ReNew Energy's Q1 2026: Navigating Contradictions in Bidding Strategy, Manufacturing Focus, and Solar Technology Shift

Bidding environment and project pipeline, manufacturing business and module sales, solar manufacturing and technology shift, manufacturing strategy and cell sales, bidding environment and competitive strategy are the key contradictions discussed in ReNew Energy's latest 2026Q1 earnings call.



Renewable Energy Capacity and PPAs:
- ReNew Energy Global Plc commissioned around 2.2 gigawatts of renewable energy capacity since July 2022, marking a 23% growth in their portfolio.
- The company signed PPAs for 3.7 gigawatts of installed renewable energy capacity, expecting returns towards the higher end of their targeted IRR range.
- This growth is driven by strategic investments in their manufacturing business and a focus on high-return projects.

Financial Performance and Manufacturing Contribution:
- ReNew reported an adjusted EBITDA of INR 27.2 billion for Q1 FY '26, a 43% year-over-year increase.
- The manufacturing division contributed INR 5.3 billion to adjusted EBITDA in Q1, with a revised FY '26 guidance ranging from INR 8 billion to INR 10 billion.
- The significant manufacturing contribution is attributed to the stabilized capacity and high utilization rates, along with cost advantages and strategic procurement.

ESG Commitments and Sustainability:
- ReNew successfully reduced their Scope 1 and 2 emissions by 18.2% from the FY '22 baseline, surpassing their 12.6% target.
- The company saved 540,372 cubic meters of water, achieving a 51% improvement in water savings.
- These achievements reflect ReNew's commitment to sustainability, driven by their integrated reporting and alignment with global reporting frameworks.

Bidding Environment and Project Execution:
- The bidding environment continues at a steady pace, with the government targeting 500 gigawatts of renewable energy capacity by 2030.
- ReNew maintains a disciplined approach to bidding, focusing on projects with high return profiles despite competition with lower return expectations.
- The company's approach is supported by a strong pipeline of projects, allowing them to be selective in capacity addition.