Renew Energy Global Stock

Thank you for standing by, and welcome to the ReNew -- our ReNew's 1Q FY '27 Earnings Report. [Operator Instructions] I would now like to hand the conference over to Anunay Shahi. Thank you, and over to you.

Thank you. Good morning, everyone, and thank you for joining us today. We have put out a press release announcing our results for the first quarter of fiscal year 2027.

A copy of the press release and the earnings presentation are available in the IR section of ReNew's website at www.renew.com. With me today are Sumant Sinha, our Founder, Chairman and CEO; Kailash Vaswani, our CFO; and Vaishali Nigam Sinha, Co-Founder and Chairperson, Sustainability.

After the prepared remarks, which we expect will take 20 to 25 minutes, we will open the call for questions. Please note that our safe harbor statements are contained within our press release, presentation materials and 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.

Therefore, 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.

With that, it is now my pleasure to hand it over to our Founder, Chairman and CEO, Sumant. Over to you, Sumant.

Yes. Thank you, Anunay. Good morning, good afternoon and good evening, everybody, and I'm glad to have you all on our earnings call for the first quarter of fiscal year ended March 2027.

After a terrific fiscal 2026, where we reported our highest ever EBITDA and PAT, we continue to deliver on our promise of profitable growth in spite of the uncertain global macroeconomic situation and grid-related challenges in India.

We also continue to be disciplined in our approach towards judicious use of capital and allocating capital only towards the highest return opportunities. Turning to highlights for this quarter.

Our focus towards executing at scale continues as we delivered a 26% growth in our operating portfolio year-over-year. We have commissioned over 1 gigawatt to date in the current fiscal, which includes over 600 megawatts in Q1 itself.

Our overall committed portfolio now stands at 20.5 gigawatts and includes 1.7 gigawatts of BESS and our total pipeline is at approximately 27 gigawatts. We also continue to execute our capital recycling plans.

In June 2026, we closed the sale of a 100-megawatt Tamil Nadu solar asset and received the proceeds. In August 2026, we also signed definitive documents for the sale of about 1 gigawatt of assets, which is expected to generate $190 million of cash flow to equity on closing.

These transactions underline the quality of our asset base and our ability to continuously find buyers at attractive valuations.

Additionally, we have 6.5 gigawatts of module and 2.5 gigawatt of cell capacity that is currently operational and a 4-gigawatt cell facility of TOPCon that is expected to be fully operational by the end of the current fiscal year.

We have also filed our Form 20-F for FY '26 and published our third integrated report with the theme beyond boundaries, decarbonizing value chains to deliver climate value at scale, in line with international reporting standards.

Coming to our financial performance. In this quarter, we have delivered adjusted EBITDA growth of around 12% with INR 30.4 billion adjusted EBITDA, including INR 5.7 billion contribution from our manufacturing business.

Our profit after tax increased by 16% year-over-year with INR 6 billion for Q1 of fiscal 2027, along with INR 12.8 billion in CFE.

Our DSO continues to reduce as we expand our portfolio and legacy issues continue to get resolved. Subsequent to the end of the quarter, we received INR 57 billion from the Andhra Pradesh DISCOM, taking our DSOs as of July end to 54 days, 17 days lower than the Q1 FY '27 DSO number of 71 days.

Let me now hand over to Kailash to take us through the next 7 please.

Thank you, Sumant. Before turning to our operating performance, I would like to briefly address the take-private transaction announced on August 11, 2026.

ReNew entered into a binding transaction agreement with the consortium comprising of CPPIB and Sumant Sinha for the proposed take private of ReNew.

The proposed acquisition is expected to be effected through a U.K. scheme of arrangement and will be voted on by the non-consortium shareholders.

Non-consortium shareholders may either receive cash of $7.02 per share by transferring their shares to CPPIB Investments or its designated affiliates or subject to certain conditions, elect to roll over and remain shareholders.

The special committee comprising of independent directors, having received Rothschild & Co.'s opinion that the cash offer is fair from a financial point of view to the non-consortium shareholders, considers the cash offer and transaction agreement fair and reasonable and intends to unanimously recommend that shareholders vote in favor of the scheme.

Further details on the scheme's timing will follow in due course. Turning back to the presentation on Slide 13 on the industry backdrop.

The electricity demand in Greece continues to support renewable energy growth.

Renewables contributed 86% of overall power capacity addition in Q1 FY '27 with 14 gigawatt of renewable energy capacity added. This included 12 gigawatt of solar and 1 gigawatt of wind and hydro each.

Coming to the demand side, peak demand has already touched around 271 gigawatt in FY '27.

Overall, electricity demand in July 2026 was up 11% year-on-year and was up 9% year-on-year for April to June period.

Demand is also increasing more in nonsolar hours, which supports higher battery installations. Installed renewable energy capacity, including large hydro stood at 289 gigawatt as of June 30, '26.

This includes 162 gigawatt of solar and 57 gigawatt of wind.

We believe this reinforces the continued structural growth of renewable energy in India. Additionally, Q1 also saw strong industrial production growth numbers, fueled by higher demand in all sectors of the industry.

In fact, the overall index of industrial production grew by about 7.3% in June. Additionally, the rupee appreciated slightly versus the U.S. dollar as the government's foreign currency nonresident scheme, which is the FCNR scheme, produced over $52 billion of fresh inflows.

Having said all of the above, grid build-out continues to be a drag on the entire industry with certain projects, including ours, particularly in the state of Rajasthan, having temporary connectivity facing curtailment challenges.

We are hopeful that coupled with build-out of certain lines in Rajasthan, some central government support, these issues will get resolved over the next few months. Turning to business updates on Slide 14. On project execution and our delivery remains derisked and on track.

We have already delivered over 1 gigawatt of commissioned megawatts during the year and are on track to deliver the projects that are due to be commissioned during the year. For solar, in addition to the megawatts commissioned so far, more than 250 megawatt has been erected and is in final stages of commissioning.

More than 50% of the modules required for the balance execution in rest of FY '27 are already at site with the balance secured through in-house production. Silver pricing exposure is also hedged for fiscal '27 for BESS, 100% of the pricing is locked in at attractive rates and about 25% has already reached project sites.

For wind, 100% of the wind turbines required for the year are locked in within budgeted levels. Land is also largely tied up or acquired for the execution requirements of the next 12 months. Turning to updates from our C&I business on Slide 15. We are very excited by and continue to expand our C&I footprint across India.

Our C&I portfolio currently stands at 2.9 gigawatts, including 2.6 gigawatts of commissioned capacity over 5 states, and we commissioned 330 megawatt year-to-date in the C&I segment.

We are also well placed to participate in new business opportunities such as supply to data centers. Our business is concentrated on larger projects, and we have excellent relationship with technology companies and hyperscalers.

For example, Amazon, Microsoft and Google collectively account for around half of the contracted offtake in our C&I business. As you may also recall, a LeapFrog-led consortium has invested $95 million of equity in our C&I business for 11.3% stake.

Turning to our manufacturing business on Slide 16. In manufacturing, we have one of the highest integrated capacities in India. Our manufacturing business has continued its profitable journey in the current fiscal year as well with an external order book standing at approximately 1.1 gigawatt.

Do note that we sell around 40% to 60% to our IPP business at an arm's length pricing, which doesn't get reflected in our overall financials because we consolidate them.

In Q1 FY '27, revenue from external sales of modules and cells was INR 16.4 billion and the adjusted EBITDA from external sales was INR 5.7 billion, with the adjusted EBITDA margin standing at almost 34%.

We expect that there may be some normalization in the latter half of the year as additional cell capacity comes online. On the 4-gigawatt TOPCon cell plant, Civil and PSV works are in final stages.

ATP and clean room work are progressing well. Printing lines are installed and the first cell is expected to be produced by the end of the current calendar year.

We are also progressing well on the Indian wafer plant in the state of Andhra Pradesh that's expected to be commissioned in early calendar '28.

Turning to Page 18. Our Q1 results reflect strong operating execution, continued growth in earnings and disciplined capital allocation. As of June 30, '26, our total portfolio was approximately 20.5 gigawatts, including 1.7 gigawatt of BESS.

Operating capacity stood at 13.5 gigawatt, which is up 26% year-on-year adjusted for asset sales and 22% on a net basis. This comprises 5.6 gigawatt of wind, 7.8 gigawatts of solar, 99 megawatt of hydro and 100 megawatt or 250 megawatt hour of BESS.

We also had 6.9 gigawatt of committed capacity, including 1.1 gigawatt of wind, 4.2 gigawatts of solar and 1.6 gigawatt of BESS.

During the trailing 12 months, we have commissioned approximately 2.8 gigawatts comprising more than 2 gigawatts of solar, 0.6 gigawatt of wind and 25 megawatts of BESS.

In FY '27, year-to-date, we have commissioned 1 gigawatt of capacity between wind and solar. On consolidated operating performance, revenue was up 14% year-on-year.

Adjusted EBITDA was up 12% year-on-year and profit after tax was up 16% year-on-year. For Q1 FY '27, total income was INR 47.9 billion, revenue was INR 44.6 billion and EBITDA was INR 30.4 billion, and profit before tax was almost around INR 8.3 billion.

Total adjusted income was INR 46 billion, comprising of INR 29 billion from IPP business and INR 16.6 billion from external manufacturing sales. Adjusted EBITDA was INR 30 billion, including INR 24.7 billion from the IPP business and INR 5.7 billion from external manufacturing sales.

Adjusted EBITDA margins for the IPP business were 86%, for manufacturing were 34%, and the margin was 66.1% on a consolidated basis.

Turning to Page 19. We remain disciplined in capital allocation with net debt to trailing 12 months adjusted EBITDA for operational projects at 5.7x. The leverage level for projects operational for more than a year, that's with full year EBITDA contribution is further lower.

We continue to be committed to reducing our overall leverage. And to this end, we have been executing consistently on capital recycling with a portion of such proceeds expected to reduce our overall leverage. For example, we recently signed definitive agreements to sell more than 1 gigawatt of capacity, and this is expected to result in $190 million of cash inflows on closing, including some contingent amounts related to change in law proceeds.

On working capital, IPP, the days sales outstanding were at 71 days as of June 30, '26, which was a 3-year improvement year-on-year and a 12-year improvement over 2 years.

Further, subsequent to the end of the quarter, as Sumant mentioned earlier, we received INR 5.7 billion from Andhra Pradesh in July 2026.

As a result of this, the end of July, the DSO improved to around 54 days. Manufacturing DSO stands at around 5 days. Our balance sheet remains robust and well supported. Cash and cash equivalents, including bank balances and investments and short-term investments stood at INR 89 billion as of 30 June 2026.

Gross debt was INR 786 billion and net debt was around INR 671 billion as of the same date. I will now hand over the call to Vaishali for ESG and sustainability updates.

Thanks, Kailash. Now turning to Slide 21. As ReNew continues to achieve new milestones in growth and impact, we take immense pride in the fact that sustainability remains at the core of our business and value creation model.

With this, I am pleased to present to you our third annual integrated report for fiscal year 2025, '26 called Beyond Boundaries: Decarbonization Value Chains to Deliver Climate Value at Scale.

Reflecting the evolution of our sustainability journey and leadership in the energy transition space, this report expands our focus beyond our operations to the broader value chain. It demonstrates how ReNew is scaling climate value through transparency, accountability and collective action.

Let me begin with some key highlights from our environmental performance. We reduced Scope 1 and 2 GHG emissions by 25.6% from a baseline, achieved an 84% renewable electricity mix and maintained carbon neutrality for Scope 1 and 2 emissions for the sixth consecutive year.

We continue to create meaningful value for communities, employees and our partners. Our socioeconomic programs have positively impacted more than 1.95 million lives so far. Women now represent 18% of our workforce and 15% of STEM roles. We completed ESG risk assessments from for 100% of our critical suppliers for the third consecutive year and expanded the scope to include Tier 2 suppliers as well.

Further strengthening our sustainable supply chain, we achieved 100% local sourcing of steel for wind tower plates. Turning to governance. Our Board maintained 55% independent representation. We further strengthened our enterprise risk management framework through an independent assessment and continued embedding accountability by establishing 27 organization-wide and 8 manufacturing-specific ESG targets.

Now moving to Slide 22. Our third integrated report reflects another year of steady progress with several enhancements that strengthen transparency and align more closely with global standards. We transitioned to a hybrid reporting structure, combining pillars and capitals to deliver a more integrated sustainability narrative aligned with leading global standards.

