ReNew combines India’s renewable scale, 25-year contracted cash flows, and manufacturing integration with high leverage, making the US$7.02 CPPIB buyout the near-term risk-adjusted anchor.
Overview
ReNew Energy Global is a leading Indian renewable IPP with a dual model spanning contracted electricity generation and vertically integrated solar manufacturing. Operating capacity reached 13.5 GW across 11 states, 2.7x the level at its 2021 Nasdaq listing, while its committed portfolio is 20.5 GW and includes 1.7 GW/6.2 GWh of storage. **Contracted 25-year PPAs and internal module production provide unusually strong revenue visibility and supply security**, although manufacturing introduces cyclicality and margin risk. Q1 FY27 total income rose 16.2% year over year to INR47,864 million, Adjusted EBITDA increased 11.7% to INR30,392 million at a 66.1% margin, and PAT rose 16% to INR5,953 million. The IPP segment achieved an 86% EBITDA margin, but external manufacturing margin fell from 40% to 34%. Leverage remains the central weakness: net debt was INR671 billion and operational net debt/EBITDA was 5.7x. **The proposed CPPIB-led take-private at US$7.02 per share is the dominant near-term catalyst**, versus a US$6.81 share price, with completion subject to approvals by March 31, 2027.