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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's recent performance was driven by strong Q4 earnings and revenue beat, surpassing Zacks Consensus Estimate of $0.07 per share. The company reported a 4X growth in Q4 net profit, with 17% capacity growth, battery storage launch, and improved margins. Successful debt refinancing at lower rates also contributed to the positive results. Additionally, the company's evolving business model, leveraging India's solar boom, policy alignment, and manufacturing expansion, positions it for durable growth.

1.c. Company Highlights

2. ReNew's Q1 FY '26 Earnings: A Strong Start with Growth in Renewable Energy Capacity

ReNew's financial performance in Q1 FY '26 was robust, with an adjusted EBITDA of INR 27.2 billion, representing a 43% year-over-year growth. The company's profit after tax stood at INR 5.1 billion. Earnings per share (EPS) came in at INR 0.16, beating analyst estimates of INR 0.11. The manufacturing business contributed INR 5.3 billion to adjusted EBITDA, and is expected to contribute INR 8 billion to INR 10 billion in FY '26. Revenue growth is expected to be strong, with analysts estimating a 32.1% growth next year.

Publication Date: Aug -23

📋 Highlights
  • Renewable Capacity Growth:: Commissioned 2.2 gigawatts of renewable energy capacity, reflecting a 23% increase in the portfolio.
  • Financial Performance:: Adjusted EBITDA surged 43% YoY to INR 27.2 billion, with profit after tax at INR 5.1 billion.
  • Manufacturing Contribution:: The manufacturing business generated INR 5.3 billion in adjusted EBITDA, projecting INR 8–10 billion in FY '26.
  • ESG Commitments:: Achieved an 18.2% reduction in Scope 1/2 emissions and saved 540,372 cubic meters of water.
  • Strategic Bidding Discipline:: Avoided recent ammonia tenders due to unfavorable 10-year PPA terms and structural contract issues.

Operational Highlights

The company commissioned 2.2 gigawatts of renewable energy capacity, a 23% growth in its portfolio. ReNew reiterated its FY '26 guidance to complete construction of 1.6 to 2.4 gigawatts of capacity. The company is making progress in its renewable energy execution, albeit with occasional delays in transmission infrastructure. According to Kailash Vaswani, CFO, "Transformer shortages can be managed by advance ordering."

Valuation Metrics

ReNew's current valuation metrics suggest a mixed picture. The stock trades at a P/E Ratio of 28.85, P/B Ratio of 2.09, and EV/EBITDA of 10.46. The ROE stands at 7.59%, while the Net Debt / EBITDA ratio is at 7.71. These metrics indicate that the stock may be fairly valued, with some ratios suggesting a premium valuation.

Manufacturing Business and Future Plans

The company's manufacturing business is gaining traction, with the 2.4-gigawatt facility being Mono PERC, and the new 4-gigawatt facility expected to be TOPCon. ReNew has converted its entire Jaipur plant to TOPCon modules. The company is cautious about venturing into Ingot Wafer manufacturing, awaiting government policy guidance. Kailash Vaswani mentioned that the company will remain selective in the bids it participates in, prioritizing quality and returns.

Bidding Environment and Wind Power

ReNew has a disciplined approach to bidding and will only participate in projects that meet its required rate of return. The company believes that India's wind power capacity addition is unlikely to exceed 5 gigawatts per year due to land and evacuation challenges. This year's capacity addition might reach 5-6 gigawatts, but it's unlikely to reach 10 gigawatts.

3. NewsRoom

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ReNew Energy Global Plc (RNW) Q2 2026 Earnings Call Transcript

Nov -10

Source: seekingalpha.com

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ReNew Energy Global PLC (RNW) Q2 Earnings Lag Estimates

Nov -10

Source: zacks.com

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ReNew Announces Results for the Second Quarter for Fiscal Year 2026 (Q2 FY26), Ended September 30, 2025; Reports 84% Net Profit Increase YOY in H1 FY2026

Nov -10

Source: businesswire.com

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ReNew and Asian Development Bank Announce US$331 million Deal for a Large-Scale Renewable Energy Project in Andhra Pradesh

Nov -07

Source: businesswire.com

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

Nov -03

Source: businesswire.com

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ReNew Becomes India's Highest-Rated Energy Company in S&P Global's Corporate Sustainability Assessment

Oct -28

Source: businesswire.com

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ReNew Energy Global (NASDAQ:RNW) vs. Clearway Energy (NYSE:CWEN) Financial Review

Oct -24

Source: defenseworld.net

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ReNew Energy Global Plc (RNW) Q1 2026 Earnings Call Transcript

Aug -14

Source: seekingalpha.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: 5.3/10

Value: 3.8

Growth: 2.8

Quality: 6.1

Yield: 5.0

Momentum: 7.0

Volatility: 7.0

1-Year Total Return ->

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Acciona Energías Renovables

A-Score: 5.2/10

Value: 7.3

Growth: 4.8

Quality: 5.3

Yield: 1.2

Momentum: 7.0

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
ReNew Energy Global

A-Score: 4.7/10

Value: 3.2

Growth: 8.7

Quality: 4.1

Yield: 0.0

Momentum: 8.5

Volatility: 3.7

1-Year Total Return ->

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Encavis

A-Score: 4.6/10

Value: 4.2

Growth: 6.1

Quality: 6.2

Yield: 0.6

Momentum: 5.0

Volatility: 5.3

1-Year Total Return ->

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Stock-Card
Neoen

A-Score: 3.3/10

Value: 2.6

Growth: 3.8

Quality: 3.3

Yield: 0.0

Momentum: 4.0

Volatility: 6.0

1-Year Total Return ->

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EDP Renováveis

A-Score: 3.1/10

Value: 6.3

Growth: 2.3

Quality: 2.7

Yield: 1.9

Momentum: 2.0

Volatility: 3.7

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

7.36$

Current Price

7.36$

Potential

-0.00%

Expected Cash-Flows