We completed a refresh of our double materiality assessment, reprioritizing material topics to reflect evolving stakeholder and business priorities. We published our inaugural ESG data book, creating a consolidated and more transparent view of ESG performance across business units.

We expanded our emissions accountability by including downstream Scope 3 emissions, reflecting the growth of our solar module and cell manufacturing operations. Together, these enhancements reflect a commitment to continuous improvement, transparency and reporting excellence.

Now moving to Slide 23. Our ESG targets continue to translate ambition into measurable outcomes, keeping us firmly on track towards our 2030 and 2040 commitments.

Let me start with environment where our focus on climate action continues to deliver tangible results. We achieved a 25.6% reduction in Scope 1 and 2 emissions versus fiscal year '22 baseline, exceeding our target and advancing our SBTi aligned net zero pathways.

We delivered over 617,000 (sic) [ 617,167 ] cubic meters of water savings in fiscal year '25, '26 with over 5,000 cubic meters of water saved through robotic cleaning.

Our commitment to people and communities remains unwavering as we continue to invest in talent, inclusion and sustainable community development.

Through Project Surya, which we've talked about earlier, we continue to build green skills with 166 women trained as technicians in quarter 1 alone and additional cohorts progressing through advanced training programs. Our commitment to excellence continues to be reflected in strong external recognition and performance.

We closed the year with industry-leading scores across major ESG ratings and indices, including an S&P Global CSA score of 84, a CDP A list status for climate change and supply engagement, a AAA for MSCI and a Sustainalytics low-risk score, which is a favorable score of 11.6.

While we remain proud of these achievements, we continue to recognize that the journey is important. As we look ahead, we remain focused on building on this momentum, advancing our key commitments and continuing to embed sustainability as the core of our business. I will now turn it back to Kailash to take us through the guidance.

Thank you, Vaishali. Turning to guidance on Page 24. We reiterate FY '27 consolidated adjusted EBITDA guidance of INR 103 billion to INR 109 billion. This includes INR 10 billion to INR 12 billion from manufacturing and INR 1 billion to INR 2 billion from asset sales.

We continue to expect to construct between 1.6 to 2.4 gigawatt during FY '27 and generate cash flow to equity of INR 18 billion to INR 22 billion. For our total committed RE portfolio, which has marginally increased in the current quarter, we expect run rate adjusted EBITDA of INR 134 billion to INR 140 billion and run rate cash flow to equity of INR 32 billion to INR 36 billion assuming normal weather patterns and excluding contribution from our manufacturing business for a fully constructed RE portfolio of around 20.5 gigawatts, which includes 1.7 gigawatt of BESS.

Please note that this includes the 1 gigawatt of assets sold, which we have signed definitive agreements for, but closing has not yet happened. So once the closing happens, then we will adjust these numbers for that. With that, we will be happy to take any questions.

[Operator Instructions] Your first question comes from Justin Clare with ROTH Capital Partners.

I wanted to start out just on the take-private transaction. Wondering if you could give us a sense for the expected time line from here to completion of the take private.

And then just what do you see as the key remaining milestones? And if you could share which approvals or conditions might present the most meaningful uncertainty in terms of the timing?

Thanks, Justin, for your question. As per the transaction agreement, we would anticipate the scheme becoming effective in Q1 2027.

The scheme document will be published as soon as reasonably practicable after we've completed the SEC review process and within 10 business days following the date on which the court grants the order for convening of the court meeting.

Scheme documents are typically published 4 weeks ahead of the court meeting date. And then there are some regulatory approvals, which will be sought in parallel with the actions above, and that would also take around 3 to 4 months to obtain.

So the long stop date for the transaction is the completion, which is 95 days of the publication of the scheme circular or 31st March 2027.

We must stress that this is not a guidance as we are not able to give the exact time lines for the regulatory, but this is broadly the indicative range of what the process from here on is likely to be.

Got it. Okay. That's helpful. And then maybe just shifting over to the performance in the quarter. The solar PLF in your fiscal Q1 declined, I think it was 220 basis points year-over-year.

Just wondering how much of that decline may have been attributable to just the solar resource during the quarter versus any grid curtailment? And then if curtailment was a factor, is it an issue that might persist into Q2 or any additional quarters here?

So we have, Justin, been facing curtailment on the solar side. So that has definitely contributed a reasonable amount of -- to the decline in the PLF.

And this is again something that is an impact that we are seeing, but we are also trying to see if through advocacy, we can get compensated for the nonavailability of transmission network.

So that is something that we will pursue. And then obviously, then weather-related, there's been some additional impact also that we saw given that there were more cloudy days compared to last year, and that also contributed. I would say the split between the 2 would be maybe half and half between curtailment and weather patterns.

Got it. Okay. And then just one more on the guidance here. So manufacturing contribution was pretty strong in Q1 here, so INR 5.65 billion compared to the guidance for the full year for manufacturing of INR 10 billion to INR 12 billion. So it implies a meaningful step down in the contribution in the balance of the year on a quarterly basis. Wondering if that's just conservative or are you anticipating a meaningful step down in the profitability there?

I mean we're not expecting a meaningful step down, but margins have been coming down a little bit. And there were extensions also which were granted as far as implementing ALMM on sales was concerned, which happened after the completion of quarter 1.

So there is a little bit of uncertainty in the market at this point in time with respect to margins and given that there's additional production capacity also, which is coming online.

So as a combination of these factors, we've decided to run the side of caution and not really change the guidance numbers. And obviously, as we see a stronger performance continuing into next quarter, then we could look to take a relook at the numbers again when we announce our Q2 results.

As far as margins are concerned, so last year, Q1 was at 40%, this year at 34%. So there has been some contraction, which you have seen already in the margins playing out. And then as more supply comes in, that is likely to continue a little bit also. So we will have to see how the trends play out in the backdrop of this ALMM for sales extension till 31st December.

The next question comes from Puneet Gulati with HSBC.

Congrats on performance. My first question is on your comment on compensation with respect to curtailment. Is there a scope for confusion whether you should get compensated or not? I thought it was a straightforward cost down versus the G&A. If you can clarify a bit here.

Yes, I'm happy to.

Sorry, Kailash, do you want to take that?

No, no, go ahead.

No, I was only saying, Puneet, that for [ Transdown ] curtailment, we get compensated, as you know.

For any other TG&A curtailment, there is no specific mechanism to get compensated.

Having said that, we are having discussions with MoP right now about whether something can be made to work. Those discussions are ongoing.

So they haven't come to any form of conclusion right now. So one can't say what form, if any, those -- that compensation will take. We are certainly trying because this curtailment is happening through no fault of ours.

And that's the point that we made and acknowledge and it's acknowledged by the government as well. But we'll have to wait and see where those discussions end up at.

I don't think of this [ full compensation ] how much we can get.

Understood. But there's no confusion [Technical Difficulty].

No, there is no confusion. The charge-down part is also a much smaller number. It's a much smaller number compared to the PG&A curtailment that is happening.

Understood. Secondly, what are your thoughts on the BESS side? How much is installed capacity today? And is there a plan to build something on the merchant side?

We have maybe a couple of hundred megawatt hours right now that are commissioned. Building long-term merchant BESS is a little bit difficult because you don't know how things are going to evolve in the market over a 5- to 7-year time period, which is the minimum required to figure out what the return should be.

But what we are going to be doing is that in some of the projects that we are doing, to the extent that we -- those projects are getting commissioned, let's say, 2 years or 3 years from now, some of those BESS projects will commission earlier, run them as merchant plants for a shorter period of time because we know that in the near term, perhaps in the next 1 to 2 years, there is likely to be a reasonable arbitrage between daytime and leasing prices.

And so we'll hope to create that value over a 1- to 2-year period and then look to drop those BESS projects into existing PPAs that we have.

As those get commissioned, then we'll move these BESS projects into those.

Is there a target for this commissioning for fiscal '27 or '28?

We haven't specified a target. This year, it's a little looking unlikely because, obviously, this year, we haven't -- we are not at a point where we'll be able to commission anything for this year.

But certainly, for -- by next year, we are hoping to commission some amount. But once those plans get finalized, we'll let you guys know.

Understood. That's very helpful. And lastly, if I may, on your recent sale of 1,000 megawatt assets to [ Purva ] , can you talk about what sort of EBITDA multiple you managed to get from that?

So Puneet, on that, we are -- once the closing happens, we will agree with the buyer what disclosure we would like to jointly make and then speak about it. Right now, we are under NDA.

Understood. And just one more -- there was also a chatter about you trying to sell hydro plant. Is that something one should think about as a potential saleable asset as well?

So again, as part of our asset recycling, we do evaluate sales of various assets. So it could be part of such discussions that you may have heard about.

[Operator Instructions] There are no further questions at this time. That does conclude our conference for today. Thank you for participating, and you may now disconnect.

Thank you.

Thank you.

Good day, and welcome to the ReNew Energy Global Fourth Quarter of Fiscal Year 2026 Conference Call. [Operator Instructions] Please note this event is being recorded.

At this time, I would like to turn the conference over to Anunay 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 31, 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 Sumant 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, Sumant Sinha. Over to you Sumant.

Thank you, Anunay, and good morning, good afternoon, and good evening to everybody and glad to have you all on our earnings call for the fourth quarter and fiscal of fiscal 2026. Beore we dive to 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. Wth 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. Wth 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 nonsolar hours, is driving accelerated adoption of battery energy storage systems. Policy support, and matching 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 speed with which I founded renew remains as strong as ever after 15 years.

Turning to the highlights on Page 6. Fiscal 2026 has been a landmark year for ReNew, marked by strong execution record profitability, reduce leverage and continuedprogress in strengthening our platform for long-term growth. Our operating portfolio has now reached approximately 12.8 gigawatts in 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 2.5x -- more than 2.5x -- 2.6x in fact, since listing in August 2021.

Of the 20.2 gigawatts of our committed pipeline, our C&I business comprises 2.7 gigawatts being 1 of the largest in India and having grown 7x in the last 5 years. In our C&I business, almost 50% capacity is tied up with large technology companies and hyperscalers. We see our C&I 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 FY '27. Importantly, demand growth during nonsolar 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 at 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 2.3x 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 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 '25 to 16.5% in fiscal 2026.

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%, offering overdue answer for these 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 DSOs. We continue to execute our capital recycling and funding strategy and raised the highest ever $375 million during the year. This comprised of $195 million through fund raise in 2 mature businesses, the manufacturing business and the C&I business and 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 4 gigawatt cell facility towards the end of this fiscal year. ALM 2, which mandates domestic sourcing of cells kicks in from June 2026 and the C&I sector, which added 10 gigawatts of capacity in India in fiscal '26 will transition immediately to domestic sales. In addition, the government of India continues to prioritize indigenization of supply chains and has introduced AMMC, 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 a higher margin and more complex parts of the manufacturing business. We expect to fund this expansion through a mix of internal tools and an external fund raise. Strategically, we are increasingly transitioning our portfolio towards solar and battery energy storage, reducing reliance on wind. This shift allows us to improve execution time lines enhanced predictability of cash flows and reduced capital intensity.

Page 9 highlights how we are well positioned and diversified across key renewable energy segments. utility scale, C&I 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 assay 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 favorable 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 AMM3 for ingots and wafers, to take effect from June 2028. All in all, I don't see the RE [indiscernible] slowing down. The one [indiscernible] 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 RE projects, particularly in Rajasthan. While the impact reduced in Q4 of fiscal '26, 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 FY '26, 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 base. Our total pipeline is now 26-plus gigawatts, including best capacity. Given the overall geopolitical uncertainty, we have managed our procurement for FY '27 well. 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 C&I 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 lead consortium to fund growth in our C&I 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 C&I customers who consume 50% of the electricity in India and pay 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 $80 million in this business and raised $100 million from BII in return for an approximately 6% shareholding. Given the restrictions on imported cells and modules and the shortage of supply, particularly in sales, the business has not only provided our 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 4 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 annual external fund raise so that the growth and margins do not get impacted. This will ensure that manufacturing business continues to provide us profitability in the long run. As the [indiscernible] 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.

Thank you, Sumant. Turning to Page 18. We delivered strong financial performance in FY '26, driven by portfolio growth, reduced leverage and therefore, interest expense, contributions from manufacturing business and disciplined cost management. Our adjusted EBITDA for the year was INR 98.5 billion, representing approximately a 25% growth year-on-year. As part of our deleveraging program, we also reduced our net debt to EBITDA by almost 1.1 turn, and therefore, our interest expense grew at a lower pace than our EBITDA. As a result of all these measures, our profit after tax grew by 2.3x from INR 4.6 billion in fiscal year 2025 to INR 10.4 billion in fiscal 2026.

