ReNew Energy Global PLC (RNW) Q2 2026 Earnings Call Highlights: Strong Revenue Growth Amid ...

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Adjusted EBITDA: INR53.5 billion for the first half of fiscal year 2026, a 24% growth year-on-year. Revenue Growth: Over 50% increase for H1 fiscal year 2026 compared to last year. Manufacturing Adjusted EBITDA: INR3.3 billion for the quarter, totaling INR8.6 billion for the first 6 months of fiscal year 2026. Manufacturing Capacity: 6.4 gigawatts of modules and 2.5 gigawatts of cells operational. Leverage Ratio: Reduced from 8.6 in September '24 to 7 in September '25. Commissioned Capacity: Over 2.1 gigawatts since October last year, with 1.2 gigawatts commissioned year-to-date. Guidance for FY26: Adjusted EBITDA of INR87 billion to INR93 billion; construction of 1.6 to 2.4 gigawatts of projects. Cash Flow to Equity Guidance: INR14 billion to INR17 billion for fiscal year 2026. Solar Manufacturing Output: Produced over 2 gigawatts of modules and 900 megawatts of cells in H1 FY26. ESG Rating: S&P Global Corporate Sustainability Assessment score of 83 out of 100.

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Release Date: November 10, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

ReNew Energy Global PLC (NASDAQ:RNW) reported a 24% year-on-year growth in adjusted EBITDA for the first half of fiscal year 2026, reaching INR53.5 billion. The company has commissioned over 2.1 gigawatts of renewable energy capacity since October of the previous year, marking a 22% growth in its portfolio. ReNew Energy Global PLC (NASDAQ:RNW) has signed PPAs for 3.8 gigawatts of installed renewable energy capacity over the past four quarters, with expected returns at the higher end of their targeted IRR range. The company's manufacturing business contributed INR3.3 billion to adjusted EBITDA for the quarter, with a revised guidance of INR10 billion to INR12 billion for fiscal year 2026. ReNew Energy Global PLC (NASDAQ:RNW) achieved a score of 83 in the S&P Global Corporate Sustainability Assessment, the highest ever by any Indian IPP, reflecting its strong ESG commitments.

Negative Points

The company experienced subdued PLFs this quarter due to lower irradiation from an extended monsoon, resulting in a net negative impact of INR1.7 billion compared to last year. There was a decline in EBITDA margin for the solar manufacturing business, dropping to 33% in fiscal Q2 from 40% in Q1, attributed to lower realizations and revised procurement pricing. ReNew Energy Global PLC (NASDAQ:RNW) faced curtailment issues in some projects in Rajasthan, resulting in a revenue impact of approximately INR100 crores in the first half. The company is facing challenges in the contracting environment, with uncertainties around the timing of PPA signings for its 25-gigawatt pipeline. There are concerns about potential cancellations of renewable tenders by the government, which could impact the 6 gigawatts of solar projects where LOAs have been awarded but PPAs have not been signed.

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Q & A Highlights

Q: Could you comment on the contracting environment and expectations for additional PPA signings over the next few quarters? A: Sumant Sinha, Founder, Chairman and CEO, explained that they have made good progress with 3.8 gigawatts of PPAs signed over the last 12 months. They have about 6 gigawatts of LOAs that they hope will convert into PPAs. However, it's challenging to provide a specific timeline as it depends on DISCOMs' feedback. They expect a reasonable chunk to be signed in the next six months but can't specify when the entire 25-gigawatt pipeline will be contracted.

Q: Can you update us on the transmission status for the projects in your pipeline, especially as you go out into 2029, 2030? A: Sumant Sinha stated that most of the transmission is in place, as they have blocked connectivity for the entire 25 gigawatts. They are working with DISCOMs to potentially expedite some projects by using land-based connectivity, which is scarce and valuable, to convert LOAs into PPAs sooner.

Q: What drove the decline in EBITDA margin for the solar manufacturing business from 40% in Q1 to 33% in Q2? A: Kailash Vaswani, CFO, explained that the decline was due to lower realizations in Q2, which is a leaner month for sales. In Q1, they benefited from strategic procurement before price increases. The margins in Q2 reflect revised pricing on procurement.

Q: Could you share timelines on the expected commissioning for the cell expansion and any plans to enter ingot wafer production? A: Sumant Sinha mentioned that they are in advanced stages of land acquisition and equipment orders for cell expansion, expecting pre-commissioning by next year and full commissioning by the end of fiscal '27. Regarding ingot wafer production, they are evaluating the merits of expansion following recent government notifications.

Q: Have you experienced any curtailment during the last quarter, and what was the extent of that? A: Sumant Sinha confirmed experiencing curtailment in some Rajasthan projects, amounting to about INR100 crores in revenue for the first half. This is linked to projects where substations are ready, but back-end lines are not, which should be resolved in the coming months.

Q: What are the plans for refinancing the Diamond II bonds due in 2026 and the ING PH issuance due in 2027? A: Kailash Vaswani stated that they are working on refinancing plans and will pursue the market offering the lowest cost of capital. Financing markets remain strong, with access to capital across multiple pools, including dollar bonds and domestic financing.

Q: What is the status of the take-private offer, and when do you expect the consortium to firm up their offer? A: Kailash Vaswani indicated that the Special Committee expects a final binding offer from the consortium in November. The process will involve documentation, transaction agreements, and regulatory filings. The consortium has indicated a timeline of 7 to 8 months for completion.

Q: Regarding the 6 gigawatts of solar with LOAs but no PPAs, could these be canceled as per recent government plans? A: Sumant Sinha believes that while there were press reports, the MNRE is encouraging the signing of PPAs and any cancellations will be selective and case-by-case. Efforts will continue to get PPAs signed, and any government action will be considered after significant effort.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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