ReNew Power's Fiscal 2025 Quarter Sees Significant Achievements Amid Promising Renewable Energy Outlook
ReNew Power Private Limited concluded its fiscal year 2025 with remarkable accomplishments in the renewable energy sector. The company has successfully constructed more megawatts than ever before, taking its total operating capacity to a record-high 11.2 gigawatts, representing a 17% increase from the same period last year and a 21% rise on like-for-like basis after excluding asset sales.
During this quarter, ReNew Power extended its contracted portfolio by adding new bids and signing new power purchase agreements (PPAs). The company's contracted portfolio now stands at an impressive 18.5 gigawatts, with an additional 1.1 gigawatt-hours of battery energy storage systems (BESS) capacity, representing an 18% increase from the same period last year.
ReNew Power has also maintained a healthy growth in its contracted portfolio, adding 1.3 gigawatts of PPAs since Q3 fiscal 2025 and signing PPAs for a substantial 5.3 gigawatts since April 2024. Furthermore, the company boasts an impressive pipeline of over 25 gigawatts of renewable energy and approximately 3 gigawatt-hours of batteries.
Sumant Sinha, Founder, Chairman, and CEO of ReNew Power, highlighted the robust macro environment in India, with a supply of auctions exceeding 50 gigawatts per year. This has resulted in attractive internal rates of return (IRR) for the company's renewable energy projects. In fiscal year 2025, ReNew Power secured 4.8 gigawatts and 800-megawatt-hours of BESS, representing a market share of 14% in the bids it participated in.
The company has also made significant strides in its solar manufacturing business, with existing facilities comprising 6.4 gigawatts of module manufacturing and 2.5 gigawatts of cells now fully stabilized and operating at industry-leading efficiency levels. This has enabled ReNew Power to contribute meaningfully to its profit and loss (P&L) statement.
Notably, the company has secured $100 million in equity funding to expand its existing cell facility by 4 gigawatts, taking it up to 6.5 gigawatts to match its module manufacturing capacity. This move will ensure a secure supply chain for solar cells and modules, considering the recently announced Additional List of Models (ALMM) for cell imports.
In terms of financials, ReNew Power delivered more than 14% EBITDA growth year-on-year despite experiencing a weaker-than-anticipated wind resource. The company's cost-saving initiatives have also helped improve margins, with EBITDA margins in its independent power producer (IPP) business reaching almost 83%, up from over 80% last year.
Additionally, the interest rate environment remains benign, with recent rate cuts by the Reserve Bank of India (RBI) starting to reflect in new greenfield financing. ReNew Power's profit before tax for the year has reached INR 10 billion, representing a 23% increase over the same period last year.
These achievements demonstrate ReNew Power's resilience and commitment to delivering results amidst the challenging landscape of the renewable energy sector.
