Independent renewable power producer ReNew Power reported revenue of ₹22.81 billion (~$274 million), an increase from ₹21.25 billion (~$255 million) in the first quarter (Q1) of FY 2025. This represents a year-over-year (YoY) growth of approximately 7%, driven by the expansion of its renewable energy projects and increased energy sales.

The net profit for the quarter was ₹394 million (~$5 million), a substantial drop of 86.7% YoY from ₹2.98 billion (~$36 million). The decline in net profit was due to increased operational costs and strategic investments in new projects aimed at future growth.

The company’s adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for Q1 FY25 was ₹18.98 billion (~$228 million), slightly up from ₹18.6 billion (~$223 million) in the same quarter in the previous year, indicating stable operational performance.

Other expenses amounted to ₹3.5 billion (~$43 million), a 16.8% YoY increase. This rise was mainly due to an increase in operating activities.

Cash generated from operating was ₹9.9 billion (~$119 million), compared to ₹13.4 billion (~$162 million) in Q1 FY24. The decrease was mainly due to higher working capital deployment, partially offset by an income tax refund during the quarter.

Cash used in investing activities was ₹40.4 billion (~$485 million), compared to ₹45.3 billion (~$544 million) in Q1 FY24.

Operational Achievements

During the quarter, 5.815 billion kWh of electricity was sold, a 13.7% increase compared to the first quarter of fiscal year 2024. Electricity sales from wind assets reached 2.955 billion kWh, a 12.1% YoY increase.

Sales from solar assets amounted to 2.764 billion kWh, up 16.3%from the previous year. However, electricity sales from hydro assets were 0.096 billion kWh, showing a 6.9%YoY decrease.

ReNew Power’s total operational capacity increased significantly, with the company commissioning additional solar and wind capacities. As of June 30, 2024, the company’s portfolio consisted of approximately 15.6 GW, up from 13.7 GW in the previous year, marking a 14% YoY increase in commissioned capacity.

The company said it is actively investing in new technologies to enhance efficiency and reduce costs, which are crucial for maintaining its competitive edge in the renewable energy market.

ReNew executed 2 GW of capacity over the last 12 months and plans to execute between 1.9 to 2.4 GW in fiscal year 2025. As of the earnings call, they had commissioned approximately 500 MW this financial year.

The company signed 2.2 GW of PPAs in Q1 FY 2025 and expects to sign the majority of PPAs from their pipeline within the fiscal year.

ReNew’s module manufacturing is scaling up, with the Jaipur facility expected to produce over 2 GW of modules this year. The Gujarat facility is operational and will be fully ramped up by the year-end. The company has contracted to sell around 600 MW of modules externally.

Sumant Sinha, Chairperson of ReNew Power, said the company is close to starting production of the first cells, and within the next few months, initial trial production runs are expected to begin.

Following this, there will be a stabilization period due to the greater complexity of cell production compared to module production. The expectation is that the cell plant will be in good shape in terms of output by the end of the financial year.

Sinha reiterated that production should start within the next two to three months. A ramp-up period will follow, lasting a few months, but production is set to begin within this calendar year.

After the ramp-up and stabilization, the plant should be well-positioned to deliver most of its capacity by the next financial year.

Last year, the Ministry of Power approved a plea from ReNew Dinkar Urja, a special-purpose vehicle of ReNew Power, to set up overhead transmission lines for its 200 MW solar power project in Bikaner, Rajasthan. The approval for the overhead lines has been granted for 25 years.

Earlier, Jindal Stainless signed a contract with ReNew Power to develop an approximately 300 MW utility-scale captive renewable project to power its facilities in Jajpur, Odisha.