Our cash to do equity also grew by 45% and to INR 21.6 billion in fiscal 2026. The current year has seen a strong performance driven by our focus on reducing leverage, cost optimization, accelerated capital recycling and fundraise and increased contribution by our manufacturing business. On the cash flow and working capital front, recently, we saw the Supreme Court rule in our favor on the long overdue receivable case from Andhra Pradesh, we expect that this should enable [indiscernible] down our DSO days to under 50% by next year.

Page 19 highlights the segment-wise contribution of the core business and the manufacturing to our overall performance. our total income increased by 40%, supported by higher operating capacity and scaling of the manufacturing business. While manufacturing contributed INR 14.8 billion to the adjusted EBITDA and the consolidated results of fiscal 2026 it delivered more than INR 19 billion of EBITDA on a stand-alone basis. In Q4 of fiscal 2026 we delivered adjusted EBITDA of approximately INR 23.7 billion compared to INR 22.1 billion in Q4 of fiscal 2025. This includes the contribution of INR 4 billion from our manufacturing business versus [indiscernible] billion in the corresponding quarter of fiscal 2025.

In Q4 of we recognize fair value gain on conversion of a jointly-controlled entity to a subsidiary, while the old or PLF were also marginally lower compared to last year. [indiscernible] against this. Last year, the asset sale gains were reflected in this quarter, thereby leading to a higher pace.

Turning to Page 20. A key focus area for us has been balance sheet strength and reducing leverage. We have made significant progress in this with net debt to EBITDA improving by approximately 1.1x year-on-year. This has been driven by strong internal cash generation, accelerated capital recycling and fundraise plan. During the year, we raised approximately $375 million through asset monetization, a portion of which has been used to reduce debt. We have also accelerated debt repayments in fiscal 2026.

Turning to Page 21. While we are disciplined in our capital allocation, we are also prudent in our risk management strategies, continuing to actively manage our refinancing requirements. We have strong visibility on refinancing our upcoming purity supported by diversified access to funding sources, including offshore markets, domestic banks and institutions and so on and so forth. Of the $1 billion due for repayment in about 12 months, we have already received commitment over $400 million -- sorry, the order commitment of $400 million. we have a strong track record of refinancing and have refinanced more than debt in our currently on our balance sheet.

For example, in fiscal 2026 refinance approximately $2 billion of debt. In these volatile times, our ForEx exposure also remains well hedged is approximately 90% of our principal and all of our interest being fully hedged, which provides protection against the foreign currency volatility while we saw the rupee depreciated quite sharply in FY '22 by almost 10%, the impact on our overall interest cost was only around 30 basis points.

Moving to Page 22, we remain focused on maintaining capital discipline and enhancing returns, reducing leverage over time. Our target remains to bring consolidated leverage closer to around 5.5x for the fully constructed portfolio. In terms of our portfolio, with the fall in battery energy storage system sizes, we have pivoted to a solar plus best heavy portfolio option. This helps us improve our returns due to lower base and solar capital expenditure.

Compared to the earlier configuration, our overall CapEx is down by INR 60 billion, while EBITDA has been impacted only by INR 7 billion by making this change. The update in configuration also has reduced the risk profile of these assets and provide more certainty on generation and on execution, given lesser variation versus wins will also make our cash flows more predictable once the project is operational. On projects will continue to play an important role, particularly in C&I and other higher IRR opportunities. We will continue to deploy our wind execution capabilities where we can generate an alpha in terms of returns.

Let me now hand it over to Vaishali for comments on ESG.

Thanks, Kailash. Turning to Slide 24 now. Today's sustainability and geopolitics are intertie recent geopolitic political tensions and supply chain shocks have elevated energy security from a policy priority to a business imperative. For renewal, that means our sustainability strategy is not an add-on. It is the mechanism by which we reduced national vulnerability, protect communities and create enduring value. Our ability to navigate this complex landscape is being recognized by leading global sustainability benchmarks marking a high note as we close the financial year. First, in the S&P Global Corporate Sustainability Assessment, we earned a spot in the S&P Global CSA book with a top 10% distinction globally and an industry-leading score of 84.

Second, in the CDP supply engagement assessment, we achieved the A rating for the second consecutive year. Third, in the MSCI ESG rating, we achieved the highest possible AAA rating. This places us in the top 19.5% of utilities globally and makes us the highest-rated energy utility in India. And finally, as the coveted CII-ITC Sustainability Awards, we received the outstanding accomplishment award in corporate excellence, the highest category in this award. Together, these benchmarks, demonstrates how Renewal is not only meeting ESG standards but defining the industry pace.

Moving to Slide 25. Let's look at the data behind Algis. On environment, Renew remains committed to achieving its SBTI validated Neo targets. We have rolled out key levers of our manufacturing, Decorroadmap and initiated animal assurance calculations and disclosures for the financial year. People continue to remain at the very center of what we do. Our CSR journey mirrors the transformational trajectory of India's ongoing development. Our CSR initiatives have positively impacted over 1.7 million lives, electrified 350-plus schools and established 200 smart class tools and 125 digital labs.

Our workforce diversity stand at 17.6%, progressing steadily over towards our 30% women workforce target by 2030. In closing, fiscal year 2016 has been a milestone year for ReNew. e surpass our targets to deliver breakthrough results across major global benchmarks. -- including an MSCI AAA rating, an industry-leading SMP global CSA score of 84 and the coveted A list in CDP. But our impact goes beyond just numbers. by embedding ESG at the very core of our business via positioning renewal as a true pioneer in the global energy transition. We look forward to building on this momentum and sharing our progress in our third integrated report coming up soon.

I will now turn it over to Kailash to take us through guidance. Back to you, Kailash.

Thank you, Vaishali. For fiscal 2027, we expect to have adjusted EBITDA in the range of INR 103 billion to INR 109 billion with continued contributions from both our coal and the manufacturing business. This will be a 17% increase from the guidance range we provided last year. We expect our manufacturing business to contribute INR 1 billion to 2 billion -- INR 10 billion to INR 12 billion in fiscal 2027. Why we expect margins to moderate somewhat this year in the manufacturing business, the long-term EBITDA growth story in the manufacturing remains intact with the 4 gigawatt cell expansion expected to contribute meaningfully in fiscal 2028 and the Inga wafer plant to do the same in fiscal 2029. We also expect INR 1.2 billion from asset recycling. We expect to construct between 1.6 to 2.4 gigawatt of capacity during the year and generated cash flow to equity of INR 18 billion to INR 22 billion. With that, we will be happy to take questions.

Thank you, Kailash. Operator, do we have any questions from the phone line. Please go ahead.

[Operator Instructions] Our first question today will come from Maheep Mandloi of Mizuho.

Maybe just a question first on the manufacturing business, the ingot wafer capacity, which I think you talked about last time and gave more color here. When should we expect that contribution and does the guidance include any contribution from that business? I think mostly from the margin side, but curious if that would be for third-party sales as well.

Kailash, would you want to take that?

Yes. So Maheep, as I mentioned, the cell facility -- top conserve facility will be operational towards the end of this fiscal year. So right now, the guidance doesn't include any contribution from that business but initially it would be in sort of trial-runphases.

I think you were asking about the wafer in the plant.

Yes, that's right. Yes, for the wafer business ingot [indiscernible].

Yes, the wafer plant will be commissioned only by June 2028 or thereabouts, so it won't -- it won't register in this FY '27 financial year or in fact, even in the FY '28 financial year.

Got you. And secondly, just on the performance this quarter, I think went PLF was definitely better, but solar we saw slightly lower. What does any resource issue or sub curtailments? Or how to think about that going forward?

Yes, there was some curtailment. As I said, it was a little lower in Q4, but there was some degree of curtailment that happened. But resource efficiency was a tad lower. But on top of that, there was a curtailment. That's why the overall PLF has been lower than last year.

[Operator Instructions] Our next question will come from Nikhil Nigania of Bernstein.

My first question is on the solar cell manufacturing facility. -- lessee 2.5 gigawatts in our presentation on the government AMM list, it still reflects that 1.8 gigawatts -- and even the yield that we are seeing is closer to that kind of capacity. So could you please clarify on that?

Yes. So the change in yield is about 80%. So that is why we tend to have the output of 1.8 gigawatts or [indiscernible]. The 2.5 is a plate capacity.

Yes. Okay. Got it. The second question I had was the DSM regulations, which the CRC implemented and then there was the order from Karnataka High Court. If it were to go through, what is the kind of impact that we can assume for our business given our sizable wind portfolio?

Yes. So if that were to go ahead, which first of all, let me tell you that there's a lot of conversation happening. And it is -- there are some changes that are likely to be proposed to do whatever the CRC has come out there. So I don't think that the current guidelines are going to continue as they are. There will be some change, and there will be some relaxation to it. Nevertheless, to answer your question, in case the current thing was supposed to continue, then there may be another INR 0.5 billion of impact to the numbers for DSM for this year. But as I said, we don't expect it to continue. There is likely to be some change towards the relaxation side.

Understood. I appreciate it. Just to clarify the $0.5 billion in the impact, you said it was for FY '27.

FY '27, yes. But as you know, the CRC is proposing tightening of the band consistently over the next 5 years, right? So what I -- the number I gave you is only for FY '27. We frankly haven't estimated the numbers after that. And as I said, in any case, it's going to become relevant because the current system is unlikely to the go some changes, the one that they proposed.

Makes sense. For that clarity, -- the other question I had was what you were alluding to earlier is on [indiscernible] security, there's a big push. And green hydrogen is an area we were discussing in earlier days we haven't been very active or they have me to read tenders in that area, but are you hearing more opportunities emerge in green halogen ammonia or methanol.

Yes, we definitely are. So there is a new green methanol tender that has been planned by the government of I think 500 I think we'll also see a renewed formulation and bidding for some of the fertilizer base tenders. There may be some speed up for the -- for the refinery tenders. I mean the exact bids have not yet been formulated because obviously, we're dealing with a very emerging situation right now. But what we're also seeing is demand picking up overseas there's more activity happening in the overseas markets as well, especially in the Far East, and I think it will also get reflected in Europe pretty soon. So my sense is that we first will emerge as a bigger opportunity in the medium term.

Got it. One last question I had. I mean, it's a 2-part question in a way. When we look at CA forecast for power generation capacity addition, they are expecting some dip in solar addition in FY '27, '28. It could be due to transmission issues, but I wanted to hear your thoughts on that. Are they underestimating it in are the usual transmission challenges, which you alluded to earlier, leading to curtailments as well. Have they got any better? Or are they still the same?

I can't say that there's any significant change from last year. And I don't know what the CES latest numbers are. So if you can just tell me what is the CA proposing exactly of this year?

On solar capacity addition, they were expecting a decline in addition in FY '27 from '26 to '27 and' '28.

Okay. So look, I don't know what those numbers are based on -- but just given the amount of PPAs that are outstanding, given the fact that there are so many operators now developers kind of set up capacity, I don't think that there's any constraining parameter right now. We'll also see, obviously, the distributed side, both rooftop as well as pump -- the pump side also progressing well. C&I demand is strong. So I'm not sure that I would feel that there would be a slowdown in solar installations. I think if anything, we are sort of at a ramp-up phase at this point.

Now will transmission issues constrain it? I think at the margin, perhaps, it could have an impact, but a lot of people are trying to move out from [indiscernible] at into other states now and trying to take advantage of transmission capacity [indiscernible].

There are no further questions on the phone line at this time.

I think there are some questions Yes, there are some questions on the webcast. Maybe we can pick those up. So there's a question from Jordan Gilmore. I guess, Kailash, this is for you.

The question is, do you still have some USD bonds to be refinanced this year? And how much is the quantum and what's the plan to refinance them?

Right. So Jordan, we have $1 billion of maturity starting January next year, rather than first half of 2027. And as I mentioned earlier in our prepared remarks that we have a $400 million commitment already sitting with us, and we may do other refinancings as we get through to the time, which could be either a mix of dollar bonds or tapping into the onshore liquidity whatever provides us the lowest cost of capital, we would evaluate those options.

And there's 1 last question from [indiscernible]. This question is and I'm paraphrasing is new Indian peers trade at a higher multiple than renew? Is the management considering an India listing for the business or an ESP subsidiary businesses again for you, Kailash.

Yes. So it's a valid observation. I think we have noticed that, too. In that spirit is where I think some of the investors were looking to take the company private at some point because the multiples in the U.S. market are not really reflecting the value of the company compared to the peers. Given that the transaction didn't go through, we continue to remain listed in the U.S. At this point in time, we are not considering any listing in India.

