RNWWW — ReNew Energy Global plc

Summary of ReNew Energy Global (RNWWW) Q4 2026 Earnings Call

1. Key Financial Results and Metrics:

• Adjusted EBITDA: INR 98.5 billion for FY 2026, up 25% year-on-year, exceeding guidance.
• Profit After Tax: INR 10.4 billion, a 2.3x increase from FY 2025.
• Cash Flow to Equity: Increased by 45% to INR 21.6 billion.
• Net Debt to EBITDA: Improved by 1.1x year-on-year, indicating reduced leverage.
• Q4 Adjusted EBITDA: INR 23.7 billion, compared to INR 22.1 billion in Q4 FY 2025, with manufacturing contributing INR 4 billion.

2. Strategic Updates and Business Highlights:

• Operational Growth: Portfolio reached approximately 12.8 gigawatts, a 25% increase year-on-year, with 2.4 gigawatts commissioned in FY 2026.
• Manufacturing Expansion: Manufacturing business contributed INR 14.8 billion to EBITDA, with a new 6.5 gigawatt ingot and wafer facility announced for future growth.
• C&I Business Growth: The commercial and industrial (C&I) segment grew to 2.7 gigawatts, with strong demand from technology companies.
• Policy Support: Continued government support for renewable energy and domestic manufacturing is expected to drive future growth.

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 contribute INR 10 billion to INR 12 billion in FY 2027.
• Capacity Construction: Plans to construct between 1.6 to 2.4 gigawatts of capacity in FY 2027.

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

• Grid Expansion Issues: Ongoing challenges with grid expansion have led to curtailments of renewable energy projects, particularly in Rajasthan, which may impact performance in the first half of FY 2027.
• Regulatory Risks: Potential impacts from DSM regulations could affect financials, with an estimated INR 0.5 billion impact for FY 2027 if current guidelines persist.
• Market Competition: Concerns regarding competitive pressures as Indian peers trade at higher multiples, prompting discussions about potential private transactions.

5. Notable Q&A Insights:

• Manufacturing Contributions: The new ingot and wafer facility will not contribute to FY 2027 guidance as it is expected to be operational by June 2028.
• Solar Performance: Slightly lower solar performance in Q4 attributed to resource efficiency and curtailments.
• Energy Security Initiatives: Management is optimistic about emerging opportunities in green hydrogen and methanol, indicating a growing sector.
• Refinancing Plans: $1 billion in USD bonds due for repayment in the first half of FY 2027, with $400 million already committed for refinancing.
• No Immediate Plans for India Listing: Despite higher valuations of Indian peers, management is not considering a listing in India at this time.

Overall, ReNew Energy Global reported strong financial performance and strategic growth in FY 2026, with positive outlooks for the coming year, albeit with some challenges related to grid expansion and regulatory risks.