ReNew Raises FY27 EBITDA Floor as Q2 Profit Climbs 37%

ReNew Energy Global (RNW) raised the lower end of its fiscal 2027 adjusted EBITDA guidance after reporting double-digit growth in second-quarter revenue, profit and cash flow, supported by new renewable-energy projects and a strong contribution from its solar manufacturing business.

The company now expects FY27 adjusted EBITDA of INR 105 billion to INR 109 billion, compared with a previous lower bound of INR 103 billion. The outlook includes INR 12 billion to INR 14 billion from manufacturing and INR 1 billion to INR 2 billion of asset-sale gains. ReNew maintained guidance for cash flow to equity, or CFe, of INR 18 billion to INR 22 billion and construction of 1.6 GW to 2.4 GW during the fiscal year.

For the quarter ended September 30, 2026, revenue from contracts with customers rose 28% year over year to INR 46.49 billion. Adjusted EBITDA, a non-IFRS measure, increased 28% to INR 33.59 billion, while profit after tax climbed 37% to INR 6.42 billion. CFe more than doubled to INR 10.19 billion from INR 4.59 billion a year earlier.

First-half adjusted EBITDA increased 20% to INR 63.98 billion, and profit after tax rose 26% to INR 12.38 billion. First-half CFe reached INR 23.03 billion.

Project additions and manufacturing support growth

ReNew had 13.8 GW of operating capacity at the end of the quarter, including 100 MW of battery energy storage. The operating portfolio expanded 19% year over year on a net basis and 23% after adjusting for 400 MW of solar assets sold during the preceding 12 months.

The company commissioned 628 MW during the second quarter and 1,336 MW in the first half, comprising 1,204 MW of solar and 132 MW of wind capacity. Its committed portfolio stood at 20.5 GW, including 1.7 GW of battery storage, while its broader project pipeline was about 27 GW. The portfolio figures include 1,055 MW covered by asset-sale agreements signed after the quarter.

Wind generation was a notable contributor to the quarter. ReNew’s wind plant load factor rose to 43.9% from 37.3% a year earlier, while wind generation increased to 5.63 billion kWh from 4.38 billion kWh. Solar generation rose to 3.37 billion kWh from 2.63 billion kWh as operating capacity expanded, while the solar plant load factor remained at about 20%.

The manufacturing segment generated INR 12.03 billion of external revenue and INR 4.08 billion of adjusted EBITDA, representing a 33.3% margin. Manufacturing contributed INR 2.7 billion of profit after tax during the quarter, according to the presentation. ReNew said margins could moderate in the second half of the fiscal year.

A 4 GW expansion of the company’s solar-cell capacity is nearing operations, with the first cell expected to be produced by the fourth quarter of FY27. ReNew has also begun construction of a 6.5 GW ingot-and-wafer facility, which it expects to fund through internal accruals and an external fundraising. Commercial operations are targeted for the first half of calendar 2028.

ReNew’s corporate and industrial portfolio totaled 2.9 GW, of which 2.6 GW was operating. The business commissioned 330 MW in the first half. Amazon, Microsoft and Google collectively represent about half of its contracted C&I offtake, the company said.

Receivables and capital recycling

Days sales outstanding for the independent power producer business declined to 63 days from 84 days a year earlier, the lowest level reported by the company despite seasonal factors. ReNew received INR 5.7 billion from Andhra Pradesh in July, while more than 75% of its committed capacity is tied to customers with A+ credit ratings.

ReNew said net debt to trailing 12-month adjusted EBITDA was below 5.5 times, with leverage for operating projects at about 5.3 times. Moody’s changed its rating to Ba2 with a positive outlook from Ba2 with a negative outlook, while CARE upgraded its rating outlook to positive from stable while maintaining an A rating.

Capital recycling remains part of the company’s debt and funding strategy. ReNew signed definitive agreements in August to sell more than 1 GW of assets, a transaction expected to produce $190 million of cash flow. It also agreed in October to sell its controlling interest in European renewable-energy analytics platform 3E, with expected cash flow of $84 million.

Take-private transaction remains pending

ReNew is also progressing with a proposed acquisition by a consortium comprising Canada Pension Plan Investment Board and founder, chairman and chief executive Sumant Sinha. Under the proposed UK scheme of arrangement, non-consortium shareholders may receive $7.02 per share in cash or, subject to specified conditions, elect to retain shares through a rollover arrangement.

The transaction remains subject to shareholder approval, regulatory clearances and other conditions. ReNew said it expects the scheme to become effective in the first quarter of calendar 2027 if all conditions are satisfied.

The company cautioned that its outlook remains exposed to project execution, financing availability, weather, supply disruptions, power curtailment, changes in tariffs and renewable-energy regulations, and the availability of equipment and raw materials. The timing and completion of the take-private transaction are also subject to conditions outside the company’s control.