ReNew Energy Global plc

And welcome to the Renew Energy Global fourth quarter of fiscal year 2026 conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star and then one on your touch-tone phone. To withdraw your question, please press star, then two. Please note this event is being recorded. At this time, I would like to turn the conference over to Anuay Shahi, Head of Investor Relations. Please go ahead.

Thank you. Good morning, everyone, and thank you for joining us today. We have put out a press release announcing our results for the fiscal 2026 fourth quarter. as well as for the full year ending March 31st, 2026. A copy of the press release and the earnings presentation will be available on the Investor Relations section on Renew's website at www.renew.com. With me today are Suman Sinha, our Founder, Chairman and CEO, Kailash Vaswani, our CFO, and Vaishali Nigam Sinha, our Co-Founder and Chairperson, Sustainability. After the prepared remarks, which we expect will take about 30 minutes, we will open the call for questions. Please note that our safe harbor statements are contained within our press release, presentation materials, and the materials available on our website. These statements are important and integral to all our remarks. There are risks and uncertainties. that could cause our results to differ materially from those expressed or implied by such forward-looking statements. So we encourage you to review the press release and the presentation on our website for a more complete description. Also contained in our press release, presentation materials, and annual report are certain non-IFRS measures that we reconcile to the most comparable IFRS measures, and these reconciliations are also available on our website in the press release presentation materials, and our annual report. It's now my pleasure to hand it over to our Founder, Chairman, and CEO, Suman Sena. Over to you, Suman.

