ReNew Energy Global (NASDAQ:RNW) reported what executives described as its strongest fiscal year to date, citing record profitability, expanded operating capacity, lower leverage and growth in its manufacturing and commercial & industrial businesses.
On the company’s fiscal fourth quarter and full-year 2026 earnings call, Founder, Chairman and CEO Sumant Sinha said ReNew’s operating portfolio reached approximately 12.8 gigawatts, up 25% year-over-year after adjusting for asset sales. The company placed 2.4 gigawatts into service during the year, its highest annual total, and its committed portfolio now stands at 20.2 gigawatts, including 1.7 gigawatts of battery energy storage systems. ReNew’s broader portfolio, including projects where it has won auctions but has not yet signed power purchase agreements, exceeds 26 gigawatts, Sinha said.
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Sinha framed the company’s performance against a backdrop of growing concerns about energy security in India, where the country remains heavily dependent on energy imports. He said geopolitical tensions in the Middle East and growing domestic demand for energy have reinforced the importance of renewable energy as a domestic energy source.
India installed 51 gigawatts of renewable capacity in fiscal 2026, the highest annual total ever, and accounts for 90% of new capacity additions, Sinha said. Solar energy remained the main driver of growth, while increasing energy demand during non-solar hours is supporting the adoption of hybrid and battery storage projects.
Profitability increases as leverage decreases
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ReNew generated adjusted EBITDA of INR 98.5 billion for fiscal 2026, exceeding the high end of its guidance, according to management. Profit after tax rose to INR 10.4 billion, 2.3 times higher than INR 4.6 billion in fiscal 2025. Chief Financial Officer Kailash Vaswani said adjusted EBITDA grew about 25% year-on-year, while cash flow to equity increased 45% to INR 21.6 billion.
Vaswani said the results were driven by portfolio growth, lower leverage and interest expenses, manufacturing contributions and disciplined cost management. The company reduced net debt to EBITDA by approximately 1.1 times year over year. Sinha said ReNew’s interest expense to adjusted EBITDA ratio fell to 61.5% in fiscal 2026 from 66% in fiscal 2025.
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The company also highlighted progress in accounts receivable. Sinha said ReNew has received a favorable order from the Supreme Court relating to about half of Andhra Pradesh’s overdue receivables and has started receiving initial payments for some overdue receivables. Vaswani said the company hopes the development will help reduce days of sales outstanding to below 50 by next year.
For the fiscal fourth quarter, Vaswani said adjusted EBITDA was approximately INR 23.7 billion, compared to INR 22.1 billion in the year-ago period. It said the fourth quarter results included INR 4 billion from manufacturing business, compared to INR 3.6 billion in the same quarter of FY2025.
Manufacturing industry becomes a bigger contributor
ReNew’s manufacturing business contributed Rs 14.8 billion to consolidated adjusted EBITDA in fiscal 2026, or around 15% of total adjusted EBITDA, Sinha said. Vaswani added that the business generated over Rs 19 billion in EBITDA on a standalone basis.
Sinha said the company hopes to start production at its 4-gigawatt cell facility towards the end of the current fiscal year. He also pointed to India’s ALMM 2 policy, which calls for domestic sourcing of cells from June 2026, and the proposed ALMM 3 policy, under which ingots and wafers should be procured domestically from June 2028.
ReNew has announced a 6.5 gigawatt ingot and wafer facility to further integrate its supply chain. During the webcast Q&A session, the management said the facility requires around INR 42 billion of capital expenditure, assuming the company does not build a captive power plant. Management said 50% to 60% could be financed through project debt, with the remainder financed through manufacturing cash accumulations and external fundraising. ReNew’s parent company is not expected to invest additional capital in the facility’s manufacturing business.
Replying to a question from an analyst from Mizuho’s Maheep Mandloi, Sinha said the ingot and wafer plant is expected to come online around June 2028 and will not contribute in FY2027 or FY2028.