And 1 last question, maybe I can answer that from Caroline to is what is the CapEx required for the 6.5 gigawatt plus wafer facility, which we mentioned will be funded through internal approvals in external countries?

So Caroline, we've mentioned this in the presentation. So it is about INR 42 billion, assuming we don't do a captive power plant. And given that we will take some project debt for this, 50% to 60%, the balance will be funded through cash accruals from the manufacturing business along with the external fund raise that we propose to do. So we won't be the new parent when we deploy any additional equity into the manufacturing business to set up this inverter facility.

That does conclude our conference for today. Thank you for participating. You may now disconnect.

Thank you for standing by, and welcome to ReNew's Third Quarter FY '26 Earnings Report. [Operator Instructions]

I would now like to hand the conference over for opening remarks. Please go ahead.

Thank you. Good morning, everyone, and thank you for joining us today. We have put out a press release announcing results for our fiscal 2026 third quarter ended December 31, 2025. A copy of the press release and the earnings presentation are available on the Investor Relations section of our website at www.renew.com.

With me today are Sumant 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 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.

With that being said, it's now my pleasure to hand it over to Sumant.

Yes. Thank you, Anunay. Good morning, everybody, and good evening, depending on your time zone. I'm glad to have you all on our earnings call for the third quarter and the first 9 months of fiscal 2026.

The year 2026 has kicked off with good news on the macro front. As you all would be knowing, a few days ago, India and the U.S. has agreed on a trade deal. Apart from reducing the general overhang and uncertainty, this is likely to also open up the U.S. market again for Indian exporters and benefit the economy overall. This has also benefited the rupee in recovering some value versus the dollar. Additionally, the financing environment remains benign with interest rates on a downward curve. All this has enabled India's growth projections to stay above 7% in fiscal 2026 with roughly the same growth rate forecast by the Government of India for fiscal 2027 as well.

Coming to our sector, we have also seen some recovery in electricity demand as growth rebounded sharply in December 2026, with slightly better numbers in January 2026 as well. Power demand is expected to rebound to normal levels in fiscal 2027.

In today's call, while I will cover the updates for the quarter, I will also briefly cover the strategic path forward for us as a company.

Turning to our highlights. Since December of last year, our operating capacity has increased from 10.7 gigawatts to 11.8 gigawatts. Given that we have also sold 900 megawatts during this period and adjusting for this, our portfolio actually increased by 19% or 2 gigawatts over the last 12 months. We continue to focus on optimizing our portfolio for lower execution risk, CapEx and more predictable cash flows. And hence, for our complex projects, we have decided to replace part of our wind of those projects with more battery energy storage systems, or BESS, and solar capacity. We have reduced, therefore, the [ wind ] capacity in our committed portfolio from 2.5 gigawatts to approximately 850 megawatts, effectively taking up now to 19.2 gigawatts, which is inclusive of approximately 1.5 gigawatts of batteries. This pivot enables us to lower CapEx, reduce execution risk as well as more accurately forecast our future cash flows owing to less volatility in the weather patterns.

Coming to our financial highlights. Our adjusted EBITDA increased by 31% to INR 74.8 billion for the 9 months ending December 31, 2026, accompanied by an over sixfold of profit after tax. We also successfully raised $600 million through a bond offering and successfully refinanced our previous bond due in July 2026. We [ also received demand ] in excess of $2 billion and we were able to reduce the interest rate from the earlier 7.95% to 6.5%, therefore, thereby saving approximately $9 million in annual interest expense.

This was also the [indiscernible] through issued through GIFT City.

We also continued our capital recycling engine and sold another 300 megawatts of solar assets this quarter. Our manufacturing business contributed INR 10.8 billion to our adjusted EBITDA for the first 9 months. As a result, we have increased the lower end of the guidance range for both our adjusted EBITDA and megawatts for the year. We now expect to deliver INR 90 billion to INR 93 billion of adjusted EBITDA, of which our manufacturing business should contribute between INR 11 billion to INR 13 billion. We have also narrowed the range for our project guidance and expect to construct between 1.8 and 2.4 gigawatts in the fiscal year ending March 31, 2026.

Lastly, and most importantly, ESG is at the core of everything we do. I am happy to report that we continue to outperform on our ESG commitments. We have received an A grade rating from LSEG and a score of 90.41, effectively placing us in the top quartile globally. We have also received an A grade rating from CDP climate change and Water Assessments of effective water management at our plants. Not only this, but we have also been able to get water positive certification for 2 of our sites.

Turning to Pages 8 and 9. I wanted to highlight that this year marks a significant milestone for us as we mark 15 years of our operations. We now have 3 mature businesses comprising a utility-scale IPP business, a C&I business as well as our manufacturing business.

Turning to Page 10, it is important to note the crucial strides ReNew has continued to take against the backdrop of [ a ] transaction. We have commissioned approximately 1.9 gigawatts, ramped up our manufacturing capacity and also raised $100 million from BII, British International Investments, to finance [ the cell ] expansion of our manufacturing business. Our C&I business is among the market leaders in this segment, and our portfolio has expanded by approximately 30% over the past year through contracts with marquee customers.

Leverage also continues to trend downwards meaningfully, and we are already at approximately 5.5 levels for our operating portfolio, which is debt to EBITDA.

Moving to Page 11, I wanted to spend some time highlighting our key strengths. While everyone knows the size and scale of our portfolio, both in utility scale and C&I, over the years, we have developed in-house O&M and EPC capabilities. We have also secured connectivity for our entire portfolio, including for our letter of awards, with 5 to 6 gigawatts of spare connectivity on hand. This is an important differentiator as timely connectivity continues to be a key metric in the sector that we operate in.

Moving to Page 12. It is important to note that we have been consistently growing our EBITDA at approximately 17% per year since our listing. We have managed to do this without issuing any new equity and relying on capital recycling, which has been more attractive for us.

On Page 14, I would like to add some new elements that will be pivotal for both growth, predictability and profitability. We have derisked our product execution and improved predictability of future cash flows by increasing more BESS and solar in our portfolio and reducing the reliance on wind. This will enable faster execution and more predictable revenues given that we already have a 25-year PPA backing these tariffs.

Our capital needs will continue to be fueled by a mix of internal cash generation and capital recycling, enabling us to improve returns. Lastly, and most importantly, we will now have increased focus on balance sheet strength and discipline and will actively look to reduce leverage even further. While we are now delivering profitable results, a focus on leverage and cost optimization should further enhance our returns and cash flows.

Turning to Page 15. We have provided some run rate numbers based on the current configuration, gross and net of asset sales. We wanted to demonstrate that by selling about 1.6 gigawatts over a period, we can effectively reach a portfolio of 19.2 gigawatts without having to raise external capital, as well as reduce headline leverage, including under construction projects from the current 6.7x levels to under 5.5. If we are able to do more asset recycling or farm-downs, we plan to use that extra capital to get the leverage and corporate debt down even further.

Moving to business updates on Page 17. We continue to deliver on operating megawatts and now have an operating portfolio of 11.8 gigawatts, an increase of 19% adjusting for the 900 megawatts [indiscernible] during the last 12 months. Our overall portfolio is now 19.2 gigawatts inclusive of BESS. In the past 9 months, we have commissioned over 600 megawatts of wind projects and over 900 megawatts of solar.

Turning to Page 18. Our manufacturing business continues to perform above expectations and has delivered an adjusted EBITDA of 10.8 billion in the first 9 months of the current fiscal. The business has an external order book of 900 megawatts. Our under construction 4 gigawatt cell facility is progressing well and we should see it deliver its first sales later this fiscal year -- later next fiscal year, actually. Our module facilities are producing over 12 megawatts per day and have produced 3 gigawatts this year to date, but our [ cell ] facility is producing over 5.5 megawatts per day and has produced 1.4 gigawatts this year till date. So far this year, we have sold 2.6 plus gigawatts of modules, of which approximately 1.5 gigawatts have been sold externally that has been used as part of our own operations.

Turning to Page 19. Our C&I segment has done exceedingly well and is one of the largest C&I portfolios in the country. We have developed a strong partnership with global tech giants like Amazon, Microsoft and Google as well as expanded our customer base across the country. Overall, 50% of our portfolio is with these tech giants. The business is also well placed to tap into upcoming business opportunities such as energy management services and supply of renew energy to data centers.

Now I will hand it over to Kailash to discuss the financial highlights. Kailash, over to you.

Thanks, Sumant. Turning to Page 21. We continue to deliver consistent profitable growth since the same time last year, we have constructed over 1.9 gigawatt of projects, a 19% increase in operating capacity after adjusting for the 900 megawatts sold during the trailing 12 months. This year, so far we have commissioned 1.6 gigawatts of renewable capacity. Our revenue increased by 48% for the first 9 months of this fiscal compared to last year due to increase in megawatts and a meaningful contribution by the manufacturing business. Our adjusted EBITDA for the third quarter of this fiscal is also up, largely on account of gain from asset sales, scaling up of our manufacturing business as well as an increase in the operating megawatts.

Turning to Page 22. Our headline leverage continues to decline consistently. We had reduced from 8.2x in December 2024 to 7x debt/EBITDA at present, and at 6.7x once you exclude the contribution from our JV partners, which are [indiscernible].

On a trailing 12-month basis, the leverage for our operating portfolio was approximately 5.6x. Do note that our trailing month EBITDA is not reflective of the run rate EBITDA for these assets as many of these assets have less than 1 year of operations. We continue to pursue all options that will decrease our leverage ratio at the consolidated level such as asset recycling, cost optimization and a reduction in our corporate debt.

Turning to Page 23, which covers details of our financing and asset recycling. Recently, we issued a $600 million bond at a coupon of 6.5%, which replaces the earlier bond which was at 7.95%. This is the first one from India's GIFT City, making it a marquee transaction. This issuance received strong investor interest of greater than $2 billion and has also enabled us to save $9 million in interest costs annually in addition to withholding tax savings. Additionally, we also concluded sale of a solar 300-megawatt asset, taking our total asset sales for the year to 600 megawatts, through which we have raised a total of $275 million through capital recycling this year, including the $100 million that we raised from BII from our manufacturing business.

Let me now hand it over to Vaishali for comments on ESG.

Thanks, Kailash. Turning to Slide 25. Let's look at the advancements in renew sustainability initiatives and targets. The global landscape for ESG in 2026 demands mandate reaction and demonstrable progress, and we are proud to be leading the way in the renewable energy sector and beyond.

Starting with our recent ESG ratings. For the LSEG...

[Technical Difficulty]

It appears we've lost connection with our speaker. One moment while we reconnect.

Hello.

Yes, I can hear you, Vaishali.

Yes. So for the LSEG ESG rating, we received a remarkable score of 90.1 out of 100 and a grid placing us in the top quartile globally. We are ranked second among 346 companies in our sector, reflecting a strong 7% year-on-year gain and clear industry leadership.

We also excelled in the CDP climate change and water assessments. We received an A rating in the climate change assessment, featuring us in the prestigious Global Corporate A List, and retained an A- rating in water security. Overall, we are ranked in the top 4% globally by CDP.

Water stewardship is a core pillar of ReNew's environmental strategy embedded across our operations. We successfully initiated a water positivity pilot certifying 2 sites as water positive. Our solar site in Ashok Nagar, Madhya Pradesh were certified as water positive, making it India's first water positive solar plant, a new benchmark for the sustainability -- for sustainability in the sector.

Now turning to Slide 26, let's review our advancements across the 4 pillars of our ESG initiatives and targets. Under the environment pillar, we have achieved our target being -- a target of being carbon neutral by completing the verification for the fifth consecutive year for fiscal year '24/'25. We continue to remain aligned to our annual [ SPT ] targets, achieving an 18.2% reduction in Scope 1 and 2 emissions from the baseline in fiscal year 2025.

As the country advances towards sustainable economic and inclusive development, our CSR initiatives have also evolved to strengthen the priorities of new India. Our initiatives have positively impacted over 1.7 million lives so far.

A major highlight is our Project Surya, which is skilling 1,000 [indiscernible] workers as solar technicians, with 720 women trained and over 200 all replaced in the sector, significantly boosting our gender quality and skill employment.

Under governance, we are making strong progress towards our target to rank amongst the top 5 global energy and utilities company by 2030 across leading ESG rating agencies. This is reflected in an S&P Global CSA score of 84 and LSEG score of 90.4 and top-tier CDP ratings of A for climate change and A- as for water. These results reflect our continued commitment to responsible and sustainable practices.

I will now turn it over to Kailash. Over to you, Kailash.

