RNW — ReNew Energy Global Plc

Summary of ReNew's Q3 FY 2026 Earnings Call

1. Key Financial Results and Metrics

• Adjusted EBITDA: Increased by 31% to INR 74.8 billion for the nine months ending December 31, 2025.
• Profit After Tax: Over sixfold increase compared to the previous year.
• Revenue Growth: 48% increase attributed to higher megawatt capacity and contributions from the manufacturing segment.
• Operating Capacity: Grew from 10.7 GW to 11.8 GW, with a 19% increase in the overall portfolio to 19.2 GW, including battery energy storage systems (BESS).
• Leverage: Reduced from 8.2x in December 2024 to 7x (6.7x excluding JV contributions), with a target to reach 5.5x by 2028-2030.
• Bond Offering: Successfully raised $600 million at a reduced interest rate of 6.5%, down from 7.95%, saving approximately $9 million annually.

2. Strategic Updates and Business Highlights

• Portfolio Optimization: Shift from wind to solar and BESS to reduce execution risk and improve cash flow predictability. Wind capacity in the committed portfolio reduced from 2.5 GW to 850 MW.
• Manufacturing Performance: Manufacturing business contributed INR 10.8 billion to adjusted EBITDA, with a strong order book of 900 MW.
• ESG Commitment: Achieved top quartile ratings in ESG assessments, with notable achievements in water management and carbon neutrality.
• C&I Business Growth: Expanded portfolio by 30% with contracts from major tech companies, positioning for future opportunities in energy management.

3. Forward Guidance and Outlook

• Adjusted EBITDA Guidance: Increased to INR 90 billion - INR 93 billion for the fiscal year ending March 31, 2026.
• Construction Guidance: Expected to construct between 1.8 GW and 2.4 GW, up from previous estimates.
• Cash Flow to Equity: Projected between INR 14 billion and INR 17 billion.
• Manufacturing Contribution: Expected to contribute INR 11 billion - INR 13 billion to adjusted EBITDA.

4. Bad News, Challenges, or Points of Concern

• Industry Headwinds: Ongoing issues with transmission project delays and curtailment, which are being addressed at the government level but remain a concern.
• Variable Performance in Wind: Historical performance variability in wind projects has led to a strategic pivot towards solar and BESS.
• Market Competition: Increasing competition and price volatility in the solar sector, particularly due to aggressive bidding in recent auctions.

5. Notable Q&A Insights

• Strategic Shift to Solar and BESS: Management explained that the decision to reduce wind capacity was driven by improved pricing for solar and BESS, execution ease, and historical performance issues with wind.
• Compensation for Curtailment: Projects under General Network Access (GNA) receive compensation for curtailment, while those under Temporary GNA (T-GNA) do not, leading to financial implications.
• Leverage Reduction Strategy: Emphasis on reducing leverage to enhance shareholder returns, with an aim to lower headline debt levels over the next few years.

This summary encapsulates the key takeaways from ReNew's Q3 FY 2026 earnings call, highlighting both the positive developments and the challenges faced by the company.