ReNew Energy Global (RNW) AI Stock Analysis

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ReNew Energy Global

(NASDAQ:RNW)

Rating:67Neutral

Price Target:

$8.00

▲(4.58% Upside)

ReNew Energy Global's overall score is driven by strong earnings call insights and positive technical indicators. Financial performance is solid but hampered by high leverage and negative free cash flow. The stock appears overvalued, which impacts its valuation score.

Positive Factors

Market Confidence

The recent fund raise for ReNew's solar manufacturing business values it at around $1 billion, indicating strong market confidence in this segment.

Operational Capabilities

ReNew Energy Global Plc is the largest renewable developer with approximately 11 GW operating and is a top 5 solar PV manufacturer in India.

Negative Factors

Industry Challenges

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

Regulatory Changes

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

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

Market Cap

$2.77B

Dividend YieldN/A

Average Volume (3M)756.80K

Price to Earnings (P/E)25.4

Beta (1Y)0.46

Revenue Growth33.19%

EPS Growth486.74%

CountryUS

Employees3,988

SectorUtilities

Sector Strength57

IndustryRenewable Utilities

Share Statistics

EPS (TTM)0.16

Shares Outstanding244,405,380

10 Day Avg. Volume732,230

30 Day Avg. Volume756,803

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap3.70

Enterprise Value/Revenue0.12

Enterprise Value/Gross Profit0.13

Enterprise Value/Ebitda0.14

Forecast

1Y Price Target

$8.93

Price Target Upside16.73% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering3

ReNew Energy Global Business Overview & Revenue Model

Company DescriptionReNew Energy Global (RNW) is a leading renewable energy company based in India, focused on providing clean and sustainable energy solutions through the development, operation, and maintenance of solar and wind power projects. With a diverse portfolio that includes utility-scale wind and solar energy projects, ReNew aims to contribute to India's energy transition by reducing dependence on fossil fuels and promoting green energy initiatives. The company operates across multiple sectors including power generation, energy storage, and energy management services, catering to both domestic and international markets.

How the Company Makes MoneyReNew 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 Earnings Call Summary

Earnings Call Date:Aug 13, 2025

(Q1-2026)

% Change Since: |

Next Earnings Date:Nov 12, 2025

Earnings Call Sentiment Positive

The earnings call reflects a strong quarter with significant growth in renewable capacity, financial performance, and manufacturing business success. However, there are challenges in the bidding environment and external factors affecting solar PLFs. The company's disciplined approach in bidding and ESG achievements further bolster a positive outlook.

Q1-2026 Updates

Positive Updates

Significant Renewable Capacity Expansion

Commissioned around 2.2 gigawatts of renewable energy capacity since July of last year, marking a 23% growth in the portfolio after adjusting for asset sales.

Strong Financial Performance

Delivered an adjusted EBITDA of INR 27.2 billion, a 43% growth year-over-year, and a profit after tax of INR 5.1 billion, higher than the profit for the full fiscal 2025.

Manufacturing Business Success

Manufacturing business contributed INR 5.3 billion towards adjusted EBITDA for the quarter, with the business fully stabilized at an operational capacity of 6.4 gigawatts of modules and 2.5 gigawatts of cells.

ESG Achievements

Successfully reduced Scope 1 and Scope 2 emissions by 18.2% from the FY '22 baseline, surpassing the target of 12.6%, and saved 540,372 cubic meters of water, marking a 51% improvement.

Marquee Investment

Secured a marquee investment from British International Investments for over USD 100 million for approximately 10% stake in the solar manufacturing business.

Negative Updates

Subdued Solar PLFs

Experienced subdued solar PLFs this quarter due to lower irradiation from the early onset of monsoons.

Challenges in Bidding Environment

Competition in the bidding environment has become irrational with lower return expectations, impacting the win ratio.

Non-participation in Green Ammonia Tender

Did not participate in recent green ammonia tenders due to perceived inappropriate contract structuring and low tariffs.

Company Guidance

During ReNew's first quarter fiscal year 2026 earnings call, the company reiterated its commitment to achieving its fiscal year goals, highlighting a robust performance with an adjusted EBITDA of INR 27.2 billion, reflecting a 43% growth year-over-year. ReNew has commissioned 2.2 gigawatts of renewable energy capacity since July of the previous year, marking a 23% growth in their portfolio after adjusting for asset sales. The company has also signed PPAs for 3.7 gigawatts of installed capacity, aiming for returns at the higher end of their targeted IRR range. The manufacturing business contributed INR 5.3 billion to the adjusted EBITDA, producing 900 megawatts of modules and 400 megawatts of cells, and the guidance for manufacturing's adjusted EBITDA was revised upwards to INR 8 billion to INR 10 billion. Additionally, ReNew's ESG efforts were notable, with an 18.2% reduction in Scope 1 and 2 emissions from the FY '22 baseline and a 51% improvement in water savings. The company is on track to complete construction of 1.6 to 2.4 gigawatts of capacity in fiscal 2026 and expects to generate cash flow to equity of INR 14 billion to INR 17 billion.

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

Positive

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

Neutral

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

Neutral

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 Price7.65

Price Trends

50DMA

7.58

Positive

100DMA

7.13

Positive

200DMA

6.76

Positive

Market Momentum

MACD

0.04

Positive

RSI

51.59

Neutral

STOCH

59.00

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 7.65 is below the 20-day moving average (MA) of 7.70, above the 50-day MA of 7.58, and above the 200-day MA of 6.76, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 51.59 is Neutral, neither overbought nor oversold. The STOCH value of 59.00 is Neutral, 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

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

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

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 (66)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ORA	70 Outperform	$5.50B	41.99	5.40%	0.53%	2.23%	-0.82%
RNW	67 Neutral	$2.77B	25.42	8.27%	―	33.19%	486.74%
EE	67 Neutral	$2.62B	21.72	6.19%	1.13%	9.86%	22.04%
Sector *	66 Neutral	$17.40B	17.96	5.60%	3.67%	6.62%	11.55%
FLNC	50 Neutral	$1.32B	236.42	-4.45%	―	14.26%	20.99%
SMR	42 Neutral	$9.67B	―	-29.93%	―	305.08%	-17.22%

* Utilities Sector Average

Performance Comparison

RNW

ReNew Energy Global

7.66

1.42

22.76%

ORA

Ormat Techno

91.05

17.80

24.30%

SMR

NuScale Power

34.31

25.57

292.56%

FLNC

Fluence Energy

6.76

-14.33

-67.95%

Excelerate Energy, Inc. Class A

23.72

5.79

32.29%

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.Date of analysis: Aug 06, 2025