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 business.
• Operating Capacity: Grew from 10.7 GW to 11.8 GW, with a 19% increase in the overall portfolio to 19.2 GW, including 1.5 GW of battery energy storage systems (BESS).
• Leverage: Reduced from 8.2x in December 2024 to 7x (6.7x excluding joint ventures), with a target to reach 5.5x by 2028-2030.
• Bond Offering: Successfully raised $600 million at a reduced interest rate of 6.5%, saving approximately $9 million in annual interest expenses.

2. Strategic Updates and Business Highlights

• Portfolio Optimization: Shifted focus from wind to solar and BESS to reduce execution risk and enhance cash flow predictability. Wind capacity in the committed portfolio reduced from 2.5 GW to approximately 850 MW.
• Manufacturing Business: Contributed INR 10.8 billion to adjusted EBITDA; ongoing expansion with a new 4 GW cell facility.
• C&I Business Growth: Expanded by approximately 30% through contracts with major clients like Amazon, Microsoft, and Google.
• ESG Performance: Achieved an A grade from LSEG and CDP, ranking in the top quartile globally for sustainability efforts.

3. Forward Guidance and Outlook

• Adjusted EBITDA Guidance: Increased to INR 90 billion to INR 93 billion for the fiscal year ending March 31, 2026.
• Construction Guidance: Expected to construct between 1.8 GW and 2.4 GW during the fiscal year.
• Manufacturing Contribution: Anticipated adjusted EBITDA contribution from manufacturing to be between INR 11 billion to INR 13 billion.

4. Challenges and Points of Concern

• Transmission Delays and Curtailment: Ongoing issues with transmission project delays and curtailment affecting the industry, although there are discussions for improvement.
• Market Volatility: Concerns about the variability of wind energy performance and the impact of aggressive bidding on solar project costs.
• Leverage Management: While leverage is decreasing, the company aims to further reduce it to enhance shareholder returns, indicating a cautious approach to debt management.

5. Notable Q&A Insights

• Shift to Solar and BESS: Management explained the rationale behind reducing wind capacity, citing lower costs for solar and BESS, execution ease, and historical performance issues with wind.
• Compensation for Curtailment: Clarified that projects with Guaranteed Network Access (GNA) receive compensation during curtailments, while those with Temporary GNA (T-GNA) do not.
• Manufacturing Margins: Margins in the manufacturing segment have held steady despite temporary fluctuations, with demand remaining strong.
• Future Leverage Goals: The company aims to achieve a leverage ratio of 5.5x by 2028-2030, emphasizing the importance of reducing debt to enhance free cash flow for shareholders.

This summary encapsulates the key financial metrics, strategic initiatives, forward guidance, and notable challenges faced by ReNew in Q3 FY 2026, along with insights from the Q&A session.