RNW — ReNew Energy Global Plc

ReNew Q2 Fiscal Year 2026 Earnings Call Summary

1. Key Financial Results and Metrics:

• Adjusted EBITDA for H1 FY '26 reached INR 53.5 billion, a 24% year-on-year increase.
• Revenue increased by over 50% in H1 FY '26 compared to the previous year, driven by higher megawatt capacity and contributions from third-party manufacturing sales.
• The company reaffirmed its adjusted EBITDA guidance for FY '26, projecting INR 87 billion to INR 93 billion.
• Manufacturing business contributed INR 3.3 billion to adjusted EBITDA in Q2, totaling INR 8.6 billion for H1 FY '26, with an upward revision of the manufacturing EBITDA guidance to INR 10 billion to INR 12 billion.

2. Strategic Updates and Business Highlights:

• ReNew commissioned over 2.1 gigawatts of renewable energy capacity since October 2025, marking a 22% growth in its portfolio.
• The company signed Power Purchase Agreements (PPAs) for 3.8 gigawatts of renewable energy capacity over the past year.
• Manufacturing operations are fully stabilized, producing over 2 gigawatts of modules and 900 megawatts of cells in H1 FY '26.
• The company received an S&P Global Corporate Sustainability Assessment score of 83, the highest for any Indian Independent Power Producer (IPP).
• ReNew is actively pursuing sustainability initiatives and has published its inaugural climate risk and biodiversity risk reports.

3. Forward Guidance and Outlook:

• The company expects to complete construction of 1.6 to 2.4 gigawatts of capacity in FY '26.
• Cash flow to equity is projected to be between INR 14 billion and INR 17 billion.
• The management remains optimistic about achieving the higher end of the adjusted EBITDA guidance, contingent on favorable weather conditions.

4. Bad News, Challenges, or Points of Concern:

• The company experienced subdued Power Load Factors (PLFs) due to lower solar irradiation from an extended monsoon, resulting in a net negative impact of INR 1.7 billion for the quarter.
• There are ongoing concerns regarding curtailment, with an estimated revenue impact of INR 100 crores in H1 FY '26 due to incomplete back-end transmission lines.
• The bidding environment has shown some cyclicality, with a noted lull in new project bids.
• There are uncertainties regarding the conversion of Letters of Award (LOAs) to PPAs, particularly with government discussions about potentially canceling uncontracted tenders.

5. Notable Q&A Insights:

• Management indicated that while they have made significant progress on PPA signings, the timeline for converting LOAs into PPAs remains uncertain, dependent on discussions with Distribution Companies (DISCOMs).
• Concerns were raised about the transmission status for future projects, with management stating that connectivity for most projects is in place, but some delays are expected due to regulatory issues.
• The manufacturing segment's EBITDA margins have declined due to a higher mix of captive sales and seasonal factors; however, management anticipates normalization in margins as market conditions stabilize.
• The company is exploring refinancing options for upcoming bond maturities, indicating a robust financing market.

Overall, ReNew continues to demonstrate strong growth and operational execution, but faces challenges related to weather impacts, regulatory uncertainties, and market dynamics.