ReNew Energy Global reports strong first-quarter fiscal 2027 performance with increased operating capacity, higher earnings, and expansion plans, despite ongoing grid constraints in India and a busy asset recycling strategy.
ReNew Energy Global said first-quarter fiscal 2027 brought higher operating capacity, stronger adjusted earnings and a rise in profit after tax, even as grid bottlenecks in India continued to weigh on solar output. According to the company’s earnings materials, it commissioned more than 1 gigawatt of capacity so far this year, including over 600 megawatts in the quarter, while its committed portfolio reached about 20.5 gigawatts and its wider pipeline stood at roughly 27 gigawatts.
Founder, chairman and chief executive Sumant Sinha said the business was still delivering “profitable growth” despite a difficult macroeconomic backdrop and persistent transmission constraints. ReNew reported total income of INR47.9 billion and revenue of INR44.6 billion for the quarter. Adjusted EBITDA increased 12% from a year earlier to INR30.4 billion, while profit after tax rose 16% to INR6 billion.
Chief financial officer Kailash Vaswani said the company’s manufacturing margins have narrowed as more cell capacity comes on line and uncertainty lingers over the timing of extended ALMM requirements. He also said grid build-out remains a key obstacle, particularly in Rajasthan, where temporary connectivity arrangements have helped limit access for some projects. Vaswani said solar curtailment, which reduces the amount of power that can be delivered to the grid, was a major factor behind the lower solar plant load factor, alongside cloudier weather.
ReNew kept its fiscal 2027 guidance unchanged, including consolidated adjusted EBITDA of INR103 billion to INR109 billion, construction of 1.6 gigawatts to 2.4 gigawatts and cash flow to equity of INR18 billion to INR22 billion. The company said its balance sheet held INR89 billion in cash, bank balances, investments and short-term investments at June 30, with gross debt of INR786 billion and net debt of about INR671 billion. Net debt to trailing 12-month adjusted EBITDA for operational projects was 5.7 times, according to the company.
The company also continued recycling capital through asset sales. It closed the sale of a 100-megawatt solar asset in Tamil Nadu in June and later signed agreements to dispose of more than 1 gigawatt of assets, a deal expected to produce $190 million of cash flow to equity on completion, including some contingent change-in-law proceeds. ReNew said it had also received INR5.7 billion from Andhra Pradesh in July, which cut its independent power producer days sales outstanding to about 54 days by the end of that month.
Vaswani also discussed the proposed take-private transaction announced on August 11, under which ReNew entered a binding agreement with a consortium led by CPP Investments and Sinha. Non-consortium shareholders may receive $7.02 per share in cash or, subject to conditions, roll over their holdings and stay invested. Vaswani said the independent directors’ special committee intends to recommend the deal after obtaining a fairness opinion from Rothschild & Co., and that the company expects the scheme to become effective in the first quarter of 2027, although he stressed the timing is not guidance.
ReNew is also expanding its manufacturing and storage footprint. The company said it now has 6.5 gigawatts of module capacity and 2.5 gigawatts of cell capacity in operation, with a 4-gigawatt TOPCon cell plant due to be fully operational by the end of the current fiscal year. It expects its first cell by the end of the current calendar year and is developing an ingot-wafer facility in Andhra Pradesh, which it expects to commission in early 2028. On battery storage, Sinha said the company has a few hundred megawatt-hours already commissioned, but it is not yet committing to long-term merchant exposure because returns remain too uncertain over a five- to seven-year horizon.
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