ReNew Energy’s Q4 FY25 net profit jumped nearly 4x YoY to INR 3,137 million
External sales from solar cell and module manufacturing contributed significantly to its quarterly and annual profits
Total income rose 39% YoY in the reporting quarter due to an increase in operational capacity
Nasdaq-listed Indian renewable energy company and solar PV manufacturer ReNew Energy Global reported a strong Q4 FY25 (period ending March 31, 2025) with a 4x increase in net profit, which it attributes to strong growth in the manufacturing business.
For the reporting quarter, its net profit went up to INR 3,137 million ($37 million) from INR 609 million ($7 million) in Q4 FY24.
In its US Securities and Exchange Commission filing, the management ascribed the annual improvement in net profit to ‘driven by higher operating revenues, external sales from our module and cell manufacturing operations, and lower tax incidence, partially offset by higher scale linked financing costs & depreciation, including costs attributable to external sales from our module and cell manufacturing operations, and lower resource availability.’
Over the same period, its adjusted EBITDA rose 32% year-on-year (YoY) to INR 22,118 million ($258 million). At INR 34,391 million ($403 million), total income for the quarter represented an annual jump of 39%.
ReNew explained that the total income rose due to higher operational capacity but was partly offset by lower tariffs, resource issues, and the sale of 400 MW worth of assets in FY24.
For FY25, its total income totaled INR 109,070 million ($1.27 billion), having increased by over 13% from the previous year, while the adjusted EBITDA for the year rose more than 14% to INR 79,188 million ($927 million).
External sales from its module and cell manufacturing operations, of INR 2,200 million ($26 million) and INR 2,623 million ($31 million), respectively, contributed to the net profit in both Q4 and FY25.
Total income from external sales of solar cells and modules was INR 9,914 million ($116 million) in Q4 and INR 13,373 million ($157 million), respectively, in FY25.
At the end of the reporting period, ReNew operated 6.4 GW and 2.5 GW of solar module and cell manufacturing capacity, respectively. The module factory is producing over 10 MW capacity/day, while the cell plant produces 5 MW/day. In FY25, the company produced 3 GW of modules and 500 MW of cells.
Construction of a new 4 GW TOPCon solar cell factory in Dholera is currently underway, with production scheduled to begin in FY27. It recently sold a minority stake in its manufacturing business to British International Investment PLC (BII) (see India Solar PV News Snippets: ReNew Energy To Build One Of India’s Largest Hybrid RE Projects & More).
In terms of its total power generation capacity, as of March 31, 2025, ReNew’s commissioned capacity stood at 10.7 GW, comprising 1.48 GW during the year. It increased to 11.2 GW with the commissioning of 436 MW solar and 30 MW wind capacity post the end of FY25.
Guidance
The management guides for the construction of 1.6 GW to 2.4 GW of new capacity by the end of FY2026, with an adjusted EBITDA of INR 87 billion to INR 93 billion. It expects external sales from the company’s module and cell manufacturing operations, and has included INR 5 billion to INR 7 billion of adjusted EBITDA against such sales in this guidance.
Meanwhile, ReNew continues to evaluate the acquisition bid offered by a Masdar-led consortium, which includes its Founder, Chairman and CEO, Sumant Sinha (see Masdar-Led Consortium Proposes ReNew Energy Acquisition).
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