Yeah, thank you, Anand. Good morning, good afternoon, and good evening to everybody. I'm glad to have you all on our earnings call for the fourth quarter of fiscal 2026. Before we dive into our earnings, I wanted to touch a little bit upon what is happening in the world and how it is affecting us in India. As you may be aware, India is heavily reliant on energy imports. With the war and the geopolitical situation in the Middle East, it has made energy security and relying on domestic sources of energy a top priority for the country. Given that India does not have too much oil and gas reserves and with growing power demand, renewable energy becomes even more important than before. India continues to see strong renewable capacity additions. with renewables seeing the highest ever installations at 51 gigawatts in fiscal 2026, and accounting for 90% of new capacity. Solar remains the dominant growth driver, and increasing power demand, particularly during non-solar hours, is driving accelerated adoption of battery energy storage systems. Policy support, manufacturing incentives, and a continued push for energy security are further strengthening the long-term growth outlook for the sector. I also wanted to highlight that it has been a wonderful year for us. Not only have our financial results improved in spite of the global macroeconomic volatility, our project execution stood out as well. This shows that the entrepreneurial spirit with which I founded Renew remains as strong as ever after 15 years. Turning to the highlights on page six. Fiscal 2026 has been a landmark year for Renew, marked by strong execution, record profitability, reduce leverage, and continue progress in strengthening our platform for long-term growth. Our operating portfolio has now reached approximately 12.8 gigawatts, representing a 25% year-on-year growth once you adjust for asset sales. And we commissioned our highest ever megawatts in a year, delivering 2.4 gigawatts. Our total committed portfolio now stands at 20.2 gigawatts, including 1.7 gigawatts of battery storage with a pipeline which includes projects where we have won auctions but not signed PPAs yet, exceeding a total of 26 gigawatts, which is up two and a half times, more than two and a half times, 2.6 times in fact, since listing in August 2021. Of the 20.2 gigawatts of our committed pipeline, our CNI business comprises 2.7 gigawatts, being one of the largest in India and having grown 7X in the last five years. In our CNI business, almost 50% capacity is tied up with large technology companies and hyperscalers. We see our CNI business and specifically technology companies and data centers to be big drivers of power demand growth. We continue to see strong demand for renewable energy in India with peak demand increasing and expected to grow further in FY27. Importantly, demand growth during non-solar hours is increasing, which is driving the need for hybrid solutions and battery storage. Moving to our financial performance, fiscal 2026 has been our strongest year yet. We delivered adjusted EBITDA of INR 98.5 billion, exceeding the top end of our guidance, and achieved our highest ever profit after tax of INR 10.4 billion, up 2.3 times from fiscal 2025. This marks our third consecutive year of profitability with strong cash flow generation and improving balance sheet metrics. We continue to be laser focused on continually reducing our leverage and our net debt to EBITDA declined by 1.1x year on year. This has helped improve our profitability as well. Our interest expense to adjusted EBITDA ratio has declined from 66% in fiscal 2025 to 61.5% in fiscal 26. Our receivables position is also the best it has ever been and we have received a favorable Supreme Court order with respect to almost 50% of the overdue Andhra Pradesh receivables and we have started receiving initial payments with respect to some past due receivables. Do remember that outstanding AP receivables constituted more than 50% of the overall DSODs. We continue to execute our capital recycling and funding strategy and raise the highest ever $375 million during the year. This comprised of $195 million through fund raised in two mature businesses, the manufacturing business and the CNI business, at attractive valuations, along with an additional $180 million through the sale of 600 megawatts of projects. Part of these proceeds have been used to repay debt, This has helped us strengthen the balance sheet and reduce leverage with net debt to EBITDA improving meaningfully. A key driver of growth this year has been our manufacturing business, which contributed INR 14.8 billion EBITDA to our consolidated results. This business continues to scale rapidly, supported by strong demand and our integrated manufacturing capabilities. We expect to start production at our four gigawatt cell facility towards the end of this fiscal year. ALMM2, which mandates domestic sourcing of cells, kicks in from June 2026, and the CNI sector, which added 10 gigawatts of capacity in India in fiscal 26, will transition immediately to domestic cells. In addition, the government of India continues to prioritize indigenization of supply chains and has introduced ALMM3, whereby ingots and wafers will also have to be procured domestically from June 2028. Alongside this, we have announced our 6.5 gigawatt ingot and wafer plant in order to keep capturing the higher margin and more complex parts of the manufacturing business. We expect to fund this expansion through a mix of internal accruals and an external fundraise. We are increasingly transitioning our portfolio towards solar and battery energy storage, reducing reliance on wind. This shift allows us to improve execution timelines, enhance predictability of cash flows, and reduce capital intensity. Page 9 highlights how we are well positioned and diversified across key renewable energy segments, utility scale, CNI, and manufacturing, which provides us a resilient growth platform. Page 10 illustrates our integrated renewable energy business model supported by a strong financial and fundraise engine. Let me now turn to business updates on page 12. Renewable energy is the cheapest source of power and we expect that we will continue to see growth in RE driven by high solar megawatts and increasingly high battery installations. Renewable energy constituted 90% of the overall capacity additions in fiscal 2026, in line with the previous few years, mainly driven by expanded solar installations. After a muted fiscal 2026, we also expect power demand in India to increase meaningfully this year as El Nino kicks in, supported by a favourable base. India recently discovered a new highest ever peak time demand of 256 gigawatts. As mentioned earlier, there also continues to be a strong push towards indigenization and expansion of solar manufacturing in India and the government of India has hence proposed ALMM3 for ingots and wafers to take effect from June 2028. All in all, I don't see the RE juggernaut slowing down. The one sobering feature in fiscal 2026 has been the fact that grid expansion has not kept track with renewable energy installations. This led to some curtailment of other projects, particularly in Rajasthan. While the impact reduced in Q4 of fiscal 2026, we expect this to have some impact in this fiscal, particularly in the first half. Turning to page 13, our project execution remains strong and we have consistently delivered on our megawatt guidance. We have delivered over 2.4 gigawatts of RE projects this year that included over 1.7 gigawatts of solar projects and 600 megawatts of wind. From a long-term perspective, we will continue to target a similar mix in execution with the share of batteries gradually increasing. We plan to accelerate some of the battery deployment in our portfolio as well. Our portfolio also continues to expand, and as we see the power demand coming back and focus shifting to energy security, we should see an acceleration in PPA signing as well. During FI26, we signed PPAs for around 2.5 gigawatts of RE capacity, taking our committed portfolio to over 20 gigawatts. That also includes 1.7 gigawatts of BES. Our total pipeline is now 26 plus gigawatts, including best capacity. Given the overall geopolitical uncertainty, we have managed our procurement for FI27 well. 50% of our modules are already at site, 100% of our battery and wind turbine prices are locked in, and land is largely tied up, giving us strong visibility on execution. Turning to page 14, we highlighted our CNI business last quarter, and I'm happy to report that since then, We have raised $95 million for an 11.3% stake from a leapfrog-led consortium to fund growth in our CNI platform. We remain extremely excited about this business. It continues to perform well with a total portfolio of 2.7 gigawatts, including 2.2 gigawatts commissioned at this time. Renewable penetration among CNI customers who consume 50% of the electricity in India and pays some of the highest grid tariffs remains low. We are one of the market leaders and we have strong relationships with high quality customers including the leading global technology companies and hyperscalers which account for almost 50% of our contracted capacity. This segment is also well positioned to benefit from emerging opportunities such as data center demand. Turning to page 15. Our manufacturing business is another major growth engine. We now have one of the largest integrated solar manufacturing capacities in India, with strong and fast ramp-up across both module and cell production. In fiscal 26, this business contributed about 15% of our overall adjusted EBITDA. We have invested around US$80 million in this business and raised $100 million from BII in return for an approximately 6% shareholding. Given the restrictions on import of cells and modules and the shortage of supply, particularly in cells, the business has not only provided us security of supply, but has become a self-funded growth engine with attractive margins that will provide us with long-term profitability. We are also progressing well in our four gigawatt cell expansion with production expected in the second half of this fiscal. Turning to page 16, We have announced a new 6.5 gigawatt ingot wafer facility which will further strengthen our backward integration and supply chain resilience and continue to protect our margins. We aim to fund this growth through a mix of internal accruals and an external fund raise so that the growth, cash flows and margins do not get impacted. This will ensure that manufacturing business continues to provide us profitability in the long run. As the margins taper down a little, we expect the margins to keep remaining stronger upstream, in sales first and then further backward to ingot and wafers. Overall, we remain focused on disciplined growth, improving returns and profitability, and reducing our leverage. I will now hand it over to Kailash for the financial updates.