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ReNew Energy Global (RNW)
NASDAQ:RNW
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ReNew Energy Global
(NASDAQ:RNW)
Rating:65Neutral
Price Target:―
Positive Factors
Future Performance
Analyst reiterates an Outperform rating and a $10 price target, reflecting confidence in the company's future performance.
Market Confidence
The recent fund raise for its solar manufacturing business values it at around $1 billion, indicating strong market confidence in this segment.
Profitability
Third-party module sales in the Dec quarter were at industry high EBITDA margin ~18%, indicating strong profitability in this segment.
Negative Factors
Cost and Tariff
The discontinuation of the transmission charge waiver is likely to increase tariffs by Rs0.6-0.7/kwh.
Financial Expectations
EBITDA estimates for FY25/26 have been reduced due to weaker wind performance, indicating potential challenges in achieving previous financial expectations.
Revenue Outlook
The fiscal year revenue outlook is at the low end of guidance due to a weaker third quarter.
ReNew Energy Global (RNW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.78B
Dividend YieldN/A
Average Volume (3M)1.01M
Price to Earnings (P/E)51.5
Beta (1Y)0.46
Revenue Growth-1.77%
EPS Growth-41.65%
CountryUS
Employees3,988
SectorUtilities
Sector Strength66
IndustryRenewable Utilities
Share Statistics
EPS (TTM)0.10
Shares Outstanding244,266,830
10 Day Avg. Volume1,388,449
30 Day Avg. Volume1,009,478
Financial Highlights & Ratios
PEG Ratio0.51
Price to Book (P/B)1.61
Price to Sales (P/S)0.00
P/FCF Ratio-8.28
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$8.48Price Target Upside10.56% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
ReNew Energy Global Business Overview & Revenue Model
Company DescriptionReNew Energy Global (RNW) is a leading renewable energy company engaged in the design, development, and operation of utility-scale renewable energy projects across India. The company specializes in the generation of power through wind and solar energy, contributing significantly to sustainable energy solutions and reducing carbon footprint. With a strong commitment to innovation and sustainability, ReNew Energy Global has positioned itself as a key player in the transition towards cleaner energy sources.
How the Company Makes MoneyReNew Energy Global makes money primarily through the generation and sale of electricity from its renewable energy projects. The company's key revenue streams include long-term power purchase agreements (PPAs) with government bodies and private entities, which provide a stable and predictable revenue base. ReNew Energy also earns income through renewable energy certificates and incentives provided by the government to promote green energy. Strategic partnerships with technology providers and financial institutions further support its growth and operational efficiency. Significant factors contributing to its earnings include its expanding portfolio of wind and solar projects and its ability to leverage economies of scale in the renewable energy sector.
ReNew Energy Global Earnings Call Summary
Earnings Call Date:Jun 16, 2025
(Q4-2025)
| % Change Since: 12.96%|
Next Earnings Date:Aug 14, 2025
Earnings Call Sentiment Positive
ReNew Power's earnings call presented a largely positive outlook with significant achievements in growth, financial performance, and sustainability. While there are some challenges, such as weaker wind resources and potential project delays, the overall sentiment is bolstered by strong construction achievements, an expanding portfolio, and favorable financial conditions.Q4-2025 Updates
Positive Updates
Record Construction and Operating Capacity
ReNew Power constructed over 2 gigawatts of renewable energy assets in fiscal year 2025, increasing total operating capacity to 11.2 gigawatts, which is a new high for the company. This represents a 17% increase year-over-year and a 21% increase after excluding asset sales.
Significant Contracted Portfolio Growth
The contracted portfolio now stands at 18.5 gigawatts, 18% higher than the previous year. ReNew added 1.3 gigawatts of Power Purchase Agreements (PPAs) since Q3 fiscal 2025 and signed PPAs for 5.3 gigawatts since April 2024.
Strong Financial Performance
Adjusted EBITDA grew by 14% year-over-year, with margins in the IPP business improving to almost 83%. Profit before tax increased by 23% to INR 10 billion.
Expansion of Manufacturing Capabilities
ReNew's solar manufacturing facilities with 6.4 gigawatts of module manufacturing and 2.5 gigawatts of cell capacity are fully stabilized and contributing significantly to the P&L. The company plans to expand the cell facility by 4 gigawatts.
Positive Rate Environment for Financing
The Reserve Bank of India's rate cuts are beginning to reflect in new greenfield financing, and ReNew raised USD 2 billion in debt financing at competitive rates.
ESG and Sustainability Achievements
ReNew Power achieved top ESG ratings and received several awards, including the CII Climate Action Program award and inclusion in the S&P Global Sustainability Yearbook.
Negative Updates
Challenges with Wind Resource
Despite EBITDA growth, performance was impacted by a weaker-than-anticipated wind resource, which slightly offset financial benefits.
Potential Project Delays Due to Grid Network Build-Out
Guidance for fiscal 2026 includes a wider range to account for potential delays in the build-out of the grid network connecting some projects.