Thank you, Vaishali. Turning to guidance for the fiscal year ending March 31, 2026. We have [ increased ] the lower end of our EBITDA guidance range by 3% and now expect that our adjusted EBITDA will be between INR 90 billion to INR 93 billion. We now expect to construct 1.8 to 2.4 gigawatts, up from 1.6 at the lower end of projects during the year, and generate cash flow to equity of INR 14 billion to INR 17 billion. We are also increasing the guidance for the adjusted EBITDA contribution from our manufacturing business to INR 11 billion to INR 13 billion.

With that, we'll be happy to take questions.

[Operator Instructions] Your first question comes from Maheep Mandloi with Mizuho.

Okay. Just 1 question on the revised strategy, something that you talked about having more solar and BESS only projects going forward. Could you just talk more in detail about that, what drove that decision, show all the puts and takes there? And on the solar side, you've been manufacturing the modules yourselves. Are there any plans to also do something like that on the BESS side as well?

Yes. Thank you, Maheep. Yes. Look, so the reason we are basically decreasing the amount of wind in the portfolio is because when we bid out some of these projects, at that time, price levels were, for BESS, were significantly higher than where they are right now and also for solar. So in general, with prices of BESS coming down substantially, the ability to form a power through solar plus BESS has actually improved. And therefore, to get to the right solutions that are desired by the customers, we require essentially less wind from an overall new configuration standpoint. So that is one reason that the amount of wind has decreased.

The second thing also is that, as you know, we've had experience in wind where PLS have been unfortunately lower than expected over the last 7 years or the last 5 years. And we don't know exactly when that trend will reverse. It may reverse next year, it may take a little longer. But fundamentally, the variability in wind is a lot higher than it is in the case of solar. And execution also in general, because a lot of the execution in solar is in Rajasthan where it's easier to get land, and a lot of the execution of wind is in sort of [ Dekan ] Central India, which a lot of it is agricultural land, it's usually harder to get. And so therefore, to do a similar amount of capacity is easier in solar than it is in wind.

And so for both of those reasons, I'd say all 3 reasons, which is related to change of price in BESS, change of the issue of wind variability and the issue of easier execution in solar, we have, therefore, tried to reduce the amount of wind in our portfolio going forward. And so in the close to about 7 gigawatts of now capacity of [ PPAs ] that we have, we have reconfigured those projects as we are allowed to under the terms of the bid, of the various bids, and we are now, therefore, trying to go for a higher amount of solar plus base. There is, of course, still close to 1 gigawatt of wind, but is down substantially from 2.5 gigawatts that we had earlier. So those are the reasons.

As far as manufacturing BESS is concerned, it's not something that we've actively looked at seriously at this point. And the reasons are actually twofold. One is -- or I would use threefold. One is that there is no restriction at this point on imports of batteries from China or sales from China. And you know that you can import at a much cheaper level than you can manufacture domestically. And so that is one reason.

The second reason was that, on the technology front, technology moves a lot faster in the case of batteries. And so it just requires a lot more expertise to be able to get into the understanding of the right cell technologies and so on. And a lot of the cell manufacturing in the country, or in any country for that matter, is really driven by the EV industry. And so that's a market that we obviously would not be targeting for our BESS production. A lot of it would have to go into that segment, which is something that we don't understand as well. And so that's why we haven't looked at cell manufacturing so far, or batteries and manufacturing so far.

Got it. I appreciate that clarity. And then maybe just on the update on the take private or the [indiscernible] like in one of the slides you talked about the path forward here. Is that the strategy going forward, or should we expect more in terms of the path forward or more thoughts on privatization here?

So Maheep, that's not something that we can really comment on, obviously, as you know, because that's a very specific topic and that should there be something that requires to be commented on that the company will make an appropriate disclosure at that time.

The next question comes from Nikhil Nagano with Bernstein.

Good to see the focus on reducing leverage and increasing solar plus BESS instead of wind. My first question was on the industry issues, which are broader, which is transmission project delays, and curtailment, both which are outside our control but are impacting the industry, are we seeing any directional improvement on those 2 aspects? Or they continue to be a hurdle for us?

Yes, Nikhil, thanks for the question. So you know that, obviously, the issues that have got now a lot of visibility because it's impacting the industry as a whole, and therefore, there has been a lot of discussion within the ministries that is MNRE and MOP on how to deal with this issue. And there's a lot more focus on how to get transmission execution improved. And there are various things that the government is doing, which I can tell you about separately perhaps or you can also find out what's happening.

And the same thing on curtailment. So essentially, in the case of curtailment, a joint committee has sort of been established between the secretaries of MNRE and MOP to look at how to deal with this issue and how to essentially look at this loss, which obviously accrues to us, but which should actually get borne by a broader set of stakeholders. So that is something that is under discussion right now.

I know exactly which direction of where it will finally end up at, or even how long it might take to get to the right -- to the conclusion. But certainly, there is a recognition that this is a loss, that is a systemic loss, and there is no reason for only the developers at the sharp end of the stick to be taking on this loss in our books. So that philosophy is accepted. What is their idea of dealing with this is something that the government is thinking through. And on transmission as well, they're working on a lot of different things to see how they can improve the transmission build-out.

Got it. Just a follow-up on that, on the curtailment bit. Is it fair to assume where we have a G&A and not a TG&A? There we are compensated by the DISCOM in case of curtailment?

Yes, that is the case. So for example, in our situation, of the total loss we've incurred on account of this combined issue, approximately about 30% or 35%, we're getting compensated back because we had G&A -- a permanent G&A. So when you have a permanent G&A, you basically get -- you get paid based on your schedule, rather than on the power that you supply. And in the case when you have a TG&A, of course, you have to take the loss on your [indiscernible] which is now what the government is trying to figure out how to socialize that loss a little bit more across all stakeholders. But in the case of G&A, we get compensated.

Got it. Appreciate that. And one last question on the manufacturing bit, I mean, a good source of cash for us. On the cell manufacturing side of the cell, are we seeing any compression in margins or that continues to hold strong?

So far, it's held up. There was a temporary lull when post -- during the monsoons when inventories tend to build up a little bit and the execution slows down. But margins have again picked up a little bit in this current quarter. And it looks like the demand is reasonably okay at this point.

The next question comes from Puneet Gulati.

My first question is on the change in configuration with more towards BESS and solar, would it be fair to say that even unadjusted for risk, the IRRs are better than what you could get out of wind?

I would say not at the time of bidding. But what has worked out historically in solar, because of CapEx reductions, has been that people have ended up with higher IRR than solar, because CapEx has declined, sometimes more steeply than expected. We are seeing a bit of reversal in that right now, as you know, because people have bid very aggressive numbers in recent auctions. And prices have actually gone up given what's happening in China and so on.

So it's a little [indiscernible] independent. But in general, I would say that solar has tended to give higher returns than wind on account of reduction in CapEx over a long-ish period of time.

Right. So for your projects, if you were to execute it with wind versus solar, you'll earn more out of it?

If you do it more with solar than with wind, obviously, look, what happens is that we look to optimize our returns on the configuration at all points in time, right? Now as I said, there are 3 reasons of shifting away from wind. One is just configuration optimization, because of the new CapEx costs that are now available in the market for BESS. So that is allowing us to get better returns than what we had assumed at the time we bid, okay? So that is basically what's happening.

But when you tend to execute when the risks are higher, not just on the capital cost side, but -- and we've seen cost overall happening in wind more frequently than we've seen happening in solar because of the execution problems that I was mentioning. And secondly also, once the asset is up and running, then also sometimes you see that wind performance does not show up as expected, and therefore, returns end up going down.

So I would say that those are things that you can't necessarily -- or you don't really model for necessarily, but those end up happening in real life. Okay? So now it doesn't happen in every case, but on balance, it can happen. And so therefore, in general, the view is that solar risk-adjusted returns are more steady than wind risk-adjusted returns are.

Understood. And your overall capacity -- yes, sorry.

So I was just saying that if you see the presentation on Page 15, and then we have the updated configuration on Page 41, so basically what has happened is with the fall in BESS prices and the new configuration, essentially our CapEx for the build-out is going down by around INR 60 billion. Whereas, on the other hand, the EBITDA is only declining by around INR 6.5 billion to INR 6.8 billion. So effectively, our EV EBITDA for the under-construction portfolio is improving a bit, apart from obviously having greater control of execution and more predictable cash flow. So even from a return perspective, because of where BESS prices have trended and solar prices have trended, it's more -- it's better for our returns.

Understood. And secondly, in your overall production or capacity, how much would be under TG&A? And what sort of curtailment would you have faced in the third quarter?

In the current quarter. See the TG&A is -- it's not a fixed number. If you just ask for the last quarter, actually, some of our projects actually moved from TG&A to G&A. So I can't give an exact number, but it's probably in the few hundreds of megawatts now. I think it was maybe close to 1 gigawatt earlier, now it's perhaps down to 400 megawatts, 500 megawatts, because 500 megawatts thereabouts move from TG&A to G&A.

But as you build new projects, it depends on the substation that you're connecting into. If that substation has not been properly connected at the back end through various other transmission lines to the rest of the national grid, then any project that connects to the substation faces or gets TG&A. And then whenever those back-end transmission lines get built out and that TG&A converts to G&A. So it could be that a project is on G&A for a quarter or 2 quarters, and it's some part of the new projects that you're building out.

So there -- so that is the way it's sort of working. There could be 500 megawatts, 700 megawatts that are at any given point in time on TG&A.

Okay. And on the TG&A capacity for last quarter, how much [indiscernible] faced curtailment?

Anunay, do you have those numbers?

Yes. So Puneet, when we started the last quarter, there was roughly, as Sumant said, close to 1 gigawatt of capacity on TG&A, out of which about 600-odd megawatts moved to permanent G&A. So currently, we have maybe somewhere 400 megawatts or a little below that, which is on TG&A.

And by the way, when something is on TG&A, it doesn't mean that it's getting fully curtailed. It just means that there is some degree of curtailment, which could be 10%, 20%, something in that range. And that also depends on -- yes. Yes. And that also depends on the day and the demand and all of those things.

Got it. And lastly, you talked about your target leverage ratio at 5.5% for fully constructed portfolio. You're already at 5.6% for your operational portfolio. How much more do you want to bring your leverage down? Is there really a need to bring down leverage once the portfolio is constructed and it should automatically be there? Or is a general need to bring down a large leverage?

Kailash?

One thing I'd clarify -- one thing I'll clarify, Puneet, sorry, Kailash, before you answer is, Puneet, when we say 5.5x, it's the headline leverage. So whereas right now, it's closer to 6.5x, 6.6x. The intention would be to bring it down to that level over time. But yes, Kailash.

Yes. I think, Puneet, use, that's one clarification. And the other thing is that overall feedback that we have received and we also believe strongly in that, is that we need to have more accruals coming to shareholders [ then ] to debt providers. And in that context, obviously, bringing on leverage is the easiest way to do that because I think cost reduction, we have managed to achieve as much as we can, but I think it's just the headline debt number, which takes out the free cash flows to the firm. That's the reason why we'd like to bring it down.

Understood. 6.7x going down to 5.5x is what one should think about. Any target date in mind or you have in mind?

No. So I would say that basis, whatever number, crunching that we've done, I think, by between '28 to '30 time when we'll be able to achieve this.

That does conclude our Q&A session and our conference for today. Thank you for participating. You may now disconnect.

Hello. This is the Chorus Call conference operator. Welcome, and thank you for joining the ReNew update conference call. [Operator Instructions]

At this time, I would like to turn the conference over to Mr. Anunay Shahi, Senior Vice President and Investor Relations of ReNew. Please go ahead, sir.

Thank you. Good morning, everyone, and thank you for joining us today. You would have seen yesterday our 6-K published in response to the consortium's 13D filings. A copy of the 6-K is available in the Investor Relations section on ReNew's website at www.renew.com. With me today are Sumant Sinha, Founder, Chairman and CEO of ReNew; Kailash Vaswani, our CFO; and Manoj Singh, our Lead Independent Director and Head of the Special Committee. Following a short set of prepared remarks, we will open the call for questions.

I will now hand over to Kailash Vaswani.

Thanks Anunay. As you will have seen from CPP and ADIA's 13D filings yesterday, Masdar has withdrawn from the consortium and therefore, the remaining consortium members will not be pursuing the transaction further. As such, all discussions regarding the proposed transaction has been terminated. We are naturally disappointed that Masdar chose to withdraw from the consortium after such a long process, taken roughly a year from the process becoming public in December 2024.

