ReNew Energy Global plc

For Q1 FY27, ReNew reported total income of INR 47.9 billion, revenue of INR 44.6 billion, adjusted EBITDA of INR 30.4 billion, and profit before tax of about INR 8.3 billion. Profit after tax was INR 6 billion, up 16% year over year, while adjusted EBITDA grew about 12% year over year and revenue grew 14% year over year. On a segment basis, adjusted EBITDA included INR 24.7 billion from the IPP business and INR 5.7 billion from external manufacturing sales; consolidated adjusted EBITDA margin was 66.1%, IPP margin was 86%, and manufacturing margin was almost 34%. Looking ahead, the company reiterated FY27 consolidated adjusted EBITDA guidance of INR 103 billion to INR 109 billion, including INR 10 billion to INR 12 billion from manufacturing and INR 1 billion to INR 2 billion from asset sales. It also expects to construct 1.6 GW to 2.4 GW in FY27, generate cash flow to equity of INR 18 billion to INR 22 billion, and reach 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 for the fully constructed 20.5 GW portfolio, excluding manufacturing and assuming normal weather patterns.

Sumant Sinha emphasized profitable growth despite macro uncertainty and grid-related challenges, saying the company is staying disciplined on capital deployment and focusing only on high-return opportunities. He highlighted strong execution at scale, with operating capacity up 26% year over year, over 1 GW commissioned year to date, and a committed portfolio of 20.5 GW including 1.7 GW of BESS. He also framed asset sales and manufacturing expansion as evidence of asset quality and optionality, while noting that curtailment is a real operating issue that the company is trying to address.

Kailash Vaswani stressed financial discipline, with net debt to trailing 12-month adjusted EBITDA for operational projects at 5.7x and cash and cash equivalents of INR 89 billion as of June 30, 2026. He said gross debt was INR 786 billion and net debt was around INR 671 billion, and noted DSO improved to 54 days by end-July after receiving INR 57 billion from Andhra Pradesh DISCOM, versus 71 days at quarter end. He also pointed to manufacturing revenue of INR 16.4 billion and external-sales adjusted EBITDA of INR 5.7 billion, but flagged some margin normalization ahead as more cell capacity comes online and ALMM-related uncertainty affects the market.

Analysts focused heavily on the take-private timeline, curtailment, manufacturing margins, BESS strategy, and the economics of asset sales. Management said the scheme is expected to become effective in Q1 2027, with regulatory approvals taking roughly 3 to 4 months, but stressed the timing is only indicative. On curtailment, they said solar PLFs were hurt by both transmission curtailment and weather, roughly half and half, and that they are discussing possible compensation with the Ministry of Power, though no outcome has been reached. On BESS, management said current commissioned capacity is only a couple of hundred MWh and that they do not want to commit to long-duration merchant BESS yet, though they may run some projects merchant for 1 to 2 years before shifting them into PPAs.