ReNew Energy Global Q1 FY27 earnings call RNW

ReNew entered a binding transaction agreement with a consortium comprising CPPIB and Sumant Sinha for a proposed take-private. Non-consortium shareholders have the option to receive cash of $7.02 per share or elect to roll over their shares and remain shareholders. The special committee, having received Rothschild & Co.'s fairness opinion, considers the cash offer and transaction agreement fair and reasonable and intends to unanimously recommend shareholders vote in favor. The scheme is anticipated to become effective in Q1 2027, with regulatory approvals expected to take 3-4 months, and a long stop date of March 31, 2027.

India's electricity demand continues to support renewable energy growth, with renewables contributing 86% of overall power capacity additions in Q1 FY27, totaling 14 GW (12 GW solar, 1 GW wind, 1 GW hydro). Peak demand reached approximately 271 GW in FY27, and overall electricity demand was up 11% year-on-year in July 2026. However, grid build-out remains a significant challenge, leading to temporary connectivity issues and curtailment, particularly in Rajasthan, which impacted the company's solar PLF. The company is advocating for compensation for these curtailments.

ReNew demonstrated strong execution, commissioning over 1 GW in FY27 year-to-date, including 600 MW in Q1, contributing to a 26% year-over-year growth in its operating portfolio. The C&I portfolio expanded to 2.9 GW, with 2.6 GW already commissioned across five states, and 330 MW commissioned year-to-date in the C&I segment. The company is strategically positioned to supply data centers, with hyperscalers like Amazon, Microsoft, and Google collectively accounting for around half of the contracted offtake in its C&I business. A LeapFrog-led consortium invested $95 million for an 11.3% stake in the C&I business.

The manufacturing business continued its profitable journey, reporting INR 16.4 billion in revenue from external sales of modules and cells and INR 5.7 billion in adjusted EBITDA (34% margin) in Q1 FY27. The external order book stands at approximately 1.1 GW. The 4 GW TOPCon cell plant is progressing well, with civil and PSV works in final stages and printing lines installed, aiming for full operation by the end of the current fiscal year. Additionally, an Indian wafer plant in Andhra Pradesh is expected to be commissioned in early calendar 2028.

ReNew maintains disciplined capital allocation, with net debt to trailing 12 months adjusted EBITDA for operational projects at 5.7x. The company is committed to reducing overall leverage through consistent capital recycling. This includes the recent sale of a 100 MW Tamil Nadu solar asset and definitive agreements signed for the sale of approximately 1 GW of assets, expected to generate $190 million in cash flow to equity. Days Sales Outstanding (DSO) for the IPP business improved significantly to 54 days by July end, down from 71 days in Q1 FY27, following a INR 5.7 billion payment from Andhra Pradesh DISCOM.

ReNew published its third annual integrated report, 'Beyond Boundaries,' highlighting significant sustainability achievements. The company reduced Scope 1 and 2 GHG emissions by 25.6% from a FY22 baseline, achieved an 84% renewable electricity mix, and maintained carbon neutrality for Scope 1 and 2 emissions for the sixth consecutive year. Socioeconomic programs have positively impacted over 1.95 million lives, and women represent 18% of the workforce and 15% of STEM roles. The company also expanded its emissions accountability to include downstream Scope 3 emissions and achieved 100% local sourcing of steel for wind tower plates.