ReNew Energy Global (RNW) AI Stock Analysis

• Market Cap: $2.93B
• Dividend Yield: N/A
• Average Volume (3M): 803.82K
• Price to Earnings (P/E): 26.6
• Beta (1Y): 0.40
• Revenue Growth: 33.19%
• EPS Growth: 486.74%
• Country: US
• Employees: 3,988
• Sector: Utilities
• Sector Strength: 65
• Industry: Renewable Utilities
• EPS (TTM): 0.15
• Shares Outstanding: 244,405,380
• 10 Day Avg. Volume: 937,693
• 30 Day Avg. Volume: 803,820
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 3.51
• Enterprise Value/Revenue: 0.12
• Enterprise Value/Gross Profit: 0.13
• Enterprise Value/Ebitda: 0.14
• 1Y Price Target: $8.40
• Price Target Upside: 4.87% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 69 Neutral
• Price Target: $9.00 ▲(12.36% Upside)

ReNew Energy Global's strong technical momentum and positive earnings call are the most significant factors driving the score. However, financial risks due to high leverage and negative free cash flow, along with a high P/E ratio, moderate the overall score.

Positive Factors

Revenue Growth

The company's strong revenue growth indicates robust demand for its renewable energy solutions, enhancing its market position and supporting long-term financial stability.

Contracted Portfolio Expansion

Expanding the contracted portfolio ensures future revenue streams and strengthens ReNew's competitive position in the renewable energy market.

EBITDA Margin Improvement

Improved EBITDA margins reflect operational efficiency and profitability, providing a solid foundation for sustainable growth and investment capacity.

Negative Factors

High Leverage

High leverage poses financial risks, potentially limiting ReNew's ability to invest in new projects and affecting its long-term financial health.

Negative Free Cash Flow

Negative free cash flow can constrain ReNew's ability to fund operations and growth initiatives, impacting its financial flexibility and stability.

Challenges with Wind Resource

Dependence on natural resources like wind can lead to variability in energy production, affecting revenue and operational consistency.

ReNew Energy Global Business Overview & Revenue Model

Company Description

ReNew Energy Global Plc generates power through non-conventional and renewable energy sources in India. The company operates through Wind Power and Solar Power segments. It develops, builds, owns, and operates utility scale wind and solar energy projects, as well as distributed solar energy projects that generate energy for commercial and industrial customers. The company also provides engineering, procurement, and construction services; operation and maintenance services; consultancy services; and sells renewable energy certificates. As of March 31, 2022, its portfolio consisted of 10.69 GW of wind and solar energy projects, hydro, firm power projects, and distributed solar energy projects, of which 7.57 GW projects were commissioned and 3.12 GW were committed. ReNew Energy Global Plc was founded in 2011 and is based in London, the United Kingdom.

How the Company Makes Money

ReNew Energy Global generates revenue primarily through the sale of electricity produced from its renewable energy projects. The company enters into long-term Power Purchase Agreements (PPAs) with various state utilities and private companies, ensuring a stable income stream. Additionally, ReNew benefits from government incentives and subsidies aimed at promoting renewable energy adoption. The company may also engage in the sale of Renewable Energy Certificates (RECs) and participate in power trading markets, further diversifying its revenue streams. Strategic partnerships with global investors and financial institutions enhance its capital base for project development and expansion, contributing positively to its earnings.

ReNew Energy Global Financial Statement Overview

Summary

ReNew Energy Global shows strong revenue growth and operational efficiency with high gross profit and EBIT margins. However, the company is highly leveraged, posing financial risks, and struggles with negative free cash flow. Improving net profit margins and managing debt levels are crucial for future stability.

Income Statement

ReNew Energy Global shows strong revenue growth with a 12.44% increase in the latest year, supported by high gross profit margins consistently above 90%. However, the net profit margin is relatively low at 3.93%, indicating room for improvement in profitability. The EBIT and EBITDA margins are robust, reflecting efficient operations.

Balance Sheet

The company has a high debt-to-equity ratio of 6.50, indicating significant leverage, which could pose financial risks. The return on equity is modest at 3.39%, suggesting moderate efficiency in generating returns from equity. The equity ratio is relatively low, highlighting a reliance on debt financing.

