Management Commentary Highlights

Financial Performance (Q1 FY27):

  • Profit After Tax (PAT) stood at INR55 crores.
  • Revenue from operations grew 107% Year-over-Year (YoY) to INR832 crores.
  • RE Power Sales segment revenue: INR528 crores (47% growth).
  • RE Services segment revenue: INR300 crores (six-fold increase from INR41 crores).
  • Reported EBITDA reached INR462 crores (68% growth YoY). Adjusted EBITDA was INR494 crores.
  • EBITDA Margins improved in both segments:
  • RE Power Sales: Increased to 84% from 76% in Q1 FY26.
  • RE Services: Increased to 11.2% from 8.7% in Q1 FY26.
  • The weighted average interest cost on project finance was reduced from 9.4% (April 2025) to 8.4% (June 2026).

Operational Performance:

  • Total Contracted Capacity: 6.0 GW as of 30 June 2026.
  • Operational Capacity (RE Power Sales): 3.5 GW.
  • Capacity Added in Q1 FY27: 500 MW (400 MW in RE Power Sales; ~100 MW in RE Services).
  • The trailing 12-month capacity addition run rate reached 1,743 MW, demonstrating improved execution capabilities.
  • The company's credit rating was upgraded to 'AA' from 'A+'.

Business Segments & Growth Drivers:

  • Data & AI Segment: Constitutes 42% of total contracted capacity. This segment has grown 10x between March 2024 and March 2026. The company estimates it holds a 35% market share in serving global hyperscalers (Meta, Apple, Google, Amazon) and data center companies (NTT, STT, L&T Data, Equinix, Iron Mountain) in India.
  • Industrial Customers (Make in India): Constitutes 58% of capacity. Contracted volumes in this segment have doubled over the last 2 years, representing a 46% CAGR. The penetration of green power in the industrial segment is estimated at only 7%, indicating significant headroom for growth.
  • Pipeline: The contracted-but-not-yet-built (under execution) pipeline stands at 2.5 GW. The average tariff for this pipeline is ~INR4.0/unit. 80% of new volumes are from existing clients, and over 80% of clients are rated AA, AAA, or are multinational subsidiaries.

New Guidance:

The management provided EBITDA guidance for FY28 of a minimum of INR3,000 crores. This is based on the expectation of having a minimum of 4.6 GW of operational (opex) capacity by 1 April 2027 (3.1 GW at FY27 start + 1.5 GW addition in FY27). This represents a 2.4x growth from the FY26 EBITDA of INR1,290 crores.

Project Execution & Challenges:

  • Projects have been consistently executed below budgeted cost for the last 3+ years.
  • The company is facing a significant challenge with a 70% power curtailment at its CTU project in Bikaner. This issue is expected to persist throughout FY27. CTU assets represent ~13% of the start-of-year run-rate EBITDA (INR1,870 crores as of 31 March 2026). The estimated full-year EBITDA impact of this curtailment is ~INR170 crores.
  • Grid uptime remains high (>99%) for STU and rooftop assets.

Balance Sheet & Financing:

  • Gross Block: INR14,138 crores.
  • Net Debt: INR11,809 crores (vs. INR9,684 crores on 31 March 2026).
  • Equity: INR5,831 crores.
  • A breakdown of net debt shows:
  • 44% (INR5,154 cr) is against projects operational for over 12 months.
  • 38% (INR4,483 cr) is against under-construction assets.
  • The company plans to tap the domestic bond market for the first time with a corporate bond issuance, facilitated by its upgraded credit rating.

Strategic Initiatives:

  • Battery Energy Storage Systems (BESS): The company is entering the BESS segment. It has greenlit its first BESS investment for an STU project in Rajasthan and signed MOUs with three clients in the past month. BESS-as-a-Service is expected to command a tariff of INR3-4/unit, exclusive of generation costs.
  • ALMM Deferral Benefit: The government's deferral of the Approved List of Models and Manufacturers (ALMM) norms until 31 March 2027 allows the use of cheaper imported modules (saving ~INR60 lakh/MW). The company is examining pulling forward projects slated for Jan-Feb 2027 to commission by December 2026 to capture this benefit.

Q&A Session Key Points

ALMM & Module Prices: The benefit of ~INR60 lakh/MW savings on capex will accrue to projects commissioned by 31 December 2026. The company is in negotiations for modules and has not yet contracted prices.

CTU Project (Koppal): The 1.5 GW FY27 guidance includes 543 MW from a CTU project in Koppal, with two bays commissioning in October 2026 and March 2027. Management expressed confidence in meeting the target even with potential slippage in the second bay due to fungibility of capacity.

Debenture Reclassification: Existing listed debentures were reclassified from unsecured to secured, and the security cover was lifted from 0.7x to 1x. This was done to align with the terms of the upcoming corporate bond issuance and is consistent with the original deed which allowed a range of 0.7x-1.25x.

BESS Strategy: The company sees three key opportunities: 1) Solar-only states where BESS improves energy offset, 2) Markets with high evening peak tariffs (e.g., Maharashtra), and 3) BESS-as-a-Service for large customers. Initial projects will likely use 2 hours of storage.

Market Competition & Moat: The C&I market is fragmented, with CleanMax holding an estimated 14% market share. Key competitive advantages include a 15-year focus, a base of 600+ customers providing 80% repeat business, the ability to supply both wind and solar across 10 states, and a proven execution track record.

Organizational Capacity: The trailing 12-month capacity addition of 1,743 MW demonstrates the company's ability to execute at scale. Management acknowledges ongoing efforts to address organizational gaps to support future growth.