What ReNew Energy Global (RNW) Said on Its Q2 Earnings Call

Key Points

• Strong quarterly performance: ReNew reported second-quarter adjusted EBITDA of INR 33.6 billion, up 28% year over year, and raised the low end of its fiscal 2027 adjusted EBITDA guidance to INR 105 billion.
• Portfolio and manufacturing expansion: Its operating renewable portfolio reached 13.8 GW, while manufacturing delivered INR 4.1 billion in quarterly adjusted EBITDA. The company is nearing completion of a 4-GW TOPCon cell expansion, with production expected to begin in January 2027.
• Improving financial position, with risks remaining: Collections and project leverage improved, and planned asset sales could generate roughly $274 million in proceeds. However, solar curtailment reduced first-half results, and the proposed $7.02-per-share take-private transaction remains subject to shareholder and regulatory approval.

ReNew Energy Global NASDAQ: RNW reported higher second-quarter fiscal 2027 earnings and raised the lower end of its full-year adjusted EBITDA outlook, citing growth in its operating renewable portfolio, contributions from its manufacturing business and improved collections.

For the quarter ended Sept. 30, 2026, the company reported adjusted EBITDA of INR 33.6 billion, up 28% year over year. Revenue was INR 46.5 billion, while total income was INR 49.6 billion, according to CFO Kailash Vaswani. The company said first-half adjusted EBITDA increased nearly 20% from the prior year to approximately INR 64 billion.

Management cited differing profit-after-tax figures during the call. CEO Sumant Sinha said quarterly profit after tax was INR 6.4 billion, up 37% year over year, while Vaswani later cited quarterly profit after tax of INR 9.9 billion, compared with INR 5.6 billion a year earlier. For the first half, Sinha said profit after tax totaled INR 12.4 billion, an increase of 26.2%.

Portfolio Growth and Execution

ReNew said its operating portfolio reached 13.8 gigawatts, up 23% year over year after adjusting for 400 megawatts of asset sales completed over the past 12 months. The company commissioned more than 1.3 GW during the first half of fiscal 2027, including 628 MW during the second quarter, and approximately 2.7 GW over the trailing 12 months.

Its committed portfolio stood at 20.5 GW, including 1.7 GW of battery energy storage systems, while its overall pipeline was approximately 27 GW including letters of award not yet converted to power-purchase agreements.

Vaswani said more than 75% of ReNew’s committed capacity is contracted with customers rated A+ or higher. The company’s commercial and industrial portfolio totaled 2.9 GW across five Indian states, of which 2.6 GW had been commissioned. Amazon, Microsoft and Google collectively account for about half of contracted offtake in the company’s C&I business, he said.

The company said project delivery remained on track for its annual targets. Approximately 200 MW of solar capacity and 300 MW of wind capacity were in advanced commissioning stages. ReNew said it had secured the modules, wind turbines and battery-storage pricing needed for its fiscal-year execution plans.

Manufacturing Boosts Outlook

ReNew raised the lower end of its fiscal 2027 consolidated adjusted EBITDA forecast to INR 105 billion from INR 103 billion. Its updated guidance range is INR 105 billion to INR 109 billion, including INR 12 billion to INR 14 billion from manufacturing and INR 1 billion to INR 2 billion in asset-sale gains.

The company previously expected manufacturing EBITDA of INR 10 billion to INR 12 billion. In the second quarter, ReNew’s external sales of modules and cells generated approximately INR 12 billion of revenue and INR 4.1 billion of adjusted EBITDA, compared with INR 3.3 billion a year earlier. The external-sales EBITDA margin was about 33%.

ReNew produced 528 MW of cells and 890 MW of modules during the quarter, reporting cell efficiency of approximately 23.5%. Its external manufacturing order book stood at about 3.3 GW. Management said it expects margins to moderate during the second half as additional cell capacity enters the market.

The company said its 4-GW TOPCon cell expansion is nearing completion, with first cell production expected in January 2027 and commercial operations expected during the fourth quarter of fiscal 2027. It is also developing a 6.5-GW ingot-wafer plant, expected to begin commercial operations in the first half of calendar 2028. That project is expected to be funded through internal accruals and an external fundraise.

Collections, Leverage and Asset Sales

ReNew’s IPP days sales outstanding declined to 63 days as of September, its lowest level on record, the company said. The result represented an improvement of 21 days from a year earlier, aided in part by INR 5.7 billion received from Andhra Pradesh in July. Manufacturing DSO stood at nine days.

Net debt to trailing-12-month adjusted EBITDA for operating projects declined to about 5.3 times, from 5.7 times at the end of the prior quarter. ReNew reported INR 95.1 billion in cash, cash equivalents, bank balances and investments as of Sept. 30.

The company is pursuing asset recycling, having closed the sale of a 100-MW solar project in Tamil Nadu in June. It also signed definitive agreements in August to sell more than 1 GW of assets, expected to produce about $190 million in cash flow upon closing. In October, ReNew agreed to sell its controlling stake in 3E, a European renewable-energy analytics platform, in a transaction expected to generate another $84 million.

Vaswani said the company had about $1.7 billion of upcoming debt maturities, including non-bond debt, and had “full line of sight” on approximately $1.25 billion through commitments already in place. The remaining debt is due around the middle of next year and is expected to be refinanced closer to maturity, he said.

Curtailment and Take-Private Process

SVP of Corporate Finance and Investor Relations Anunay Shahi said solar grid curtailment affected recently commissioned projects. The impact was approximately $9 million to $10 million during the second quarter and about $18 million to $19 million during the first half, though he said the impact has improved during the year. ReNew said stronger wind plant-load factors helped offset some of the pressure from a weaker monsoon.

Separately, Vaswani provided an update on the company’s proposed take-private transaction with a consortium comprising CPP Investments and Sinha. Under the proposed U.K. scheme of arrangement, non-consortium shareholders could receive $7.02 per share in cash or, subject to conditions, elect to retain shares through a rollover arrangement.

The company said its special committee received a fairness opinion from Rothschild and intends to unanimously recommend that shareholders vote in favor of the scheme. ReNew expects the transaction to become effective in the first quarter of calendar 2027, subject to shareholder and regulatory approvals.

About ReNew Energy Global (NASDAQ:RNW)

ReNew Energy Global plc NASDAQ: RNW is a renewable energy company focused on developing, owning, and operating clean power projects in India. Its portfolio includes utility-scale wind, solar, and hydroelectric generation, as well as hybrid renewable energy projects that combine multiple technologies to support more consistent electricity production.

The company also pursues related clean-energy opportunities, including battery storage, green hydrogen, and other decarbonization solutions.

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