리뉴(RNW) 2027 회계연도 1분기 실적 발표회: EBITDA 성장, 가이던스 및 비상장화 거래

핵심 요약

• 2027 회계연도 1분기 매출은 전년 동기 대비 14% 증가한 446억 루피를 기록했습니다. 조정 EBITDA는 12% 증가한 304억 루피, 세후이익은 16% 증가한 60억 루피를 기록했습니다.
• 리뉴(ReNew)의 가동 용량은 자산 매각 조정을 거쳐 전년 동기 대비 26% 증가한 13.5GW에 달했습니다. 배터리 에너지 저장 시스템(BESS) 1.7GW를 포함한 총 포트폴리오는 약 20.5GW를 기록했습니다.
• 제조 부문은 외부 매출 164억 루피, 조정 EBITDA 57억 루피를 기록하며 34%에 가까운 마진율을 달성했습니다. 경영진은 시장에 추가 셀 용량이 공급됨에 따라 마진이 일부 정상화될 것으로 예상하고 있습니다.
• 리뉴는 2027 회계연도 연결 조정 EBITDA 가이던스로 1,030억~1,090억 루피, 주주 현금흐름(CFE) 가이던스로 180억~220억 루피를 재확인했습니다.
• 회사는 약 1GW 규모의 자산 매각을 위한 구속력 있는 계약을 체결했으며, 경영진은 거래 종결 시 1억 9,000만 달러의 주주 현금흐름이 발생할 것으로 예상합니다.
• 리뉴는 CPPIB 및 수만트 싱하(Sumant Sinha)로 구성된 컨소시엄과 구속력 있는 상장폐지(take-private) 계약을 체결했습니다. 컨소시엄 외 주주들은 주당 7.02달러의 현금을 받거나, 일정 조건에 따라 지분을 유지하는 방안을 선택할 수 있습니다.

주요 재무 데이터

사업 및 운영 실적

리뉴는 1분기 동안 600MW 이상, 보고서 작성일 기준 2027 회계연도 누적으로 1GW 이상을 상업 운전 개시했습니다. 총 가동 용량은 13.5GW로, 풍력 5.6GW, 태양광 7.8GW, 수력 99MW, BESS 100MW/250MWh로 구성되어 있습니다.

약정 용량(Committed capacity)은 풍력 1.1GW, 태양광 4.2GW, BESS 1.6GW를 포함해 6.9GW를 기록했습니다. 최근 12개월 동안 회사는 약 2.8GW를 상업 운전 개시했습니다.

경영진은 프로젝트 실행이 차질 없이 진행되고 있다고 밝혔습니다. 250MW 이상의 태양광 설비가 설치되어 최종 상업 운전 단계에 있으며, 2027 회계연도 잔여 실행에 필요한 모듈의 50% 이상이 이미 프로젝트 현장에 도착했고 나머지는 자체 생산을 통해 확보했습니다. BESS 가격은 완전히 확정되었으며, 해당 연도에 필요한 모든 풍력 터빈은 예산 범위 내에서 계약되었습니다.

상업 및 산업용(C&I) 포트폴리오는 5개 주에서 가동 중인 2.6GW를 포함해 총 2.9GW에 달했습니다. 리뉴는 현재까지 2027 회계연도 동안 이 부문에서 330MW를 상업 운전 개시했습니다. 아마존, 마이크로소프트, 구글이 계약된 C&I 오프테이크(전력 구매)의 약 절반을 차지합니다.

리뉴는 6.5GW 규모의 모듈 설비와 2.5GW 규모의 셀 설비를 가동 중입니다. 4GW 규모의 TOPCon 셀 공장은 2027 회계연도 말까지 전체 가동될 예정이며, 첫 번째 셀 생산은 2026년 말로 예상됩니다. 안드라프라데시주에 위치한 인도 웨이퍼 공장은 2028년 초 상업 운전을 시작할 예정입니다.

2026년 7월 안드라프라데시주 전력 배전 회사로부터 57억 루피를 회수하면서 매출채권 상황이 개선되었습니다. 이에 따라 IPP DSO는 분기 말 71일에서 7월 말 약 54일로 줄었습니다. 제조 부문 DSO는 약 5일이었습니다.

