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    How Investors May Respond To ReNew Energy Global (RNW) Strong Q3 Beat, Guidance Hike and Leadership Transition

    Simply Wall St·02/25/2026 22:28:58
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    • ReNew Energy Global plc recently reported third-quarter FY2026 results showing strong year-over-year growth in sales and revenue, a sharp reduction in net loss, and much higher earnings per share from continuing operations, while also announcing the planned departure of Executive Officer and Group President, Asset Management, Balram Mehta in 2026 with duties transitioning to Sivaprasad M.
    • Beyond the headline figures, ReNew’s earnings update highlighted broad-based gains from higher power sales and newly commissioned wind and solar capacity, alongside raised full-year adjusted EBITDA and cash flow guidance that underline improving operational efficiency and asset utilization.
    • We’ll now examine how this combination of stronger quarterly performance and upgraded full-year guidance may influence ReNew’s existing investment narrative.

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    ReNew Energy Global Investment Narrative Recap

    To own ReNew, you need to believe in India’s long-term shift toward cleaner power and ReNew’s ability to convert capacity additions and PPAs into consistently improving earnings and cash flows. The latest quarter supports that view with higher revenue and a sharply reduced net loss, while upgraded full year EBITDA and cash flow guidance strengthen the near term earnings catalyst. The planned transition of asset management leadership in 2026 does not appear to materially change that short term focus.

    The most relevant recent announcement here is the Q3 FY2026 earnings release, where revenue rose to ₹31,372.0 million and net loss narrowed to ₹198.0 million. These results, coupled with higher full year adjusted EBITDA and cash flow guidance, speak directly to the key catalyst of better asset utilization and financial efficiency, even as investors keep an eye on risks such as project execution bottlenecks and the sustainability of margin improvements.

    Yet behind the stronger guidance, investors should be aware that intensifying bidding competition and reliance on asset sales could still...

    Read the full narrative on ReNew Energy Global (it's free!)

    ReNew Energy Global's narrative projects ₹195.5 billion revenue and ₹15.7 billion earnings by 2028. This requires 20.0% yearly revenue growth and a roughly ₹7.0 billion earnings increase from ₹8.7 billion today.

    Uncover how ReNew Energy Global's forecasts yield a $7.95 fair value, a 43% upside to its current price.

    Exploring Other Perspectives

    RNW 1-Year Stock Price Chart
    RNW 1-Year Stock Price Chart

    Before this news, the most optimistic analysts were assuming revenue could reach about ₹207.4 billion and earnings about ₹22.2 billion by 2028, but if you worry that aggressive capacity growth might also mean higher leverage and more volatile cash flows, you may see this optimism very differently.

    Explore another fair value estimate on ReNew Energy Global - why the stock might be worth just $7.95!

    Reach Your Own Conclusion

    Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.

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    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.