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1. Company Snapshot

1.a. Company Description

ReNew Energy Global Plc generates power through non-conventional and renewable energy sources in India.The company operates through Wind Power and Solar Power segments.It develops, builds, owns, and operates utility scale wind and solar energy projects, as well as distributed solar energy projects that generate energy for commercial and industrial customers.


The company also provides engineering, procurement, and construction services; operation and maintenance services; consultancy services; and sells renewable energy certificates.As of March 31, 2022, its portfolio consisted of 10.69 GW of wind and solar energy projects, hydro, firm power projects, and distributed solar energy projects, of which 7.57 GW projects were commissioned and 3.12 GW were committed.ReNew Energy Global Plc was founded in 2011 and is based in London, the United Kingdom.

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1.b. Last Insights on RNW

ReNew Energy Global Plc's recent performance was driven by strong Q4 earnings and revenue beat, surpassing Zacks Consensus Estimate of $0.07 per share. The company reported a 4X growth in Q4 net profit, with 17% capacity growth, battery storage launch, and improved margins. Successful debt refinancing at lower rates also contributed to the positive results. Additionally, the company's evolving business model, leveraging India's solar boom, policy alignment, and manufacturing expansion, positions it for durable growth.

1.c. Company Highlights

2. ReNew's Q2 FY'26 Earnings: A Strong Performance

ReNew's financial performance in Q2 FY'26 was robust, with revenues increasing by over 50% for H1 of this fiscal compared to last year, driven by a 24% growth in adjusted EBITDA to INR 53.5 billion. The company's EPS, however, came in at INR 0.13, lower than the estimated INR 0.17. The manufacturing business produced over 2 gigawatts of modules and over 900 megawatts of cells in H1 FY '26, contributing INR 3.3 billion to adjusted EBITDA. As Kailash Vaswani noted, "We continue to deliver consistent profitable growth." The company's adjusted EBITDA margin is expected to normalize in the future, although the exact timeline is uncertain.

Publication Date: Nov -19

📋 Highlights
  • Renewable Energy Growth:: Commissioned 2.1 GW of capacity since October 2024, a 22% portfolio expansion, with 3.8 GW of PPAs signed over 4 quarters.
  • Financial Performance:: Adjusted EBITDA reached INR 53.5 billion for H1 FY26 (24% YoY growth), reaffirming FY26 guidance of INR 87–93 billion.
  • Manufacturing Output:: Produced 2 GW of modules and 900 MW of cells in H1 FY26, contributing INR 3.3 billion to quarterly adjusted EBITDA.
  • ESG Milestones:: Achieved an 83/100 S&P Global Corporate Sustainability Assessment score (highest for an Indian IPP) and an 18.2% reduction in Scope 1/2 emissions.
  • Debt Reduction:: Headline leverage dropped from 8.6 in September 2024 to 7 by September 2025, with INR 14–17 billion cash flow to equity expected in FY26.

Operational Highlights

The company has made significant progress in its operational projects, with over 2.1 gigawatts of renewable energy capacity commissioned since October last year, marking a 22% growth in its portfolio. ReNew has signed PPAs for 3.8 gigawatts of installed renewable energy capacity over the past 4 quarters and is on track to complete construction of 1.6 to 2.4 gigawatts of capacity in fiscal 2026. The company's manufacturing business is also expanding, with land acquisition and equipment orders underway for cell expansion, expected to be commissioned by the end of fiscal '27.

Valuation and Growth Prospects

ReNew's current valuation metrics indicate a P/E Ratio of 28.18, EV/EBITDA of 10.4, and ROE of 7.59%. Analysts estimate next year's revenue growth at 29.0%. The company's growth prospects are promising, driven by its expanding renewable energy capacity and manufacturing business. However, the company's high leverage metrics, with a Net Debt / EBITDA ratio of 7.71, may pose a risk to its financial stability.

ESG Commitments and Sustainability

ReNew remains committed to its ESG goals, achieving a score of 83 out of 100 in the S&P Global Corporate Sustainability Assessment, the highest ever by any Indian IPP. The company has published its inaugural climate risk and biodiversity risk reports aligned with the TCFD and TNFD frameworks and has made meaningful progress across overall sustainability goals, achieving an 18.2% reduction in its Scope 1 and 2 emissions from the baseline.

Outlook and Future Plans

The company is working on various initiatives to drive growth, including resolving issues related to transmission and connectivity, evaluating the merits of expanding into wafer ingots, and refinancing its bonds to reduce its cost of capital. ReNew expects to commission new projects and increase its capacity in the coming years, with a guidance of INR 87 billion to INR 93 billion for adjusted EBITDA in FY '26.

3. NewsRoom

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ReNew Energy Global Plc (RNW) Q2 2026 Earnings Call Transcript

Nov -10

Source: seekingalpha.com

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ReNew Energy Global PLC (RNW) Q2 Earnings Lag Estimates

Nov -10

Source: zacks.com

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ReNew Announces Results for the Second Quarter for Fiscal Year 2026 (Q2 FY26), Ended September 30, 2025; Reports 84% Net Profit Increase YOY in H1 FY2026

Nov -10

Source: businesswire.com

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ReNew and Asian Development Bank Announce US$331 million Deal for a Large-Scale Renewable Energy Project in Andhra Pradesh

Nov -07

Source: businesswire.com

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ReNew Announces Date and Conference Call Details for Second Quarter FY26 Earnings

Nov -03

Source: businesswire.com

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ReNew Becomes India's Highest-Rated Energy Company in S&P Global's Corporate Sustainability Assessment

Oct -28

Source: businesswire.com

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ReNew Energy Global (NASDAQ:RNW) vs. Clearway Energy (NYSE:CWEN) Financial Review

Oct -24

Source: defenseworld.net

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ReNew Energy Global Plc (RNW) Q1 2026 Earnings Call Transcript

Aug -14

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.80%)

6. Segments

Wind Power

Expected Growth: 8.5%

ReNew Energy Global Plc's 8.5% wind power growth driven by increasing demand for renewable energy, declining turbine costs, and supportive government policies. India's ambitious renewable energy targets, rising electricity demand, and favorable wind resources also contribute to growth. Additionally, ReNew's strong project pipeline, efficient operations, and strategic partnerships further boost growth prospects.

