Puneet Gulati

Puneet Gulati, a Research Analyst at HSBC, questioned whether the shift towards solar in ReNew's project configuration yields better unadjusted IRRs compared to wind, and sought clarification on the company's TGNA capacity and associated curtailment in the recent quarter. Gulati also inquired about the rationale and timeline for further reducing the target leverage ratio, given the current operational portfolio leverage.

Answer

Sumant Sinha, Founder, Chairman, and CEO, explained that solar projects have historically offered higher returns due to CapEx reductions and provide steadier risk-adjusted returns than wind. Anunay Shahi, SVP of Corporate Finance and Head of Investor Relations, added that the new configuration reduces CapEx by INR 60 billion, improving overall returns. Regarding TGNA, Sinha noted that capacity fluctuates, currently around 400-500 MW, down from 1 GW, with curtailment typically ranging from 10-20%. Kailash Vaswani, CFO, clarified that the 5.5x leverage target is for headline leverage (currently 6.5x-6.6x) and aims to increase shareholder accruals, with a target achievement by 2028-2030.

Puneet Gulati from HSBC asked if the recent underperformance in wind generation is now factored into long-term guidance, the status of unsigned LOAs given potential government action, the next steps in the take-private offer process, and the capacity addition plans for FY2026.

Answer

An unnamed executive, likely CFO Kailash Vaswani, clarified that long-term guidance assumes wind performance will revert to the mean and has not been permanently lowered. An executive, likely CEO Sumant Sinha, expressed confidence that most unsigned PPAs would be honored. Regarding the take-private offer, it was stated that a special committee of independent directors is evaluating the non-binding offer. The company deferred providing FY2026 capacity addition guidance until its next earnings report.

Puneet Gulati questioned whether the EBITDA guidance for the 16.3 GW portfolio fully accounts for recent poor wind PLFs. He also asked about plans for the module manufacturing business, including potential sales to the U.S. market, current pricing in the DCI market, and the volume of external sales to date.

Answer

Sumant Sinha, Founder, Chairman and CEO, responded that the EBITDA guidance includes some normalization based on recent years but does not fully factor in the current year's specific underperformance. On module sales, he confirmed ReNew is open to the U.S. market but is currently focused on the attractive Indian DCI market. CFO Kailash Vaswani added that 100 MW have been sold externally so far.