As noted in the previous updates given through the process, due diligence was complete and negotiations on the transaction agreement was substantially progressed. We would have also -- we would also note after the consortium's 13D filings on October 10, 2025, that each of the consortium members had been given regular updates to their internal committees, and they were working towards announcing a binding transaction.

We were informed over the weekend that Masdar had withdrawn from the consortium. At that time and as per the consortium's 13D filings, no rationale for Masdar's withdrawn was given. Nonetheless, we note that Sumant and our major shareholders, CPPIB and ADIA have reaffirmed their confidence in the business and its prospects. As indicated in the company's 6-K, the Board remains committed to delivering value for all shareholders and the company is actively evaluating options for realizing value from their various parts of its businesses.

I will now hand over to Sumant for his remarks.

Yes. Thank you, Kailash, and thank you to everyone for joining the call today. While I do share the disappointment with Masdar's withdrawal from the consortium, I should also say that as a CEO of the company, I continue to remain very excited about the growth prospects of ReNew and the various value enhancement opportunities within the company. I do want to highlight as well that this announcement does not have any impact on the business. It is important to note that the transaction was a potential purchase of shares by the consortium from the non-consortium shareholders.

ReNew's portfolio remains fully funded through a combination of internal cash flows and capital recycling and our liquidity position remains robust as of today with more than $1 billion of cash available to us.

I also wanted to emphasize that CPPIB, ADIA and I continue to remain absolutely committed to ReNew. Our business continues to grow meaningfully, and we have also reaffirmed our megawatt and EBITDA guidance for the year. And I'm also excited by the long-term growth prospects of ReNew. In addition, our leverage also continues to decline. We have been also delivering PAT in successive quarters. Our continued emphasis will be to deliver and enhance shareholder value. We have various parts of our business which has matured significantly and weak scale over the last few years. We will provide further updates on our growth prospects in our next earnings call. We are open to receiving feedback from all of you, and we'll be happy to engage with you to understand how we can create long-term shareholder value.

With that, we would be happy to take any questions. Anunay, over to you. Thank you.

Thank you, Sumant. The first question we have is from Justin Clare at ROTH Capital Partners.

Can you hear me, okay?

Yes.

Okay, perfect. Yes, I guess, I was wondering first, if you could share any additional context or insight into the potential reason Masdar decided to withdraw from the consortium. Were there any particular unresolved issues between Masdar and the special committee that could have potentially resulted in the exit.

Manoj, would you like to take that?

Sure. I'd be happy to. Good morning, greetings to all of you. So first of all, maybe just probably perhaps many of you will have similar questions. I'll provide a slightly expanded response, if it's okay with you. As Kailash said, and all of you know, this whole process has lasted well into a year, 12 months or maybe a little bit longer. And there has been a lot of intense exchange of information, negotiations, discussions, et cetera. Over the course of this time, the price has moved 3 or 4x, as you all are well aware. And also very, very extensive and comprehensive due diligence, operational, financial, of the management team, the assets deployed, the assets yet to be deployed. Perhaps the most significant due diligence that this company has been subjected to. And there were no issues that came out of their due diligence that were not resolved or that were of any concern.

So over the course of this and the special committee and me specifically, was in regular touch with Masdar's representative. And the -- at the time of the nonbinding offer, which I believe was in mid-October, basically, the only thing that was remaining was essentially finalization of documentation and this was directly represented to me and to us by them. And also the internal approvals for the other consortium members, which, as Kailash alluded, has progressed pretty well and was at its final stages. So there were really no open issues. There were no differences of any nature that would have resulted in the outcome that we heard over the weekend. The final series of activities were certain items in the transaction agreement. None of them were deal breakers actually to maybe use some of the precise works that Masdar was using. So all of that is progressing pretty well. And so this was, as we have represented, it was disappointing and perhaps I think would be another word.

Okay. Got it. And then -- so I guess just with the current transaction off the table, wondering if you talk through other potential strategic options that the Board might be considering and we did see a pretty meaningful decline in the share price after the announcement yesterday. So wondering how the Board and management might be thinking about priorities for capital allocation and the potential for share repurchases?

I'll let Sumant provide an expanded response. But just first of all, this has just happened, as you know. And I'll say 2 or 3 things. Like any prudent and forward looking Board, we have been prepared for any eventuality. So we have always had a plan if this were not happen. And now what the Board needs to do is to come together and basically work on developing and executing that plan. And the leadership team will be in a position to share more of that in the ensuing weeks and months. But as Sumant indicated, we feel very confident that the business continues the way it is. The operations are fine, the projects that are underway are funded and we will have a plan to raise additional capital over the ensuing years. I'll let Sumant expand on that question.

Yes. Manoj. Look, Justin, I think that as Manoj said, we've always ensured that whatever we do we always have a plan B in place. So first of all, of course, this event has just happened very recently. So we need a little bit of time to rethink and think through exactly how we want to proceed. And the Board is convening I think, pretty soon to have those discussions. And I think arising from those Board meetings will then be the best plan of action going forward. But it is important to note that whatever projects we have signed PPAs for, all projects that are well in hand from an execution standpoint. Our operational performance continues to be robust. We are meeting all of our deliverables for the year, and we do not envisage any issues with raising any sort of funding for the pipeline that we have currently, as I said, between the cash on hand, the cash that we generate and also the capital recycling program that we are doing. So I think for the immediate term, we are perfectly fine. I don't anticipate any issues.

Nevertheless, I think we will continue to evaluate all potential alternatives, of course, into the future as well. And that's something we'll debate. And as I said earlier, in the next earnings call, we hope to provide you all with a clearer guidance about the future course of action that we will be looking to undertake. And there are various options that we have. Our business has grown quite substantially over the course of the time that we were listed, and we have several degrees of freedom that we can actually act upon. I would also say that we are conscious about obviously what happened yesterday in the market. But I think we have to manage our share price for the long term. I think yesterday's reaction was obviously expected to sudden announcement that happened. And we hope that over time, investors are able to see through and see the true value of the business and that then begins to reflect in a share price again.

Next question is from Puneet Gulati from HSBC.

My first question is, is there a room for the rest of the shareholders to put in an offer ex of Masdar or is that completely off the table?

Manoj, can you take that?

The question was, is there a rule for other shareholders to put an offer? Is that what you're asking?

Yes. So ex of Masdar the remaining consortium, can they still make an offer? Or is that completely off the table now? No longer in discussion or proposed?

Look, this has happened over the weekend. There is no such a discussion that's underway. Obviously, the 2 major shareholders have a significant holding and then they're in working in conjunction with the Board we're going to discuss more specifically what the options are. But there is no discussion at the moment on any other contemplated offer or discussions with any other party.

And Masdar backing out despite taking almost a year, is there no obligation to ask for a reason for this back out?

We certainly would like to have a reason. I think it's entirely up to the party to respond in the way they would like. Every organization has its own processes on governance, which we are respectful of. I think the thing that you all ought to know is that the special committee wanted to make sure that they had in writing what the reason was for this deal being called off. And what you saw in the 6-K filing is exactly what we heard. So at this point, I don't have anything else to share with you. If that's all they want to share, then that's all I can -- I can at the moment. Maybe over time, we'll find out more, but there's nothing else to report at the moment. But then, again, I want to just emphasize that there was -- the due diligence was complete. There were 4 changes to the offer. There was a nonbinding offer with very specific indication that the only thing required was documentation and certain internal approvals. So other than that, I don't know anything else. We don't know anything else about [indiscernible].

Next question is from Nikhil Nigania of Bernstein.

Most of my questions are answered. One question I had is we had a standstill agreement with CPPIB. Is that still in place? Or is that no longer valid and they can buy shares without Board approval?

So Nikhil, maybe I can take that, Nikhil, we'll get back to you on that separately. We'll have to check.

Okay, understood. And the second and last question I have is we have a bond maturing in the coming 6 months, which is sort of a holdco bond asset backed as we call it. The refinancing of that, everything is on track. Nothing changes with regard to that.

Yes, Nikhil, nothing changes with regard to that. That bond is still some time away. And as we've indicated in the previous earnings call also, we are solutions which are absolutely in place to address that whichever way.

The next question is from Prapti Gupta of Alliance Bernstein.

Yes. I have only 2 questions. The first one is, given that we were so close to the transaction, and I'm also aware of the growth plans of the company. I'm sure there will be more longer-term plans of maybe raising money after you go private through your existing shareholders. So I was wondering a bit too early, but if anything, impacts on your growth strategy on your commitments to your annual 2 to 3 gigawatts of capacity add on an annual basis. And how does the company look to look to fund from an equity perspective. And this also relates to my -- to the external credit rating agencies, which -- and one of them, which has a negative outlook. So just on the funding and on the growth strategy, if you could elaborate a bit more on that.

And the second question is that with this Masdar's exit, should we -- I mean just to get a bearish case scenario, any changes in the overall shareholding pattern that we can expect at the sponsor level for ReNew, the majority shareholders?

So I can take that. Yes, sure. So Prapti, basically, as far as our growth plans are concerned, and Sumant also mentioned that I can go pretty much [Technical Difficulty] with a capacity, which is a [Technical Difficulty] and every year, whatever capital we need for that, actually comes from internal accruals and partially comes from our capital recycling program in which, again, we have 2, 3 options for which we recycle capital. And that is something which we will continue to do as we go forward.

[Technical Difficulty]

As I can repeat that. Is it clear now? my line.

Yes, it is better. Maybe you can repeat that, Kailash.

Yes, sure. So basically, I was saying that Prapti as far as growth is concerned, that is likely to continue unabated the way it goes. So every year, whatever requirement we have for equity and debt, the equity portion is that we need some more internal accruals, huge expenses, capital recycling to do. So that is likely to continue as we go forward. As far as the other strategy which we are pursuing is deleveraging. So I think that is also something where we will continue to allocate capital towards reducing some of holdco debt. So I think in both those areas, we will continue to make the progress that we've been making. And I'll just add that even when this transaction was announced a year ago, there wasn't any primary infusion, which was in [indiscernible]. So to that extent, in any case, we were drawing up all our plans and continuing on a deleveraging basis, our own internal situation, which was business as usual as we call it, not really relying on any capital infusion which was [indiscernible]. So from that point of view, also, really nothing changes for even because of this transaction [indiscernible].

So let me just add to that. in terms of a little bit yes. Sorry. Can I say that a little bit unclear. So look, the reality is that whichever path we pursue, there are many things that we would have planned to do in whichever path we tend to go forward now, right? Had we done the take private, had that happened? Obviously, we would have had plans to do various things subsequent to that. Regardless of that, whether that deal happens or not, it's not happening now. Even currently, we have many different plans that we can pursue for any fundraising and so on that we are looking at. So I don't think that there's any fundamental difference. I mean this is an important point that there's no fundamental difference between the pathway that the company would have followed in the context of a take private versus the pathway that we will follow without the take private. I think there -- obviously, there will be differences between being a public company and being a private company. But I don't think that there's going to be a fundamental change to our rollout plans that we have talked about in the past. And as I said earlier, we feel that we are fairly well funded for executing against all the pipeline that we have and that we might get in the future. And keep in mind that we also have a very healthy new solar manufacturing business. That has also been doing well. And as you know, we have revised the guidance up for that in the last call. So I think that is something that is also going to help us meet our aspirations going forward.

I don't think we have any further questions. Thank you, everyone, for joining at short notice.

Anunay, can I just make a quick comment, Manoj here. Just -- just a quick -- more of an observation for all of you as a Board member representing my colleagues on the Board that we have spent a lot of time looking at this transaction in the last 12 months. And something like this is also an opportunity for a lot of introspection. And I think one of the things I do want to emphasize, which is very important, we believe, as a Board, is that we continue to have full confidence in Sumant and the ReNew team. And in a business where a market which is growing very rapidly and where execution is very important, having one of the best teams in the business in the Board's view is the biggest differentiator. And that hasn't changed. And what we are going to do is go back to work and execute on our plan B, C, whatever, however you want to think about it, and we'll be back to you with what are some of the aspects of our strategy that will deliver -- continue to deliver long-term shareholder value. So that's the charge over the next 30 to 90 days. And I know that Sumant and the team will be communicating with you on a regular basis as that develops.

Yes. And look, let me add one more thing also that over the last many months, our communication had become a little bit specific to the deal and, of course, just through tactical earnings results and so on. I think you should expect to hear more from us as we think through our plans and get back to you with what those plans are. And we continue to stay very focused on delivering on what we have promised and on making sure that we deliver value. Thank you.

