ReNew Energy Global NASDAQ: RNW reported first-quarter fiscal 2027 results marked by growth in operating capacity, adjusted EBITDA and profit after tax, while management said grid constraints in India affected solar performance and remain an industrywide challenge.
Founder, Chairman and CEO Sumant Sinha said the company commissioned more than 1 gigawatt of capacity year to date, including more than 600 megawatts during the first quarter. ReNew’s committed portfolio stood at approximately 20.5 gigawatts, including 1.7 gigawatts of battery energy storage systems, while its broader pipeline totaled about 27 gigawatts.
“We continue to deliver on our promise of profitable growth” despite macroeconomic uncertainty and grid-related challenges in India, Sinha said.
Financial Results and Guidance
For the quarter, ReNew reported total income of INR47.9 billion and revenue of INR44.6 billion. Adjusted EBITDA rose 12% year over year to INR30.4 billion, while profit after tax increased 16% to INR6 billion.
The company said adjusted EBITDA included INR24.7 billion from its independent power producer business and INR5.7 billion from external manufacturing sales. The IPP business recorded an adjusted EBITDA margin of 86%, while the manufacturing business posted a margin of nearly 34%.
ReNew reiterated its fiscal 2027 consolidated adjusted EBITDA guidance of INR103 billion to INR109 billion. That forecast includes INR10 billion to INR12 billion from manufacturing and INR1 billion to INR2 billion from asset sales. Management also maintained expectations to construct 1.6 gigawatts to 2.4 gigawatts during the fiscal year and generate INR18 billion to INR22 billion of cash flow to equity.
Chief Financial Officer Kailash Vaswani said manufacturing margins had begun to contract, declining from 40% in the prior-year first quarter to 34% this quarter. He cited uncertainty related to extensions in the implementation of ALMM requirements for cells and additional production capacity entering the market. The company did not raise its manufacturing outlook, though Vaswani said ReNew could revisit guidance following its second-quarter results if strong performance continues.
Grid Curtailment Affects Solar Output
Management said grid build-out has remained a constraint, particularly for projects in Rajasthan with temporary connectivity arrangements. Vaswani said solar curtailment contributed materially to a year-over-year decline in solar plant load factor during the quarter, along with cloudier weather conditions.
In response to an analyst question, Vaswani estimated the decline was split roughly evenly between curtailment and weather-related impacts. ReNew is pursuing discussions regarding compensation for transmission-related constraints.
Sinha said the company is compensated for transmission-down curtailment, but there is no specific established compensation mechanism for other grid-related curtailment. ReNew is discussing the issue with India’s Ministry of Power, although he said there was no conclusion yet and that full compensation was not expected.
Management said it expects grid issues to improve over the coming months with the build-out of certain transmission lines in Rajasthan and potential central government support.
Capital Recycling, Debt and Take-Private Proposal
ReNew continued its capital-recycling efforts during the period. In June 2026, the company closed the sale of a 100-megawatt Tamil Nadu solar asset. In August, it signed definitive agreements to sell more than 1 gigawatt of assets, a transaction expected to generate $190 million of cash flow to equity upon closing, including certain contingent change-in-law proceeds.
As of June 30, ReNew had INR89 billion in cash, bank balances, investments and short-term investments. Gross debt was INR786 billion and net debt was approximately INR671 billion. Net debt to trailing-12-month adjusted EBITDA for operational projects was 5.7 times, according to the company.
ReNew’s IPP days sales outstanding were 71 days at quarter-end. Following the quarter, the company received INR5.7 billion from Andhra Pradesh in July, reducing IPP DSO to approximately 54 days by the end of that month. Manufacturing DSO stood at roughly five days.
Vaswani also addressed the proposed take-private transaction announced Aug. 11, under which ReNew entered a binding agreement with a consortium comprising CPP Investments and Sinha. Non-consortium shareholders may receive $7.02 per share in cash or, subject to conditions, elect to roll over their holdings and remain shareholders.
The special committee of independent directors intends to unanimously recommend that shareholders vote in favor of the scheme, Vaswani said, after receiving a fairness opinion from Rothschild & Co. The transaction is expected to be implemented through a U.K. scheme of arrangement and remains subject to shareholder and regulatory processes. Vaswani said the company anticipated the scheme becoming effective in the first quarter of 2027, while emphasizing that timing is not guidance.
Manufacturing and Storage Expansion
ReNew said its manufacturing operations have 6.5 gigawatts of module capacity and 2.5 gigawatts of cell capacity currently operational. Its 4-gigawatt TOPCon cell plant is expected to be fully operational by the end of the current fiscal year, with the first cell anticipated by the end of the current calendar year. The company is also developing an ingot-wafer facility in Andhra Pradesh that is expected to be commissioned in early calendar 2028.
The external manufacturing order book stood at about 1.1 gigawatts. ReNew said 40% to 60% of its manufacturing output is sold internally to its IPP business at arm’s-length prices, which is eliminated in consolidated financial reporting.
On battery storage, Sinha said ReNew has a couple hundred megawatt-hours commissioned. The company does not currently intend to make long-term merchant storage commitments because of uncertainty around returns over a five- to seven-year period. Instead, it may operate certain batteries in merchant markets for one to two years to capture expected differences between daytime and evening power prices before placing them into existing power-purchase agreements.
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.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.
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