ReNew Energy Global (NasdaqGS:RNW) Returns To Quarterly Loss And Tests Bullish Profitability Narrative

ReNew Energy Global (NasdaqGS:RNW) just posted Q3 2026 results with revenue of ₹25.1b and a small net loss of ₹198m, translating to basic EPS of ₹0.54 loss, setting a very different tone from the profits seen earlier in the year. The company has seen quarterly revenue move from ₹18.5b in Q3 2025 to ₹29.0b in Q4 2025, then to ₹39.0b in Q1 2026 and ₹36.3b in Q2 2026, with EPS swinging from a ₹10.70 loss in Q3 2025 to positive ₹6.91, ₹14.14 and ₹12.87 across those subsequent quarters before dipping back into the red this quarter. This leaves investors to weigh improving trailing net margins against the latest setback in profitability.

See our full analysis for ReNew Energy Global.

With the headline numbers on the table, the next step is to see how this mix of quarterly volatility and stronger trailing margins lines up with the dominant bullish and bearish narratives around ReNew’s long term earnings power.

See what the community is saying about ReNew Energy Global

TTM profits heavily helped by ₹3.9b one off gain

• On a trailing 12 month basis, ReNew earned ₹12.1b of net income with a 9.4% net margin, compared with a 1.5% margin a year earlier, and that period includes a single ₹3.9b gain that had a big effect on those results.
• What stands out for the bullish narrative is that this very large swing in earnings, with reported growth of more than 7x over the past year, comes partly from that one off gain, while bullish expectations lean on ongoing factors like higher margin manufacturing and cost optimisation rather than non recurring boosts.
  • Bulls point to manufacturing ramp up and efficiency as long term earnings drivers, yet the current 9.4% margin is not purely operational because of the ₹3.9b item.
  • So if you are leaning bullish, the key question is how much of that more than 7x earnings jump can be repeated once the one off benefit drops out of the numbers.

ReNew’s recent profit surge looks impressive on paper, and bulls argue it confirms their thesis, but the ₹3.9b one off gain makes it important to separate repeatable earnings from one time boosts before you lean too hard into the optimistic case. 🐂 ReNew Energy Global Bull Case

Forecast earnings decline contrasts with strong recent growth

• Earnings growth over the past year was very strong at more than 7x, yet analysts are currently expecting earnings to fall by about 32.4% per year on average over the next three years even as revenue is forecast to rise about 13.4% per year.
• Bears highlight this gap between past and expected earnings, arguing that pressures like competitive bidding and higher financing costs could make it hard to turn that forecast revenue growth into sustained profit growth.
  • The weak interest coverage flagged in the risk summary lines up with the concern that higher debt costs could weigh on future net income even if revenue keeps expanding.
  • The ₹3.9b one off gain also supports the cautious view, because it means a meaningful part of the recent earnings strength does not automatically carry into those future years analysts are modelling.

Sceptical investors look at the very strong trailing earnings growth, the planned revenue growth of about 13.4% a year, and the forecast earnings declines, and see a story where higher costs and one offs could leave future profitability looking very different to the last 12 months. 🐻 ReNew Energy Global Bear Case

P/E of 14.6x sits below peers despite strong TTM margin

• ReNew is trading on a trailing P/E of 14.6x while the peer group average is 50.3x and the global renewable energy industry sits around 16.3x, and this is based on that 9.4% trailing net margin and ₹12.1b of net income that include the ₹3.9b one time gain.
• Consensus narrative supporters often point to the combination of this lower P/E and diversified growth drivers, but the numbers also show that part of the apparent value comes from earnings that are boosted by a non recurring item and from analyst targets that still assume revenue and margin expansion from today’s base.
  • The consensus target price, converted here using the current share price of US$5.35 against a reference target of US$7.66, implies material upside only if earnings keep progressing from the current ₹8.7b level analysts reference.
  • At the same time, the P/E gap to peers is being measured off trailing earnings that include the ₹3.9b gain, so if profits normalise without that item, the valuation gap may not look as wide on a purely underlying basis.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for ReNew Energy Global on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

If this mix of bullish and bearish signals feels finely balanced, now is the moment to check the underlying data and decide where you stand. To help frame that view, take a look at the 4 key rewards and 3 important warning signs so you can weigh both the concerns and the potential upsides for yourself.

See What Else Is Out There

ReNew’s story combines a recent quarterly loss, weak interest coverage and one-off boosted earnings, which raises questions about the resilience of its balance sheet.

If you want more comfort around debt and cash strength, check out our solid balance sheet and fundamentals stocks screener (44 results) today so you can compare alternatives built on sturdier foundations.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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