ReNew Energy Global PLC (RNW) Q3 2026 Earnings Call Highlights: Record Growth and Strategic …

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Tue, February 17, 2026 at 6:00 AM GMT+9 4 min read

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**Adjusted EBITDA:** Increased by 31% to INR74.8 billion for the nine months ending December 31, 2026.

**Profit After Tax:** Over sixfold increase.

**Bond Offering:** Raised $600 million, reducing interest rate from 7.95% to 6.5%, saving approximately $9 million annually.

**Operating Capacity:** Increased from 10.7 gigawatts to 11.8 gigawatts.

**Revenue:** Increased by 48% for the first nine months of the fiscal year.

**Debt to EBITDA Ratio:** Reduced from 8.2x in December 2024 to 7x, with a further reduction to 6.7x excluding JV contributions.

**Manufacturing Business EBITDA:** Contributed INR10.8 billion for the first nine months.

**Asset Sales:** Sold 300 megawatts of solar assets this quarter, totaling 600 megawatts for the year.

**Guidance for Adjusted EBITDA:** Increased to INR90 billion to INR93 billion for the fiscal year.

**Construction Guidance:** Expect to construct 1.8 to 2.4 gigawatts by the fiscal year-end.

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Release Date: February 16, 2026

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

Positive Points

ReNew Energy Global PLC (NASDAQ:RNW) increased its operating capacity from 10.7 gigawatts to 11.8 gigawatts, marking a 19% increase over the last 12 months.

The company reported a 31% increase in adjusted EBITDA to INR74.8 billion for the nine months ending December 31, 2026.

ReNew Energy Global PLC successfully raised $600 million through a bond offering, reducing the interest rate from 7.95% to 6.5%, saving approximately $9 million in annual interest expenses.

The company has received high ESG ratings, including an A grade from LSEG and a score of 90.41, placing it in the top quartile globally.

ReNew Energy Global PLC's manufacturing business contributed INR10.8 billion to adjusted EBITDA for the first nine months, with an increased guidance for the year.

Negative Points

The company faces challenges with transmission project delays and curtailment, impacting the industry and requiring government intervention.

There is a significant reliance on asset recycling and capital recycling to manage leverage and fund growth, which may not be sustainable long-term.

ReNew Energy Global PLC has reduced its wind capacity due to variability and execution challenges, which could impact diversification.

The company is dealing with curtailment issues, with approximately 30-35% of losses being compensated, indicating ongoing operational risks.

Despite improvements, the company's headline leverage remains high at approximately 6.7x, with a target to reduce it to 5.5x by 2028-2030.

 






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Q & A Highlights

Q: Could you elaborate on the revised strategy focusing on more solar and BESS projects, and are there plans to manufacture BESS? A: Sumant Sinha, CEO, explained that the decision to focus more on solar and BESS is driven by the decreasing costs of BESS and solar, making them more attractive compared to wind. The variability and execution challenges associated with wind also influenced this shift. Currently, there are no plans to manufacture BESS due to the ability to import cheaper batteries and the rapid technological advancements in battery technology.

Q: Are there any updates on the privatization strategy? A: Sumant Sinha, CEO, stated that they cannot comment on the privatization strategy at this time. Any significant developments will be disclosed appropriately.

Q: Are there improvements in transmission project delays and curtailment issues? A: Sumant Sinha, CEO, noted that these issues have gained visibility, prompting discussions within government ministries to address them. A joint committee is working on solutions, and there is recognition that curtailment losses should be shared among stakeholders.

Q: How are margins holding up in the manufacturing business, particularly in cell manufacturing? A: Sumant Sinha, CEO, reported that margins have remained strong, with a temporary lull during the monsoon season. Demand has picked up, and margins are stable.

Q: With the shift towards BESS and solar, are the IRRs better than wind projects? A: Sumant Sinha, CEO, explained that while initial IRRs may not have been better, the reduction in CapEx for solar and BESS has led to improved returns. Solar projects tend to offer more predictable returns compared to wind due to execution and performance variability.

Q: What is the current status of TG&A capacity and curtailment faced in the third quarter? A: Sumant Sinha, CEO, mentioned that approximately 400 megawatts remain under TG&A, with some projects transitioning to G&A. Curtailment is not complete and varies, typically around 10-20%.

Q: What are the plans for reducing leverage, and is there a target date? A: Kailash Vaswani, CFO, stated that the goal is to reduce headline leverage from 6.7x to 5.5x by 2028-2030. The focus is on increasing shareholder accruals by reducing debt.

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

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