ReNew Fy26-Momentum Strong, Higher Growth Beckons

Hours after its Q4 results, ReNew Global's management handled analyst queries on the firm's  strong Q4 results and way ahead. Readers will recall that the firm has been more than a little unhappy about the valuations it gets at NASDAQ, and has even acted to delist via an offer to buy back shares. The firm's stock price did react favorably to the results, gaining almost 4% to close at $7.06 on the exchange. At just over Rs 21,000 crores or $2.4 billion, this remains below the delisting offer that valued the firm at $2.7 billion. Many industry watchers believe it could do much better with a listing in India, where comparable peers such as Adani Green, NTPC Green or even Acme Solar enjoy a much higher valuation. The call was addressed by Chairman and Founder Sumant Sinha, Co-Founder and Chairperson of Sustainability, Vaishali Nigam Sinha, and CFO, Kailash Vaswani.

The Fy25 Story- Growth With A Clear Future  Roadmap  

ReNew's total operating portfolio rose to 11.2 gigawatts, 17% higher than at the same time last year and 21% if compared on a like-for-likes after excluding asset sales. Since April 2024, it has constructed over 2 gigawatts of RE assets, of which 1.95 gigawatts have already received COD approvals. The contracted portfolio stands at 18.5 gigawatts along with an additional 1.1 gigawatts hours BESS. The firm added 1.3 gigawatts of PPAs since Q3 fiscal 2025 and 5.3 gigawatts since April 2024.

A pipeline of over 25 gigawatts of renewable energy and an additional about 3 gigawatts hours of batteries provides clear visibility for the future. ReNew's solar manufacturing facilities comprising of 6.4 gigawatts of module manufacturing and 2.5 gigawatts of cells are now fully stabilized and started contributing to the P&L. It claims a current external order book of 1.4 gigawatts in addition to having already supplied 1.3 gigawatts till date in the manufacturing business.The company has also secured $100 million dollars in equity funding to expand the existing cell facility by 4 gigawatts more to take it up to 6.5 gigawatts to be in line with the module manufacturing capacity. With A second consecutive year of profit after tax (over Rs 1000 crores in Fy25), the firm is well placed to deliver strongly in the coming year. Having already sold a 300 MW SECI project, the firm hopes to close another 300 MW deal soon.

Solar Manufacturing 

The firm's solar manufacturing continues to come along strongly, with both module capacity (at 6.5 GW currebtly) and cell manufacturing (2.5 GW to be expanded to 6.5 GW) delivering at full capacity now. It claims to be producing over 10 megawatts of modules and about 5 megawatts of cells per day. External orders of 1.3 gigawatts have been fulfilled till date, with the current order book at an additional 1.4 gigawatts. External sales contributed around Rs 420 crores to the  consolidated fiscal FY '25 EBITDA and around Rs 360 crores in the last quarter of FY '25. The cell capacity expansion is expected to be completed in Fy27. The firm expects the manufacturing business to contribute about Rs 500 crores to 700 crores of consolidated EBITDA in fiscal 2026.

Lower Interest Rates To Benefit  

With a 70:30 debt to equity ratio for its manufacturing expansion as well as floating rates for its overall debt, the firm expects to see significant benefits from the lower interest rate regime in India and beyond, Most of these benefits will go straight to the bottomline, with the perhaps the only issue being the Plant Load Factors(PLF) which dropped in Fy25, and guidance continues to be on the lower side for FY26 as well. The firm asserted that it had seen no issue from the rare earth restrictions that China has imposed so far.