Solar Power

Expected Growth: 9.5%

ReNew Energy Global Plc's 9.5% growth in solar power is driven by increasing demand for clean energy, declining solar panel costs, and supportive government policies. Additionally, the company's focus on large-scale projects, strategic partnerships, and expansion into new markets contribute to its rapid growth.

Transmission Line

Expected Growth: 7.5%

ReNew Energy Global Plc's Transmission Line segment growth of 7.5% is driven by increasing demand for renewable energy, government incentives for clean power, and strategic acquisitions. Additionally, India's rising electricity demand, grid expansion, and ReNew's strong project pipeline contribute to this growth.

Hydro Power

Expected Growth: 8.0%

ReNew Energy Global Plc's 8.0% growth in Hydro Power is driven by increasing demand for renewable energy, favorable government policies, and declining technology costs. Additionally, India's ambitious renewable energy targets, rising electricity demand, and ReNew's strong project pipeline contribute to this growth.

Other Services

Expected Growth: 8.8%

ReNew Energy Global Plc's 8.8% growth in Other Services is driven by increasing demand for renewable energy solutions, expansion into new geographies, and strategic partnerships. Additionally, the company's focus on digitalization and technology advancements has improved operational efficiency, leading to higher margins and revenue growth.

7. Detailed Products

Solar Energy

ReNew Energy Global Plc offers solar energy solutions to generate clean and sustainable power for residential, commercial, and industrial customers.

Wind Energy

ReNew Energy Global Plc develops and operates wind farms to generate renewable energy for the Indian power grid.

Hydro Energy

ReNew Energy Global Plc invests in hydroelectric power projects to generate renewable energy for the Indian power grid.

Wind-Solar Hybrid Energy

ReNew Energy Global Plc offers wind-solar hybrid energy solutions to optimize energy generation and reduce costs.

Energy Storage

ReNew Energy Global Plc provides energy storage solutions to stabilize the grid and ensure a reliable power supply.

Decentralized Renewable Energy

ReNew Energy Global Plc offers decentralized renewable energy solutions for rural electrification and off-grid energy access.

8. ReNew Energy Global Plc's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for ReNew Energy Global Plc is medium as the company operates in the renewable energy sector, which has limited substitutes. However, the increasing adoption of electric vehicles and energy storage systems could pose a threat to the company's business.

Bargaining Power Of Customers

The bargaining power of customers for ReNew Energy Global Plc is low as the company operates in a niche market with limited competition. The company's customers are mainly government agencies and large corporations, which have limited bargaining power.

Bargaining Power Of Suppliers

The bargaining power of suppliers for ReNew Energy Global Plc is medium as the company relies on a few large suppliers for its equipment and services. However, the company's scale of operations and long-term contracts with suppliers mitigate the bargaining power of suppliers.

Threat Of New Entrants

The threat of new entrants for ReNew Energy Global Plc is low as the company operates in a capital-intensive industry with high barriers to entry. The company's established brand and scale of operations also deter new entrants.

Intensity Of Rivalry

The intensity of rivalry for ReNew Energy Global Plc is high as the company operates in a competitive industry with several established players. The company's focus on innovation and cost leadership helps it to maintain its market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 82.86%
Debt Cost 4.85%
Equity Weight 17.14%
Equity Cost 8.46%
WACC 5.47%
Leverage 483.54%

11. Quality Control: ReNew Energy Global Plc passed 0 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Fortum

A-Score: 5.3/10

Value: 3.8

Growth: 2.8

Quality: 6.1

Yield: 5.0

Momentum: 7.0

Volatility: 7.0

1-Year Total Return ->

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Acciona Energías Renovables

A-Score: 5.2/10

Value: 7.3

Growth: 4.8

Quality: 5.3

Yield: 1.2

Momentum: 7.0

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
ReNew Energy Global

A-Score: 4.7/10

Value: 3.2

Growth: 8.7

Quality: 4.1

Yield: 0.0

Momentum: 8.5

Volatility: 3.7

1-Year Total Return ->

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Stock-Card
Encavis

A-Score: 4.6/10

Value: 4.2

Growth: 6.1

Quality: 6.2

Yield: 0.6

Momentum: 5.0

Volatility: 5.3

1-Year Total Return ->

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Stock-Card
Neoen

A-Score: 3.3/10

Value: 2.6

Growth: 3.8

Quality: 3.3

Yield: 0.0

Momentum: 4.0

Volatility: 6.0

1-Year Total Return ->

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EDP Renováveis

A-Score: 3.1/10

Value: 6.3

Growth: 2.3

Quality: 2.7

Yield: 1.9

Momentum: 2.0

Volatility: 3.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

7.55$

Current Price

7.55$

Potential

-0.00%

Expected Cash-Flows