ReNew Energy Global (RNW) AI Stock Analysis

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ReNew Energy Global

(NASDAQ:RNW)

Rating:65Neutral

Price Target:―

ReNew Energy Global scores moderately due to strong operational efficiency and growth in portfolios, as highlighted in the earnings call. However, concerns about high leverage, cash flow challenges, and a high P/E ratio weigh down the overall score. The technical outlook is cautious, with mixed indicators suggesting potential volatility in the short term.

Positive Factors

Future Revenue Growth

The company still has ~6GW of bids won in pipeline for which PPAs are yet to be signed, showing potential for future revenue growth.

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 Increase

The discontinuation of the transmission charge waiver is likely to increase tariffs by Rs0.6-0.7/kwh.

Execution Challenges

Execution challenges are highlighted by the broader industry struggle to add capacity, with transmission and land being significant bottlenecks.

Wind Performance

Wind capacity factors have been lower than expectations, leading to a shift towards a solar-heavy portfolio.

ReNew Energy Global (RNW) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$2.46B

Dividend YieldN/A

Average Volume (3M)657.47K

Price to Earnings (P/E)98.1

Beta (1Y)0.45

Revenue Growth-1.77%

EPS Growth-41.65%

CountryUS

Employees3,988

SectorUtilities

Sector Strength83

IndustryRenewable Utilities

Share Statistics

EPS (TTM)0.13

Shares Outstanding244,266,830

10 Day Avg. Volume794,529

30 Day Avg. Volume657,466

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

$7.96

Price Target Upside17.23% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering2

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

(Q3-2025)

% Change Since: 0.44%|

Next Earnings Date:Aug 14, 2025

Earnings Call Sentiment Positive

The earnings call presented a generally positive outlook with significant growth in ReNew's operational and committed portfolios, alongside successful cost optimization efforts and manufacturing expansion. However, challenges such as lower wind performance, adverse weather impacts on EBITDA, and delayed regulatory approvals present notable concerns.

Q3-2025 Updates

Positive Updates

Significant Increase in Operational Portfolio

ReNew reported a 26% year-over-year increase in operational megawatts, with the total operational portfolio reaching 10.8 gigawatts. This reflects strong execution capabilities in project commissioning.

Strong Growth in Committed Portfolio

The total committed portfolio grew by 27% year-on-year to 17.4 gigawatts, with an additional 1.1 gigawatts since the last earnings call.

Cost Optimization Success

Achieved a 500 basis points improvement in margins due to cost optimization initiatives, resulting in lower provisions and improved cash flows.

Recognition for ESG Efforts

ReNew was recognized as India's highest-rated pure-play renewable energy company by S&P, highlighting its commitment to sustainability and ESG practices.

Manufacturing Expansion

ReNew's manufacturing facility is producing around 10 megawatts per day of modules and has secured an order book of about 2 gigawatts, doubling in a quarter.

Negative Updates

Lower Wind Performance

Wind PLFs trended lower this year compared to last year, resulting in a reduction of the FY25 EBITDA guidance range due to weaker than expected wind performance.

Impact of Weather on EBITDA

Adverse weather led to a revenue reduction relative to guidance of INR1.6 billion for the quarter, impacting the FY25 adjusted EBITDA guidance.

Delayed Regulatory Approvals

600 megawatts of the targeted megawatt installations are subject to timely regulatory approvals and transmission infrastructure build-out.

Challenges with PPA Signings

There is a backlog of unsigned PPAs, which remains a challenge despite progress in signing significant portions in the past.

Company Guidance

During the ReNew 3Q 2025 earnings call, several key metrics and updates were highlighted. ReNew reported a year-to-date commissioning of approximately 1.3 gigawatts, with an additional 150 megawatt-hours of batteries, leading to a total operational portfolio of 10.8 gigawatts, marking a 26% increase year-on-year. The committed portfolio stands at 17.4 gigawatts, representing a 27% growth from the previous year. Despite facing challenges with wind power load factors (PLFs) trending lower, impacting the FY25 EBITDA guidance to INR 74-78 million, and cash flow to equity guidance to INR 11-13 billion, ReNew remains optimistic. The company has secured 3.9 gigawatts of renewable energy capacity and continues to expand its manufacturing capabilities, producing about 10 megawatts of modules per day and securing an external order book of 2 gigawatts. Furthermore, ReNew has been recognized as India's highest-rated pure-play renewable energy company by S&P, underscoring its commitment to ESG practices. The company also addressed operational efficiency improvements, with margins improving by 500 basis points, and a reduction in DSOs by 22 days, enhancing its financial stability.

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

Positive

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.

Balance Sheet

Positive

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.

Cash Flow

Neutral

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.

TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Breakdown
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
	EBIT
52.59B	46.22B	47.14B	73.33B	31.57B	32.75B
	EBITDA
72.80B	68.75B	57.45B	37.98B	42.63B	44.05B
	Net Income Common Stockholders
1.32B	3.40B	-5.03B	-16.20B	-8.00B	-2.82B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
86.11B	51.90B	80.57B	81.30B	47.24B	44.41B
	Total Assets
959.17B	873.93B	748.11B	641.34B	492.05B	479.56B
	Total Debt
732.59B	655.66B	516.43B	391.67B	351.65B	334.13B
	Net Debt
711.11B	628.64B	478.25B	363.29B	330.97B	321.04B
	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

Technical Analysis Sentiment

Neutral

Last Price6.79

Price Trends

50DMA

6.50

Positive

100DMA

6.42

Positive

200DMA

6.30

Positive

Market Momentum

MACD

0.08

Positive

RSI

51.99

Neutral

STOCH

39.11

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RNW, the sentiment is Neutral. The current price of 6.79 is below the 20-day moving average (MA) of 6.85, above the 50-day MA of 6.50, and above the 200-day MA of 6.30, indicating a neutral trend. The MACD of 0.08 indicates Positive momentum. The RSI at 51.99 is Neutral, neither overbought nor oversold. The STOCH value of 39.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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

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

Impairment of our long-term assets may have an adverse impact on our results of operations and financial condition. Q1, 2023

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 (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ORA	69 Neutral	$4.79B	38.24	5.21%	0.61%	1.95%	-6.57%
RNW	65 Neutral	$2.46B	98.12	2.00%	―	-1.77%	-41.65%
Sector *	64 Neutral	$8.58B	10.36	4.24%	4.64%	4.07%	-13.04%
EE	61 Neutral	$3.51B	26.20	7.58%	0.78%	-15.82%	36.15%
FLNC	51 Neutral	$912.91M	236.42	-5.96%	―	6.08%	52.48%
SMR	42 Neutral	$11.04B	―	-32.34%	―	62.41%	-85.81%

* Utilities Sector Average

Performance Comparison

RNW

ReNew Energy Global

6.79

0.58

9.34%

ORA

Ormat Techno

78.94

6.13

8.42%

SMR

NuScale Power

38.82

30.32

356.71%

FLNC

Fluence Energy

5.01

-15.16

-75.16%

Excelerate Energy, Inc. Class A

30.80

13.72

80.33%

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.