ReNew Energy Global Plc Q4 2026 Earnings Call Summary

Moby Intelligence

Tue, May 19, 2026 at 8:30 AM EDT 3 min read

Strategic Performance and Operational Context

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• Achieved record adjusted EBITDA of INR 98.5 billion and a 2.3x increase in profit after tax, driven by strong project execution and the scaling of the manufacturing business.

• Successfully reduced net debt to EBITDA by 1.1x year-on-year through disciplined capital recycling and a record $375 million fundraise.

• Strategically transitioned the portfolio toward solar and battery energy storage (BESS) to improve execution timelines, enhance cash flow predictability, and reduce capital intensity compared to wind.

• The C&I business grew 7x over five years, with nearly 50% of capacity now tied to high-growth technology companies and hyperscalers.

• Manufacturing has evolved into a self-funded growth engine, contributing 15% of consolidated adjusted EBITDA and providing critical supply chain security amid domestic sourcing mandates.

• Performance was partially tempered by grid expansion delays in Rajasthan, which led to some resource curtailment during the fiscal year.

• Improved the receivables position significantly following a favorable Supreme Court order regarding overdue Andhra Pradesh payments, which previously constituted over 50% of overdue days.

FY 2027 Outlook and Strategic Initiatives

• FY 2027 adjusted EBITDA is projected between INR 103 billion and INR 109 billion, assuming continued core business growth despite moderating manufacturing margins.

• Plans to commission a 4 gigawatt cell facility by the end of the fiscal year to capitalize on ALMM-2 domestic sourcing mandates starting June 2026.

• Announced a new 6.5 gigawatt ingot and wafer plant for 2028 to capture higher-margin upstream segments, funded via internal accruals and external raises without parent equity.

• Guidance assumes the construction of 1.6 to 2.4 gigawatts of new capacity and cash flow to equity between INR 18 billion and INR 22 billion.

• Management expects power demand to increase meaningfully due to El Niño effects and a push for energy security following geopolitical volatility in the Middle East.

Risk Factors and Structural Adjustments

• Grid expansion lag remains a headwind, with management expecting continued curtailment impacts through the first half of the upcoming fiscal year.

• The pivot to solar-plus-BESS configurations reduced projected CapEx by INR 60 billion while only impacting EBITDA by INR 7 billion, significantly lowering the risk profile.

• Foreign exchange exposure is 90% hedged for principal and 100% for interest, limiting the impact of a 10% rupee depreciation to only 30 basis points on interest costs.

• Potential tightening of Deviation Settlement Mechanism (DSM) regulations by the CRC could pose a INR 0.5 billion impact in FY 2027, though management anticipates regulatory relaxation.