ReNew Announces Results for the Third Quarter of Fiscal Year 2025 (Q3 FY25); Registers 26% Increase in Operating Capacity – EQ
In Short : ReNew Energy Global reported a 25.5% year-over-year rise in commissioned capacity, reaching 10.7 GW by December 31, 2024. Q3 FY25 revenue increased 10% to ₹2,119.8 crore, while net loss widened to ₹387.9 crore. The company also received a non-binding acquisition offer from a consortium including CPP Investments and ADIA, signaling potential future developments.
In Detail : ReNew Energy Global (Nasdaq: RNW) reported Q3 FY25 financial results, highlighting a 25.5% year-over-year increase in commissioned capacity to ~10.7 GWs. The company’s total portfolio expanded to ~17.4 GWs from ~13.8 GWs year-over-year. Total revenue for Q3 FY25 reached INR 21,198 million (US$ 248 million), up from INR 19,290 million in Q3 FY24.
The company reported a Q3 FY25 net loss of INR 3,879 million (US$ 45 million), while Adjusted EBITDA improved to INR 13,882 million (US$ 162 million). A non-binding offer of $7.07 per share was received from a Consortium including CPP Investments, ADIA, Masdar, and the CEO to acquire remaining shares.
ReNew revised its FY25 guidance due to lower resource availability, now expecting Adjusted EBITDA of INR 74-78 billion and CFe of INR 11-13 billion, with planned installations of 1,900-2,400 MWs by FY25 end.
ReNew’s Q3 FY25 results reveal a complex narrative of aggressive expansion amid profitability challenges. The 25.5% YoY increase in commissioned capacity to 10.7 GW demonstrates strong execution of growth strategy, positioning ReNew as a major player in India’s renewable energy sector. However, this expansion comes with significant costs, reflected in the widening quarterly net loss of $45 million.
The financial metrics paint a nuanced picture: while total revenue grew 9.9% YoY to $248 million, power sale revenue remained flat at $175 million, suggesting challenges in resource availability and operational efficiency. The Adjusted EBITDA growth of 11% indicates improving operational performance, but the declining net profit margins in the nine-month period (from $41 million to $17 million) raise concerns about cost management and scalability.
The company’s strategic diversification into module manufacturing, contributing $40 million in revenue with healthy margins, represents a promising vertical integration initiative. However, the downward revision of FY25 guidance due to lower resource availability highlights the inherent volatility in renewable energy operations and the importance of geographical diversification.
The non-binding offer from the consortium at $7.07 per share suggests strong institutional confidence in ReNew’s long-term prospects, despite current operational challenges. The proposed privatization could provide the company with greater flexibility to execute its growth strategy without quarterly market pressures.
The updated run-rate guidance for the 17.4 GW portfolio indicates significant potential for value creation, but execution risks remain, particularly regarding regulatory approvals and infrastructure development for the planned capacity additions.