C&I platform and battery storage remain strategic priorities
Sinha said ReNew’s commercial and industrial, or C&I, business now stands at 2.7 gigawatts, including 2.2 gigawatts on order. The business has grown seven-fold in the last five years and almost half of its contracted capacity is tied to large technology companies and hyperscalers, he said.
ReNew recently raised $95 million for an 11.3% stake in its C&I platform from a consortium led by LeapFrog. Sinha said the segment is positioned to benefit from data center demand, noting that C&I customers consume about half of India’s electricity and pay some of the highest network tariffs, while renewable energy penetration remains low.
Management also said ReNew is increasingly shifting its portfolio toward solar and battery storage, reducing reliance on wind power. Vaswani said falling battery storage prices have led the company to favor a more BESS solar setup, reducing overall capex by INR 60 billion and reducing EBITDA by just INR 7 billion compared to the previous setup. He said the combination should improve certainty of execution and make cash flows more predictable.
Wind energy will continue to be part of the portfolio, particularly in C&I and other higher-yield opportunities, Vaswani said.
Guidance calls for higher EBITDA in fiscal 2027
For fiscal 2027, ReNew expects adjusted EBITDA of INR 103 billion to INR 109 billion, supported by contributions from both core renewables and manufacturing businesses. Vaswani said that represents a 17% increase from the guidance range provided last year.
The company expects its manufacturing business to contribute between INR 10 billion and INR 12 billion in fiscal 2027. Vaswani said manufacturing margins are expected to moderate somewhat this year, but long-term EBITDA growth prospects remain intact, with the 4-gigawatt cell expansion expected to contribute significantly in fiscal 2028 and the ingot and wafer plant in fiscal year 2029.
ReNew also expects INR 1.2 billion to come from asset recycling, construction of 1.6 gigawatts to 2.4 gigawatts of capacity and cash flow to equity of INR 18 billion to INR 22 billion in FY2027.
As for refinancing, Vaswani said ReNew has about $1 billion outstanding in the next 12 months or so, and has already received $400 million in commitments. He said the company may use a combination of dollar bonds and internal liquidity, depending on which option provides the lowest cost of capital. ReNew refinanced about $2 billion of debt in fiscal 2026, it said.
Network reduction and political issues discussed
Sinha said grid expansion did not keep pace with renewable installations in fiscal 2026, leading to the curtailment of some renewable projects, particularly in Rajasthan. It said the impact moderated in the fiscal fourth quarter, but is expected to impact the current fiscal year, especially the first half.
Responding to Mandloi’s question about lower load factors of solar plants, Sinha said solar performance was affected by some constraints and slightly lower resource efficiency.
During the Q&A session, Bernstein analyst Nikhil Nigania asked about CERC’s deviation resolution mechanism regulations and a related stay order from the Karnataka High Court. Sinha said the current guidelines are unlikely to remain unchanged and some relaxation is expected. If the current framework was implemented as is, it estimated an impact of approximately INR 500 million in FY2027.
Sinha also said ReNew is seeing emerging opportunities in green fuels, including a green methanol tender planned by the Government of India and possible renewed activity in fertilizer and refinery-related tenders. He said foreign demand is also increasing, particularly in the Far East, and green fuels could become a bigger opportunity in the medium term.
When asked about a possible listing in India given the valuation differences with its Indian peers, Vaswani said management has noted the gap but ReNew is not currently considering listing in India.
About ReNew Energy Global (NASDAQ:RNW)
ReNew Energy Global PLC is an independent energy producer specializing in the development, construction, ownership and operation of utility-scale renewable energy projects. Headquartered in Gurugram, India, the company focuses on onshore wind farms, solar photovoltaic plants and hybrid power systems, often combined with battery energy storage to improve grid stability and dispatch flexibility. ReNew Energy Global markets electricity under long-term power purchase agreements, serving utilities, distribution companies and corporate buyers.
The company’s primary business activities encompass site identification, project design, procurement, construction management and ongoing asset management.
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The article “Highlights from ReNew Energy Global’s Q4 earnings calls” was originally published by MarketBeat.
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