Thanks, Manoj and Sumant. With that, we've come to the end of this call. And as Manoj and Sumant mentioned, we'll certainly be in touch for future updates as well. Thank you, everyone, for joining today.

Ladies and gentlemen, thank you for joining. The conference is now over. You may disconnect your telephones.

Thank you for standing by, and welcome to the ReNew Second Quarter Fiscal Year '26 Earnings Report. [Operator Instructions]

I would now like to hand the conference over to Anunay Shahi, Head of IR. Please go ahead.

Thank you. Thank you. Good morning, everyone, and thank you for joining us today. We have put out a press release announcing results for fiscal 2026 second quarter and the half year ended September 30, 2025. A copy of the press release and the earnings presentation is available in the Investor Relations section on renews website at www.renew.com.

With me today again are Sumant Sinha, our Founder, Chairman and CEO; Kailash Vaswani, the CFO; and Vaishali Nigam Sinha, Co-Founder, Renew and Chairperson, Sustainability. After the prepared remarks, we expect -- which we expect will take close to 0.5 hour. We will open the call for questions.

As per usual, please note that our safe harbor statements are contained within our press release, presentation materials and 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 we furnished in our Form 6-K 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 reconciled 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.

With that being said, it's now my pleasure to hand it over to our CEO, Sumant Sinha.

Yes. Hi. Thank you, Anunay. Good morning, good evening to everybody. I'm glad to have you all on our earnings call for the second quarter and for the first half of fiscal 2026.

While we continue to see global macroeconomic and trade-related volatility, the situation in India remains relatively benign. S&P has upgraded India's long-term credit rating and the inflation remains low, providing scope for further rate cuts by the Reserve Bank of India. There is also expectation of an [indiscernible] U.S. trade deal being concluded and announced in the near future.

Coming to the energy sector, we also have seen an unusual trend in climatic commissions this year in India. There has been an extended spell of the monsoons, resulting in more muted power demand growth as well as lower solar PLS compared to last year.

On the policy front, in a welcome move, the government of India took a significant step and reduce the goods and services tax on most items in the renewable energy sector from 12% to 5%. This should further increase the affordability of seen energy, which was anyway the cheapest source of electricity in India.

As a company, we continue to deliver profitable growth, deliver on project execution as well as demonstrate capital discipline in delivering returns significantly above our cost of capital.

Turning to our highlights for the quarter. Since October of last year, we have commissioned over 2.1 gigawatts of renewable energy capacity, marking a 22% growth in our portfolio after adjusting for the asset sales over the period.

We continue to expand our committed portfolio and have signed PPS for 3.8 gigawatts of installed renewable energy capacity over the past 4 quarters, for projects that should provide returns towards the higher end of our targeted IRR range, if not better. We therefore reiterate our FY '26 megawatt guidance and are on track to complete construction of 1.6 to 2.4 gigawatts of capacity in fiscal 2026.

Turning to our financial highlights. We continue to demonstrate strong financial performance, delivering adjusted EBITDA of INR 53.5 billion, which is a 24% growth year-on-year for the first half of the fiscal year ended March 31, 2026. We have also meaningfully improved our leverage metrics for operational projects, and we reaffirm our fiscal year 2026 adjusted EBITDA guidance of INR 87 billion to INR 93 billion.

Our manufacturing business, comprising of an operational capacity of 6.4 gigawatts of modules and 2.5 gigawatts of cells is fully stabilized and produced over 2 gigawatts of modules and over 900 megawatts of cells in H1 FY '26. Manufacturing also made a meaningful contribution of INR 3.3 billion towards adjusted EBITDA for the quarter, which adds up to INR 8.6 billion for the first 6 months of fiscal year 2026.

As a result, we are revising our FY '26 adjusted EBITDA guidance for manufacturing affords to INR 10 billion to INR 12 billion. We are also steadfast in our ESG commitments as showcased by the rating of 83 out of 100 in the S&P Global Corporate Sustainability Assessment, which we received recently. This is the highest ever by any Indian IPP.

We will also recognize in the Fortune Global Change to World List 2025 for the third time. We have also published our inaugural climate risk and biodiversity risk report aligned with the TCFD and TNFD frameworks, indicating our continued push towards transparency and governance.

Turning to Page 9. Execution is our top most priority and a key differentiator for us. We have commissioned over 2.1 gigawatts of capacity over the last 12 months or so, and reiterate our guidance to complete the construction of 1.6 to 2.4 gigawatts for fiscal year 2026.

Year-to-date, we have commissioned more than 1.2 gigawatts, which are split into approximately 750 megawatts of solar capacity and nearly 500 megawatts of wind. In addition, we have over 500 megawatts of solar capacity that has already been erected and will enable us to meet our construction targets.

While there has been some lull in the bidding environment, we believe that this is cyclical as most IPP players have already been able to build pipelines that will be executed in the next 4 or 5 years.

Turning to Page 10. Our solar manufacturing facilities are now operating at full tilt. We are currently producing over 12 megawatts of modules and 5 megawatts of cells on a daily basis. In the first half of this year, we produced close to 2 gigawatts of modules, operating at high utilization and efficiency levels. We currently have third-party orders to sell approximately 650 megawatts this fiscal with close to 1.5 gigawatts already delivered this year.

In September 2025, we also closed a $100 million investment from British international investments, which will primarily be used for expansion of the cell facility. We are pleased to say that the construction of our new 4 gigawatt top 10 cell facility is on track, with the land acquisition, engineering and machinery orders completed and the civil work is well underway.

Our manufacturing business has started contributing meaningfully to the consolidated P&L by delivering an adjusted EBITDA of INR 3.3 billion this quarter at a margin of over 30%. The EBITDA contribution in this quarter has moderated as compared to the previous quarter due to a higher percentage of captive sales. In addition, the margins were slightly higher due to some cost savings and procurement ahead of time, which may normalize as this year progresses.

Now let me hand it over to Kailash to talk more about the financial highlights.

Thank you, Sumant. Turning to Page 12. We continue to deliver consistent profitable growth since the same time last year, we have constructed over 2.1 gigawatts of projects, representing a 22% increase in operating capacity after adjusting for the 600 megawatts sold during the trailing 12 months.

This year, so far, we have commissioned over 1.2 gigawatts of renewable energy capacity. Our revenue increased by over 50% for H1 of this fiscal compared to last year due to increase in megawatts and a meaningful contribution from third-party sales in our manufacturing business.

Turning to Page 12 and the EBITDA walk. We saw subdued PLFs this quarter due to lower irradiation from an extended spell of monsoon resulting in a net negative impact of INR 1.7 billion for the quarter compared to last year. The new projects that we commissioned over the last 12 months contributed INR 2.5 billion to our adjusted EBITDA, while the manufacturing business provided INR 3.3 billion.

Over the past year, we have sold 600-megawatt of solar assets as well as a transmission project contribution from which was also absent in the adjusted EBITDA from -- for this quarter.

Turning to leverage. The headline leverage continues to decline significantly and consistently having reduced from 8.6% in September '24 to 7% in September '25. And leverage at the operating asset level also continues to be below the threshold that we have set. On a trailing 12-month basis, the leverage was around 5.5x, excluding our under construction portfolio and the contribution from our JV partners.

Do note that our trailing 12-month EBITDA is not reflective of the run rate EBITDA for these assets as many of these assets have less than 1 year of operation. We continue to focus all options. We continue to pursue all options that will improve our leverage ratio at the consolidated levels such as asset recycling, cost optimization and reduction in the corporate debt.

During the quarter, there was also favorable macro news with S&P upgrading India's long-term ratings to BBB from BBB-, which was the first upgrade in almost 18 years. There was also a reduction in GST rates by the Government of India. There are also further expectations of rate cut by RBI, which should also get transmitted to our future borrowing costs.

Let me now hand it over to Vaishali for comments on ESG.

Thanks, Kailash. Turning to Page 15. Let's look at the advancements in renew sustainability initiatives and targets.

The global landscape is shifting quickly towards mandatory regulations as climate impacts intensify. In India, recent reports highlight extremely challenges, while events such as the August 2025 Cloud [indiscernible], along with severe AQI levels in Delhi underscore the urgent make for action and resilience. At ReNew, we remain steadfast in our mission to lead with purpose and resilience.

Our continued commitment to purpose-driven sustainability continues to deliver results reflected most recently in our standout performance in the prestigious S&P Global CSA Assessment, which is one of the key highlights of this quarter. We achieved the score of 83 our highest ever, marking a 14% year-on-year improvement and more than doubling our score since our fiscal year '22 debut. This makes renew the highest-rated India-based energy company and places us amongst the top 10% of energy companies globally.

This milestone reflects the depth and breadth of our overall climate strategy, human rights and our continued commitment to transparency and ethical governance. In terms of awards and recognitions, as we've mentioned earlier, Fortune Changed the World List 2025 in that ReNew has been recognized in this prestigious list for the third time, this marks our second consecutive recognition for a community water-related initiative in Rajasthan.[indiscernible] sustainability leader, renews Chairman and CEO, Sumant Sinha, will name the mouth the top 50 climate leaders globally, reinforcing renews leadership in the lit movement.

On the reporting front, we published our inaugural climate fit report aligned with IFRS [indiscernible] antiCFD outlining key climate-related risks and opportunities. We also released our first nature risk report aligned with TNFD identify nature related risks and opportunities critical to our long-term resilience.

Now turning to Page 16 to see the progress made across our ESG targets, we remain fully committed to our sustainability road map and have made meaningful progress across overall sustainability goals. We have achieved an 18.2% reduction in our Scope 1 and 2 emission from the baseline and as part of a pilot study, 2 of our sites have become more positive. Social responsibility remains at the heart of our work.

We strongly believe that a just energy transition must empower dose at the grassroot and we continue to upskill and train women and coal mine workers in green technology. Diversity forms a core aspect of our overall sustainability strategy and a full-time employee diversity now stands at approximately 16.2%.

Our S&P Global CSA core of 83 continues to reflect our leadership in sustainability. We are currently awaiting results from other ESG ratings and will disclose progress across all ratings in our upcoming meetings. As we move forward, we remain committed to delivering sustainable growth and driving positive change across the world.

I will now turn it back to Kailash.

Thank you, Vaishali.

Turning to guidance for the fiscal year ended March 31, 2026. We reiterate our guidance provided earlier. We expect to be at the higher end of the adjusted EBITDA guidance range of INR 87 billion to INR 93 billion, subject to weather staying on track for the remaining of the year. We also expect to construct 1.6 to 2.4 gigawatt of projects during the year and generated cash flow to equity of INR 14 to INR 17 billion.

During the first half of this fiscal, while we saw marginally better wind PLS versus last year on account of the extended monsoon, we saw significantly lower PLS in solar, resulting in overall PLF year-on-year.

Our overall consolidated adjusted EBITDA has also benefited from the performance of our manufacturing business, wherein we have increased the range of EBITDA contribution by INR 2 billion, revising the guidance to INR 10 billion to INR 12 billion for the remaining part of the year.

With that, we will be happy to take questions.

[Operator Instructions] Your first question comes from Justin Clare with ROTH Capital Partners.

I wanted to start here just on the progress that you continue to make on the contracting side. So I think 3.8 gigawatts of PPAs signed over the last 12 months. Could you just comment on the contracting environment, your expectations for additional PPA signings over the next few quarters? And then do you have any sense for when you might contract the entire 25 gigawatt pipeline that you currently have secured.

Sumant, would you like to take that.

Yes. Okay. Justin. Yes, look, we made some good progress on our PPA signings over the last 12 months. And we have approximately, as you know, about 6 gigawatts of LOEs that we would hope a substantial chunk of that would convert into PPAs. It's hard to give you a specific visibility on it because PPAs get signed when they do based on feedback from the DISCOMs. Our expectation would be that over the next 6 months or so, a reasonable chunk and it's very hard for me to hazard exactly how much of the 6 would get signed.

And it's very hard to give a specific indication as to when all of it might get converted. I think we just have to be patient and we have to continue to work with the DISCOMs. A lot of that capacity is the more structured products. And that does take time for DISCOMs to essentially convert on because we need to do a lot of diligence and work.

The other thing also is that a lot of the capacity is for the execution out to 2029, 2030 and so on. And there, we have to work very closely with the DISCOMs to see what the requirements are, see if we can prepone some of that capacity or not. So there is a lot of conversation and dialogue going on with the DISCOMs through the RIAs, the bidding agencies to convert this capacity. But it's hard to give you a very specific time line as to when all of that will be converted at this point.

