RNW Q4 2026 Earnings Call Summary

ReNew Energy Global (RNW) Q4 2026 Earnings Call Summary

1. Key Financial Results and Metrics

Adjusted EBITDA: INR 98.5 billion for FY 2026, up 25% year-on-year.
Profit After Tax: INR 10.4 billion, a 2.3x increase from FY 2025.
Cash Flow to Equity: INR 21.6 billion, a 45% increase.
Net Debt to EBITDA: Improved by 1.1x year-on-year, with interest expense to adjusted EBITDA ratio declining from 66% to 61.5%.
Q4 2026 Adjusted EBITDA: INR 23.7 billion, compared to INR 22.1 billion in Q4 2025.

2. Strategic Updates and Business Highlights

Operating Portfolio: Reached approximately 12.8 gigawatts, a 25% year-on-year growth, with a total committed portfolio of 20.2 gigawatts.
Manufacturing Business: Contributed INR 14.8 billion to adjusted EBITDA; expected to expand with a new 6.5 gigawatt ingot and wafer facility.
C&I Business Growth: Increased to 2.7 gigawatts, with strong demand from technology companies and data centers.
Project Execution: Delivered a record 2.4 gigawatts of renewable energy projects in FY 2026, including 1.7 gigawatts of solar.

3. Forward Guidance and Outlook

FY 2027 Adjusted EBITDA Guidance: Expected in the range of INR 103 billion to INR 109 billion, reflecting a 17% increase.
Manufacturing Contribution: Anticipated to be INR 10 billion to INR 12 billion.
Capacity Construction: Expected to construct between 1.6 to 2.4 gigawatts during FY 2027.

4. Challenges and Points of Concern

Grid Expansion Issues: The pace of grid expansion has not kept up with renewable installations, leading to curtailments, particularly in Rajasthan.
Potential Regulatory Impact: Proposed DSM regulations could impact financials by an estimated INR 0.5 billion in FY 2027 if current guidelines remain unchanged.
Geopolitical Risks: Ongoing geopolitical tensions may affect energy procurement and costs.

5. Notable Q&A Insights

Manufacturing Capacity: The new ingot and wafer plant is expected to be operational by June 2028, with no immediate contribution to FY 2027 guidance.
Solar Performance: Q4 solar PLFs were lower due to curtailments and resource efficiency issues.
Green Hydrogen Opportunities: Management noted emerging opportunities in green hydrogen, with government tenders expected soon.
Market Valuation Concerns: Management acknowledged that RNW trades at lower multiples compared to Indian peers, but currently has no plans for an India listing.

This summary encapsulates the key financial metrics, strategic initiatives, forward guidance, challenges, and insights from the Q&A session, providing a comprehensive overview of ReNew Energy Global's performance and outlook for FY 2026.

RNW — ReNew Energy Global Plc