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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 faced challenges due to volatile market conditions. Despite a 48% YoY surge in Q3 revenue, concerns surrounding elevated debt and execution risks persist. The company's strategic pivot towards solar and battery storage over wind may mitigate some risks. A $95 million equity investment from LeapFrog-led consortium to expand its Commercial & Industrial platform may support growth. RNW's valuation appears attractive with a 22% EV/EBITDA discount to sector peers. (Source: ReNew Energy Global: Volatile, Leveraged, And Worth The Risk)

1.c. Company Highlights

2. ReNew's Q3 FY '26 Earnings Report: A Strong Quarter with Improved Guidance

ReNew's financial performance for the 9 months ending December 31, 2025, was impressive, with adjusted EBITDA increasing by 31% to INR 74.8 billion. The company's profit after tax also saw a significant rise. The earnings per share (EPS) for the quarter was -0.0061, beating analyst estimates of -0.12. The company's operating capacity increased from 10.7 gigawatts to 11.8 gigawatts, driven by a 19% increase in portfolio size over the last 12 months. ReNew's manufacturing business contributed INR 10.8 billion to its adjusted EBITDA, and the company has increased the lower end of its guidance range for adjusted EBITDA and megawatts for the year.

Publication Date: Mar -09

📋 Highlights
  • Operating Capacity Expansion:: ReNew increased capacity to 11.8 GW, a 19% portfolio size growth YoY, with strategic shift to solar + BESS over wind.
  • Adjusted EBITDA Surge:: 31% rise to INR 74.8 billion for Q3 FY26, driven by manufacturing contributions (INR 10.8 billion) and improved cash flow.
  • Debt Optimization:: $600 million bond issuance reduced interest rates from 7.95% to 6.5%, saving $9 million annually and refinancing prior obligations.
  • ESG Leadership:: Achieved LSEG A-grade (90.41/100) and CDP A-ratings, with two water-positive sites, enhancing global sustainability standing.
  • Capital Efficiency Strategy:: Solar + BESS shift cuts CAPEX by INR 60 billion, lowers wind capacity to 1 GW, and targets INR 90–93 billion adjusted EBITDA for FY26.

Operational Highlights

ReNew has made significant progress in shifting its capacity mix, reducing wind capacity in favor of solar plus storage. The company has reconfigured its 7-gigawatt portfolio to include more solar plus BESS, reducing wind capacity from 2.5 gigawatts to 1 gigawatt. This change is expected to lower CapEx, reduce execution risk, and improve cash flow predictability. The company's updated configuration is expected to reduce capital expenditure by around INR 60 billion, while EBITDA will decline by around INR 6.5 billion to INR 6.8 billion.

Financial Strength and Leverage

ReNew has taken steps to strengthen its balance sheet, raising $600 million through a bond offering and refinancing its previous bond, reducing its interest rate from 7.95% to 6.5%. The company aims to bring down its leverage ratio from 6.6x to 5.5x over time, with a target of achieving this between 2028 and 2030. The current Net Debt / EBITDA ratio stands at 7.51, indicating a high level of leverage. However, with the expected reduction in leverage, the company's credit profile is likely to improve.

Valuation and Outlook

With a P/E ratio of N/A due to negative earnings, other valuation metrics such as EV/EBITDA and P/S Ratio can be used to gauge the company's valuation. The current EV/EBITDA ratio stands at 9.44, indicating a relatively reasonable valuation. Analysts estimate next year's revenue growth at 11.5%. ReNew's reconfiguration of its portfolio and focus on solar plus BESS is expected to drive growth and improve returns. The company's strategic path forward includes a focus on balance sheet strength and discipline, reducing leverage, and improving returns and cash flows.

ESG Initiatives

ReNew has made significant progress in ESG initiatives, receiving an A grade rating from LSEG and achieving a score of 90.41 out of 100, placing it in the top quartile globally. The company has also received an A grade rating from CDP Climate Change and Water assessments and has been certified as water positive for two of its sites. These achievements demonstrate the company's commitment to sustainability and environmental responsibility.

3. NewsRoom

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ReNew Secures $95 Million Equity Investment From LeapFrog-Led Consortium to Expand its Commercial & Industrial Platform

Mar -16

Source: businesswire.com

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China Energy Recovery (OTCMKTS:CGYV) versus ReNew Energy Global (NASDAQ:RNW) Head to Head Survey

Feb -22

Source: defenseworld.net

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ReNew Energy Global Q3 Earnings Call Highlights

Feb -17

Source: defenseworld.net

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ReNew Energy Global: Volatile, Leveraged, And Worth The Risk

Feb -17

Source: seekingalpha.com

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ReNew Energy Global Plc (RNW) Q3 2026 Earnings Call Transcript

Feb -16

Source: seekingalpha.com

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ReNew Announces Results for the Third Quarter of Fiscal 2026 (Q3 FY26) and Nine Months of Fiscal 2026, both ended December 31, 2025

Feb -16

Source: businesswire.com

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

Feb -09

Source: businesswire.com

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ReNew Achieves ‘A' Rating in CDP Climate Change Assessment, Advancing to Global Leadership Band

Jan -13

Source: businesswire.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: 5.4/10

Value: 3.3

Growth: 2.8

Quality: 5.9

Yield: 5.0

Momentum: 9.0

Volatility: 6.7

1-Year Total Return ->

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Stock-Card
Acciona Energías Renovables

A-Score: 5.0/10

Value: 7.5

Growth: 4.8

Quality: 5.3

Yield: 1.9

Momentum: 5.5

Volatility: 5.3

1-Year Total Return ->

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Stock-Card
ReNew Energy Global

A-Score: 4.4/10

Value: 4.5

Growth: 8.7

Quality: 4.2

Yield: 0.0

Momentum: 7.0

Volatility: 2.0

1-Year Total Return ->

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Stock-Card
Encavis

A-Score: 4.3/10

Value: 1.7

Growth: 6.1

Quality: 6.7

Yield: 0.6

Momentum: 5.0

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
EDP Renováveis

A-Score: 3.7/10

Value: 6.5

Growth: 2.3

Quality: 2.8

Yield: 1.9

Momentum: 5.0

Volatility: 3.7

1-Year Total Return ->

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Stock-Card
Neoen

A-Score: 3.3/10

Value: 2.6

Growth: 3.9

Quality: 3.4

Yield: 0.0

Momentum: 4.0

Volatility: 6.0

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

4.83$

Current Price

4.83$

Potential

-0.00%

Expected Cash-Flows