ReNew Energy Global (RNW) Q2 2025 earnings summary

Executive summary

• Achieved 14% year-over-year growth in Adjusted EBITDA and 31% increase in Profit After Tax for Q2 FY25, driven by cost optimization and lower finance costs.

• Commissioned 860MW in FY25 YTD, with a total of 2.4GW since October 2023, and portfolio expanded to 16.3GW including 900MWh battery storage.

• Solar module manufacturing facilities (6.4GW) are fully operational, with 2.5GW cell facility in trial production and over 2.6GW of modules produced.

• Recognized for sustainability leadership, including carbon neutrality for the fourth consecutive year, Bloomberg Tier 1 supplier status, and multiple industry awards.

• Reaffirmed FY25 and long-term guidance, maintaining focus on capital discipline and profitable growth.

Financial highlights

• Q2 FY25 Adjusted EBITDA rose 14% year-over-year to INR 24,209 million ($289 million), with margin improving to 85.3%.

• Q2 FY25 Profit After Tax increased 31% year-over-year to INR 4,939 million ($59 million).

• Cash from operations in Q2 FY25 was INR 20.2 billion, up from INR 18.9 billion in Q2 FY24.

• Cash profit (non-GAAP) increased by 32% to INR 12.1 billion for the quarter.

• Net Debt/Adjusted LTM EBITDA for operational portfolio under 6.0x; net debt stood at INR 599.6 billion ($7.16 billion) as of September 30, 2024.

Outlook and guidance

• FY25 guidance reiterated: construction completion of 1,900–2,400MW, Adjusted EBITDA of INR 76–82 billion, and Cash Flow to Equity of INR 12–14 billion.

• FY30 run-rate EBITDA projected at INR 142–150 billion for 19.4GW operational portfolio.

• Q3 numbers expected to be seasonally lower than Q2 due to weather patterns.

• CapEx for the remainder of the year estimated at $200–250 million, with total commissioned capacity expected to reach around 11.5GW.

• Guidance assumes weather conditions similar to FY24 and includes INR 1–2 billion in net gains from asset sales.