Earnings Recap — Q1 FY2027
CY Q3 2026 · Reported August 18, 2026 · Beat 5 of last 7 quarters
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ReNew's strong C&I growth, with hyperscalers like Amazon, Microsoft, and Google accounting for half of contracted offtake, underscores the rising power demand from AI data centers in India. The company's expanding BESS pipeline and merchant strategy signal a shift toward firming renewable power to meet 24/7 clean energy needs of AI infrastructure. Grid curtailment challenges highlight the need for transmission buildout to support the AI-driven power demand surge.
ReNew delivered 26% YoY growth in operating portfolio to 13.5 GW, commissioning over 1 GW in FY27 YTD including 600 MW in Q1. Adjusted EBITDA grew 12% YoY to INR 30.4 billion, with manufacturing contributing INR 5.7 billion at 34% margins. Profit after tax rose 16% to INR 6 billion. The company closed the sale of a 100 MW Tamil Nadu solar asset and signed definitive agreements to sell ~1 GW of assets for $190 million in cash flow to equity. DSO improved to 54 days after receiving INR 5.7 billion from Andhra Pradesh DISCOM post-quarter.
Management reiterated FY27 consolidated adjusted EBITDA guidance of INR 103-109 billion, including INR 10-12 billion from manufacturing and INR 1-2 billion from asset sales. They expect to construct 1.6-2.4 GW during FY27 and generate cash flow to equity of INR 18-22 billion. The take-private transaction with CPPIB and Sumant Sinha is expected to be effected through a U.K. scheme of arrangement, with the scheme expected to become effective in Q1 2027, subject to regulatory approvals and shareholder vote. Grid curtailment in Rajasthan remains a near-term drag, and management is in discussions with the Ministry of Power for compensation. Manufacturing margins are expected to normalize in the second half as new cell capacity comes online, and the 4 GW TOPCon cell plant is expected to produce its first cell by end of calendar 2026.
“After a terrific fiscal 2026, where we reported our highest ever EBITDA and PAT, we continue to deliver on our promise of profitable growth in spite of the uncertain global macroeconomic situation and grid-related challenges in India.”
on Quarterly performance
“We are also well placed to participate in new business opportunities such as supply to data centers. Our business is concentrated on larger projects, and we have excellent relationship with technology companies and hyperscalers. For example, Amazon, Microsoft and Google collectively account for around half of the contracted offtake in our C&I business.”
on C&I and data center demand
“We must stress that this is not a guidance as we are not able to give the exact time lines for the regulatory, but this is broadly the indicative range of what the process from here on is likely to be.”
on Take-private timeline
Wondering if you could give us a sense for the expected time line from here to completion of the take private. And then just what do you see as the key remaining milestones?
Kailash Vaswani indicated the scheme is expected to become effective in Q1 2027, with the scheme document published after SEC review and within 10 business days of court order. Regulatory approvals will take 3-4 months, with a long stop date of 95 days after publication or March 31, 2027.
The solar PLF in your fiscal Q1 declined, I think it was 220 basis points year-over-year. Just wondering how much of that decline may have been attributable to just the solar resource during the quarter versus any grid curtailment?
Kailash Vaswani said curtailment contributed a reasonable amount to the PLF decline, split roughly half and half between curtailment and weather patterns. They are pursuing compensation for non-availability of transmission network through advocacy.
What are your thoughts on the BESS side? How much is installed capacity today? And is there a plan to build something on the merchant side?
Sumant Sinha said they have a couple of hundred MWh commissioned. They plan to run some BESS projects as merchant plants for 1-2 years to capture arbitrage, then drop them into existing PPAs. No specific commissioning target for FY27, but hope to commission some amount by next year.