ReNew Energy Reports Strong Q1 FY26 Results, Net Profit Surges to INR 5,131 Million

What's Happening?

ReNew Energy Global Plc, a prominent decarbonization solutions provider, has announced a significant increase in its earnings for the quarter ending June 30, 2025. The company's net profit soared to INR 5,131 million (approximately US$ 60 million), a substantial rise from INR 394 million (US$ 5 million) in the same period the previous year. ReNew's total portfolio expanded to approximately 18.2 GW, including 1.1 GWh of Battery Energy Storage Systems (BESS), marking an increase from 15.6 GW a year earlier. The company operates 6.5 GW of solar module manufacturing and 2.5 GW of cell manufacturing capacity, with plans to construct an additional 4 GW cell facility. The commissioned capacity increased by 14.8% year-on-year to about 11.1 GW, net of 600 MW of asset sales in Q1 FY26. In July 2025, ReNew added another 50 MW to its capacity.

Why It's Important?

The financial performance of ReNew Energy highlights the growing momentum in the renewable energy sector, particularly in solar energy and battery storage solutions. The company's substantial profit increase and portfolio expansion reflect the rising demand for clean energy solutions and the strategic importance of decarbonization efforts. This development is crucial for the U.S. and global markets as it underscores the potential for renewable energy companies to drive economic growth and sustainability. Stakeholders in the energy sector, including investors and policymakers, may view ReNew's success as a positive indicator of the viability and profitability of renewable energy investments.

What's Next?

ReNew Energy has reaffirmed its FY26 guidance, projecting the addition of 1.6 to 2.4 GW of new capacity by the end of the fiscal year. The company anticipates Adjusted EBITDA of INR 87 to 93 billion and Cash Flow to Equity of INR 14 to 17 billion for FY26. The guidance includes expectations of INR 1 to 2 billion from asset sales as part of its capital recycling strategy. Additionally, external sales from module and cell manufacturing are expected to contribute INR 8 to 10 billion of Adjusted EBITDA. These projections indicate continued growth and expansion in ReNew's operations, potentially influencing market dynamics and investment strategies in the renewable energy sector.