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Issuer Flash: ReNew Energy Global / ReNew Power group FY2026 results

Issuer Flash: ReNew Energy Global / ReNew Power group FY2026 results

Report date: 2026-05-22 Event date: 2026-05-18 Event title: FY2026 Results

1. Flash Conclusion

ReNew Energy Global plc's full-year FY2026 results are modestly positive for the near-term credit view. Total income, Adjusted EBITDA, net profit, and operating cash flow all increased, while receivable days also improved. As of end-March 2026, the total portfolio had expanded to approximately 20GW, with commissioned capacity rising to approximately 12.6GW. Following the refinancing through the 2031 notes, the company's demonstration of growth and funding capacity provides some near-term support.

That said, the results do not go as far as to show a clear step-up in ReNew's credit quality. Net debt at end-FY2026 remained large at INR 687.1bn, implying a simple multiple of approximately 7.0x against Adjusted EBITDA of INR 98.5bn. Finance costs and derivative fair-value movements increased to INR 61.8bn. Investing cash outflow also remained substantial, and as long as the company continues to invest for growth, the increase in operating cash flow alone is not sufficient to explain a meaningful reduction in leverage.

These results reaffirm that ReNew is a "larger company", but they do not yet demonstrate that it has become a "less indebted company". The next phase is to assess how far receivables, finance costs, investment burden, and manufacturing margins are managed in FY2027.

2. What Was Announced

On May 18, 2026, ReNew announced its results for the fourth quarter and full year ended March 2026. For FY2026, total income was INR 150,635 million, net profit was INR 10,385 million, and Adjusted EBITDA was INR 98,503 million, all higher year on year. Operating cash flow also improved to INR 82,824 million.

Operationally, ReNew commissioned approximately 2.4GW during FY2026, bringing its total portfolio to approximately 20GW and commissioned capacity to approximately 12.6GW as of end-March 2026. Electricity sold in FY2026 was 24,008 million kWh, up 11.3% year on year, although the solar PLF declined to 21.9%.

The manufacturing business also made a significant contribution. External sales from solar module and solar cell manufacturing were INR 41,944 million in FY2026, with Adjusted EBITDA of INR 14,782 million.

In terms of liquidity and debt, cash, bank balances, current investments, and similar items were INR 80,629 million as of end-March 2026, while net debt was INR 687,138 million. Trade receivables were INR 25,303 million, and receivable days for the IPP business improved to 63 days from 71 days in the prior year. For FY2027, the company guided to 1.6GW to 2.4GW of project completions, Adjusted EBITDA of INR 103bn to 109bn, and CFe of INR 18bn to 22bn.

3. Credit Read-Through

The positive read-through from these results is that scale expansion has translated into revenue and operating cash flow. In FY2026, higher commissioned capacity, improved wind PLF, and growth in the manufacturing business supported total income and Adjusted EBITDA. Gains on asset sales and fair-value factors also made some contribution, while asset sales also reduced power generation revenue; therefore, the impact of disposal-related factors should be viewed on a broadly neutral basis. The improvement in receivable days is also a non-negligible positive for an Indian renewable energy company.

At the same time, credit constraints remain. Adjusted EBITDA is a non-IFRS measure and does not directly reflect capital expenditure, working capital, or finance costs. CFe also improved to INR 21,588 million in FY2026, but it is not free cash flow after growth investment. Investing cash flow was an outflow of INR 106,537 million, and the company is not yet at a stage where it can fund growth investments while materially reducing debt. The FY2027 outlook also includes gains on asset sales and manufacturing profits, meaning that delivery of the outlook will require not only power generation but also manufacturing performance and capital recycling.

The bond-by-bond interpretation also needs to be differentiated. The 2027 notes were issued by ReNew Power Private Limited and are unsecured, specific-project-collateral notes; legally, the focus is on the issuer itself and the collateral related to SECI II. The 2028 notes are a restricted-group structure jointly issued by 10 companies, where the focus is on the cash flows of the relevant project-company group and the parent guarantee. The 2031 notes were issued by a GIFT City finance subsidiary and benefit from guarantees from ReNew Energy Global plc and ReNew Private Limited; however, the collateral package is only partial, with fixed-asset collateral cover of 0.5x and total collateral cover of 1.0x, and the conditions under which the ReNew Energy Global plc guarantee may be released in the future remain unconfirmed. The current results are positive for the overall credit, but they do not eliminate the structural differences among the bonds.

4. What To Watch Next

The next items to monitor are results from 1Q FY2027 onward. The company expects 1.6GW to 2.4GW of project completions in FY2027, so capacity additions, wind and solar PLFs, and receivable days need to be checked. Because solar PLF declined in FY2026, it is important to track actual generation volume rather than simply capacity growth.

The manufacturing business is also an important monitoring point. In FY2026, manufacturing made a large contribution to consolidated profit growth, but the business is more sensitive than generation PPAs to prices, policy, raw materials, inventory, and customer demand. In relation to FY2027 guidance, margin sustainability and the planned expansion of 4GW of solar cell capacity should be monitored.

On funding, the focus is on repayment or refinancing of the 2027 notes, the post-2031-note debt structure, continued access to the foreign-currency bond market, and rating agency reactions. The 2027 notes are unsecured, and the balance as of end-March 2025 was USD 270 million, but the latest outstanding balance and repayment plan remain unconfirmed. For the 2031 notes, the guarantee release conditions and the recovery ranking of intragroup loans need to be confirmed.

5. Sources

Primary sources used in this flash:

6. Unverified / Pending