경영진 가이던스

완공 기준 약 20.5GW 규모의 약정 신재생에너지 포트폴리오에 대해 경영진은 런레이트(run-rate) 조정 EBITDA 1,340억~1,400억 루피, 런레이트 주주 현금흐름 320억~360억 루피를 예상하고 있습니다. 이 추정치는 정상적인 기상을 전제로 하며, 제조 부문 기여액은 제외되고, 현재 매각 계약이 체결된 약 1GW 규모의 자산이 포함되어 있습니다. 회사는 해당 거래가 종결된 후 수치를 조정할 예정입니다.

리스크 및 주요 점검 사항

특히 라자스탄주의 임시 접속 프로젝트를 중심으로 전력망 확충 지연이 제약 요인으로 남아 있습니다. 경영진은 이번 분기 발전량이 태양광 출력 제어(curtailment)와 흐린 날씨의 영향을 모두 받았다고 설명했습니다. 태양광 이용률(PLF)이 전년 동기 대비 220bp 하락한 원인에 대한 애널리스트 질문에 대해, 경영진은 출력 제어와 기상 영향이 각각 절반 정도 차지한다고 추정했습니다.

리뉴는 인도 전력부와 출력 제어에 대한 보상 가능성을 논의 중입니다. 경영진은 결론에 도달하지 않았으며 보상 형태나 금액은 여전히 불확실하다고 강조했습니다.

제조 부문 마진은 전년 동기 40%에서 2027 회계연도 1분기 34%로 감소했습니다. 경영진은 업계의 추가 생산 용량과 12월 31일까지의 판매에 대한 ALMM 시행 연장이 불확실성 요인이라고 언급했습니다. 회사는 연간 제조 부문 가이던스를 유지했으며, 견조한 실적이 지속될 경우 2분기 실적 발표와 함께 이를 재평가할 수 있습니다.

제안된 상장폐지 거래는 여전히 주주, 법원 및 규제 절차가 남아 있습니다. 경영진은 규제 승인에 약 3~4개월이 소요될 수 있다고 설명했으나, 이 일정이 가이던스는 아니라고 강조했습니다.

애널리스트 Q&A 주요 내용

• 상장폐지 일정: 경영진은 계획안(scheme)이 2027년 1분기에 발효될 것으로 예상합니다. 거래의 최종 시한(long-stop date)은 계획안 설명서 공시 후 95일 또는 2027년 3월 31일입니다.
• BESS 전략: 리뉴는 약 수백 MWh 규모의 BESS를 상업 운전 개시했습니다. 경영진은 장기적인 상업용(merchant) BESS 조달은 투자 확약이 어렵다고 보지만, 기존 전력 구매 계약(PPA)에 편입하기 전 1~2년 동안 일부 프로젝트를 상업용으로 운영할 수 있다고 밝혔습니다. 목표가 제공되지는 않았으나 2028 회계연도에 일부 상업 운전을 개시하는 방안이 검토되고 있습니다.
• 자산 재활용: 리뉴는 비밀유지 제한으로 인해 약 1GW 자산 매각에 대한 EBITDA 멀티플을 공개하지 않았습니다. 경영진은 또한 자본 재활용 프로그램의 일환으로 수력을 포함한 다양한 자산을 평가하고 있다고 밝혔습니다.
• 제조 부문 전망: 경영진은 수익성이 즉각적으로 크게 하락할 것으로 예상하지는 않지만, 마진이 이미 축소되었고 추가 생산 용량이 시장에 공급되고 있어 신중한 입장을 유지하고 있습니다.

실적발표 컨퍼런스 콜 전문

전체 실적 발표 컨퍼런스 콜 녹취록

경영진 발표

Operator

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.

Anunay Shahi

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.

Sumant Sinha

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.

Kailash Vaswani

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.

Vaishali Sinha

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.

Kailash Vaswani

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

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

질의응답

Justin Clare

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?

Kailash Vaswani

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.

Justin Clare

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?

Kailash Vaswani

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.

Justin Clare

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?

Kailash Vaswani

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.

Operator

The next question comes from Puneet Gulati with HSBC.

Puneet Gulati

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.

Kailash Vaswani

Yes, I'm happy to.

Sumant Sinha

Sorry, Kailash, do you want to take that?

Kailash Vaswani

No, no, go ahead.

Sumant Sinha

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.

Puneet Gulati

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

Sumant Sinha

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.

Puneet Gulati

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?

Sumant Sinha

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.

Puneet Gulati

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

Sumant Sinha

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.

Puneet Gulati

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?

Kailash Vaswani

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.

Puneet Gulati

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?

Kailash Vaswani

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

[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.

Vaishali Sinha

Thank you.

Kailash Vaswani

Thank you.