Company Guidance
During the ReNew Power Private Limited Q4 and FY 2025 earnings call, the company highlighted several key metrics and guidance for the upcoming fiscal year. The company reported an increase in total operating capacity to 11.2 gigawatts, a 17% year-on-year growth, and a contracted portfolio of 18.5 gigawatts, marking an 18% increase from the previous year. They secured $100 million in equity funding to expand their solar cell facility by 4 gigawatts. Financially, they achieved more than 14% EBITDA growth year-on-year, with EBITDA margins improving to 83% in their IPP business. For fiscal year 2026, ReNew Power expects an adjusted EBITDA between INR 87 billion to INR 93 billion, plans to construct 1.6 to 2.4 gigawatts of new projects, and anticipates cash flow to equity holders of INR 14 billion to INR 17 billion. Additionally, the company is leveraging India's favorable interest rate environment to optimize financing strategies.ReNew Energy Global Financial Statement Overview
Summary
ReNew Energy Global shows robust revenue growth and strong operational efficiency, with impressive EBIT and EBITDA margins. However, profitability and cash flow are concerning, impacted by high leverage and capital expenditures. The balance sheet's high debt levels pose potential risks, despite moderate financial stability.Income Statement
ReNew Energy Global has demonstrated a significant improvement in its financial performance over recent periods. The TTM (Trailing-Twelve-Months) revenue growth is notable, increasing from the previous year. The Gross Profit Margin stands impressively high, indicating effective cost management. However, the Net Profit Margin remains a concern, as profitability is relatively low due to substantial operating and financing costs. The EBIT and EBITDA margins show strong operational efficiency, reflecting the company's ability to generate earnings from operations.72
Positive
Balance Sheet
The company maintains a high Debt-to-Equity Ratio, indicating a leveraged capital structure, which might pose risks if not managed properly. On the positive side, the Equity Ratio suggests a fair portion of assets financed by equity, reflecting moderate financial stability. Return on Equity is modest, highlighting challenges in generating returns for shareholders from equity investments.68
Positive
Cash Flow
ReNew Energy Global faces challenges with negative Free Cash Flow, indicating that capital expenditures exceed operating cash inflows, potentially impacting liquidity. The Operating Cash Flow to Net Income ratio is healthy, suggesting strong cash earnings relative to accounting profits. However, the Free Cash Flow to Net Income ratio is negative, indicating cash flow issues related to financing and investment activities.59
Neutral
| Breakdown | TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 86.32B | 81.32B | 78.22B | 59.35B | 48.19B | 48.41B |
| Gross Profit | 82.00B | 77.47B | 71.27B | 59.02B | 47.76B | 47.88B |
| EBITDA | 72.80B | 68.75B | 57.45B | 37.98B | 42.63B | 44.05B |
| Net Income | 1.32B | 3.40B | -5.03B | -16.20B | -8.00B | -2.82B |
Balance Sheet | ||||||
| Total Assets | 959.17B | 873.93B | 748.11B | 641.34B | 492.05B | 479.56B |
| Cash, Cash Equivalents and Short-Term Investments | 86.11B | 51.90B | 80.57B | 81.30B | 47.24B | 44.41B |
| Total Debt | 732.59B | 655.66B | 516.43B | 391.67B | 351.65B | 334.13B |
| Total Liabilities | 833.25B | 752.24B | 628.37B | 514.97B | 427.31B | 400.71B |
| Stockholders Equity | 107.77B | 105.22B | 106.80B | 118.44B | 62.08B | 74.53B |
Cash Flow | ||||||
| Free Cash Flow | -44.48B | -84.91B | -20.79B | -47.44B | 7.60B | -4.21B |
| Operating Cash Flow | 66.24B | 68.93B | 62.57B | 42.39B | 32.08B | 35.09B |
| Investing Cash Flow | -110.83B | -162.53B | -71.98B | -124.75B | -17.41B | -53.72B |
| Financing Cash Flow | 10.16B | 82.42B | 19.11B | 90.04B | -7.08B | 21.61B |
ReNew Energy Global Technical Analysis
Positive
7.67
Price Trends
6.73
Positive
6.46
Positive
6.37
Positive
Market Momentum
0.10
Negative
71.41
Negative
85.36
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RNW, the sentiment is Positive. The current price of 7.67 is above the 20-day moving average (MA) of 6.86, above the 50-day MA of 6.73, and above the 200-day MA of 6.37, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 71.41 is Negative, neither overbought nor oversold. The STOCH value of 85.36 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RNW.
ReNew Energy Global Risk Analysis
ReNew Energy Global disclosed 63 risk factors in its most recent earnings report. ReNew Energy Global reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
Material weaknesses in our internal controls over financial reporting could materially and adversely affect our financial condition and results of operations and our ability to operate our business Q1, 2023
2.
Impairment of our long-term assets may have an adverse impact on our results of operations and financial condition. Q1, 2023
3.
Any downgrading of our bond ratings could adversely impact our business and results of operations. Q1, 2023
ReNew Energy Global Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $2.78B | 51.55 | 4.18% | ― | -1.77% | -41.65% | |
65 Neutral | $5.32B | 42.48 | 5.21% | 0.55% | 1.95% | -6.57% | |
61 Neutral | $3.30B | 24.62 | 7.58% | 0.83% | -15.82% | 36.15% | |
58 Neutral | $1.53B | 236.42 | -5.96% | ― | 6.08% | 52.48% | |
58 Neutral | AU$895.09M | 4.40 | -2.39% | 4.86% | 22.98% | -116.74% | |
42 Neutral | $10.20B | ― | -32.34% | ― | 62.41% | -85.81% |
* Utilities Sector Average
Performance Comparison
RNW
ReNew Energy Global
7.67
1.66
27.62%
ORA
Ormat Techno
87.71
17.04
24.11%
SMR
NuScale Power
35.88
22.19
162.09%
FLNC
Fluence Energy
8.41
-8.78
-51.08%
EE
Excelerate Energy, Inc. Class A
28.95
11.34
64.40%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.