ReNew Reports Strongest Fiscal Year Yet as EBITDA Reaches Rs. 98.5 Billion and Portfolio Expands to 20.2 GW

ReNew Reports Strongest Fiscal Year Yet as EBITDA Reaches Rs. 98.5 Billion and Portfolio Expands to 20.2 GW

The Electrical Post

ReNew Energy Global reported what management described as its strongest fiscal year to date, supported by record profitability, expanded operating capacity, lower leverage, and growing contributions from its manufacturing and commercial and industrial (C&I) businesses.

Speaking during the fiscal fourth-quarter and full-year FY2026 earnings call, Founder, Chairman and CEO Sumant Sinha said ReNew's operating portfolio reached approximately 12.8 GW, representing a 25% year-on-year increase after adjusting for asset sales. The company commissioned 2.4 GW during the year, its highest annual addition to date, while its committed portfolio expanded to 20.2 GW, including 1.7 GW of battery energy storage systems (BESS). ReNew's broader development pipeline, including auction-won projects awaiting power purchase agreements, now exceeds 26 GW.

Sinha said India's growing focus on energy security has strengthened the case for renewable energy, particularly amid geopolitical tensions in the Middle East and rising domestic power demand. India added a record 51 GW of renewable capacity in FY2026, accounting for nearly 90% of total new power capacity additions. Solar continued to drive growth, while increasing demand during non-solar hours is accelerating adoption of battery storage and hybrid projects.

Profitability Improves as Debt Metrics Strengthen

ReNew delivered adjusted EBITDA of Rs. 98.5 billion in FY2026, exceeding the upper end of its guidance range. Profit after tax increased to Rs. 10.4 billion from Rs. 4.6 billion in FY2025, while adjusted EBITDA rose around 25% year over year. Cash flow to equity increased 45% to Rs. 21.6 billion.

Chief Financial Officer Kailash Vaswani attributed the performance to portfolio growth, lower leverage, reduced interest expenses, manufacturing contributions and disciplined cost management. The company reduced its net debt-to-EBITDA ratio by approximately 1.1 turns during the year. Sinha added that ReNew's interest expense-to-adjusted EBITDA ratio improved to 61.5% in FY2026 from 66% in FY2025.

The company also highlighted progress in collections, noting that a favorable Supreme Court ruling related to around half of overdue receivables from Andhra Pradesh has enabled initial payments to begin. Management expects days sales outstanding to fall below 50 by next year.

For the fourth quarter, adjusted EBITDA stood at approximately Rs. 23.7 billion, compared with Rs. 22.1 billion in the same period last year. Manufacturing contributed Rs. 4 billion during the quarter versus Rs. 3.6 billion in the corresponding period of FY2025.

Manufacturing Business Gains Momentum

ReNew's manufacturing segment contributed Rs. 14.8 billion to consolidated adjusted EBITDA in FY2026, accounting for nearly 15% of total adjusted EBITDA. On a standalone basis, the business generated more than Rs. 19 billion of EBITDA.

Sinha said the company expects production at its 4 GW solar cell facility to commence toward the end of the current fiscal year. He highlighted India's ALMM 2 policy requiring domestic sourcing of solar cells from June 2026 and the proposed ALMM 3 policy mandating domestic procurement of ingots and wafers beginning June 2028.

ReNew has announced plans for a 6.5 GW ingot and wafer manufacturing facility as part of its supply chain integration strategy. Management said the project will require capital expenditure of about Rs. 42 billion, excluding a captive power plant, with 50–60% expected to be financed through project debt and the balance through manufacturing cash accruals and external fundraising.

The facility is expected to be commissioned around June 2028 and is not anticipated to contribute to earnings in FY2027 or FY2028.

C&I Platform and Battery Storage Remain Key Growth Areas

ReNew's C&I portfolio has grown to 2.7 GW, including 2.2 GW already commissioned. Sinha said the business has expanded sevenfold over the past five years, with nearly half of contracted capacity serving large technology companies and hyperscalers.

The company recently secured USD 95 million for an 11.3% stake in its C&I platform from a consortium led by LeapFrog. Management expects the segment to benefit from rising data center demand, noting that C&I customers consume around half of India's electricity while renewable penetration remains relatively low.

ReNew is also shifting its portfolio mix toward solar and battery storage, reducing its dependence on wind power. Vaswani said declining battery prices have made solar-plus-BESS configurations more attractive, lowering overall capital expenditure requirements by Rs. 60 billion while reducing EBITDA by only Rs. 7 billion compared with previous portfolio configurations. Management believes this approach will enhance execution certainty and improve cash flow visibility.

Wind energy will continue to remain part of the portfolio, particularly in higher-return opportunities within the C&I segment.

FY2027 Outlook Remains Positive

For FY2027, ReNew expects adjusted EBITDA in the range of Rs. 103 billion to Rs. 109 billion, supported by contributions from both renewable generation and manufacturing operations. The manufacturing business alone is expected to contribute Rs. 10–12 billion during the year.

The company also anticipates Rs. 1.2 billion from asset recycling activities, construction of 1.6–2.4 GW of new capacity, and cash flow to equity between Rs. 18 billion and Rs. 22 billion.

On refinancing, management said around USD 1 billion of debt is due over the next 12 months, with commitments for USD 400 million already secured. ReNew refinanced approximately USD 2 billion of debt during FY2026.

Management acknowledged challenges arising from grid curtailment, particularly in Rajasthan, where transmission expansion has lagged renewable capacity additions. The impact moderated during the fourth quarter but is expected to persist through the first half of FY2027.

Sinha also highlighted emerging opportunities in green fuels, including green methanol projects and potential demand from fertilizer and refinery sectors, while overseas interest, particularly from Far East markets, is beginning to strengthen. Green fuels, he said, could become a significant medium-term growth opportunity for the company.
 

Published at : Sep 21, 2026 01:08 PM (IST)

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