Cash Flow

Operating cash flow is strong, but the company faces challenges with negative free cash flow, which has declined by 41.33% recently. The free cash flow to net income ratio is negative, indicating that the company is not generating sufficient free cash flow relative to its net income.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	97.06B	81.32B	78.22B	59.35B	48.19B
Gross Profit	88.47B	77.47B	71.27B	59.02B	47.76B
EBITDA	81.08B	68.75B	57.45B	37.98B	42.63B
Net Income	3.81B	3.40B	-5.03B	-16.20B	-8.00B
Balance Sheet
Total Assets	959.80B	873.93B	748.11B	641.34B	492.05B
Cash, Cash Equivalents and Short-Term Investments	81.34B	51.90B	80.57B	81.30B	47.24B
Total Debt	732.28B	655.66B	516.43B	391.67B	351.65B
Total Liabilities	828.69B	752.24B	628.37B	514.97B	427.31B
Stockholders Equity	112.60B	105.22B	106.80B	118.44B	62.08B
Cash Flow
Free Cash Flow	-26.09B	-84.91B	-20.79B	-47.44B	7.60B
Operating Cash Flow	67.56B	68.93B	62.57B	42.39B	32.08B
Investing Cash Flow	-74.16B	-162.53B	-71.98B	-124.75B	-17.41B
Financing Cash Flow	19.98B	82.42B	19.11B	90.04B	-7.08B

ReNew Energy Global Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.01
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 8.01 is above the 20-day moving average (MA) of 7.76, above the 50-day MA of 7.68, and above the 200-day MA of 6.89, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 59.59 is Neutral, neither overbought nor oversold. The STOCH value of 77.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RNW.

ReNew Energy Global Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RNW	69 Neutral	$2.93B	26.61	8.27%	―	33.19%	486.74%
EE	69 Neutral	$2.95B	24.43	6.19%	1.00%	9.86%	22.04%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
CWEN.A	65 Neutral	$6.07B	44.38	3.80%	6.08%	-0.27%	-16.25%
CWEN	64 Neutral	$6.02B	46.65	3.80%	5.73%	-0.27%	-16.25%
FLNC	55 Neutral	$2.52B	236.42	-4.45%	―	14.26%	20.99%
BEPC	48 Neutral	$6.44B	32.67	-63.28%	4.11%	12.46%	-388.89%

ReNew Energy Global Corporate Events

ReNew Energy Awaits Revised Acquisition Offer from Consortium

On September 30, 2025, ReNew Energy Global PLC announced ongoing discussions with a consortium, including Masdar and CPP Investments, regarding a revised offer to acquire the company’s remaining shares. The consortium plans to present this offer by October 10, 2025. The outcome of these negotiations could significantly impact ReNew’s market positioning and shareholder value, although no assurances can be made about the transaction’s final terms or completion.

ReNew Energy Secures $100 Million Investment for Solar Expansion

On September 29, 2025, ReNew Energy Global Plc announced the receipt of investment proceeds from British International Investment PLC, amounting to INR 8,700 million (~US$100 million), for its solar manufacturing business. This investment will be used to construct a new 4 GW TOPCon cell facility in Dholera, Gujarat, and expand the business. BII will acquire up to a 10% shareholding in ReNew Photovoltaics, ReNew’s solar manufacturing arm, with the exact percentage contingent on the FY26 standalone EBITDA of ReNew Photovoltaics.

ReNew Energy Global Announces AGM Results and Strategic Resolutions

ReNew Energy Global Plc announced the results of its fourth Annual General Meeting held on September 18, 2025, in London. All resolutions, including the approval of the annual reports, directors’ remuneration, and the re-appointment of non-executive independent directors, were passed with the requisite majority. The meeting also saw the reappointment of KNAV Limited as the company’s auditor and authorized the Board to determine the auditor’s remuneration. These developments reflect the company’s stable governance and strategic direction, reinforcing its position in the clean energy sector.

ReNew Energy Global Announces Fourth AGM and Annual Report Release

ReNew Energy Global PLC has announced its fourth Annual General Meeting (AGM) scheduled for September 18, 2025, in London. The company has also released its Annual Report for the financial year ending March 31, 2025, which is available on their website. The AGM will address various resolutions, including the approval of the annual accounts, directors’ remuneration report and policy, re-appointment of directors, and re-appointment of the auditor. The board recommends voting in favor of all proposed resolutions, emphasizing their importance for the company’s success.

ReNew Energy Global Reports Strong Q1 FY26 Financial Results

On August 13, 2025, ReNew Energy Global Plc announced its unaudited financial results for the first quarter of fiscal year 2026, reporting a significant increase in total income and net profit compared to the previous year. The company’s commissioned capacity grew by 15.8% year-over-year, and its revenue from power sales and manufacturing operations showed substantial growth. ReNew’s strategic focus on expanding its operational capacity and capital recycling through asset sales has led to improved financial performance, positioning the company strongly within the renewable energy sector.

ReNew Energy Receives Acquisition Offer from Consortium

On July 3, 2025, ReNew Energy Global Plc announced receiving a final non-binding offer from a consortium including Abu Dhabi Future Energy Company PJSC-Masdar, Canada Pension Plan Investment Board, and others to acquire the company’s remaining shares for $8.00 per share. This offer represents a significant premium over previous proposals and the company’s undisturbed share price. The Special Committee of ReNew’s Board is evaluating the offer with independent advisors, and discussions with the consortium are ongoing, with no assurance of a transaction’s completion.