ReNew Energy Global (NASDAQ:RNW) reported fiscal 2026 third-quarter and first nine-month results ended Dec. 31, 2025, highlighting growth in operating capacity, higher profitability, a refinancing that lowered borrowing costs, and a strategic pivot toward solar and battery storage over wind in its committed portfolio.
Portfolio growth and shift toward solar-plus-storage
Founder, Chairman and CEO Sumant Sinha said the company’s operating capacity rose to 11.8 gigawatts from 10.7 gigawatts since December of the prior year. He added that the company sold 900 megawatts during the period, and on an adjusted basis the portfolio increased 19%—or about 2 gigawatts—over the last 12 months. ReNew’s overall portfolio stood at 19.2 gigawatts, including roughly 1.5 gigawatts of battery energy storage systems (BESS).
On the Q&A, management detailed the drivers behind the change:
- Falling BESS costs have improved the ability to “firm up power” using solar plus storage, reducing the need for wind in certain configurations.
- Wind variability and lower-than-expected PLFs have persisted over recent years, making cash flows less predictable than solar.
- Execution considerations favored solar, with management citing easier land acquisition and development conditions in key solar regions versus wind-heavy regions where agricultural land can be harder to secure.
In discussing economics, Sinha said solar has historically delivered higher returns than wind due to long-term capex reductions, though he noted the return outlook can be time-dependent amid shifting pricing dynamics. He also said that under the updated configuration enabled by lower BESS prices, the company’s capex for its build-out is expected to decline by around INR 60 billion, while EBITDA for the under-construction portfolio would decline by roughly INR 6.5 billion to INR 6.8 billion, which he characterized as an improvement in return profile alongside more predictable execution and cash flows.
Asked whether ReNew plans to manufacture BESS, Sinha said the company has not “actively looked at” battery manufacturing. He cited the lack of import restrictions on batteries and cells from China, rapid technology shifts in batteries requiring specialized expertise, and the view that cell manufacturing is largely driven by electric vehicle demand—an end market ReNew is not targeting.
Financial performance and capital allocation
Sinha said Adjusted EBITDA rose 31% to INR 74.8 billion for the first nine months of fiscal 2026, alongside an “over sixfold” increase in profit after tax. CFO Kailash Vaswani added that revenue increased 48% over the same nine-month period versus last year, driven by higher megawatts and a “meaningful contribution” from the manufacturing business.
Vaswani said third-quarter Adjusted EBITDA increased largely due to gains from asset sales, the scaling of manufacturing, and growth in operating megawatts. ReNew also continued its capital recycling strategy, selling 300 megawatts of solar assets during the quarter, bringing total asset sales for the year to 600 megawatts.
Bond refinancing and leverage trajectory
Management highlighted a $600 million bond offering that refinanced a prior bond due in July 2026. Sinha said the offering attracted more than $2 billion of demand and reduced the interest rate from 7.95% to 6.5%, translating to about $9 million in annual interest savings. Vaswani described the deal as the first bond issued through India’s Gift City, and said it also provided withholding tax savings.
On leverage, Vaswani said headline debt-to-EBITDA declined from 8.2x in December 2024 to about 7.0x currently, and to 6.7x excluding contributions from joint venture partners that are treated as equity. On a trailing twelve-month basis, leverage for the operating portfolio was about 5.6x, though he cautioned that trailing EBITDA is not reflective of run-rate EBITDA because many assets have less than one year of operations.
In the Q&A, management said it aims to reduce “headline leverage” over time. Vaswani said the company wants “more accruals” flowing to shareholders rather than debt providers and characterized leverage reduction as a key lever alongside cost optimization and lowering corporate debt. Asked about timing, management said internal analysis suggests headline leverage could fall from around 6.7x toward 5.5x over the “28-30” timeframe.
Manufacturing and C&I updates
ReNew said its manufacturing business contributed INR 10.8 billion to Adjusted EBITDA over the first nine months, and it reported an external order book of 900 megawatts. Management said the company’s 4 gigawatt cell facility under construction is progressing and is expected to deliver its first cells later next fiscal year.
Management also provided operating details for manufacturing output: module facilities producing more than 12 megawatts per day with 3 gigawatts produced year-to-date; and the cell facility producing more than 5.5 megawatts per day with 1.4 gigawatts produced year-to-date. The company said it sold more than 2.6 gigawatts of modules year-to-date, including about 1.5 gigawatts sold externally, with the remainder used internally.
In response to a question on margins, Sinha said margins “held up” overall, noting a temporary lull after monsoons when inventories build and execution slows, but said margins picked up again during the current quarter and demand appeared “reasonably okay.”
In commercial and industrial (C&I), management said the business expanded about 30% over the past year, and Sinha described the segment as among the market leaders. He said ReNew has partnerships with Amazon, Microsoft and Google, which together account for about 50% of the C&I portfolio, and sees opportunities in energy management services and renewable supply for data centers.
Transmission delays, curtailment, ESG progress, and updated guidance
On sector issues, Sinha acknowledged ongoing challenges around transmission delays and curtailment, saying the issues have gained visibility and are being discussed across India’s relevant ministries. He said a joint committee between MNRE and the Ministry of Power has been established to address curtailment, and that there is recognition the resulting loss is “systemic” and should not fall solely on developers, though he said the ultimate solution and timeline remain unclear.
Management said projects with permanent GNA are compensated based on schedule rather than delivered power, while TGNA exposure can result in developers bearing losses. In response to questions about current TGNA exposure, management said capacity on TGNA had declined as certain projects moved from TGNA to GNA, and indicated that TGNA exposure can fluctuate depending on substation readiness and transmission build-out.
On ESG, the company reiterated that sustainability remains a core focus. Management cited an A grade from LSEG with a score around 90 out of 100, and strong CDP results including an A rating for climate change and an A- rating for water security. Vaishali Nigam Sinha said two sites were certified as water positive, including a solar site in Ashok Nagar, Madhya Pradesh, which she said was certified as India’s first water-positive solar plant. She also said ReNew achieved carbon neutrality verification for the fifth consecutive year for fiscal 2024-2025, and reported CSR initiatives that have impacted more than 1.7 million lives, including Project Surya to train 1,000 solar technicians.
For the fiscal year ending March 31, 2026, management raised the lower end of Adjusted EBITDA guidance and narrowed project construction expectations. Vaswani said ReNew now expects:
- Adjusted EBITDA: INR 90 billion to INR 93 billion
- Manufacturing Adjusted EBITDA contribution: INR 11 billion to INR 13 billion
- Projects constructed: 1.8 to 2.4 gigawatts
- Cash flow to equity: INR 14 billion to INR 17 billion
Asked about privatization-related topics referenced by an analyst, Sinha said the company could not comment and would make disclosures if and when appropriate.
About ReNew Energy Global (NASDAQ:RNW)
ReNew Energy Global PLC is an independent power producer specializing in the development, construction, ownership and operation of utility-scale renewable energy projects. Headquartered in Gurugram, India, the company focuses on onshore wind farms, solar photovoltaic plants and hybrid energy systems, often paired with battery energy storage to enhance grid stability and dispatch flexibility. ReNew Energy Global markets electricity under long-term power purchase agreements, serving utilities, distribution companies and corporate offtakers.
The company’s core business activities encompass site identification, project design, procurement, construction management and ongoing asset management.
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