Okay. Got it. That's helpful. And then I guess just thinking through your pipeline here. I was wondering if you could just update us on the transmission status for the projects in your pipeline, especially as you go out into 2029, 2030? And maybe help us understand the remaining risks in securing the transmission necessary for your assets?

Yes. So we have most of the translation in place because the moment you win a bid and you get to the letter of award, you are allowed to go and block connectivity. So we've actually blocked connectivity for the entire 25 gigawatts, plus you're also allowed to grow up connectivity based on acquiring land, which is not linked to a specific project. So we've got a fair amount of connectivity basis that as well, which is not linked to a specific project.

Now as I said, what is happening is that some of the DISCOMs are coming back and saying that, look, if the projects are to be constructed based on transmission coming up in '29 or '30, that may be too far away for us, so can you give us the projects a little faster. So we are seeing where we have the flexibility of converting the existing transmission connectivity that we have, which is further out to, in some ways, try to replace that is on the land-based connectivity that we have, which will be coming up sooner. And so that is some -- that is work that we're doing to see which of those PPAs we want to actually people using the land-based connectivity that we have.

So that gives us a lot of flexibility, actually, in terms of allowing us to convert some of those LOAs into PPAs at an earlier stage. But of course, land-based connectivity at this point is a very scarce commodity, and it's very valuable. So we want to use it very carefully.

Okay. Appreciate it. And then just one more on the manufacturing business, the solar manufacturing. EBITDA margin, it looks like it moved lower to 33% in fiscal Q2 from 40% in Q1. I think in your prepared remarks, you mentioned maybe a higher mix of captive sales, but I wanted to better understand what drove the decline. So maybe you could just expand on that a little bit.

And then if you have -- if you could provide your expectations for how EBITDA margins might trend into the back half, that would be helpful.

Yes.

So you want to take that.

Yes. Yes. Just Justin, the captive sales don't really have an impact on the reported EBITDA margins because when we report our numbers, we only report for third-party manufacturing sales. Obviously, Q2 quarter 1 was exceptional, we had better realizations. And to that extent, the margins were high. But obviously, quarter 2 is a relatively leaner month when it comes to sales [indiscernible] were producing, we were also selling at the same time. So that's why there was some impact in terms of realizations, which caused the margins to be lower.

Secondly, also in quarter 1, we had done some strategic procurement earlier before the prices went higher for wafers and all and, some of the other key equipments to make sales and modules. So I think that we saw play out in quarter 1, quarter 2 was obviously with the revised pricing that we got on our procurement side.

The next question comes from Nikhil Nigania with Bernstein.

My first question, just continuing on the discussion on the solar manufacturing bit. It would be great if you could share some time lines on the expected commissioning for the cell expansion, and also is there any plans to enter ingot-wafer given the guidance government has given.

So Nikhil, on selling a -- we are currently in advanced stages in terms of land acquisition and creating some of the key equipment orders. So we expect that we'll start seeing precommissioning happen by or the same time next year. And I think the full commissioning would happen perhaps by the end of fiscal '27.

And in terms of plans on wafer, the notification was relatively new, we will obviously see what the merits of that expansion would be and then accordingly decide if you want to expand into wafer [indiscernible].

Understood. The second question I had on the manufacturing bit is we heard that there has been some softening in prices on the non-TCR modules, whereas DCR remains strong heading into this quarter as well. Would you agree to those points on both those points?

Yes, Nikhil, again, along expected lines, I would say, as more capacity has come online, that sort of trend does tend to play out, but also there's a factor of seasonality where it was a lean season in terms of construction activity. So we saw some slowdown in sales. So obviously, prices also could have move down a little bit. Let's see how the risk of the year pans out.

But again, as capacity comes up, those super normal margins that we were getting would have corrected over a period of time in any case. And on the DCR side, also, I would say that while right now, there's no immediate concern, but there is more capacity coming online on the sell side also. So again, the margins would go to normalized levels over a period of time.

Perfect. Very helpful on the manufacturing bit. My second question then was on the renewable assets. If I look at the committed pipeline of 7 gigawatts, which is to be built out, there is about 2 gigawatts of solar where I think the time line clarity is better. But the balance 5-gigawatt seems to be the complex projects, FDRE, RTC, the time line given is 2 years from PPA subject to transmission.

So I would appreciate if you could give some more color on when do you expect this balanced capacity to come online, the committed pipeline in the complex FDRE RTC part with a substantial number.

So on the committed pipeline side, we are expecting some of the transmission projects are yet to be awarded. So we won't have the exact sense of what the time lines on those would be. But again, given our understanding as it stands currently, by FY '29 is when most of it will get done and some part only could overflow beyond that.

Understood. So then is there a possibility that if I spread this 7 gigawatts till FY '29 there could be a drop in capacity addition in FY '27 or FY '28?

So we continue to build on the pipeline, Nikhil. And also there will be within the state intrastate type of projects, which we could evaluate and participate in some of those auctions or do C&I. So I think as a company, we have been on this capacity addition trajectory -- so I don't see any reason why that should change because of connectivity not being available.

Got it. And directly, if you could tell me, as things have things got better on transmission project completion or right of way for that part? Or is it similar to where it was last year?

Hard to tell because every project -- every transmission project has or different qualities where it either gets done on time or later. But the situation on the ground is that in Rajasthan, which was relatively easier in terms of execution, some ROW issues have been coming up there also.

Got it. That's helpful. My last question was then on the future of the ongoing bidding. We see a lot of battery energy storage tenders happening. And I mean, to us, a bit seems quite aggressive, but I wanted to hear your thoughts. If ReNew feels similar and that's why ReNew has not been very active on that front.

That's absolutely correct. Our actions are reflective of what our belief is.

The next question comes from Puneet Gulati with HSBC.

My first question is, if you can talk a bit about whether you also experienced any curtailment during the last quarter and what was the extent of that?

Sumant, would you like to take that.

Yes, sure. No, no. We did experience some curtailment in some of our projects in Rajasthan, Puneet. And the extent of that was about INR 100 crores in terms of actual Q2 number in the first half. These are linked to products where we have -- yes, of revenue, yes.

So these are linked to projects where we have G&A where the substation is ready and so we have to commit. But sometimes the back-end lines are not ready to give us a full G&A. I think this will continue to some extent until some of those back-end lines are done, which will probably happen in the next couple of months. So at least in those areas that curtailments will go down.

Okay. That's very clear. And in terms of just absolute power capacity, what number would that be in terms of curtailment?

To assume an average tariff of maybe INR 3.50 to INR 4.

Okay.

So it will probably do what about units for auto.

Yes. Yes. Secondly, on the connectivity side, you have the target of 1.6% to 2.1% for this year, is connectivity ready for all these projects up to 2.1, or is there still trial banking on timely commissioning of connectivity.

I would say most of it is vary. There is one, of course, issue that is currently going on, which is the [indiscernible] Indian buster issue that the Supreme Court is a filing on. I think that is the only externality that we are facing in these projects. But hopefully, that gets resolved, and therefore, that doesn't end up being a constraining factor.

But regardless, even if there is a delay, it will be a delay of a month or 2 months at max. So it's not going to be substantial from the point of view of impacting financials that much.

Okay. And lastly, you've commissioned RTC peak power projects. Can you also talk a bit about how those have been going in terms of -- how much capacity are you selling outside? And how has the battery performance been.

I don't think I have the exact numbers to give you -- to share with you Puneet on this one. Maybe Anunay you guys have data as to go ahead unit.

So Puneet, on peak power, it's fully commissioned. So the entire in at capacity, plus 150-megawatt hours of factories are done. And our experience has been pretty good. On RDC, the batteries are done as well as about 1,100 -- close to 1,100 megawatts of free capacity, which is about 700 megawatts of wind and 400 megawatts of solar. So nothing really to complain no concerns and as such on both these projects and the operating performance.

The next question comes from Maheep Mandloi with Mizuho.

Maybe one question just on the manufacturing side. And I think Kailash you talked about normalized margins or I think that in the future. Can you talk about what expectations are on with normalized margins in the future for seller modules.

So Manish, it's hard to say at this point in time. When we do our projections. We don't take 35%, 40% type of margin. We are more like reasonable. And to give you a function of what happens as far as the demand supply situation is concerned. So let's see, it will be hard for me to give you an exact number.

[indiscernible] thoughts on when we hit that, like maybe 1 or 2 years after the approved list of cell manufacturers would affect, or when do we get there?

So as part of ALNM for sales, also a lot of capacity is coming up. Some of it is coming up now before ALM comes into being, which is April next year. And so to that assume there would be some additional supply also which is there in the DCR market right now.

But then again, as the window for ALM cells start, then again, you see margins spike up briefly. So I think whichever segment of the market, there is scarcity, we are seeing an initial period of 12 to 15 months, 18 months, where we are making higher than our expected margins.

Got it. Got it. And I would love to just a question on the privatization that you saw the [indiscernible] from your press release recently. Any updates after that on the offer or any bids you're receiving from other investors [indiscernible].

No. If there was any other bid, then that would have had to be announced to the market. At this point in time, the special committee has only received the bid from the consortium.

And any thoughts on the time line here? Or as the consortium at the time line of -- I think last 1 year. Is that a fair kind of time line for the closing there?

I mean that's what they have shared in their filings hopefully, we will be efficient about it, to the extent some of the processes, which are in the control of the company is concerned.

[indiscernible]

So just to clarify, I think they had the consortium had indicated plus 7 to 8 months. And as Kailash said our assessment is that hopefully get sooner than that, and this is perhaps at the more conservative end [indiscernible].

And we have a follow-up from Nikhil Nigania with Bernstein.

I just have 1 follow-up question. On the 6 gigawatts or so, which is where the LOA is awarded, but the PPA is not signed, there were multiple pees articles recently highlighting government plans to cancel this 42 gigawatts of renewable tenders where the tenders have been awarded, but PPAs have not been signed. Any thoughts on that in light of that, could this 6 gigawatt go away?

My view on that, Nikhil, is that there were a lot of things that came out in the press. But finally, the final word on it is what [indiscernible] said, which is that they are working and encouraging the REI is to get all the PPA signed and that they will continue to work at it and any cancellations, if at all, will be done after a lot of effort has been put in and on a very selective and case-by-case basis.

So I don't see any blanket sort of decision being taken on this. I think it will carry on for some more time. People are going to continue to put an effort to get this PPA signed. And it's only after maybe another 6 months, 9 months or a year that we'll see what happens in case some of the PPAs, even after, let's say, a couple of years of having got bid out have not got signed, what action the government then takes. I think at this point, it's still premature.

Now I would like to pass to Anunay Shahi for online questions.

Thank you. There are a couple of questions online. One is Kailash, if you could ake this is what are the plans for for refinancing the Diamond II bonds in 2026 and the ING PH, which is a restricted group issuance, which is due in 2027 and is the plan to refinance it again with dollar bonds or locally in INR.

So the answer to that question is that the majority for both those bonds are [indiscernible] second half of next calendar year. And we are working on plans to refinance it. We will see whichever market offers the lowest cost of capital or to refinance, we would pursue the refinancing in that market.

Having said that, overall, the financing markets continue to remain quite strong and robust and access to capital is there across multiple pools that we typically access, which includes not only the dollar bond market, but also the domestic financing market where the public sector undertakings, the financial institutions, the private sector banks, they are all quite active and focused on financing renewable energy projects.

So we don't foresee any major challenges in the refinancing whenever that becomes due.

The second question, Kailash, I think this is for you as well, is on the status of the take-private offer. I think the question is when do you expect consortium to form up on their offer, is it likely to be in November? And second question is, are you in regular discussions with them? And do you know if they are talking directly with some of your long-term shareholders?

Okay. So just I mean, if I missed any answer. In terms of a process from here on, I think the special committee has shown its support to the final nonbinding offer received and asked the consortium to convert the same into a mining offer. And -- so the expectation is that sometime in the month of November is when we will get the final binding offer from the consortium.

From there on, I think there will be a process in terms of documentation. We signed the transaction agreement, work towards the 13D filings, then [indiscernible] being 3 filing with the scheme or SEC review. So all of those -- that process will happen.

I am in touch with the special committee, whenever those meetings will get held along with the General Counsel of the company. The special committee is engaging with some of the public shareholders, the large public shareholders. And to the extent some of the public shareholders have expressed an interest to also speak to the consortium. I think they are allowing that also of facilitating that further. So yes, that's -- I think I've answered some of the questions. Did I miss anything, then let me know.

No, I think that will [indiscernible].

Okay.

As there are no further questions at this time, this concludes the question-and-answer session and the ReNew second quarter fiscal year '26 earnings report for today. Thank you for participating. You may now disconnect.