September 2024) by 14% year-on-year (YoY) to INR 24.21 billion ($289 million), while its revenues totaled INR 21.298 billion ($254 million), an annual jump of over 4%.
The management attributes this increase to its commissioned capacity going up by 21.8% YoY to 10.1 GW as of September 30, 2024. Since the end of the quarter, it energized another 250 MW of solar capacity.
It has commissioned 860 MW in FY25 year-to-date (YTD), including 750 MW of solar PV capacity for the Solar Energy Corporation of India (SECI).
By the end of the reporting period, ReNew’s portfolio comprised 15.6 GW, having swelled from 13.8 GW a year back. It further expanded to 16.3 GW with the addition of 700 MW of power purchase agreements (PPA) it signed since then, including 900 MWh of battery capacity. This comprises 5.5 GW of solar, 4.8 GW of wind, and 99 MW of operational hydropower plants. Another 5.9 GW is committed including 3.6 GW of solar and 2.3 GW of wind.
During H1 2025, it won 1.4 GW in bids including largely ‘complex’ projects.
ReNew also shared an update regarding its solar PV manufacturing activities. The management informed that its module manufacturing capacity is rapidly ramping up. The 4 GW factory at Jaipur and the 2.4 GW factory at Dholera are producing 10 MW/day capacity. The Jaipur plant is being transitioned to TOPCon, a process that’s expected to complete within FY25.
The 2.5 GW solar cell production plant at Dholera in Gujarat is under trial production at present. Roth MKM’s Philip Shen believes the company could be looking at expanding its manufacturing capacity in Gujarat with the new Approved List of Models and Manufacturers (ALMM) List II to at least meet its own internal requirements. The Ministry of New and Renewable Energy plans to implement ALMM List II by April 1, 2026 for domestic solar cell production and curb solar cell imports (see India Invites Public Consultation On ALMM For Solar PV Cells).
ReNew said its current domestic sales order book is 900 MW strong, including domestic content requirement (DCR) orders for cells and modules.
Guidance
The management continues to stick to its previous projection of ending the year FY 2025 (period ending March 2025) with INR 76 billion to INR 82 billion ($907.35 million to $979 million) in adjusted EBITDA, and INR 12 billion to INR 14 billion ($143.27 million to $167.14 million) in cash flow to equity (CFe).
During the year, it targets to install between 1.9 GW and 2.4 GW of capacity. By FY30, it targets INR 142 billion to INR 150 billion ($1.7 billion to $1.8 billion), and an operational portfolio of up to 20 GW.
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